Is Your Business Opportunity Program Legal?
by Tim Fulcher
Introduction To Business Opportunity Programs
Business Opportunity Programs have always been very popular with many people.
They offer the ordinary person the chance to make money from home without the
usual costs of setting up in business.
“
Many people down through the years, that business opportunity programs have been
around, have lost money - sometimes all their life savings.
”
There is usually very little if any stock to buy, no overheads much to speak of,
no investment in publicity materials etc. - all these services are provided free
by the program owners. Typically an online opportunity program will provide
participants with banners, text ads, email ads, ezine ads etc. - even a full
website, all completely free.
The only cost involved is a small monthly membership fee - although even this
can be avoided until you get used to the program, as many programs will allow
you to join for free.
Do These Programs Really Work?
The honest answer in brief is - some do: many don't! The first question to
consider is whether the program is in fact legal.
Many people down through the years, that business opportunity programs have been
around, have lost money - sometimes all their life savings. For this reason most
governments in western countries have passed laws to outlaw most of the worst
kind of these schemes, often referred to as "Ponzi" schemes.
However the law is often openly ignored by many of the people running these
business opportunity programs. Perhaps they did not take appropriate legal
advise before starting the program, perhaps they were unaware that what they
were doing was illegal - or maybe they just didn't care. For some people as long
as they are making money, they don’t care that other people are losing money!
However the critical point to grasp is that "ignorance of the law is not an
excuse", and any one that promotes a trading scheme, as an affiliate, is just as
guilty as the people that run the scheme. In general you should always do your
homework on the business in question as most of these type of businesses will
not survive very long.
A Pyramid Matrix
A pyramid matrix simply means an arrangement where the number of people in each
level of the pyramid gets bigger the further you go down. Generally the number
of members will increase by a set multiplier e.g. you start with 5 people, each
of these people refers 5 people, so on the second level or tier there are 25
people, being 5 X 5. As you go down each level of the matrix you multiply the
members by 5 each time. So the next level will be 25 X 5 members which is 125.
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