Why Making Money Online and Online Business are NOT the Same Thing!
I hope you are keeping well! 🙂
You may have noticed that I haven’t quite managed to get back into my blogging stride after my lengthy absence. Fear not, I WILL get back into a proper routine and will soon be back to my regularly scheduled blogging!
So, without further ado….
For this post, I wanted to cover something extremely important and something that I have noticed is affecting an awful lot of people. I’ll start by telling you a couple of little stories and I’d love for you really pay really close attention to these, as you may well identify with one or more of the characters.
Later on, we’ll go on to analyse them in a very important way:
The Story of Jack
Jack is someone who has always liked the idea of working for himself but has never really known how to go about doing it.
Just think – being his own boss, not having to worry about money, being free to do what he wants, when he wants, how he wants. That’s the dream, right?
So Jack searches around to find out how he can go about doing this. It is while doing so that he comes across Brian. Brian doesn’t have a boss. He makes money for himself. Brian explains to Jack that he is able to make thousands of dollars very quickly, with very little effort and with very little investment.
Naturally, Jack is intrigued!
Brian goes onto explain that he can coach Jack how to do this. Jack will have to pay Brian a fee out of his initial earnings but after that he will get to keep his subsequent earnings for himself.
“Sounds like a win-win!” thinks Jack.
So, he decides to pay Brian to show him how all this works and, true to his word, Brian shows him.
Sure enough, Jack makes a few thousand dollars straight out of the gate and is thrilled with his results!
All this sounds wonderful, right? Well, we’ll come back to Jack’s story a little later on.
The Story of Alison
Alison is someone who has always liked the idea of working for herself but has never really known how to go about doing it.
Just think – being her own boss, not having to worry about money, being free to do what she wants, when she wants, how she wants. That’s the dream, right?
So Alison searches around to find out how she can go about doing this. It is while doing so that she comes across Gloria. Gloria doesn’t have a boss. She makes money for herself online. Gloria explains to Alison that she is able to make thousands of dollars very quickly, with very little effort and with very little investment. Not only that, but Gloria explains that she will teach Alison how to show others to do exactly the same thing and pay her for doing so.
Naturally, Alison is intrigued!
So she pays Gloria to teach her and, sure enough Alison finds that she makes thousands of dollars with this method and is over the moon with her results!
All this sounds wonderful, right? Well, we will come back to Alison’s story a little later on.
What Happened to Jack
When we left Jack, he had found a way to make thousands of dollars very quickly and he was very pleased with his newly-found wealth.
That was until the Police picked him up for bank robbery.
Jack is now serving his time in jail.
What Happened to Alison
When we left Alison, she had learned how to recruit others into doing the same thing that Gloria had taught her and she had made thousands of dollars doing this.
That was until the FTC closed down the pyramid scheme that she was involved in and PayPal had closed down her account.
Alison is now stuck without a PayPal account and most of the people she recruited have been left out of pocket with no hope of getting their money back.
Jack was a very silly boy indeed, was he not?
Sure, Brian delivered on his promise and showed Jack how to make money quickly using his ‘method’. But it was illegal, unethical and short-sighted.
Jack paid for his mistake in a very costly way.
The Moral of Alison’s Story
Alison’s situation was a little different than Jack’s. Jack knew that he was robbing a bank and he knew that it was wrong. But the difference in Alison’s case is that she couldn’t see how she was doing anything wrong. So far as she was concerned, she had found a way to make money online, was doing so and everything was fine and dandy.
The thing is, Alison hadn’t done her due diligence to ascertain whether the method was ethical and legal.
And now, Alison has found herself not only back to square one, but in a position that is more difficult to move forwards from than she was at before.
The point of all of this is to do with something that I am seeing a LOT of people falling for, and that is getting involved with various types of pyramid and/or cash-gifting schemes.
Sure, they may be presented in an attractive, convincing way, under the guise of being an ‘online business’, but in reality they are nothing more than unsustainable and, probably illegal, schemes that mostly benefit the owners and, to a point, people who get in early enough.
Now, I’ve spoken about these sorts of things before and I’m not going to labor the point here. Suffice it to say, if an ‘opportunity’ relies on the recruitment of others to make its money then it is unsustainable, plain and simple, whether that be the recruitment of others to sell access to the same opportunity, or to sell products only to existing members.
If an opportunity doesn’t have a retail component and it relies on the recruitment of others, it is not only unsustainable but it is also likely to be illegal in most parts of the world.
Aha – now here’s the crunch question and it’s one that I’m sure that many people who are involved with these things come back with themselves.
Well, yes, it does matter. It matters a lot.
Firstly, consider this:
Just because you CAN do something, doesn’t mean that you SHOULD.
Think of the example of Jack. Yes, you CAN make money very quickly robbing banks. But does that mean that you SHOULD? No, of course not. It’s unlawful, it’s unethical and it hurts other people, especially if things get violent.
If you’re a kind, law-abiding, decent person, you would never consider robbing a bank, mugging someone or burgling a house. Yes, you can make a lot of money doing it. But that doesn’t make it right.
It is wrong and it most certainly isn’t a business!
Now, I’m not suggesting that anyone is currently robbing banks or even considering it. The analogy might even seem a little extreme. So why bring it up?
Well, let’s think for a moment about pyramid schemes.
I hear the same old rationale all the time regarding these things:
“It’s working, I’m making money online!”
“People doing this are generating thousands!”
“I know it’s not a long-term thing, but I can make some quick money in the short term and then reinvest it into properly building my business. I can use the short-term profits to pay for traffic!”
Now, I do get why people think this way. Starting any kind of business, online or otherwise, isn’t a walk in the park. Comparatively few businesses get off the ground, let alone go onto have any prolonged success.
Add to that the number of scammers, products that don’t deliver, unsupported products, incomplete training, etc. and it’s understandable why people get frustrated, disillusioned and even desperate.
So, when something comes along that really does appear to be working and, when someone joins, they find that this is actually the case, it’s easy to see how they can get excited by this.
But let’s take those statements above and apply them to robbing a bank. Robbing a bank can make you money. Robbing a bank can make thousands for those doing it. You can reinvest the money you get into building a proper business.
But it’s illegal and it isn’t right.
What about the example of Alison above?
Recruiting others into an ‘opportunity’ that shows them how to recruit others into doing exactly the same thing can make you money. This model can make thousands for those doing it. You can reinvest the money you make into building a proper business.
But it’s (likely) illegal and it isn’t right.
Think about it:
When something is unsustainable, has a mathematical certainty of failure and operating in a way that is likely illegal, does it really matter how well it’s working? Does it really matter how much money you or others are making with it?
What happens when the thing fails or gets shut down? What happens to those who invested at the last moment? Are YOU going to pay those people you recruited their hundreds or thousands back?
Look, I’m not saying there’s anything necessarily wrong with a pyramid-shaped business model or that MLM opportunities are inherently bad. But when something 1) has no retail component and 2) relies on the recruitment of others to make money, common sense should tell you that it can NOT succeed.
It is most certainly not a business.
To be honest, it actually makes me almost feel physically sick when I see the serial ‘pyramid scheme hoppers’ gleefully boasting on video about how successful the latest ‘business’ (i.e. pyramid scheme) is and how you can add it to your portfolio of ‘businesses’ for further success.
What absolute twaddle.
These people have the completely wrong idea about business, about ethics, about legality and about what constitutes real success. And I haven’t even mentioned the questionable (to say the least) and sometimes even criminal background of many of the owners of these ‘opportunities’, nor the dodgy shenanigans that some of their recruiters get up to so as to game the system.
I know that I’m hitting hard with this, but I can’t bear seeing people fall for this nonsense.
I’m seeing people who have made the right decisions, have started out well and have been making huge strides in building an online business the right way go on to get suckered in by these schemes and get sidetracked. Sure, they may be making some money right now, but how long will it last? And is it actually ethical and legal?
While they may indeed be making money online for the moment, the long-term damage that can be done by pursuing this route is something that they just don’t seem to fathom.
It actually seems like an addiction for some. When presented with the facts behind these things, the blinkers go on and they go into full-on denial, refusing to even consider the possibility that they have been duped.
If you are considering joining something that looks like it could be a pyramid or cash-gifting scheme, ask yourself these very important questions:
- What is the opportunity selling? If there is no retail component and the success of the opportunity is dependent on the recruitment of others to do exactly the same thing, then it is unsustainable and most likely illegal.
- To whom is it selling? This is something that many of these so-called businesses try to trick you with. They may claim to have a “suite of products” or suchlike that you will sell to make money. However, what they don’t tell you is that the products aren’t available to sell to anyone who is not inside the opportunity. Thus, the same principle applies as point number 1 – there is no retail component, the success relies on the recruitment of others and it is therefore unsustainable.
- How is it paying? If you are to receive your ‘commissions’ directly from the person you recruited, run away and run far and fast! Receiving direct payments from your downline is not a good idea and if done by PayPal then don’t be surprised if you wake up one morning to find that your account has been shut down.
So please, if you are wanting to make money online, watch out for these schemes. Not everything online is a scam and there are some genuine, legitimate online business opportunities out there.
It’s at this point with these kinds of posts that you’re very often hit with a “Check out what I’m offering…” kind of message.
Well, not today.
Sure, I know of some excellent products, marketers, coaches and opportunities. And I could give you a link to something that I know is truly valuable. But the point of this post isn’t to leverage the bad so that I can contrast the good. It is to provide a well-intended warning against a lot of the scams that are doing the rounds at the moment.
If you want some help or advice about how to move forwards from where you’re at right now or even how to get started, please feel free to reach out to me and ask. This is not so that I can sell you anything and if we do connect, I will not promote anything to you at all.
If you want to ask for my recommendations then I will by all means do that, but if you reach out to me for help then help is what I will offer and not any kind of sales pitch.
If you really are stuck then let me help. Please, don’t be the moth that gets attracted to the bright light of unrealistic promises of riches.
You will end up getting burned.
If you found this post of value then please be sure to share it so that others may benefit.
Also, I’d love for you to leave your thoughts, so please leave a comment below. 🙂