How to Spot a Scam...

The last thing you want to do is start with a business and lose money. 

Most of us have lost money online in one
business or another.. I remember the first
online business I was shown... (My first 
online experience)  It didn't take long
before I realized that I was never going to
see a cent back.  The biggest problem for
myself at the time and people starting out
is that it's sometimes difficult to sift through
all the businesses and know what company you can trust...

Losing money online is NOT a good feeling and something that I know I will never do
again.   You see, as you gain experience in this industry you start to identify what 
programs are highly risky and what ones make sense. Today we are going to discuss
ways you can avoid these risky types of businesses and how to find ones that are 
worth your time .The KEY is to understand and identify what makes a business simply a 
Ponzi/pyramid  scheme. Pyramid schemes are  the fastest way to lose money online so
learning how do we quickly identify them is crutial

Although I am sure there are multiple 
definitions of this.. In my opinion, its the
simple fact that earnings, and in turn 
withdrawals are paid out with new 
members' deposits. When people stop
joining, the deposits slow or stop. 
Withdrawals stop being paid due to lack of
new income and inevitably the program
collapses leaving everyone new to the
program stuck without a chance of ever
recovering their money. It all starts with
the business claiming they are something
that they are not with very little or NO 
external income. Simply collecting deposits
from new "investors" and paying existing
members with it.  

So how do we protect ourselves...? What do we look out for? 

Step 1: Identify their product
Any business that we are involving ourselves in MUST have a real product. 
This is FUNDIMENTAL
Not just some NEW online advertising product. Not the best NEW App that is going to 
revolutionize the world... Not the next social network that is going to be bigger then 
facebook... Sure, who am I to say that they won't exceed all expectations... Perhaps they
will be the biggest thing since sliced bread but I think most people will agree you are 
being asked to "invest" in a concept that hasn't yet`proven itself and that makes it very 
risky... While sometimes these concepts will offer a great opportunity, in most cases.... Its
simply great marketing without real substance. I am sure many of you have seen all of 
this before...

Step 2: What are you paying for? The next question is what are we paying for...?  Many businesses will
give you options when starting in the
form of packages or starting levels.
When purchasing your package, you 
must determine the TRUE value of your purchase. There are many businesses that are completely  
legitimate that offer starting packages
so it can sometimes be a blurred line 
between what represents value and 
what doesn't. The Value of your 
purchase may come in the form of 
phisical goods,...

...education or even opportunity ( affiliate franchise) but it must have value.. 
Something that is worth the money you are spending. If your package or account
funding is simply a cost of "getting in" and/or tiered so that the higher the deposit the
higher percentage return... Be very wary of that.  

Step3: Method of payment
The method of payment can also be a strong indicator. We want to be able to pay 
directly with your credit card. A business that allows you to pay DIRECTLY with your card
can indicate compliance with their business model. Often (not all) companies use 
payment processors to separate themselves from the purchase and in turn the legality,
refunds etc associated with selling any "product" online. If you think about almost all 
online shopping, you can almost always pay directly using your Credit Card. It is no 
different when starting an online business... If they have a REAL product to sell then you 
should be able to use your card to purchase. This also offers better buyer protection 

Step 4: Where does the money come from?
I know that it is easy to get caught up in the hype... The
excitement of the potential earnings, but by simply taking
a step back and asking where does the money come
from.. You will save yourself a lot of problems... 
No doubt the business will have a very believable answer
to that question... So... Further investigation into their 
income may be necessary. If they are in fact earning this
money as they say they are... From an external source...
The question remains Why are they sharing it with you?
And why do they give You a higher rate of return if you 
spend more money with them? Consider this when 
making your decision. (Where does the money come from?)

I am NOT trying to discount all online businesses... Quite the opposite..

I have been involved with my fair share of 
online businesses and there is a lot of 
money to be made. The important thing is 
that YOU choose the correct one!  
I don't agree with the term...

"If it sounds to good to be true it probably is"
 
I have made an enormous amount of money in
 businesses that would fit that description. 
The opportunity is GREAT but I will repeat 
myself... You MUST choose the correct 
business.

Stable business Check list

- Viable product
- Legitimate income source
- Money back guarantee
- Credit card facilities
- Physical addresses and phone number

When joining a business ask yourself, Is it CLEAR where this income is generated?
It's one thing to receive affiliate commissions.  Being paid a commission for bringing extra
business to the company is a completely legitimate income source... Many large well 
known businesses do this. Creating an incentive to share their business with other people
is a great way to grow... I received an email recently from a leading Bank in Canada 
offering $50 for any person that I introduced and created a new savings account... It's a 
viable way to expand, even big banks are doing it however...If you are promised an 
income  for doing very little or nothing at all , you should be asking HOW the 
passive income is achieved.  Without a viable external income source, take the time to
think... How is this possible? 
Find good stable businesses online, and you will succeed. Compliant companies with real
products and real income streams exist. They may take a little more time to grow your
income, but this is far better than involving yourself in the empty promises out there...
There are legitimate ways to earn an income from the internet... You just have to
search them out.


To your success

Luke Millard

For my business pick, Click Here