20 {{ upvoteCount | shortNum }}
20 {{ upvoteCount | shortNum }}

Here's why Cash Gifting is a bad Idea.....

by Mohammad Afaq
16 replies
If you don't know what cash gifting is, it's a form of a pyramid scheme which involves the lowest ranked members of the club paying to the high ranked members and the low ranked members are promised that they too will receive cash gifts just like the ones they gave away as the club grows. You can read more at: Pyramid scheme - Wikipedia, the free encyclopedia

In the past month I came across a couple of newbies who seemed to be interested in "Cash Gifting" and thought it's a great idea.

Now I told them it's nowhere close to a great idea and they should forget about it but a couple of them seemed to wanna jump through the screen and slap me on my face so I went to the good ole' google and started doing my research.

After about 20 minutes of constant searching and forcing myself to NOT sign up for the cash gifting sites (man these videos and testimonials look tasty) I found this article on the FTC website and it clearly lists cash gifting as illegal.

Here, have a read: The Gifting Club "Gotcha"

Now I know FTC website doesn't specify that they are talking about online cash gifting schemes but if it's illegal in the real world, then I am pretty sure it's illegal in the virtual world.

So to all the people out here wanting to try cash gifting, please do yourself a favor and don't.

Hope it helped.

--
Mohammad Afaq
#bad #cash #gifting #idea
  • Profile picture of the author Dennis Gaskill
    Originally Posted by Mohammad Afaq View Post

    Now I know FTC website doesn't specify that they are talking about online cash gifting schemes but if it's illegal in the real world, then I am pretty sure it's illegal in the virtual world.
    I'm pretty sure you're right. Thanks for helping make people aware of this.
    Signature

    Just when you think you've got it all figured out, someone changes the rules.

    {{ DiscussionBoard.errors[3044082].message }}
  • Profile picture of the author Alfred Shelver
    You are Just jealous that others get cash gifts and you only get cash for work. LOL

    I remeber that this topic was a huge talking point in a few threads a while ago, and there were some strong feelings on both sides.

    The economic fact about cash gifting is that someone has to lose money, and that should be a big enough deterent for anyone, but many do not care about the consequences for others as long as they get rich quickly.

    On the other hand Mohammad if you would like to give me a gift of a cash amount I will graciously except
    Signature
    Best $10 Articles on Warrior Forum Guaranteed
    {{ DiscussionBoard.errors[3044104].message }}
  • Profile picture of the author Rich Struck
    I really wish they would start locking up people who promote cash gifting but then again if you are stupid enough to send money to these scammers then you deserve to lose it.
    Signature

    {{ DiscussionBoard.errors[3044125].message }}
    • Profile picture of the author Mohammad Afaq
      WOW!!!! This guy is in doing this in front of the camera:



      And I wondered why newbies get attracted to this kind of stuff.

      BS is what I say.
      Signature

      “The first draft of anything is shit.” ~Ernest Hemingway

      {{ DiscussionBoard.errors[3044143].message }}
    • Profile picture of the author Mohammad Afaq
      Originally Posted by Rich Struck View Post

      I really wish they would start locking up people who promote cash gifting but then again if you are stupid enough to send money to these scammers then you deserve to lose it.
      I am with you on this one. I wasted over a year on these kinds of schemes.

      I was 14 when I started with IM and I still remember my younger brother making fun of me on my 15th birthday when I received a grand total of $0.02 in my Paypal account which was supposed to be $20,000. I worked one full year at this website clicking ads, downloading software, filling out surveys and what not.

      Turns out this guy paid me in Zimbabwe Dollars. Now I am pretty sure Zimbabwean government stopped making Zimbabwe Dollars around 2000 but what could I do?

      That was one birthday I would always remember

      But it's good now as I am doing full-time online and now I make fun of my brother everyday when I drop him off to work at Subway
      Signature

      “The first draft of anything is shit.” ~Ernest Hemingway

      {{ DiscussionBoard.errors[3044157].message }}
      • Profile picture of the author Alfred Shelver
        Is that how you can have such an outragoues signature claim of $13 000 form clickbank.... Its Zimbabwe dollars? LOL kiddding. Zimbabwe has no currency at the moment they use the US dollar.




        Originally Posted by Mohammad Afaq View Post

        Turns out this guy paid me in Zimbabwe Dollars. Now I am pretty sure Zimbabwean government stopped making Zimbabwe Dollars around 2000 but what could I do?
        Signature
        Best $10 Articles on Warrior Forum Guaranteed
        {{ DiscussionBoard.errors[3044514].message }}
        • Profile picture of the author Alexa Smith
          Banned
          They do actually lock up some people for cash gifting.

          Understandably, they tend to go after the "biggest promoters".

          A lot of the participants are just naive and ill-informed: they don't stop to think about who's going to end up losing the money they're making. Some do think but don't care.

          Some idiots are even ill-informed enough to try to justify what they're doing, legally, on the grounds that giving a cash gift in itself isn't illegal. True, as far as it goes, but it's the "in itself" that's the problem. Soliciting a cash gift from someone whose intention is to make a profit by subsequently soliciting cash gifts from third parties (the definition of a cash-gifting scheme) is very illegal! Participants may not think so, but regulators, lawyers, courts and judges certainly do!
          {{ DiscussionBoard.errors[3044557].message }}
        • Profile picture of the author Mohammad Afaq
          Originally Posted by Cathy Shelver View Post

          Is that how you can have such an outragoues signature claim of $13 000 form clickbank.... Its Zimbabwe dollars? LOL kiddding. Zimbabwe has no currency at the moment they use the US dollar.


          Well you can only buy 3 eggs for 100 billion Zimbabwean dollars and I remember myself buying a car with my clickbank check so I doubt it's that.

          I will actually consider doing that for my next product that will show you how to be a billionaire
          Signature

          “The first draft of anything is shit.” ~Ernest Hemingway

          {{ DiscussionBoard.errors[3045383].message }}
  • Profile picture of the author Marc Rodill
    Hey Mohammad! How you been? Don't forget that when you are trying to persuade someone to do or not do something, you can't tell them directly. They'll just think you are trying to sneak in and "steal their mojo" or one-up them or something... you gotta be subtle. "Hey, he's just gonna take my idea!" and they want it more.

    Use implicit communication and tell stories about people who got ripped off. Even your story.

    Either way, might not work. Still, that's not your problem. Some people gotta learn for themselves, ya know?
    Signature
    Long Lost Warriors! The Secret Sales System! Act Now! Buy Now! Right Now!
    {{ DiscussionBoard.errors[3044551].message }}
  • Profile picture of the author Thomas Michal
    But the letter I got said it was seen on Oprah, so this one is legit right?
    {{ DiscussionBoard.errors[3045979].message }}
  • Profile picture of the author shamabamma
    The thing about cash gifting is that it's unsustainable.

    The money contributed by an incoming member goes to the top of the pyramid immediately, while the penniless member sits at the base of the pyramid until enough other members join to completely pay off the member at the top and move everyone else up a notch. Once a member is paid off, he or she is free to move on, but for a club to keep working, the money given to that member will have to be replaced from somewhere.


    If, for example, the promised payout of a cash gifting club is $20,000, and the gift required is $2,500, only eight new members must be recruited to pay off one old member.


    But what happens when a club reaches 100 members? If each of them is to get the full $20,000, for a total of $2,000,000, then 800 people must join. If each of them is to be paid, 6,400 must join. With each new level, the numbers grow more unrealistic.
    For this example club, with its relatively low gifting and payout levels of $2,500 and $20,000, to continue for only two cycles after it gets its 100th member, 51,200 members must join.


    Unfortunately people are sometimes just too blinded by money to do a little research
    {{ DiscussionBoard.errors[3046013].message }}
    • Profile picture of the author Mohammad Afaq
      Originally Posted by shamabamma View Post

      The thing about cash gifting is that it's unsustainable.

      The money contributed by an incoming member goes to the top of the pyramid immediately, while the penniless member sits at the base of the pyramid until enough other members join to completely pay off the member at the top and move everyone else up a notch. Once a member is paid off, he or she is free to move on, but for a club to keep working, the money given to that member will have to be replaced from somewhere.


      If, for example, the promised payout of a cash gifting club is $20,000, and the gift required is $2,500, only eight new members must be recruited to pay off one old member.


      But what happens when a club reaches 100 members? If each of them is to get the full $20,000, for a total of $2,000,000, then 800 people must join. If each of them is to be paid, 6,400 must join. With each new level, the numbers grow more unrealistic.
      For this example club, with its relatively low gifting and payout levels of $2,500 and $20,000, to continue for only two cycles after it gets its 100th member, 51,200 members must join.

      Unfortunately people are sometimes just too blinded by money to do a little research
      Wonder why FTC thinks it's wrong?

      And if I were you I would write this sentence like this:

      The thing about cash gifting is that it's unsustainable and illegal.
      Signature

      “The first draft of anything is shit.” ~Ernest Hemingway

      {{ DiscussionBoard.errors[3046971].message }}
      • Profile picture of the author Dan C. Rinnert
        Originally Posted by Mohammad Afaq View Post

        And if I were you I would write this sentence like this:

        The thing about cash gifting is that it's unsustainable and illegal.
        If it's not sustainable, does it really matter that it's also illegal?

        That is, if the goal is making money, and a scheme does not make money, the legality of it doesn't matter at that point because you're not going to want to do it whether it's legal or not.

        Mind you, I'm not arguing that it should be legal, only that it's legality is a moot point to someone who wants to make money, considering the scheme is not sustainable.
        Signature

        Dan's content is irregularly read by handfuls of people. Join the elite few by reading his blog: dcrBlogs.com, following him on Twitter: dcrTweets.com or reading his fiction: dcrWrites.com but NOT by Clicking Here!

        Dan also writes content for hire, but you can't afford him anyway.
        {{ DiscussionBoard.errors[3047182].message }}
        • Profile picture of the author chris916
          Just like all pyramids, it is great to be on top, but everyone else gets screwed. Definitely stay away.
          {{ DiscussionBoard.errors[3047199].message }}
  • Profile picture of the author Dan C. Rinnert
    Cash gifting only works out well if you have a lot of rich friends.

    Just ask Bernie Madoff.
    Signature

    Dan's content is irregularly read by handfuls of people. Join the elite few by reading his blog: dcrBlogs.com, following him on Twitter: dcrTweets.com or reading his fiction: dcrWrites.com but NOT by Clicking Here!

    Dan also writes content for hire, but you can't afford him anyway.
    {{ DiscussionBoard.errors[3046300].message }}
  • Profile picture of the author Michael Oksa
    There are no "sides" to cash gifting. It's illegal, and immoral. Period.

    All the best,
    Michael
    Signature

    "Ich bin en fuego!"
    {{ DiscussionBoard.errors[3046306].message }}

Trending Topics