Do you believe in karma? That old idea that there is a sense of justice and balance in the universe which ensures that whatever you dish out, good or bad, comes back to you?
If you do, here’s a warning: Joe’s Book of Karma states, “It doesn’t work with cash gifting schemes.”
What is Cash Gifting?
Cash gifting, or leveraging programs, are supposed to work like this: you pay a fee to join the club. You give cash “gifts” to those at the highest levels of the club. You recruit enough people so that you become one of those high level members and then rake in the cash gifts that the low-level flunkies give you.
Can you imagine anything dumber? Think of it on the playground. The bully, Randy, charges every kid his lunch money to join the special Randy Club. As members, they get the privilege of giving Randy not only their lunch money, but their allowance, too.
Cash gifting is an old idea dressed up in new clothes for the Web. Remember those chain letters from back in the snail mail days? Send $1 to the person at the top of this list, then copy the list, remove that person, add your name to the bottom, and send this letter to 10 friends. In six months, you’ll get $10,000 in the mail. Then it moved to e-mail and PayPal. Now it’s Web based.
Cash Gifting Programs Are Illegal
You’ll find lots of Web sites and forum discussions that say they aren’t. But they claim they are legal because the IRS allows gifts. Well, duh! That’s not the issue. They have been deemed illegal pyramids because there is no product for an end user. There is only money flowing upward so the last sop to join has no chance of getting his money back.
Don’t take my word for it. Trust the Federal Trade Commission:
In reality, the clubs are illegal pyramid schemes. New club members give cash “gifts” to the highest-ranking club members, with titles such as “captains.” And they’re promised that if they get additional members to join the club, they, too, will rise to become captains and receive money – far more than they initially paid to join the club — from newer club “friends.”
Or trust the Attorney General for the state of Michigan:
Cash gifting schemes are the quintessential example of a pyramid scheme. Instead of selling products, cash gifting schemes forego the sale of products and just give people cash, but the premise is the same — like other pyramids, cash gifting schemes are based on the amount of people recruited.
Cash Gifting Web Sites to Avoid
epicwealthsystems.com, cashgiftingprograms.org, 6figurewealth.com, wealthsupersystem.com, secretsofgifting.com. In fact, if you Google Epic Wealth Systems, you’ll find hundreds of pages that look pretty much the same except for the name and picture of the owner at the bottom. That should give you pause.
If you were thinking about joining epicwealthsystems or other cash gifting program, I’m sorry to disappoint you. But if it will make you feel better, I will accept your cash gift. That’s right. Out of the goodness of my heart, you may pay the membership fee or your lunch money directly to me via PayPal: steve[at]ivetriedthat[dot]com. No need to thank me.