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How To Tell If A Business Opportunity Is A Scam

by Hugh Simpson
In my previous columns I    for an Internet Mall
emphasized the              program I saw, then your
importance of finding       next step is to learn
the right network           more.
marketing program for       
you as well as to be        When investigating an
wary of the numerous        opportunity, you look to
scams around. Today,        evaluate the
I'll delve further into     products/services, the
how you verify that a       presentation of the
company is legitimate.      information, the
First off, when you         compensation structure
review the headlines for    as well as the support
many of the                 system. To review these
opportunities on the        principles I'll use my
Internet you should         own research example of
become skeptical of         the Internet Mall
those which are             program I mentioned
unrealistic. Headlines      above. After signing up
that scream HYPE like:      for the program I
"Earn $5,555 on a $5        received my first
Investment in 30 Days!"     "Welcome Email" from the
or "I Will Make You A       President. I explored
Billionaire!" or "I         their site, which I
Cycled in 20 Minutes        admit was very nicely
Earning $2,000!" are all    done. They offered me
red flags. If an ad         discounts for buying
sounds interesting and      from
do-able, as a recent ad


companies like Wal-Mart,    encouraging me every day
Office Depot, K-Mart,       to see how many people
and hundreds of other       had signed up under me
"bricks and clicks"         who had also decided to
companies. Also they had    take the next step and
a benefits package if I     become VIPs. To keep the
decided to become a VIP,    pressure on me they gave
which included discounts    me only 30 days to make
on prescriptions,           a decision to also
hotels, cruises,            become a VIP and have
eyeglasses, etc. So far     the other VIPs under me.
the company's               Therefore, 15 days into
presentation and            the 30-day period I
follow-up looked good.      decided to check my
Next, I moved on to         downline. Well I had 415
evaluate the                VIPs under me. My review
compensation structure.     of the compensation plan
                            earlier revealed that
                            415 VIPs in my downline
The Internet Mall           would not put me on the
program uses a Straight     road to millionaire
Line program, which         status. In fact I would
means that every person     need at least 5000 VIPs
who signs up beneath me     to make really serious
is in my Downline. The      money! I was not even
program had been            close.


To reach 5000 VIPs I        below. After each
would have to recruit       question I've explained
every person I spoke to,    why you too should
every person I emailed,     consider asking similar
and more importantly        questions about any
start a major ad            company you're
campaign! At this point     considering joining.
having reviewed the         
compensation plan and       1) Who are the Founders
actually seen the           of this program and what
Internet Mall program in    is their track record?
action for 15 days, my      (Note: Have you ever
skepticism was growing      noticed in Founder
but I still thought         profiles that they state
additional research was     the Founder came from
necessary. After all,       one of the top 10
the Internet Mall did       network marketing
say that part of my VIP     companies, however, they
benefits would be their     NEVER seem to tell you
super duper marketing       which company it was? Or
plan! Perhaps the plan      that he/she was the
is the key to generating    Executive Vice President
the 5000 VIPs. Now it's     of a Fortune 500
time to follow up with      company? Which ONE! Is
the person that would be    there some law that
my upline sponsor. I        prohibits them from
emailed him the             telling me which company
questions outlined          or companies?)


2) In regards to the        i.e. Bronze, Silver,
Compensation Program, of    Gold, etc. I would like
the VIPs under me how       to know how many have
many of them remain VIPs    obtained each level
for 30 days, 60 days, 90    since the company began
days, 6 months, and a       and the average time it
year? (Note: If I'm         took to reach each
going to be putting out     level. (Note: The
$49.95 just to join and     Compensation Plan told
$25 per month, I want to    me what I had to do. I
know the FACTS! You         wanted to know how LONG
would think that if this    it should take me if I
were such a great           followed the Marketing
program then the company    Plan. If the average
would be glad to share      time for obtaining
their Retention Rate. I,    Bronze was 6 months,
however, NEVER got back     then I needed to decide
an answer to this           if my TIME and MONEY
question!)                  would be better placed
                            in another program. Time
3) There are numerous       is MONEY, especially in
levels in the company       these days. Again, I
that you have to attain     NEVER received a reply
before making more money    for this question!)


4) I saw photos at the      answers for these
site of your Diamond        questions either!)
level distributors          
enjoying a cruise. How      5) I also asked the
many Diamonds do you        upline sponsor to give
have in the company         me his personal
currently? What is their    marketing strategy.
average monthly             (Note: I received no
compensation? More          response. I did learn,
importantly can I           though, that my upline
contact any of them to      sponsor had put his
find out how they are       career with the company
doing? (Note: If you        on hold since he had
were trying to recruit      lost his job. If this
me for your company,        program was so wonderful
wouldn't you be more        and it only costs $25
than glad to have the       per month to receive all
Diamonds give me a call!    these wonderful
I'm sure that the           benefits, then don't you
Diamonds would be glad      think he would have done
since I WOULD be in         every thing in his power
their downline with the     to save the $25 per
Straight Line Program.      month to stay a VIP! Red
Guess what - I NEVER got    flag!)


As you can see from my      get the information you
notes, my final             need to make a decision.
evaluation of the           
Internet Mall program       
was a resounding NO! I      
hope from this example      
you have gotten the         
point of this article:      
Get the FACTS before you    
spend your TIME and         
MONEY! Review any new       
program thoroughly and      
ask questions of your       
potential upline            
sponsor. If he/she          
doesn't answer you, you     
might consider moving       
on. Or if you think         
further research is         
worthwhile then keep        
going upline until you  


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