Money Making Programs - Is it Really Yours? Know the Pitfalls!

There are lots of money-making programs on and off the internet.  There are also many scams out there. Unfortunately the scammers get better and better every year.

The purpose of this wealth building article is two-fold. 

First, you aren't going to make strides toward your goal of financial security and independence if you get scammed out of your money and are just left sitting there with your chin hanging out because someone was clever enough to scam you.

Second, you need to know that every wealth building and money-making program has its pitfalls, in particular your focus should be to watch out for money making programs that are pitched to you but run by third-party companies.

Please do not misunderstand me.  Some of these programs work for many people.  In fact, some of the companies have been around for decades with their programs.  Those are some programs that deserve more consideration from you than others.  The difficulty is finding the programs that are worth your time and effort.  Keep in mind, that while a program's longevity is an indicator of the stability of the company and its business model, that is no guarantee that the program is going to be around tomorrow.

So let's take a few money-making examples that you may have heard of that I have been approached on over the years and after seeing identifying various pitfalls either before or after my involvement in the program I opted not to be involved further. 

One of the earlier programs I was approached about was Amway.  Most people know of this one.  If you are familiar with this company, you already know that it is publicly traded on the stock exchange. It has been around longer than most companies and it has had a long history that has survived through many economies and is just like a Timex watch . . . it seem to take the worst of what the economy has to offer yet it keeps on ticking.

For those who are Amway distributors and have survived the long term, more power to you.  Most assuredly you have an entrepreneurial spirit that is truly tremendous.  Yet each of us needs to evaluate each "income generating enterprise" on its own merits.  Though every person may be physically and mentally capable of performing the tasks that it takes to participate in the Amway program, that does not necessarily mean that each of us has the interest or excitement in the product or the payment structure to succeed in the program.

Let us take a look at Amway.  These are just the thoughts that my wife and I discussed about the Amway company and program before dismissing it from our consideration. 

At that time I was approached, the Amway company required that I purchase a certain number of products each month.  These products were to be delivered to my "upline" and I would pick the products up and pay for them through my "upline".  The gist of the program as it was presented to me was that I had to purchase Amway products each week or each month and use them consistently in order to give the products and the program credibility.  In turn, it was the best "income path" to recruit others to do the very same thing, namely to join Amway, order its products monthly in the least and to get the new recruits to do the same thing. 

I saw significant pros to the program.  Amway had longevity.  Amway was not a scam.  Amway was a publicly traded company.  Amway had decent products that were worthy of using.

However, I also saw the program's cons (from my perspective).  Personally, I didn't like the idea that Amway informally required the use of its products.  Nor did I like that the products were obtained through your upline rather than by direct shipment to you from the company.  While Amway's products where worthy of use, comparable products were available at the local supermarket and were available at lower prices.

In the end, product transfers between individuals struck me more as an inconvenience and a multi-level marketing program which causes products to be delivered through different levels of the program.

Despite Amway's pros, I found that the limited selection of products and the means of distribution at that time was not to my liking, nor did I find it appealing that my best chance of making income was by convincing others to join a money-making venture which involved convincing others to buy Amway's limited selection of products and to have them convince others to do the same thing.  Thus, when weighing the Amway program I did not find that it's benefits were enough to cause me to join the program.

The second program I considered was a company started by founders of large successful companies.  The program's innovative structure and its connections with top brand name companies and distributors was very convincing.  The company was called Hand Technologies and portrayed as a new innovation in technology and allowed people to have their own technology business at a time when technology was booming.  Owners would have their own website with their name on it and had had control over a certain degree of pricing, sales, etc...  It was innovative, new and portrayed as exciting.  As opposed to the few hundred products of Amway, Hand Technologies offered solid men and women in leadership and carried thousands of products.

Hand Technologies was also based on the principle of network marketing which didn't require the passage of products from one member of the organization to another but rather was based on multi-level marketing which simply offered a marketing option whereby you could recruit new technology consultant and sales associates without any requirement that the new sales associate purchase any Hand Technologies products in order to participate in the money-making venture.  The principle was very much based on the concept of franchising.

I chose to participate in Hand Technologies and built a national sales team doing $30,000 to $40,00 in gross monthly business sales with personal and team bonuses.  It seemed to be the perfect match, until Hand Technologies changed its payment structure and then sold the company and required supposed independent business owners to start all over again and pay all new fees to participate in the business.  My entire team of nationwide consultants was lost when the company was sold.  It was a hard mistake to learn.

A third program I considered was Pre-Paid Legal Services, Inc. which encouraged associates to participate in the program by purchasing the company's plan and practicing it's philosophies but not requiring it.  The program also established separate criteria for advancing in the company for those who chose not to use the company's products.  Pre-Paid Legal Services and it's program offered and continues to offer to this day legal insurance type plans to provide discounted legal service plans for its subscribers for a nominal monthly fee and it's agents are compensated in advance or on an "as earned basis". 

The larger the team of selling associates you build, the greater your commissions as the upline for that team.  The benefits were significant, except that cancellations in Pre-Paid Legal Plans resulted in chargebacks to the agent. 

Pre-Paid Legal Services continues to be an actively and publicly traded company.  It seemed to be the perfect match.  I remained a part of Pre-paid Legal until I became a General Manager.  Yet later I came across a major pitfall that I did not believe was appropriate.  Though I was doing well with Pre-Paid Legal Services I discovered that Pre-Paid Legal Services, was at that time intentionally prohibiting valid marketing efforts by their associates on the internet to increase competition but deprive initial agents of their efforts.  As a matter of principle I withdrew as an agent and resigned as a General Manager.  Looking back, it was a mistake.  Despite my disagreement with the stumbling blocks placed in the marketing of associates by the company, it was a profitable endeavor and one that would be huge today if I had continued my involvement.

Ultimately, you should take time to know the pros and cons of any program you consider joining.  In the end there is one factor that I believe is crucial to considering any program.  Consider what you have control of!  If your distributor can be taken away from you without an immediate replacement... that is a huge consideration. 

If your downline can be taken away without any opposition or say by you . . . is it really your business?  Remember that you want to have an money making endeavor, but you don't want it to be pulled out from under you!  You don't want to lose all the efforts you have made. 

You want whatever endeavor you undertake to be SOLID!  You want it to by truly YOURS!  Make sure it is!  Know the cons of whatever money making wealth building endeavor you are considering!  It makes all the difference!  Is it yours or isn't it?  If it can be taken from you....whose business is it really?

Remember SBA!   See it!    Believe it!    Achieve it!

Authored By:  Christopher A. Pearsall, PowerMotivator.com

Copyright 2009 GuaranteedWealth.com

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