Network Marketing Vs Cash Gifting

There is much confusion going on about the differences between a network marketing program and a cash gifting program. Some people believe they are both legitimate. Others believe it is not legitimate. There are significant differences between the two.

A cash gifting program is where you give money to other people with the hope that you can still find other people to give money.

Most of these programs are illegal.

However, there are some promoters who have experienced "legalized" their program by providing a product or service.

How cash gifting programs work?

Here's how most cash gifting programs work. Make your initial investment in the program. This typically involves sending money to people who have been in the program before you. Some programs require a small investment. Others require large investments.

Once you make your initial investment, this allows you to promote the program to other people. Typically you will receive a leaflet or a letter promoting the program for you with instructions to send the money to you.

To make money back, now it is necessary to promote the program to other people.

In many cases you are alone on how to promote it. However, some programs will provide the names and addresses of people who can promote the program. This is usually the way to legalize, say you are selling these "wires".

Once you promote the program to other people, the hope is that some of them will respond and send money. In this case, make your money back and profit on the program. If you do not, you lose your initial investment in the program.

The problem with a Cash Gifting program

The problem with a cash gifting program is that there is no real product with value to the end user.

Everyone is just getting involved in the program hoping to find someone else to send them money. This is bound to fail because the people who get on board in late will not be able to find someone to invest in the program.

A program of cash gifting in most cases, it is illegal. Some clubs argue that by saying that money is a "gift" and nothing is expected in return, makes the club office.

It's not and if the authorities find out, the program will close.

For an example of what the Federal Trade Commission in the United States of America has to say about cash gifting programs, check out the following article:

[Http :/ / www.ftc.gov / bcp / conline / pubs / alerts / giftalrt.shtm]

How Network Marketing is different from Cash Gifting

The sale of the [http://www.marketingmerge.com/network-marketing/what-is-network-marketing.asp # 8], unlike cash gifting, is a legitimate business and investment company. When you get involved in network marketing you are promoting a real product with real-world value and use.

As such, people exchange their money for the ability to be able to use the product or service you offer. You get paid a commission on sales and sales people that join your organization. The presence of a legitimate product makes the network of legal marketing, unlike cash gifting.

Do not confuse network marketing with cash gifting. They are two completely different concepts. A concept is legal and legitimate. The other concept is illegal and illegitimate .......