Wednesday, August 19, 2009

Is Cash Gifting Illegal? A Scam?

Is Cash Gifting Illegal? A Scam? Unethical? Get The Facts Not Opinions!

Is the Article Below True?

I copied the following article verbatim, but can you believe everything anyone says on the Internet?

I conducted my own research. While it is true that the IRS limit for gifting is up to $10,000, the context for giving that gift is like a parent to a child.

I am in Michigan, a state that is so regulated that many churches gave up fundraising using bingos and raffles. Michigan's Franchise Law, MCL 445.1501 et seq. forbids pyramid schemes. Michigan prosecutes gifting as scams and pyramid schemes. Other states specify a minimum gift amount, such as $5. Michigan sets no minimum. This means, theoretically, that the latest gifting "club" that is advertised in various safelists, even though it advertises giving away only $3 or $5, could still be prosecuted in Michigan as a felony! Beware! Other states are the same way!

Times are hard. Even $5 from 5 different people can mean a lot to the unemployed, the under-employed, the disabled, or the one working everyday but with less pay, less benefits, and less job security. Even $5 from 5 different people can put some gas in the car, buy a bag of groceries, or take a couple to the movies. In fact, times are so hard that even though it is projected that 60% of American households may soon be starting a home business, how many in that 60% can afford to invest thousands or hundreds of dollars?

Rather than risking prison over a $5 gifting scam, invest that same $5 in this simple business in which you keep 100% of the commission. Ask your friends and family to become involved, just as you would in gifting. Tell them to ask their friends and family. This is the same as network marketing, a legal activity. Your friends and family are buying a product, a legal activity. You can even expand your business to incorporate other products, but the most important thing is that you would have started a real business for the affordable price of $5. Get started today at

Is Cash Gifting Illegal? A Scam? Unethical? Get The Facts Not Opinions!

Author: L. Arbore
Lately cash leveraging programs or cash gifting programs has taken over the Net. So what is the definition of Cash gifting?, first of all there are no products involved, it's not a business, not mlm, not direct sales and it's not an _investment. basically The majority of all programs on the Net today are nothing more than glorified cash gifting programs.

And the reason for that is, any time you join a business that has€€€ a direct sales system in place you are paying your sponsor and not the company, the sponsor is making 100% commission just by recruiting you, after that, you'll be promoting the " BUSINESS" too and making 100% commission yourself so what about the products you may ask.. well they are nothing more than a cover-up, usually they are worthless but these companies want you to believe that you just bought a bundle of cutting edge up to date products that are worth hundreds of thousands of dollars and that you'll have resell rights to them, but why are you going to try to sell something for a few bucks when first of all you'll find many other programs offering these very products for free when you join them.

No one tries to sell the products but the business itself, that's where the money is, who cares what the products are. You may ask, how does the Company make_money then? Being that most of them have the 1 up or 2 up system in place, the founders will make residual_income from all the members that started under them plus they charge a monthly fee for their replicated website and hosting, support..etc, from every member that joins the " Business" and there's nothing wrong with that at all except for the fact that what's really taking place is Cash leveraging or gifting.

Now what is causing so many people to move towards Cash Gifting? Well people are sick and tired of all the hype and the promise of financial_freedom by pushing worthless products to others, tired of having to explain and convince people of something you don't quite believe yourself something that doesn't make much sense, it's confusing, nevertheless you were deceived into it and now you have to do the same otherwise you've just lost a great deal of money and time.

Cash Gifting is not a business, it does not have any products, there's no convincing or explaining to do, no cold calling, but it has something everyone in any part of the world craves for and that is "CASH"

Your Job is to promote heavily online and offline, yes it requires work. A terrible thing happens to those that don't promote and advertise

and that is NOTHING, nothing will happen if no effort is put in to it.

Many will say that cash gifting is a scam, that it's illegal, unethical and so on. Is it really?

Well, by definition, Cash Gifting (also referred to as "Cash Leveraging") is the act of privately or publicly giving another person or entity a declared sum of cash (strictly as a gift) and giving it freely without coercion or consideration.

It doesn't involve network marketing, multi-level marketing, or a business or commercial activity. There are no business transactions, investments and/or securities involved in this activity. There's no business or company name or location and there are no directors, officers, shareholders or principals. Individuals simply support each other in a team concept and help change lives.

It’s called a cash gift because that’s exactly what it is... a gift of cash.

The principle of “Gifting” has been proven as an effective model for creating prosperity very quickly for many people who practice it. Although the concept of “Gifting“ has helped thousands of people prosper around the world, it's also been blemished over the years through various “Scams” & “Get Rich Quick” _pyramid_schemes.

Over the years, there have been many opinions and thoughts as to the legitimacy and legality of Cash Gifting as a viable and honest means of generating cash flow.

In fact, I learned that both American and Canadian citizens have the Constitutional right to gift property,_cash and other assets.

In the United States we have the Preamble, the Constitution and the Bill of Rights to protect a private citizen's rights to earn, pay_taxes and give away property and cash as long as it's done according to the laws and codes of this country. The U.S. gifting rules are found in the IRS Tax_Code, Title 26, Sections 2501-2504 and 2511.

the law states that one or more individuals can give a cash gift to another individual of up to $12,000 each per calendar year without any tax_liability to either the giver or receiver of the gift, because the tax on the gift has already been paid.

Now, even though gifts don't have to be included in the gross income of the recipient, it's probably a good idea to pay taxes on any and all cash gifts you receive from anyone not related to you.

I once heard that Cash Gifting programs account for approximately 60% of all money generated in the home-based opportunity industry. I don't know how true this is, but this activity is extremely popular right now.

So giving a gift of cash to someone, be it a friend, family member or a stranger is legal according to IRS code. Again, there's no specific nation-wide law that I've been able to find to say that cash gifting is not legal. Again I deal with facts not opinions.

Now, that being said, it's important to note that not all Cash Gifting programs may be legal in their structure. Certainly there are some that may not be. Unfortunately, there are still some "old school" Cash Gifting programs out there (mostly offline) that weren’t structured properly in order to sustain their efforts for any considerable length of time, and some of them use an illegal pyramidal type of structure.

A properly and legally structured gifting program that uses a "1Up" structure is not a pyramid scheme since there is only 1 tier, or level. But let me define what a pyramid actually is before we go any further - A pyramid is usually associated with a company or a business. Gifting programs are not companies, they're considered a private sharing activity.

Gifting programs require no sales quotas (there's no product to sell), there are no positions to be sold, and they don't have an ever-widening base to the structure, which just keeps going and going to infinity.

A pyramid never allows anyone coming in on the bottom to ever reach the top. With a 1UP Cash Gifting program, everyone gives the same gifts, works together in a team dynamic, and receives the same gift.

In a pyramid, only those at the top get the profit while those at the bottom usually never reach the top. In a pyramid, people can and have lost their money. A pyramid is also not to be confused with "Network Marketing or MLM".

Although Network Marketing is a legal and viable business model and source of income, it doesn't work for the majority of people that join one of these programs. Cash Gifting programs are neither a networking company/opportunity, nor a pyramid scheme.

I've come to realize that the majority of people don't join a home-based opportunity to peddle lotions, pills, diet cookies, "magic juice", downloadable e-books, over-priced conference tickets, vacation discount vouchers - or any other so-called "products.".

If we really want to take an honest look at the industry, 95% of the people currently in a "home_business" are fooling themselves into THINKING they're entrepreneurs.

If you would like a full FREE report and reviews on Gifting programs Visit

Occupation: Entrepreneur

Monday, August 3, 2009

Is the Ardyss Body Magic a Ripoff?

Is the Ardyss Body Magic a Ripoff?

My cousin Pam called from Atlanta to ask my mother and I to try a new product. She had gotten involved with the Body Magic and told us it could help us drop up to 3 sizes in 10 minutes without dieting, exercise, surgery, or any other gimmick. I was very skeptical.

Hoping that my cousin wasn't a scam artist, I went to the website that she referred me to, namely,
. I have a few curves. I haven't been successful in dieting. It would be nice to get some instant results rather than yo-yoing from losing then regaining 25 pounds.

However, it wasn't the promises of instant weight loss that motivated me. I had been in a car accident, so when a lady said that the Body Magic helped relieved her back pain, I burst into tears. I had been in so much pain and was tired of medication, back braces, knee braces, and physical therapy. It took this kind of testimonial to make me get in a car and attend a meeting. I needed to try on that garment!

Suffice it to say, when I got into the Body Magic corset, it was true. The pain went away! It corrected my posture and did more for the pain than the back brace my doctor had prescribed! I wasn't surprised to learn that an orthopedic surgeon helped design the Body Magic.

As for its other claims, to make a person drop 3 sizes in 10 minutes, I can only say that the Body Magic reduces 4-1/2 inches off my waist! You can see for yourself! If you can't tell the Before from the After pictures, the Before are the ones with the bulges and love handles. I looked like I was pregnant. The After photos are the ones that lifted the breasts and buttocks, slimmed the thighs, smoothed the silhouette, and makes me look like I finally had "the baby".

You'll love this product. The compensation plan is great, too! Ardyss also has weight loss and nutrition products to make you feel as good on the outside as you do on the inside. The goal is to make you look as good with your clothes off as you do with your clothes on. Ardyss therefore combines instant gratification with long-term weight loss achievement goals. So, no, the Ardyss Body Magic is not a scam! It's the real thing, no gimmick. If it can work on a lady with curves, imagine how it will work for a skinny girl? Not only will it lift and accentuate her best features, it will look like lingerie!

To find out more about Ardyss and the Body Magic, visit or

Tuesday, July 21, 2009

Protect Yourself from Scams!

Times are hard all over the world. People are looking for hope. MLMs and networking marketing offers hope. However, will the particular MLM help or hurt your hope?

Whenever someone is about to enter a business or purchase a product, they SHOULD research it first. Caveat emptor is Latin for the saying, "Let the buyer beware." The doctrine of caveat emptor has been woven into American law by expecting that parties would perform due diligence, meaning reasonable research, as to whether a business is feasibly profitable. You are attempting to conduct research. That's why you've visited this blog. Make no mistake, there are plenty of scams out there. I don’t want you to be another victim.

All animals, including humans, make calculations as to whether a particular action will bring them pleasure or cause them pain. MLM Due Diligence examines various network marketing and work at home programs. The purpose of this blog is to make recommendations so that you can make an informed decision with your eyes wide open.

Some MLM programs aren't scams. They meet all the legal requirements set forth by federal and state agencies. Still, being legal doesn't negate the fact that 97% of the people in MLMs fail. You need to be aware of the pros and cons of the particular MLM so you can make the best decision that fits your circumstances.

Thank you for reading this blog. Feel free to add your comments. I'm sure my recommendations will make some MLMers upset. I am open to their presentation of evidence that would prove me wrong. Think of this blog as the "prosecution" starting with the premise that 97% of people in all MLMs fail. The MLM is the defendant that must prove why their program is different. You are the judge and jury. What's your verdict?

Is Acme People Search Engine a Scam?

Is Acme People Search Engine a Scam?

If there's a 12 Step Program for social networkers, I'd have to admit that I am a Twitter addict.

I kept getting repeated tweets from other network marketers that claimed I could earn $125 within 24 hours by joining a free program. I ignored these tweets for the first week or so. Finally, I decided to investigate. I clicked onto a tweet from a guy in the Philippines. Was this a gifting program? How could they legitimately give me $125 so quickly?

I clicked the link and listened patiently as a man named
Tissa Godavitarne started to explain how he used affiliate programs to solve his unemployment problem. Being in Michigan, a state that is plagued with the highest unemployment rate in America, I was interested.

Tissa might start off making you wish you could afford a million-dollar mansion like his. He might start off showing an IRS Form 1099 to prove his income. But he then gets into the nuts and bolts of his niche search engine. He offered that if I let him build me one for free, he'd advertise it until I earned $125. I thought, "Why not?"

I followed the 3 step process. I admit, I was skeptical. I kept waiting for my scam radar to start blaring an alarm. Sure, in order to complete one step, I had to sign up for a 7-day free trial of GDI. I thought, "Well, why not? If Tissa's $125 doesn't come through, I'll just cancel."

GDI had a flashy sales presentation. It was nicely done. Attention deficit adults like me could be captivated long enough to sign up for the trial.
I already have several websites, most of which end in dotcom, so I wasn't too thrilled about another website except I was curious to see if Tissa would follow through. I created yet one more website,, as an experiment. After completing the three steps, I waited while Tissa marketed the website through his Adwords campaign. Sure enough, he emailed me back, perhaps it took 24 hours, or maybe longer. And sure enough, there was $125 credited to me. I was shocked. I wondered, "How did he do that?" Then I began to feel like a missionary! I have to spread the Acme Gospel!

In all fairness, a person must earn $75 from the person's own efforts in order to receive a total of $200. This means the person is taught how to earn the $75 so he or she could get the money within the next two weeks. Tissa also has a "Super Sponsor" program that reimburses the person for any out-of-pocket costs. Consequently, the net cost for participating in his program is $0. Still a good deal.

As many of you know, Michigan is the automotive capital of the world, but two of the Big Three have gone into bankruptcy. The auto companies might have emerged from bankruptcy reorganized, but the laid off auto workers and the other businesses that depended on the auto companies are still hurting. Unemployment, pay cuts, lost benefits, and other economic turmoil is rampant. The secret that no one really wants to get out is that Michigan is in a depression.
For some people, $125 ain't much money, but for a family receiving unemployment, $125 can buy school clothes for their children. It can buy some groceries. It can put gas in the car So how many people could benefit from an extra $125? And what if they could earn more than $125 by sharing this "secret" with others? If you're a person needing to benefit from Tissa's "economic stimulus program", then click here.

From a more objective standpoint, getting the extra $75 in order to receive the $125 and $75 in a $200 initial minimum payout is VERY TOUGH to do in a short period of time unless you use PPC (pay per click) marketing. Otherwise, using free marketing tools, it may take you two months to raise $200 total. Most people won't stay focused for so little money for such a long period of time. They'll give up. Objectively, this may be how Tissa makes money and why some people claim he is scamming them.

On the other hand, if you can combine Kevin Lee's book "The Truth About Pay-Per-Click Search Advertising" with a $200 coupon for advertising on MSN/Bing and $5 of you own cash, then you can begin a PPC campaign. It takes money to make money. The book that contains the $200 coupon costs approximately $13 on Amazon. Get it here!

You can also take advantage of coupons to start PPC campaigns on Google and Yahoo, but these will cost you more of an upfront investment.

Bottom line, you can learn how to do PPC advertising, run your campaign on MSN/Bing and earn $200! Do this within a month, and you'll spend approximately $30. Not a bad return on investment. So is Tissa Godivitarne scamming people? No! At the same time, will you get rich quick or get something for nothing? No!

Sorry to disappoint you. Like everything else in life, you'll reap monetary rewards if you put in time, effort, and a little know-how. This is a legitimate vehicle. Take the drive!

AmeriPlan: Is it a scam?

At a time when health care is the rage in the news, the premise of AmeriPlan couldn't be more sound or relevant: Provide health care discounts for those who are uninsured or under-insured.

AmeriPlan is not insurance, so for those who have insurance with little or no deductible, then there is no discount that can compete with free. However, AmeriPlan membership can provide a discount for those services not always covered by traditional insurance. AmeriPlan delivers on the promise of providing a discount for dental, vision, massage, chiropractic, prescription, elective/cosmetic surgery, and numerous other programs. I was attracted to AmeriPlan because, as a self-employed individual, I had no health insurance. AmeriPlan was great from a member standpoint, and an economical value. It is not a scam. I saved money on prescriptions, contact lenses, etc. So while Congress debates over having America join the 21st century along with the other industrialized nations that have national health care insurance, AmeriPlan serves as a viable alternative for the millions of Americans with existing preconditions and the need to see a doctor.

However, I thought I'd add AmeriPlan to my business portfolio and sell it as a distributor. AmeriPlan is marketed using network marketing. Because it's a health care discount program rather than insurance, a distributor didn't need a license to sell the product. I, too, was seduced by the stories of people earning hundreds of thousands of dollars a year selling the product. My distant upline happened to be a married couple of high rollers. They were real people and not actors. I actually shook their hands and touched their Bentley.

My experience in AmeriPlan allowed me to touch real real people making real money in their network marketing business. Yet the same experience made me realize that there must be something that they're doing, some closely guarded secret that they're not sharing, that gives them their competitive advantage. They told me, and the rest of their downline, to make a list of friends and family, harass everyone who comes within 3 feet, purchase leads, cold call them, etc. They told us to purchase DVDs and literature and leave flyers in laundromats, grocery stores, car washes, etc. Prospects promised to come to opportunity meetings but stood me up. Some stood me up even when I went to pick them up. My upline told me to attend national conventions for inspiration and education. The company definitely made more money from me than I did from them. My upline told all of us in the downline that AmeriPlan differed from other network marketing plans in that distributors carried no inventory and because we were paid daily. However, after investing hundreds of dollars into my AmeriPlan business and realizing little to no profit, I became one more statistic, one more of the 97% who failed, quit, and almost declared bankruptcy.

My advice to a new AmeriPlan distributor is to concentrate on retail sales rather than sponsoring a downline. If you have professional sales and marketing experience, then the niche to concentrate on in retail sales is group sales. But the average person marketing AmeriPlan with the intention of developing a downline of 1000 people is a mistake. Health care isn't sexy. Like insurance, it's a topic most people prefer to procrastinate and not to think of until they need it. Sales to groups requires special AmeriPlan training. Indeed, the bigger the group, the less likely an average person without connections can bypass the gatekeeping secretaries to speak to an actual decision-maker. In fact, the bigger the group, the less likely AmeriPlan's headquarters may want an average person to make a presentation to, say, General Motors. Group sales under such a contract would require high-level negotiations in a realm that the average person usually isn't privy to. Moreover, a great deal of professionalism is involved in large group sales because over-zealous misrepresentations could expose AmeriPlan to lawsuits. However, there's plenty of smaller groups for beginning distributors to address. As far as individual sales are concerned, these are challenging, but not as challenging as recruiting downline distributors one individual at a time.

I'm sure this post will get nasty comments from AmeriPlan bigwigs tell you that AmeriPlan is far from saturated, that a new distributor can rise through the pyramid and become as big as his dreams, and yada yada yada. True, with 40% of Americans having no health insurance, then it is possible that the market has not been saturated. However, AmeriPlan has been in business for more than 15 years. It is possible that the company has achieved its maximum market share and critical mass. At some point, a prospective network marketer should look at a business from an investor perspective and decide if selling AmeriPlan is the best use of his/her investment. I recommend the product from a retail customer perspective, but recommend that potential network marketers look elsewhere to invest their money and effort as distributors.

What are the closely guarded secrets that give the top network marketing earners their competitive edge? Find out more at