What are you selling THIS time???

Have you noticed that there is always a new and improved way to make money? Another forced matrix pay plan hits the web. You're guaranteed to make a six figure income. What's the product? Who cares. You are guaranteed to make money with it though.

A new randomizer just out. Everybody will see $20.00 payments in their Paypal account, guaranteed. What are they selling. Uh ... not sure but you're guaranteed to be paid in your Paypal account.

We have 50,000 guaranteed visitors ready to hit your website and for your sales to EXPLODE! So you have 50,000 eager drummers waiting to get online lessons from me? I didn't think so.

What I have just presented here is  what we see all the time in the ads being thrown around. If you are chasing the money this is what you have bought into and will promote yourself. Desparate means to earning an income.

Randomizers are illegal since you cannot be guaranteed you will earn a dime from them. It's a gamble at best.

Matrix packages will not talk about the product because most of what is sold doesn't attract resellers and buyers. So, the product becomes secondary and the primary hook is how much you can EARN!!! GUARANTEED!!! But, read the small print and then ask for that guarantee in writing and signed by the company owner. Good luck with that one.

Ah, and the 50,000 visitors waiting to buy from you. They may guarantee 50,000 visitors but how many are really there to buy what you are selling?

Similar to surfing programs, people come to see because they are obliged to per the terms of the program. And that it. They move on.

Surfing sites were a way to show site popularity by visitor count but the Search Engine Listings wised up and saw it as false traffic. So surfing is now a big waste of time and money.

Auto-surfs as well. Since you let them run and forget them no one sees your website anymore than you saw all of the others' websites.

And, OMG, the prelaunch. It's for sure that a prelaunch will be a pyramid since they talk about being 'at the top' you stand to earn the most. All of those below you feeding to your income. If that's not a pyramid then what is.

People in MLM always try to compare theirselves with corporate business saying it, too, is a pyramid. The BIG difference that separates the two is in MLM no money is exchanged until the product is sold to a consumer. IN corporate that's not the case. Manufacturer sells to distributors that sell to retailers that then sells to consumers. SO if a product doesn't sell the retailer is stuck with the cost. If retailers don't buy it from the distributor then the distributor is stuck with the cost. And if manufacturer doesn't sell it then they are stuck with a wasted product and cost.

So MLM is a minimal risk business but much harder to earn from as well.

There are exceptions to my statement above. But, all in all, be very careful of what you get involved with.

Now, are you ready for the best punch of all? When someone asks you to join their business here's how to see how legit they really are. Ask for their business license info. Even a work-at-home business needs to be registered. And if they are not registered then most likely they are also cheating the taxman. There will say to what kind of company you are keeping company with. And, just because the business in based on the internet doesn't mean it's free income. This will surely ruffle a few feathers on integrity.

Did you know that if you had a loss from a business you could use it to offset a tax debt? ONLY, though, if you have a licensed business. It's not that hard to get but most, again, are too lazy and/or try to cheat somewhere somehow.

So, before you go joining up on that next venture, ask the person offering you to join for their business license info. If they question why you can answer that it's public information and required to be posted where you do business at a physical address. If they don't have one, then maybe they are not quite serious to be in business and don't care who they scam.

Would you buy from Sears if they didn't have a business license? What about your local grocer? Car dealer? Electric or gas service? 99% would say no. So why is it on the internet any different?

Think before you leap? It can be a mighty long fall.

Kenneth R Sword Jr
 

Great points you make here, Kenneth. 

I would be happy to share my business licenses with everyone.  Pennsylvania doesn't require a "business license", though some municipalities require contractor or services to register for a license before they can work in the municipality. You must however,  register with the state and receive a sales license=even if you are NOT collecting sales taxes for your sales.  I am also incorporated as an S corporation and through that have acquired a tax ID number which is like a "license plate" for the business.

I foresee a time in the not so distant future when we will have stricter regulations on the business we conduct on line.  

Thanks as usual for sharing your knowledge and the advise that we all need.

Blessings,

Judy

 

Hi Ken,

Whoooooooooo yaaaaaaaaaaaaa .. I bettcha just ticked off half of Adland with this post . but you know what .. the truth is every single word you have said is the truth.

I have to wonder why folks think an  Internet business is different from a brick and mortar business? The same kinds of rules apply, but how many just jump into a $10.00 or free program or possiably pay upwards into the thousands of dollars and  think they don't need a business License?
 I mean after all it's the Internet. The same business laws do apply . Novel IDEA!

Unless you  have an LLC or something like blah blah Enterprise that can be a subsidiary of the main company  it is required you  get  a license for each NEW business that you  start.. !! I wonder how many people on the Internet are doing business illegally ?

Doing business on the Internet is NO different than doing it offline.. you need a tax id number and at least a DBA.. for each business. The state tax only applies to the state in which the company is actually located an if your state has taxes and that tax only applies to folks buying from you on your web site in your state. When someones buys from you in your state you are required to charge taxes applicable to your states on consumable items.  Every business  is required a Federal ID number for reporting income on the business or at least your personal SSN if you live in the US . Other countries  have similar laws for taxes. IF you fail  to  file taxes  it is considered  income tax evasion .Folks in the US are charged in Federal courts if they get catch. 

Thanks again for the great information you always get to the heart of the issue without any fluff or flowers. YOU ROCK !!



Thanks

Geketa

Hello Ken,

Now what?  You have eliminated 80% of your market.

Hello Allen,

Not really have I eliminated 80% of my market. With a licenced business and a product that the average non-marketing person needs I have gain an audience a thousand fold.

Marketing to marketers and thsoe that want to be in a business but don't want the hassles and headaches to do it right will drain more of my time and energy than being with people that are just consumers.

Have you ever been on the verge of being shut down or fined by your domain provider because someone in your program decided NOT to follow the No Spam policy? What about everyone that expects your work to be free?

True, MLM is a peoples business but not everything has to be done by MLM.  I can't expect a person to join my drumming site and be able to answer any questions a drum student may have. This is a specialty site.

This kinda lends itself to many other programs that people join and have no clue how or what is going on. Just promote it. This is where failure comes in and people then hop from one program to the next.

Of course, this is purely my own opinion based on what I have observed over the past 8 years being on the internet.

Thanks for posting. I like the feedback.

Sword