Is Your Business Opportunity Program Legal?

Introduction To Business Opportunity Programs

Business Opportunity Programs have always been very popular with many people. They offer the ordinary person the chance to make money from home without the usual costs of setting up in business

There is usually very little if any stock to buy, no overheads much to speak of, no investment in publicity materials etc – all these services are provided free by the program owners. Typically an online opportunity program will provide participants with banners, text ads, email ads, ezine ads etc – even a full website, all completely free

The only cost involved is a small monthly membership fee – although even this can be avoided until you get used to the program, as many programs will allow you to join for free

Do These Programs Really Work?

The honest answer in brief is – some do: many don’t!!

The first question to consider is whether the program is in fact legal

Many people down through the years, that business opportunity programs have been around, have lost money – sometimes all their life savings. For this reason most governments in western countries have passed laws to outlaw most of the worst kind of these schemes, often referred to as “Ponzi” schemes

However the law is often openly ignored by many of the people running these business opportunity programs. Perhaps they did not take appropriate legal advise before starting the program, perhaps they were unaware that what they were doing was illegal – or maybe they just didn’t care. For some people as long as they are making money, they don’t care that other people are losing money!!

However the critical point to grasp is that “ignorance of the law is not an excuse”, and any one that promotes a trading scheme, as an affiliate, is just as guilty as the people that run the scheme. In general you should always do your homework on the business in question as most of these type of businesses will not survive very long

A Pyramid Matrix

A pyramid matrix simply means an arrangement where the number of people in each level of the pyramid gets bigger the further you go down. Generally the number of members will increase by a set multiplier e.g. you start with 5 people, each of these people refers 5 people, so on the second level or tier there are 25 people, being 5 X 5. As you go down each level of the matrix you multiply the members by 5 each time. So the next level will be 25 X 5 members which is 125

The problem with this arrangement – and the typical one with business opportunities – is that this rate of growth is unsustainable. You would very quickly need one million people and more to sustain this matrix. In fact by the time you got down to the 9th level of this matrix you would need nearly two million people in the scheme – and each of these two million people would each have to find 5 members, which would then push the membership to 10 million!!

The General Legal Rule

For these reasons laws have been introduced to protect the public from such un-viable schemes

The general rule is that it is illegal to encourage someone to pay money in joining or participating in a trading scheme, if the only or main purpose of the scheme is to encourage other people to pay money by way of joining or participating in a trading scheme e.g. you join a scheme and pay a membership fee of $9.99 – you earn this money back when you find 5 other people to pay their membership fee of $9.99

Anything that breaks this rule is almost certainly illegal – you would be well advised – however enticing the scheme sounds – to stay well clear of such arrangements

Many business opportunity programs break this rule because people join as free members and then must “upgrade” their membership in order to participate in the compensation plan. However they receive nothing of substantial or equivalent value to the membership fee being paid. In other words if you pay $9.99 per month and receive free “training”, a “free” website, free “support” via a forum etc – none of these things can be regarded as being of “substantial or equivalent” value

The law regards these schemes as an illegal unregistered lottery, and anyone who promotes such schemes is engaged in an illegal activity – certainly not a legitimate business!

Product Based Opportunities That Have A Network Aspect

The way to make such money type schemes legal, is to always ensure that people are receiving something of value for their membership fee e.g. some real product or service which could be bought by the general public

Product based opportunities are fully legal because people join for free as “distributors” and can sell a range of products and earn a commission, based on the sales they generate. There may be an additional “add-on” network aspect, which may require the payment of a monthly fee. This payment is fine, so long as there is something of value provided for the payment, and so long as making the payment is not compulsory

Because product based opportunities are nearly always legal – providing there is a “join for free” option, then you can always have confidence that such businesses, based on selling a product or range of products, is a viable opportunity and will almost certainly last into the future

What Qualifies As A Product?

You need to be clear what is meant by a product

In general we are talking about a real physical product such as slimming pills, ski jacket, health drink, bedside clock, perfume etc. If the main purpose of the business is to sell the product – even if there is some additional network aspect, then you are generally on firm ground

The Network

We have mentioned the phrase “the network aspect” we need to be clear what is meant by this. We do not mean a standard pyramid matrix. The idea of network marketing is to allow for a system of network distribution – so that each member in the organization sells a small amount of product per month, but altogether this amounts to a much larger total value. However there is no requirement for people to participate in building a network if they do not wish to – they can just sell the products for their standard commission. Such a system will produce far greater group sales than the same number of people just paying a monthly membership fee.

Imagine if I have 100 people in my network all selling just $50 of product a month. That amounts to total sales for the group of $5,000 per month. But if those 100 people just paid a membership fee of $9.99 per month, the total revenue would be only $999. In addition, as each of those 100 people would be receiving a commission cheque for their $50 worth of sales, they would be much more likely to continue with the business, as compared to simply “losing” a membership fee of $9.99 with no commissions for their trouble

Conclusion

Be very careful about business opportunity programs. Product based opportunities work very well via a system of network distribution. However if there is no product of any significance, and you only make money by getting other people to pay a membership fee, then this scheme is very unlikely to pay you any money ever. With a product based opportunity you can sell real products and collect a trade commission even as a free member. As a result the business is viable and a network can be built up into a significant monthly income

Investing $1 Million Dollars That You Do Not Have Yet

Why would you want to try and invest $1 million dollars that you do not as yet even have? Is it even legal? If you don’t have $1 million dollars how are you going to invest it anyway? The answers to all these intriguing questions and more can be found in this article, so read on…

First of all to answer the “why”

For the return of course. If you were able to invest $1 million dollars, even a 5% return would equal $50,000 dollars. Getting a 5% return is not exactly a difficult thing, you could simply put the million in a bank for a year and receive that $50,000 profit.

When considering wealth building strategies and your financial goals, a creative approach is sometimes necessary to create the returns we seek and borrowing a million dollars is one way to increase our returns. There is however, a problem. If you did find someone willing to lend you $1 million dollars, they would without a single doubt expect a return for the time frame you have borrowed that million, usually along the lines of what a bank would charge which would be in the single digits percentage.

Clearly if that is the case, we are backed to the wall, because the profit we expected from that million just transferred to the owner of the million leaving us with a futile look on our face. But what if, instead of you borrowing a million in cash, you legally borrowed equity or value.

This would be a different twist on the same concept. Let us say, we look in the local paper and found a riverfront mansion for $1.2 million dollars. You have kept your eye on the upper market for riverfront mansions and have concluded, that this house is being offered for sale cheap. It could easily fetch $1.4 or even $1.6 million because it has a boat harbor and also 20 rooms and well maintained gardens.

This value that you see and the remaining opportunity to collect a further $200,000 to $400,000 dollars on your insight about the true value of the house can be accessed and used to control the property for a short time. By using a legal instrument like an offer to buy.

Simply put, you place a token deposit and explain you have every intention to purchase on behalf of a buyer or friend, it is not their business what the actual arrangement is, all their side needs to know is that they are getting the possible opportunity to sell. You offer them what they are asking for the property and in the contract you may escape the contract if the new buyer decides he doesn’t want the house. In this way you can walk away if you fail to find a buyer at a higher price than the contract price. If you do find a buyer you can do a double close.

This is one way to borrow a million dollars and invest it for a return without actually having a million dollars in the first place.

How to Get Legal Transcription Jobs and General Transcription Jobs

There are plenty of transcription job opportunities for you out there if you are willing enough to spend time and effort to put in the work. You cannot expect to earn a lot of money doing nothing. The good thing about doing general and legal transcription jobs from home is that you actually get to choose how much work to take in and what working hours you want to keep. This gives you time to spend with your family and to do other things that you want to do. If you are looking for a good way to earn a living from your home, doing transcription work could be just the work from home opportunity that you need.

You can get more information about how to get transcription jobs through the internet. In most cases, you would not have to have specialized training in order to get into transcription. There are, however, some types of transcription work that require knowledge of terminologies and understanding of processes with regard to the medical and the legal fields. General transcription work would normally have less restrictive requirements and will allow you to start getting jobs as soon as you pass your transcription test.

You have to be able to get connected with companies needing to outsource their transcription requirements if you are to start getting general and legal transcription jobs. It is not that easy to find which one of the millions of companies around the world are outsourcing their transcription jobs. While a job search online would yield you several options, it would be tricky to weed out the legitimate offers from scams on your own. Others who have been duped by these scams just chalk up these scams as one for experience. You do not necessarily have to go through this. There are resources that you can turn to in order to avoid these scams.

If a particular site promises you millions in earnings doing transcription work in exchange for a large sum of money you invest in their account, this should be a clear warning signal for you. There is no way through which you can earn millions in a snap doing general and legal transcription jobs. You do get compensated enough for the kind of work that you turn in when you do transcription work. The more satisfied clients you have, the more repeat businesses you will most probably get, and the more money you will earn. Find out how you can avoid these scams, how to get online medical transcription training and how to get transcription jobs without specialized training.