Answer Upon
#1 in Business Subscribe Email Print

You are here: Home > Internet and Businesses Online > Internet and Businesses Online > Is Your Business Opportunity Program Legal?

Tags

  • illegal
  • homework
  • companies
  • scheme sounds
  • longa pyramid
  • members which

  • Links

  • Making an Out of Town Gift Bag
  • Postcards Make It Rain Referrals
  • Eight Billion Reasons Yahoo Didn't Buy Facebook
  • Answer Upon - Is Your Business Opportunity Program Legal?

    Relocating in Northern Ireland
    Value for money, a co-operative, skilled and enthusiastic workforce keen to see investors doing well, have combined to make Northern Ireland an attractive option for both public and private sector relocations. It’s an equalling appealing choice for the kind of internationally mobile, high skills level individuals who are considering a move.This region, once marred by its history of political instability and violence, is developing a new designer appeal. It is starting to draw in the kind of internationally mobile, high skill level businesses and entrepreneurs with whom it seeks to build a more positive future. Invest Northern Ireland, the local enterprise agency, points out that it has helped to secure annual investments of over ?150 million, well above the level one might expect for a population of just 1.7 million people. It’s a persuasive combination which has encouraged many investors such as Halifax, Regus, Prudential a
    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 alway

    Some More Ways to Save Money When You Are On a Budget
    Why does everybody think it is so necessary to have a domain name ending with .com ? Why not get a dot info, or dot ws, or some other dot something other than dot com. These others are so much more affordable. With the proper SEO and by submitting articles and posting comments you can still get a damn high Page Rank and still rank high for your keyword choices.Now, do you see all these books that marketers are trying to sell like making money from YouTube and MySpace? what about all the software and scripts that everybody is selling? If you bought these products not only would you be broke eventually but you will also be on so many different lists. There are a number of sites out there like reselling4profit where you pay a small monthly membership fee and you have access to all the products for free, included in the membership you pay. Most of these products come with full resale rights and the sales page and marketing materi
    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

    Never Hire Anyone Dumber Than You Are!
    In a previous life I was a Navy Pilot. Great life, great people to be around. People who were all doing great things around the world flying off great big aircraft carriers. In an environment that complex and dangerous, you need to have teams of people working as one, or bad things begin to happen in large quantities.The people onboard aircraft carriers are divided into two groups, those that make the ship float and those that make the planes fly. Those that make the ship float are known as "ship's company", and those that make the planes fly are with "the airwing". During one tour of duty, I was assigned to the "airwing staff". The airwing staff coordinated the activities of the ten aircraft squadrons deployed aboard the aircraft carrier. It was while working for our Airwing Commander, Captain Jerry Norris, that I would unknowingly learn what has to become my most valued rule as an entrepreneur.Captain Norris was quit
    y 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 alway

    Imagine You Sitting On A Beach While Raking In Money
    Boy, I bet that got your attention! We have all seen the ads for hundreds of money-making schemes. You wonder if the stories really are true. The pictures of the family at the beach or the couple standing in front of the Mercedes tell us that they made it big, why can’t we.Several times, I have come close to purchasing these ebooks, but have not. I keep thinking that the only way that they have all of this stuff is to sell information to people like me that dream of one day making lots of money by working at home selling on the internet.I have owned several retail establishments – some successful and some not so successful, but I have had to work at them whether or not they made money. I have not found anything yet that I can only spend a few hours a day and get rich, although I am trying.One thing I have realized, though, is that the internet is the way to go. Just think of it this way, you do
    rrangement 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 alway

    A Comprehensive Sarbanes Oxley Act Summary
    Individual and corporate security stand in the center of the Sarbanes Oxley Act summary, as they are the areas that suffered most changes. New criminal and civil penalties were announced for security violations and a new system of certification of internal audit efforts was set. With the new auditor independence provision, auditors from outside the system have been granted more access to company data. Other items comprised in the Sarbanes Oxley Act summary focus on an increased disclosure of compensation methods and systems, especially for upper management.This new act brought a lot of unrest and insecurity with companies, who had to adapt their work methods to comply with it. However, the benefits of the Sarbanes Oxley Act to the investors and the general public are obvious, so even those company managers who faced compliance problems understood the importance of the new laws. Most companies begin by starting an external aud
    e 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 alway

    Beyond Free Mints: 4 Keys to Tradeshow Success
    It’s 10:15 am Sunday morning. Hordes of wandering guests stroll through the tradeshow hall amidst hundreds of booths and exhibits—including yours. There is little or no chance these people will enter into business with your company.Face it: they probably just stopped by for the free candy or cool chotchky sitting on your table.So, how do you give those people permission to engage? Or, if you’re the attendee, how do you keep from sitting quietly in the corner looking at the education descriptions for the ninth time instead of finding and meeting new people?One word: approachability. Sure, it’s an expression that varies from person to person. But after delivering speeches to companies and associations around the world on the topic, here’s what I’ve learned:1. It starts with attitude. Sure, maybe this person won’t be your next big customer or trusted advisor. But you never know. Everybody is som
    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

    HTTP = HTML link (for blogs, profiles,phorums):
    <a href="http://www.hubyou.info/article/49898/hubyou-Is-Your-Business-Opportunity-Program-Legal.html">Is Your Business Opportunity Program Legal?</a>

    BB link (for phorums):
    [url=http://www.hubyou.info/article/49898/hubyou-Is-Your-Business-Opportunity-Program-Legal.html]Is Your Business Opportunity Program Legal?[/url]

    Related Articles:

    Franchise Entrepreneurs - Buying Yourself A Job

    How Anyone Can Get Real Free Traffic Their Website

    Can You Afford to Write Your Own Resume?

    Bookmark it: del.icio.us digg.com reddit.com netvouz.com google.com yahoo.com technorati.com furl.net bloglines.com socialdust.com ma.gnolia.com newsvine.com slashdot.org simpy.com shadows.com blinklist.com