More Due Diligence: How Does The Site Work?

Posted by Neville on January 20, 2012 under Reviews | Comments are off for this article

Matching Hype and Performance

Due DiligenceDoes the hype from the advertising of a site really tell you what you are joining?

Take the “business opportunity” example from the previous 2 posts.

All of the advertising for this site has a strong emphasis on earning a regular daily 2% income on the money that you have put it. That process looks very much like a description of  Investment activity. It seems to me to be reasonable to assume that people who sign up for it believe that it is some form of investment.

Refer to the Terms

But let’s look at the Terms and Conditions that you need to agree to before you can join.

4. I understand that if I decide to join [name deleted], I will be joining a private association to build a base of leads that I can use for any home-based business the association may join and/or any legal businesses or opportunities (other than those of a sexually explicit nature or otherwise objectionable nature) I wish to promote.

5. I have NOT been led to believe that this activity is an investment activity, franchise, or employment opportunity.

So there you see that the program is a LEAD-BUILDING opportunity, and not an investment activity.

The advertising, done largely by affiliates who have already joined, is I presume supplied by the company, and as I have noted has a heavy emphasis on the 2% daily return. Looks to me like an Investment activity.

Of course, it does not take a genius to know that in these current times, a return of 2% daily is unbelievable and unrealistic. It is however a result of these difficult economic times that many people can be taken in by this promise, and part with their hard won cash.

Some people, who happen to get in at the right time will make some money, but when this system crashes, as it will inevitably do, the vast majority will have not received any of the promised returns. What is particularly concerning about this particular program is that owner knows it will reach a stage where it becomes unviable. His solution is to devalue everyone’s “earnings” and start all over again with those who remain convinced they can make money in the next round.

Read it for yourself:

19. From time to time, the [name deleted] managers may import the entire [name deleted] membership into another program, maintaining the [name deleted] genealogy. This will also be done on the basis that people imported into the other program will have to activate their accounts by a certain deadline in order to become members of the other program. If they don’t activate their accounts by the deadline, they will be dropped from the other program. One benefit of this procedure is that [name deleted] members receive their [name deleted] downline in the other program (to the extent that accounts are activated). Another benefit is that those who don’t want to be in the new program will be dropped automatically if they do nothing. Prior to such an import, [name deleted] managers will inform all [name deleted] members via email and in the Member Area of the expected import and the reasons for it. Subsequent to the import, managers of the other program will email those imported from [name deleted] to explain the benefits of the other program, and to provide them with the procedure to activate their accounts, should they wish to become members of the other program. More than one email may be sent by the managers of the other program. ([name deleted] members who don’t activate their accounts in the other program by the deadline will be dropped from that program.) [name deleted] members agree to receive the emails referred to in this rule 19. (Privacy: Any import per this rule 19 will be on the basis that the managers of the other program will not abuse the [name deleted] email addresses in any way. Once the deadline has been reached, all unactivated accounts in the other program will be deleted and the email addresses for these deleted accounts will not be retained by managers of the other program.)

If I read that correctly, as well as reading between the lines, when the program is becoming non-viable the entire membership lose its current account (and any “cash” in it) and will be dropped into  a new “program ” to start all over again.

He calls that “indefinitely sustainable”, implying that it will continue forever. He has chosen his words very carefully as “indefinitely sustainable” could also mean that there is no definite period for it to be sustainable, and it could crash at any time.

In my opinion, the sooner the better, so that the impact is felt by less unsuspecting members.

 

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