There are several reasons why it is difficult, if not impossible, to make money using the plans that are hawked on television. The first is that many of these opportunities involve selling to strangers. Selling requires specialized skills that do not automatically come by wishful thinking. Setting up a website to sell an MP3 player will only get you money if people are driven to your website in favor of going to the mall or surfing over to well-known websites with advantageous prices, free shipping and handling, and no-hassle return policies. Think about it, if you were to spend money on an MP3 player (or any other consumer object) would you trust My Very Own All-Purpose Website or one of the big players in the field? The answer is obvious. You would spend your money on a reputable site.
The second reason why these schemes fail to work as advertised is because they rely on pyramid, or multi-level, marketing strategies. Pyramid schemes are illegal, but many of the operators of the get rich quick gimmicks get around some of the legalities by actually offering products that can pass muster as legitimate items. The multi-level marketing aspect then is usually considered legal, but not likely to produce any significant income for the investor.
There are, however, ways to earn money that do not require selling skills, pre-existing business plans, or legally ambiguous downstreams. Although no reputable promoter of such opportunities will not promise to make you a million dollars in your first year, you can create a substantial secondary income stream that, if you continue, can actually replace your salaried job. The most promising of these plans ask you to be independent contractors who refer clients to the organizations that do the selling. Of course, if you are doing this for a car dealer, for example, you have to convince people that they need a new car, then you have to steer them to the dealer of your choice. That is not a true referral opportunity; it is a difficult, if not impossible, sales position.
A good referral plan allows you to contact only those people who are already committed to a plan of action. Your referral will enable them to carry out their plans easier and more profitably. Take, for instance, a person who is trying to sell his or her own house. After paying for the newspaper ads, the signs, the legal documents, and what not, the seller still has the problem of selling the house. He or she is committed to making the sale, but, if you could steer the seller to a proven method of selling the house quickly and at more profit than without the plan, and a zero net cost to the seller, you have a winning situation. Of course, you have to make sure that the company who is asking for you to be a source of referrals will pay you. If they promise, as most do, to pay you quarterly, you will probably be working for free, since these businesses come and go quickly. You do the work for them, they collect money from clients, and then they go out of business before they do anything for the clients and before they pay you. Very rarely will you find a company willing to cut you a weekly check.
For an organization to have a nationwide presence, a cadre of well-compensated independent contractors referring potential clients is the most cost-effective way to expand and grow. When you hitch your star to a reputable referral company, you can start to create wealth on your own terms. You work as much or as little as you want to, but the money will always flow to you. Do not try to make your fortune by spending your own money to buy into a selling scheme. Earn money through referrals.
If a company asks you to pay to become one of their referral agents, run away from them. The companies should be paying you, not the other way around. Think about it. If you want to make money, you do not start out by spending your own money to buy into a scheme that usually does not work. Take the first step to independence. Find a company that offers a product that people need and have already committed substantial resources towards. Become an independent contractor for them, but not to sell their products. You only want to refer potential clients to the company. You cannot lose anything by trying, and you stand to gain tremendously. Get off your couch and see how easy it is to earn extra pocket money.
Marc A Seligman