Author Notes: Reference Copy, links to Original Copy removed due to the Age of the Content. See the top Blog Menu for Copyright Concerns, Some Content Removed.

10a. Affiliate Programs, IUH 2009-12, 2ND Ed, R513A

In this chapter, you will see that almost anything that can be sold – can be sold online. Find out the differences between the three online networks, legitimate Affiliate, Affiliate multiplier and MLM and the illegal Pyramid schemes.

Trying to rank these programs, as to which is best for you, is difficult because most site owners are selling their affiliations or MLM.

Learn the differences between each scheme. What legitimate ways to earn and be successful online are? As in the previous Chapter, find something of interest to you

WHAT IS AN AFFILIATE PROGRAM?

TIP: As you review the various materials and references, you may note that many references are still confused and treat any multi-tier program or MLM as a pyramid – it is not, as we hope to clarify for you herein. Again, as in the previous section, try to find something that interests you and do your due diligence.

The affiliate is the middle man/woman that exists between the customer and the seller. Other names include associate, broker, agent, dealer, etc.

Affiliate program marketing is one of the best ways for newbies to learn how to make money on the Internet and to make a lot of money. There are thousands and thousands of ordinary people, who are making an extraordinary living from affiliate program marketing.

For the newbie’s affiliate program marketing is when you go to a company A, who sells a product or service. You complete the quick application process. The company approves your application. The company provides you with a unique link. This link contains your own unique affiliate ID. It is up to you to market this product and when you make a sale you get a commission on the sale. Don’t worry about how to make a sale. It can be done without moving from your couch. To join the affiliate marketing program is free.

One of the things you may be wondering about is where do I find these companies to become affiliated to? The best way is to go to a search engine on the net and type in Affiliate program marketing directories.

You will find thousands and thousands of companies who would kill to get you to market their products or services. The one that I like and use is at clickbank.com. It has a great selection (thousand) of products to market.Clickbank.com also guarantees that you will get paid your commission. They also have a 30-day money-back guarantee on the products.

SELECTING A PRODUCT

Now selecting a product is one of the most important aspects off affiliate marketing:

• To start select a product that you now have an interest in or are passionate about. This will make it easier for you to market.
• Do some research on the product.
• See if it is popular and does what it claims to do.
• Look at the commission that you will be generating.
• It can be anything from 25% to 75%.
• It takes the same effort to make 25% or 75% commission.
• I would take the 75% commission product.
• Last but not least. All affiliate program marketing programs are in essence the same, but do differ in some small ways and these small differences can make a big difference in money.

Most affiliate program marketing programs are in essence the same, but there are some small differences and these small differences can make a big difference. The difference comes in the amount of money you can generate per month.

The first and one of the major differences between different affiliate program marketing programs is, is in the amount of commission that are paid to you. This could be from 25% to 75% it takes the same effort to sell a 25% or 75% commission product. There are lots of programs that pay 75% commission and the product cost more than $100.I know which program I will be promoting. The major reason being the fact that it takes the same effort and expenses to make a lot more money. Don’t fool yourself making money is what it is all about.

The next kind of affiliate program marketing program to consider is membership websites or as it is also known a residual income program. Here you are marketing membership to an affiliate marketers program or website at a monthly subscription.

When people join the program through your efforts, you receive a commission for your sale, but it does not stop there. You also get a percentage of the subscription fee of these members who joined because of you. This you get every month for as long as the person stays with the program. You work once and are paid forever.

There are even same of this affiliate program marketing programs that gives you commission on the subscription of the members who joined the members who joined you. This adds up to a lot of money. This is cold leverage, doing more with less.

The next difference comes in the form of customer care and training. This is the biggest difference between the different affiliate program marketing programs. This one can make or break you, so focus. The good programs will have great customer care and would bend over backwards to help you succeed. This will come in the form of pre-written solo-ads-mail, training video etc.

The great programs will have all of the above plus a plan that you can follow to make a success of your Internet business. This is a win, win situation if you succeed and make money they succeed and make money. AffiliateProgram

Sometimes it can be an automated marketing program where a Web advertiser or merchant recruits webmasters to place the merchant’s banner ads or buttons on their own Web site. Webmasters will receive a referral fee or commission from sales when the customer has clicked the affiliate link to get to the merchant’s Web site Web site to perform the desired action, usually make a purchase or fill out a contact form. The most common types of affiliate programs include pay-per-click, pay-per-lead, and pay-per-sale.

HOW AFFILIATE MARKETING WORKS

If you have a Web site or blog and are looking for a way to earn income from your online property, consider affiliate-marketing programs. Affiliate marketing is the term used to describe a revenue- sharing plan where an online automated marketing program lets Webmasters place an advertiser’s banner ads or buttons on their own Web site. Webmasters will receive a referral fee or commission from conversions when a customer has clicked the affiliate link and performs the desired action, such as make a purchase or opt-in for downloads or newsletters on the advertiser’s site.

Advertisers invest in affiliate programs for lead generation, and, of course, sales. Not all affiliate plans work in the same way or pay the same rates. Some enable you to place text or image hyperlinks to products or a Web site, others allow you to set up a shopping or store page that offers products related to the content of your Web site, and others require you to place general advertising banners or buttons. The payouts for Webmasters also varies, but in the most common forms the affiliate is paid per click, each time a person clicks the ad (pay-per-click) or you may be paid a commission when a sale is made (pay-per-sale) or you might be paid by lead (pay-per-lead).

LEARN THE LINGO – [removed]

If you’re in affiliate marketing, here is a quick reference of some of the more common terms used in conjunction with affiliate marketing. By familiarizing yourself with the terminology you will be better able to understand the affiliate agreement, how different programs work, and how you can earn money. Below you’ll find direct links to common affiliate marketing terms from Webopedia.com.

TYPES OF AFFILIATE WEBSITES

Affiliate websites are often categorized by merchants (i.e., advertisers) and affiliate networks. There are currently no industry-wide accepted standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers.

• Search affiliates that utilize pay per click search engines to promote the advertisers’ offers (i.e., search arbitrage)
• Comparison shopping websites and directories
• Loyalty websites, are typically characterized by providing a reward system for purchases via points back, cash back
• CRM sites that offer charitable donations
• Coupon and rebate websites that focus on sales promotions Content and niche market websites, including product review sites
• Personal websites (This type of website was the reason for the birth of affiliate marketing; however, such websites are almost reduced to complete irrelevance compared to the other types of affiliate websites.)
• Weblogs and website syndication feeds

Email list affiliates (i.e., owners of large opt-in -mail lists that typically employ email drip marketing) and newsletter list affiliates, which are typically more content-heavy

Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website

Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently, thus requiring continual updates

Cost per action networks (i.e., top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliates

Websites using adbars (e.g. AdSense) to display context-sensitive, highly-relevant ads for products on the site   Wikipedia

ADVERTISERS

Different advertisers offer different types of affiliate programs. If you join a search engine affiliate program you most likely will be placing text links or banners to their advertisers and you’ll work on a pay-per-click fee. email list affiliates promote email newsletters and are usually paid when a person joins the advertised opt-in email list. Being an affiliate of any merchant usually means you are paid a commission per sale on the advertiser’s Web site. Pay-per-click affiliate programs pay the least amount, as affiliates are often paid per thousand clicks (CPC).

PAY-PER-LEAD PROGRAMS

Pay-per-lead programs are when you provide the links to downloads, trial offers, email optin lists and so on. Depending on the advertiser you may be paid per lead generation or you may not be paid unless the user subscribes and pays for a full service from the advertiser.

Again, you may also receive fees for both instances.

PAY-PER-SALE AFFILIATE

Pay-per-sale affiliate programs (also called revenue sharing) usually offer the highest commissions, and you will typically receive a set dollar amount per sale or a straight percentage of the total sale. Because a user has to purchase something, you may find this program best suited to high-traffic affiliate sites.

HOW DO THEY WORK?

• Knowing what ads to place and what revenue your Web site generates isn’t magic.
• Once you join an affiliate program, you then are able to choose the products or banners you want to include on your Web site, and then receive the code you will need to insert on specific Web page or throughout your Web site.
• This changes, however, when you select an ad revenue partnership, such as Google AdSense, for example where you have little or no control over the advertisement displayed.
• In joining the affiliate program, you will agree to their terms of service, called an affiliate agreement, which will tell you what requirements you must meet and how the click-through, lead generation or sales are tracked.
• For the most part, affiliate programs work by using a combination of a unique user ID and cookies to track your leads and subsequent revenues.
• Most will offer a private affiliate section on their Web site where you can get your HTML code and also check your affiliate account status and information.
• Through the use of browser cookies, any person who uses your link to make the desired action within a set amount of time contributes to your affiliate revenue.

For example if a user follows your link and looks through an online software store they are tracked as “your referral” by the browser cookie. If the person makes the purchase before the cookie expires, you get the referral commission. So even if a user sits with items in their shopping cart but doesn’t go back and make the purchase for two weeks, you can still get the commission, provided the cookie is still active.

For the Webmaster, one of the hardest things about using an affiliate program to earn money is finding a good one that will actually produce results for you. To better your chances of earning revenue from affiliate marketing here are some tips to get you started;

Always read the fine print. Make sure you understand how the payouts are structured, if you need to earn a minimum dollar amount before a payout, and, of course, compare commissions between similar affiliate programs.

Once you have narrowed down your options to a handful of possibilities, take a look at the merchant or marketers’ Web site rankings and traffic. If, for example, you have your choice narrowed down to three computer software e-tailers, you can use Google and Alexa rankings to help you determine which may have a better volume of traffic.

While their Web site traffic won’t directly help you promote their products, this may tell you which company has a larger customer-base (more traffic). A well-known name that your Web site visitors may be familiar with might encourage them to click the advertising links on your own site

Choose affiliate programs that complement your Web site content. If your site is all about sports, then chances are you’ll want to skip on setting up a co-branded Web store for cartoon themed car accessories, for example. Also, if affiliate programs offer customizable banners, buttons or splash pages that can be edited to reflect elements of your own site design, be sure to take advantage of those options.

Don’t be afraid to play the field and try a couple affiliate programs, or opt out of one and choose another if you’re not seeing any results after time. Results are going to be based on how much traffic your own Web site gets. If your site serves only a couple visitors a day, you can’t expect high click-through numbers.

CHOOSING AN AFFILIATE PROGRAM

Because there are such a large number of affiliate programs to choose from and many are structured differently, here are some tips to keep in mind while looking for a good match. First, you need to be sure you are comfortable with the product you’re promoting or selling and you have confidence in the advertiser you are linking to.

Check the pages on the advertiser’s Web site. If it’s something you yourself would never consider purchasing, or it possibly looks a bit unreliable, then chances are your visitors won’t be interested in it either. If you’re running a content-based site, you don’t want to sell anything that might offend visitors or lower their opinion of your site.

The best rule of thumb is to pick affiliate programs that offer something that’s relevant to your site. For example, if your Web site is about registering domain names, look for affiliate programs that are related to the topic such as Web site hosting, Webmaster tools and software, Web site templates and so on.

There is nothing worse than advertisements that stand out like a sore thumb on your pages (e.g., online casino ads placed on a Web site about elementary school math tutorials). Even niche sites can find affiliate programs that are a good match.

What is the Advertiser really offering its affiliates? Make sure you really understand the affiliate agreement and that you’ll be able to comply with it. Take the time to check out the advertiser before joining to ensure they really do pay out to affiliates and that their program is not a scam. Look at what the advertiser is offering in terms of tracking and reporting tools for affiliates. Good programs will provide you with a way to access real-time automated statistics to view conversions, sales and commissions.

Be sure you have ad and product display options to integrate the advertising into your Web site. Can you change the colors, themes and choose from a selection of different sized banners and buttons? With this type of service it means a little less work for you, the affiliate, and it also means your affiliate program meshes with your site. Some higher-pay programs may look attractive, but may offer a higher commission because they might not provide support and tools to their affiliates. If this is the case, make sure you determine if this program will be too high-maintenance for you before joining.

Pay-per-click programs offer the lowest dollar value for conversions, and you will need a higher click through rate to earn money. Pay-per-lead and pay-per-sale programs will usually offer a higher commission, but you will have less visitors clicking through to complete the transactions, so you need to have many unique visitors. Use your own traffic and reporting tools to determine which type of program will have a better chance of success on your own site.  WebOPedia

DEFINING A GOOD AFFILIATE PROGRAM

Affiliate programs are a popular way to earn money online. But do you know what to search for in an affiliate program? It is important that you know what constitutes the best affiliate program before you sign up with any program. 8 Key factors that define a good affiliate programs are as follows:

REPUTABLE, HIGH QUALITY PRODUCTS, SERVICES OR BUSINESS OPPS

If you join up an affiliate program that does not have a good reputation, you will be wasting your money and time, and your online reputation will also be affected. An affiliate program with high reputation will also enable you to succeed because it will be easy for you to make sales

GOOD REFERENCES AND STABILITY

The Internet is full of scams. You will therefore need to join an affiliate program that has some good reviews and references; and the company must be stable and financially sound.

If you do not research this, you risk joining an affiliate program which is a scam.

PAYS HIGH COMMISSION

Various affiliate programs offer a wide range of commissions. You will need to look for an affiliate program where your earnings are high. The affiliate program’s commission structure is therefore very important, and you need to be fully informed about the potential commissions you can earn for each sale before you join any affiliate program.

RESIDUAL INCOME OPPORTUNITY

The best affiliate program is one for which you are rewarded several times over, just from a single sale. For example, if you make a sale today, some affiliate programs will reward you if that customer makes another purchase in the future, or if they refer someone who will make a purchase. This will simply increase your earnings in the long run.

RELIABILITY OF PAYMENT

Research on how reliable the affiliate program is at paying its affiliates. When you are in business, you will have some ongoing costs, such as marketing your business, and driving traffic to your affiliate website. You will therefore need to have constant payments to help you with the cash flow. Equally important is how frequent the program pays its affiliates. You would not want to wait months before you get paid.

AVAILABILITY OF SUPPORT AND MARKETING TOOLS TO AFFILIATES

You will need all the support and tools you can get in order for you to make sales and earn some commission. Some affiliate programs are good than others in terms of proving this support. Do your research and find an affiliate programs that offer support and tools that will make your job easier.

A PROGRAM THAT SUITS YOUR INTERESTS OR MATCH YOUR ONLINE BUSINESS

It is important for you to choose an affiliate program that has products or services that are of interest to you, so that you will enjoy marketing them. If you already have an online business and a website, you will need to choose an affiliate program that matches or complements what you already sell on your website.

Your affiliate business is a long-term commitment, so you will need to make the right choice so that you sign up with a program that has products that you will enjoy marketing.

A PROGRAM THAT IS STILL GROWING AND HAS A HUGE POTENTIAL MARKET

You must avoid signing up with a program that is not popular or is declining in its reputation. While it is important to choose an affiliate program that has been in existence for a while and is stable, avoid joining a program that has exhausted its market growth potential or is simply losing its attractiveness. You want to sign up with a program that is in high demand and will be easy for you to sell.

By using the guideline presented above, you will be able to pick an affiliate program that pays you well and on time. You will also join an affiliate program with easy-to-sell products that have high reputation and are in demand; and you will get the necessary support to make it easy for you to make sales.

As an affiliate, you will want to see your commission checks increasing gradually over time; and the above factors will make this possible for you, if you select the right affiliate programs. HomeBasedBusiness

ISSUES WITH AFFILIATE MARKETING

Since the emergence of affiliate marketing, there has been little control over affiliate activity. Unscrupulous affiliates have used spam, false advertising, forced clicks (to get tracking cookies set on users’ computers), adware, and other methods to drive traffic to their sponsors. Although many affiliate programs have terms of service that contain rules against spam, this marketing method has historically proven to attract abuse from spammers.

ADWARE

Although it differs from spyware, adware often uses the same methods and technologies. Merchants initially were uninformed about adware, what impact it had, and how it could damage their brands. Affiliate marketers became aware of the issue much more quickly, especially because they noticed that adware often overwrites tracking cookies, thus resulting in a decline of commissions.

Affiliates not employing adware felt that it was stealing commission from them. Adware often has no valuable purpose and rarely provides any useful content to the user, who is typically unaware that such software is installed on his/her computer.

Affiliates discussed the issues in Internet forums and began to organize their efforts. They believed that the best way to address the problem was to discourage merchants from advertising via adware.

Merchants that were either indifferent to or supportive of adware were exposed by affiliates, thus damaging those merchants’ reputations and tarnishing their affiliate marketing efforts. Many affiliates either terminated the use of such merchants or switched to a competitor’s affiliate program.

Eventually, merchants and affiliates to take a stand and ban certain adware publishers from their network also forced affiliate networks. The result was Code of Conduct by Commission Junction/beFree and Performics,] LinkShare’s Anti-Predatory Advertising Addendum, and ShareASale’s complete ban of software applications as a medium for affiliates to promote advertiser offers.

Regardless of the progress made, adware continues to be an issue, as demonstrated by the class action lawsuit against ValueClick and its daughter company Commission Junction filed on April 20, 2007.

EMAIL SPAM

In the infancy of affiliate marketing, many Internet users held negative opinions due to the tendency of affiliates to use spam to promote the programs in which they were enrolled. As affiliate marketing matured, many affiliate merchants have refined their terms and conditions to prohibit affiliates from spamming.

CLICK TO REVEAL

Many voucher code web sites use a click to reveal format, which required the web site user to click to reveal the voucher code. The action of clicking places the cookie on the website visitor’s computer. The IAB have stated “Affiliates must not use a mechanism whereby users are encouraged to click to interact with content where it is unclear or confusing what the outcome will be. “Answers

COOKIE STUFFING

Cookie stuffing involves placing an affiliate-tracking cookie on a website visitor’s computer without their knowledge, which will then generate revenue for the person doing the cookie stuffing. This not only generates fraudulent affiliate sales, but also has the potential to overwrite other affiliates’ cookies, essentially stealing their legitimately earned commissions.

LACK OF SELF-REGULATION AND COLLABORATION

Entrepreneurs who are working at the edge of Internet marketing drive affiliate marketing.

Affiliates are often the first to take advantage of emerging trends and technologies. The “trial and error” approach is probably the best way to describe the operation methods for affiliate marketers. This risky approach is one of the reasons why most affiliates fail or give up before they become successful “super affiliates”, capable of generating US$10,000 or more per month in commission. This “frontier” life combined with the attitude found in such communities is likely the main reason why the affiliate marketing industry is unable to self-regulate beyond individual contracts between advertisers and affiliates.

Affiliate marketing has experienced numerous failed attempts to create an industry organization or association of some kind that could be the initiator of regulations, standards, and guidelines for the industry.] Some examples of failed regulation efforts are the Affiliate Union and iAfma.

Online forums and industry trade shows are the only means for the different members from the industry—affiliates/publishers, merchants/advertisers, affiliate networks, third-party vendors, and service providers such as outsourced program managers—to congregate at one location. Online forums are free, enable small affiliates to have a larger say, and provide anonymity. Trade shows are cost- prohibitive to small affiliates because of the high price for event passes. An advertiser they promote may even sponsor larger affiliates.

Because of the anonymity of online forums, the quantitative majority of industry members are unable to create any form of legally binding rule or regulation that must be followed throughout the industry. Online forums have had very few successes as representing the majority of the affiliate marketing industry. The most recent example of such a success was the halt of the “Commission Junction Link Management Initiative” (CJ LMI) in June/July 2006, when a single network tried to impose the use of a JavaScript tracking code as a replacement for common HTML links on its affiliates.

LACK OF INDUSTRY STANDARDS – CERTIFICATION AND TRAINING

Affiliate marketing currently lacks industry standards for training and certification. There are some training courses and seminars that result in certifications. However, the acceptance of such certifications is mostly due to the reputation of the individual or company issuing the certification. Affiliate marketing is not commonly taught in universities, and only a few college instructors work with Internet marketers to introduce the subject to students majoring in marketing.

Education occurs most often in “real life” by becoming involved and learning the details as time progresses. Although there are several books on the topic, some so-called “how-to” or “silver bullet” books instruct readers to manipulate holes in the Google algorithm, which can quickly become out of date, or suggest strategies no longer endorsed or permitted by advertisers.

Outsourced Program Management companies typically combine formal and informal training, providing much of their training through group collaboration and brainstorming. Such companies also try to send each marketing employee to the industry conference of their choice.

Other training resources used include online forums, weblogs, podcasts, video seminars, and specialty websites. Affiliate Summit is the largest conference in the industry, and many other affiliate networks host their own annual events.

SEARCH ENGINE SPAM

As search engines have become more prominent, some affiliate marketers have shifted from sending email spam to creating automatically generated Webpages that often contain product data feeds provided by merchants. The goal of such Webpages is to manipulate the relevancy or prominence of resources indexed by a search engine, also known as Spamdexing. Each page can be targeted to a different niche market through the use of specific keywords, with the result being a skewed form of search engine optimization.

Spam is the biggest threat to organic search engines, whose goal is to provide quality search results for keywords or phrases entered by their users. Google’s PageRank algorithm update (“BigDaddy”) in February 2006—the final stage of Google’s major update (“Jagger”) that began in mid-summer 2005— specifically targeted Spamdexing with great success. This update thus enabled Google to remove a large amount of mostly computer-generated duplicate content from its index.

Websites consisting mostly of affiliate links have previously held a negative reputation for under delivering quality content. In 2005 there were active changes made by Google, where certain websites were labeled as “thin affiliates”. Such websites were either removed from Google’s index or were relocated within the results page (i.e., moved from the top-most results to a lower position). To avoid this categorization, affiliate marketer webmasters must create quality content on their websites that distinguishes their work from the work of spammers or banner farms, which only contain links leading to merchant sites.

Some commentators originally suggested that Affiliate links work best in the context of the information contained within the website itself. For instance, if a website contains information pertaining to publishing a website, an affiliate link leading to a merchant’s Internet service provider (ISP) within that website’s content would be appropriate.

If a website contains information pertaining to sports, an affiliate link leading to a sporting goods website may work well within the context of the articles and information about sports.

The goal in this case is to publish quality information within the website and provide context-oriented links to related merchant’s websites. However, examples that are more recent exist of “thin” Affiliate sites which are using the Affiliate Marketing model to create value for Consumers by offering them a service.

These thin content service Affiliate fall into three categories: Price comparison

Cause related marketing Time saving

TRADEMARK BIDDING

Affiliates were among the earliest adopters of pay per click advertising when the first pay per click search engines such as Goto.com (which later became Overture.com after being acquired by Yahoo! in 2003) emerged during the end of the 1990s. Later in 2000 Google launched its pay per click service, Google Adwords, which is responsible for the widespread use and acceptance of pay per click as an advertising channel.

An increasing number of merchants engaged in pay per click advertising, either directly or via a search marketing agency, and realized that this space was already well-occupied by their affiliates. Although this situation alone created advertising channel conflicts and debates between advertisers and affiliates, the largest issue concerned affiliates bidding on advertiser’s names, brands, and trademarks. Several advertisers began to adjust their affiliate program terms to prohibit their affiliates from bidding on those types of keywords. Some advertisers, however, did and still do embrace this behavior, going so far as to allow, or even encourage, affiliates to bid on any term, including the advertiser’s trademarks.

THREAT TO TRADITIONAL AFFILIATE NETWORKS

Cost per action networks may be viewed as a threat to “classic” affiliate marketing networks. Traditional affiliate marketing is resource-intensive and requires continual maintenance. Most of the maintenance includes managing, monitoring, and supporting affiliates. The goal of affiliate marketing is directed toward long-term and mutual beneficial partnerships between advertisers and affiliates.

Cost per action networks, however, eliminate the need for the advertiser to build and maintain relationships to affiliates, as that task is performed for the advertiser by the cost per action network. The advertiser makes an offer, usually CPA-based, and the cost per action networks handle the remainder of the process by mobilizing their affiliates to promote that offer. Cost per sale and revenue sharing are the primary compensation models for classic affiliate marketing, and are rarely found in cost per action networks. Affiliate marketers typically avoid the topic of cost per action networks; however, if it is being discussed, the debates can become heated and explosive.

Thanks for Reading – 10a. Affiliate Programs, IUH 2009-12, 2ND Ed, R513A

Dr Don, Founder, ICFO

Author Notes: Reference Copy, links to Original Copy removed due to the Age of the Content. See the top Blog Menu for Copyright Concerns, Some Content Removed.

10d. Matrix Schemes, IUH 2009-12, 2ND Ed, R513A

A matrix scheme (also known as a matrix sale or site, and as a hellevator, escavator or ladder scheme) is a business model involving the exchange of money for a certain product with a side bonus of being added to a waiting list for a product of greater value than the amount given. Matrix schemes are also sometimes considered similar to Ponzi or pyramid schemes. They have been called unsustainable by the United Kingdom’s Office of Fair Trading

HISTORY

The first known matrix scheme is widely believed to be EZExpo.com, which started the popularity of matrix schemes in 2002. By 2003 more than 200 matrix schemes were in operation, including one which had the same owner as the payment processor Stormpay (TymGlobal). Subsequently TymGlobal and Stormpay were accused of running an illegal Ponzi scheme. Stormpay later claimed to be independent of TymGlobal, and they stopped accepting matrix schemes as customers. Although many have since ceased trading, some schemes are still known to be operating worldwide. The payment processor, Stormpay, is no longer trading.

OPERATION

The operation of matrix schemes varies, though they often operate similar to pyramid or Ponzi schemes. Some of the former participants of these schemes consider them to be a form of confidence trick, although others are happy with their purchase. To move upward in the list, a person must wait for new members to join or refer a certain number of people to the list. This is accomplished through purchasing a token product of marginal value: usually e-books, cell phone boosters, screen savers, or other software CDs/DVDs. When a predefined number of people have purchased the token product the person currently at the top of the list receives their reward item, and the next person in the list moves to the top. The rewards for those at the top of the matrix list are usually high-demand consumer electronics, such as portable digital audio players, high-definition television sets, laptop computers, and cellular phones. Reaching the point on the list where you receive the expensive goods is termed “cycling”.

In many cases, the token product alone could not be reasonably sold for the price listed, and as such legal experts claim that, regardless of what is said, the real product being sold is the “reward” in question in those situations.

In these cases, the operator could be charged with running a gambling game or failing to supply ordered products. Steven A. Richards, a lawyer who represents multi-level marketing (MLM) companies for Grimes & Reese in Idaho Falls, Idaho, has stated that often there are no clear legal tests for Ponzi schemes. But if the product sold has no value or very little value, and consumers wouldn’t buy it without the attached free gift, the scheme probably runs afoul of federal and state laws

The “Matrix List” by which the sites receive their name would be what is known as a straight-line matrix, or 1 by X matrix. This is similar to many MLMs that use Y by X matrices to fill a down-line.

For example, one situation may be a 1 by 10 matrix for a Sony PlayStation 2 (a common reward). In such a matrix the site would usually sell an e-book for $50 to be placed on the list. After 9 additional people purchased a spot, the first person would receive either a PS2 or cash value equivalent and would be removed from the list.

The person who had been second would move up to the first spot and an additional 10 people would have to purchase in order for this person to receive a PS2. It is this orderly movement which has also given the name “Elevator Scheme” to these sites as people would move up the elevator (escalator, ladder) to the top at which they would then “cycle” out of the matrix.

In such a matrix, 9 out of 10 or 90% of all customers will not receive the reward item, because the rules of the scheme are that one reward is issued for every 10 customers that join. (The fact that the reward is issued to the customer at the top of the list doesn’t change the proportion of rewards given to customers signed up.) Supporters claim that additional revenue streams from advertising are used to keep the lists moving. However, detractors claim that it is impossible to generate enough outside revenue. If the entire world were to join the list, 90% of the world would be unable to cycle if the site did not draw sufficient alternate revenue streams. Adding more people to the list does not change the fact that the majority would receive nothing without these streams.

Additionally, the amount of time needed before a given individual will receive the product in question is often mistaken. In a matrix in which 10 people are required before it will cycle, the first person to join only needs 9 additional sign ups, but the second person needs 18 additional sign ups, 8 more for the person above him, and then 10 more for himself. The third person on the list likewise needs 27 additional signups, 7 for the person on top of the list, 10 for the person directly above him, and then 10 for himself. And then the number of people required continues to grow for each new person joining the list. For the 10th person to cycle it would require 100 people total, and 1000 for the 100th, and so on. Wikipedia

TIPS FOR CONSUMERS AND BUSINESSES BEWARE OF ANY PLAN:

THAT MAKES EXAGGERATED EARNINGS CLAIMS

Beware of any plan that makes exaggerated earning claims especially when there seems to be no real underlying product sales or investment profits. The plan could be a Ponzi scheme where money from later recruits pays off earlier ones. Eventually this program will collapse, causing substantial injury to most participants.

THAT OFFERS COMMISSIONS FOR RECRUITING NEW DISTRIBUTORS

Particularly when there is, no product involved or when there is a separate, up-front membership fee. At the same time, do not assume that the presence of a purported product or service removes all danger. The Commission has seen pyramids operating behind the apparent offer of investment opportunities, charity benefits, offshore credit cards, jewelry, women’s underwear, cosmetics, cleaning supplies, and even electricity.

THAT PURPORTS TO SELL A PRODUCT OR SERVICE

Check to see whether its price is inflated, whether new members must buy costly inventory, or whether members make most “sales” to other members rather than the public. If any of these conditions exist, the purported “sale” of the product or service may just mask a pyramid scheme that promotes an endless chain of recruiting and inventory loading.

THAT CLAIMS TO HAVE A SECRET PLAN

Overseas connection or special relationship that is difficult to verify. Charles Ponzi claimed that he had a secret method of trading and redeeming millions of postal reply coupons. The real secret was that he stopped redeeming them. Likewise, CDI allegedly represented that it had the backing of a special overseas bank when no such relationship existed.

THAT DELAYS MEETING ITS COMMITMENTS WHILE ASKING MEMBERS TO “KEEP THE FAITH.”

Many pyramid schemes advertise that they are in the “pre-launch” stage, yet they never can and never do launch. By definition, pyramid schemes can never fulfill their obligations to a majority of their participants. To survive, pyramids need to keep and attract as many members as possible.

Thus, promoters try to appeal to a sense of community or solidarity, while chastising outsiders or skeptics. Often the government is the target of the pyramid’s collective wrath, particularly when the scheme is about to be dismantled. Commission attorneys now know to expect picketers and a packed courtroom when they file suit to halt a pyramid scheme. Half of the pyramid’s recruits may see themselves as victims of a scam that we took too long to stop; the other half may view themselves as victims of government meddling that ruined their chance to make millions. Government officials in Albania have also experienced this reaction in the recent past.

THAT ATTEMPT TO CAPITALIZE ON THE PUBLIC’S INTEREST IN HI-TECH OR NEWLY DEREGULATED MARKETS

Every investor fantasizes about becoming wealthy overnight, but in fact, most hi-tech ventures are risky and yield substantial profits only after years of hard work. Similarly, deregulated markets can offer substantial benefits to investors and consumers, but deregulation seldom means that “everything goes,” that no rules apply, and that pyramid or Ponzi schemes are suddenly legitimate.

CONCLUSION

As we continue to pursue pyramid schemes, we would be delighted to coordinate our efforts with law enforcement in your countries. It is only too evident that the expansion of fraud across borders and on the World Wide Web means that no one agency or country can work effectively on its own. We must be collectively vigilant in order to protect the integrity of our marketplaces and the pocketbooks of our consumers. SpeechFTC-IMF

FOR THE I DONT DO MLM READERS [removed]

EBAY POLICY MLM, PYRAMID, AND MATRIX PROGRAMS

POLICY OVERVIEW

We don’t allow listings and advertising of multi-level marketing programs (including online payment randomizers), matrix, pyramid, Ponzi schemes, and all similar programs on eBay. These programs are often regulated or illegal.

Make sure your listing follows these guidelines. If it doesn’t, it may be removed, and you may be subject to a range of other actions, including limits of your buying and selling privileges and suspension of your account.

WHAT ARE THE GUIDELINES?

MULTI-LEVEL MARKETING

Not allowed. This includes any business where you receive income from your own sales and income from your recruited members.

Online payment randomizers (because the majority of commissions are paid for recruitment of new members, and typically operate by random placement within the program.)

PYRAMID SCHEMES:

These schemes often ignore the actual selling of products and services, and concentrate on the income you can earn by recruiting new distributors. Pyramid schemes might not involve selling products.

MATRIX PROGRAMS:

These programs involve the exchange of money primarily for being added to a waiting list for a product. If you’re at the top of the list, you receive a product when a set number of people join after you join.

Thanks for Reading – 10d. Matrix Schemes, IUH 2009-12, 2ND Ed, R513A

Dr Don, Founder, ICFO

Author Notes: Reference Copy, links to Original Copy removed due to the Age of the Content. See the top Blog Menu for Copyright Concerns, Some Content Removed.

7. The $1,000,000 Per day PTC/PTR Scam, IUH 2009-12, 2ND Ed, R513A

This section culminates my 9 months of research, testing and being scammed in the PTC/PTR arena of Internet Scams. Years ago, I looked at various paid to read email programs, but I figured my time was worth much more than $ .05 for reading 10 emails or a $ .01 per email, or anything like that. Such low paying sites are still available today, and do actually pay. However, to make any money with these sites, you need a downline contributing to your income.

It is hard for me to get excited about someone that posts a check for $ 5.00 (as proof of payment) and he or she is happy. How much work did they have to put into to get that $ 5.00; did it pay for his Internet connection, his electricity, computer, etc. This section is another look at todays’ big money PTC/PTR sites, and the scams they represent…

I cannot emphasis the importance of this chapter, as I find too many new users (newbies), are being taken by the promise of big earnings $1 -20,000 per email that will never be taken to the bank

RETIRED AND BORED

I get so very busy in my many endeavors; that I often look for a no-brainer to pass some break time. Chatting is great among the various social networks available, but can lead to problems for you, unless you keep it strictly business, not monkey business. I can say that, as I met my wife online (smiles).

After years of various successful businesses, consulting and coaching, etc., I finally decided to retire. I got tired of the local politics and current business gamesmanship. Moreover, I am a foreigner in someone else’s land; I do not need to take consultation fees when locals claim to be able to do the same job and work cheaper. .

I have been using the Internet for research, financial data/quotes, email, etc. for years in my various businesses. Therefore, I decided to try the net for some productive, paying programs. I believe I already told you that I did not play golf.

Having been used to working 12-16 hours days, I needed something to keep me my brain active. After some time of learning and losing at various other interest business opportunities as discussed before, I took another look at the PTC/PTR community.

As I said, the low-paying sites are still available, but it seems the real way to make any money here is to build a downline, like most online programs. In as much as I had not built a downline for any other program that paid more than these sites. I passed, but then I began finding new PTC/PTR programs that paid, unbelievable, think of it: $20,000 per email?

Wow, how can this be true? It is not possible – I told the wife, maybe this is a new money laundering Scheme. It did not make any sense to us, nor should it to you. However, do read on!

Real or not, I decided to check out these new sites, joining one led to joining another, etc. Before I knew it I had several sites promising ridiculous amounts of money per day.

MY BIGGEST PTC/PTR ACCOUNT – PCASH

The site is now shut down, but below are a few of the details of the scam which will be used to introduce to and help explain some of the similarities and differences between most of the PTR/PTC sites

HOME PAGE SITE STATISTICS

• Members:             7,608
• Payouts:               62,093,832,222.00
• Mails in queue 2296 Ads in rotation 30
• Memberships (free and upgraded) Get Paid By Clicking!
• All emails are Worth $20000 All PTC are worth $10000
• $20000 signup bonus
• $2000 referral bonus Redemption starts at only $500000
• We send redemption within 48 hours
• No downline is required for the payout
• Payments Will be Made via Liberty Reserve, Moneybookers, E-Gold!
• Fast Payments for Honest Members

2 Ref levels of commission under you; Level 1 – 20%, Level 2 – 10%

PCash is not a multi-level marketing site! This is a Pay per Action Site and the membership is completely free to join. You are not required to recruit or sell anything in order to get paid.

Advertiser Benefits the most cost effective advertising. Guaranteed Clickthru Ad Options.email

ADVERTISING OR BANNER ADVERTISING.

Advertise to 100% opt in membership.

Members are eager to receive your ads. Absolutely no Spam! We will customize your Ad Campaign. Reliable, Friendly Service. Fast respond! Mostly in 24 hours will be processed. Advertising Will Be Made within 24 hours. Choose Your Page

EXPERIENCE

Membership has nearly tripled since I joined this site. Note the claimed payouts of over 62 Trillion, and all this with only 2300 emails and 30 banner ads. Payouts of 62,093,832,222.00 divided by 7,608 members’ give an average payout to each member of $816,000.

Not bad it if were true. But it is not, the payout number increases with each request for payment, but no money changes hands, only the tot board changes. Of course, this is not real, but seeing the numbers get so high, it became a game, a diversion, and sort-of addictive (how high can I go). As you will see, this site and others became a part of my Welcome to My USD 1M or More per Day Strategy. On paper, I was making money with this site, lots of it at a time when I was getting nothing from my other sites or advertising efforts. I accumulated a downline of 58 members. Clearly, this was a winner, by all measures, except that “No Payments” were received.

Even with my mentality that if you owe me a million, then 1% or $10,000 would be great, since although I would have like to have received something, but didn’t really need the money. However, I have learned that scammers don’t give up a dime. There is none of this take a little bit now and I will send the balance later stuff.

You have no contact with your downline, only the name and a $2,000 bonus tally. For that matter, the downline could be random generation of name to fill a list to keep you in the game. Since most of these scammers, as I have learned, own several sites, the same downline name probably shows more than one site.

The home page says payment will be made via different payment gateways. However, PayPal is now missing from the home page. A new name “Liberty Reserve” is shown. Liberty

Reserve came on strong and became the primary gateway for several other sites and No PayPal.

UPGRADE EXAMPLE

When you upgrade your free membership to a Gold Membership, you will receive the following benefits:

• Free Referrals (3 x) – Your referral URL will be randomly inserted for surfers visiting the web site without a referral URL.
• 10,000 PTC Worth $10,000 monthly (?? If each PTC is worth $10,000, Why only $10,000 per month?) 10,000 banner impressions monthly
• $20,000 solo paid email to all monthly

ADVERTISING

Are you interested in advertising with our company? Below are the different types of advertising services we provide. We offer many options and are confident; you will find one to fit your needs. How it works:

• Click one of our advertisings from below.
• If these advertise allow targeting – select your target groups.
• When you are done you will have the price that you need to pay, calculated.
• After you have paid for your ad package, please fill out the “Order Form” on the last step to complete the advertisement ordering process.
• Complete all the information requested on the form then click submit.
• Once your payment has been confirmed, we will process your order immediately.

ADVERTISEMENTS

A Paid-email to Members of our Program

• All of the people who are receiving the email have all requested it, thus giving you, the advertiser, and a great selection of interested viewers.
• 20000 USD solo paid email to all 60 sec (pcash) – $2.00 30 x $20000 solo paid email to all 60 sec (pcash) – $55.00 10 x $20000 solo paid email to all 60 sec (pcash)
• $20.00 PAID TO CLICK Banner 468 x 60 Exposures have a unique price per click and will last until the purchased number of clicks has been reached.
• These are UNIQUE VISITORS as each user may click only ONCE per ad these ads are visible in the members’ paid2click area.
• 1,000 PTC Worth $10000 40 sec (pcash) – $0.50 10,000 PTC Worth $10000 40 sec (pcash) – $2.00 100,000 PTC Worth $10000 40 sec (pcash) – $5.00

BANNER IMPRESSIONS ADVERTISING

• Your banner inserted into our banner rotation on the top of each page of the website. This is a great way to catch people’s interest, just as much publicity, if not more than, advertising in the member emails.
• The banners will be displayed on every page of the site, randomly mixed in with other banners… 50,000 Banner Impressions (pcash) – $2.00
• 100,000 banner impressions (pcash) – $4.00 500,000 banner impressions (pcash) – $18.00
• One month unlimited banner impressions (pcash) – $35.00* This ad allows targeting. Price determined after choosing targets.

COST OF ADVERTISING

• From the above cost, where is the money? You can buy $ 20, 000 USD solo paid emails to all members, running 60 sec (pcash) – $2.00.
• If my math is correct $2.00 / 20,000 = .0001 cent. So how can anyone stay in business if each member receives $ 20,000 to read a $.0001 ad??
• The fascination continued
• During my time with this project, I noted that most of the ads and emails were self-promoting or cross promoting between similar sites, probably from the same owner. So where is the revenue?

LIMITATION OF LIABILITY:

• pcash.info will not be liable for lost profits, lost business opportunities, or any other indirect, special, punitive, incidental or consequential damages arising out of or related to this Agreement or pcash.info program, even if pcash.info has been advised of the possibility of such damages.
• Furthermore, pcash.info aggregate liability arising under this Agreement will not exceed the amount of the total fees paid or payable to you under this Agreement. The provisions of this Section survive termination or expiration of the Agreement.

PAYMENTS

• Affiliates may earn by receiving paid-emails and visiting the advertiser websites after they have entered their member ID in the area on the website provided by pcash.info.
• Affiliates may earn by referring new affiliates to the pcash.info program. Affiliates will earn a percentage of advertising revenues collected by pcash.info.
• Affiliates will be paid via PayPal / eGold. pcash.info will pay affiliates when their balance reaches the minimum payout rate set by pcash.info. Once the member has reached payout they may request payment. Payments will be made within 30 days or a reasonable time after.

PAYMENTS/CASH REDEMPTION

• Cash redemption for PCash starts at $ 500,000 and is easy to reach (as most sites will claim).
• The amount of minimum earnings required before you can make a claim will decrease with an upgrade.
• PCash claims they will send the redemption within 48 hours. For most sites, this payout period can be shortened with the level of an upgrade.
• So if you want your money faster, you are motivated to upgrade.
• Also an upgrade will provide you with some “x” number of free members to help build your downline.
• TIP. Clearly PCash and other sites are offering a “Cash Payment Redemption” link which will pay you with “x” dollars within “x” hours or days, but forget what the Home Page says. Read the fine print from the “Terms” which reveals something different.

TERMS

• pcash may, at any time, choose to edit, add and/or delete portions of this agreement and impose changes without prior notification of its affiliates
• Payments will be made within 30 days or a reasonable time after.
• Tip. Don’t confuse the “Earnings” with Cash Payments.
• Pcash.info, unlike some other sites, does tell you that you will earn a percentage of revenue, not full cash value.
• But, as you will see when you do your Due Diligence; nobody will get anything if their daily revenue is only $4.00.
• Most of these sites seem to confuse the word “redemption” with a cash payout. Using some of your cash value to place an ad will usually be redeemed within 24-48 hours.
• Once an upgrade and a payment request has been made, let’s say for a 48 hour redemption, many sites then report that your payment will be made within the redemption period once your account is 30, 60 or 90 days old; and not the immediate 48 hours that you thought that you had upgraded for.
• If you read the Home page, Terms, Upgrade and the Frequently Asked Questions (FAQS), you will typically find many inconsistencies between them.
• For example, the front page does not mention PayPal anymore, but when you complete the user profile; the only payment methods are PayPal and E- Gold.
• Most of these PTR/PTC sites use only PayPal and E-Gold, but it appears that many are now switching to Liberty Reserve. If you contact them online, you will not get a reply, and if you contact them by email, you will not get a reply.

HONEST MEMBERS

• I particularly love the “Fast Payments for Honest Members” What a lie!
• With the amount of money I earned on the site, I should have been getting $500,000 every 2days. See my earnings of over $ 180,500,000, Amazing isn’t it.

MY EARNINGS

• You have directly earned: $ 92,600,000.0000
• You have earned from your Downline: $ 84,786,000.0000
• Your account balance after all transactions: $ 3,022,000.0000
• When the minimum amount for a payout has been earned; in this case $500,000, you can click the “Request Payment” link, complete the request and you are greeted by the following message
• Your message has been sent. We will contact you soon.
• No messages regarding the payment request were ever received, and its seems that as soon as you request a payment, the “Payouts” Increase, even though no money has actually changed hands.
• So is any of this realistic – Of course not, but watching your earnings increase and increase by $20,000 can be addictive, especially, if you have not seen earnings on other programs.
• With this information, it is easy to see, that pcash.info claims to have paid out 62 trillion when it has an estimated value of less than $3,000. Ad revenue is estimated at less than My *USD 1m or More per Day Strategy
• $4.00 per day. How to pay you $20,000 per ad?

FACTS: THIS IS A NO-BRAINER – SCAM, PASS

• This is just one example of over 200 sites evaluated.
• As the numbers grew, it became a challenge: Can I Make (earn) a Million Dollars a Day Doing This? I made it a supplemental business endeavor (a non-paying business as you will learn) from 27 October 2008 till 22 Jul 2009.

MY USD 1M OR MORE PER DAY STRATEGY

I made PTC/PTR a business to see how far I could go with it without getting paid. I kept track of the date that I joined how, many days since joining, average earnings per day, signup bonuses, PTR earnings, PTC earnings, cost of upgrading, payment to who PayPal, Liberty Reserve, etc. I also tracked the date I upgraded, when payouts were due and other factors which I tracked off table. So it was a business and treated as such.

I was able to achieve the $ 1,000, 000 earning per day target in about 6 months. It could have been faster; but all programs (over 200 in the test) must be accessed (whether high dollar or lesser dollars) at least once a month, or a week as I did. Like reading email sites, some have a high volume some much lower.

PUT ON OUR BUSINESS HAT

• It should be obvious that businesses cannot payout more than they take in advertising revenue and still be considered a going concern or a business
• Advertising businesses cannot afford to give away computers, cameras and other such items, signup bonuses and such if the advertising revenue is not there.
• Take your own perspective, how much are you willing pay others to read your advertisements? Good rule of thumb, sites that might actually pay will pay less than $.50 per click or read.

Thanks for Reading – 7. The $1,000,000 Per day PTC/PTR Scam, IUH 2009-12, 2ND Ed, R513A

Dr Don, Founder, ICFO

Author Notes: Reference Copy, links to Original Copy removed due to the Age of the Content. See the top Blog Menu for Copyright Concerns, Some Content Removed.

1. Our Handbook and ISA Groups, IUH 2009-12, 2ND Ed, R513A

Internet Crime, Scams, Fraud, and Spam all impact our ability to do business online. Many newbies turn to the Internet as a quick cure for some financial ill; out of work, working at home, too much debt, etc. They become frustrated and give up when they find themselves scammed and further in debt. They soon learn that there are no real quick financial cures online…

Whether you are a seasoned business owner or a newbie to business, this Handbook has been written for you. It brings an offline business perspective to help prepare you for business online or offline. Offline, it is easy to see some of the business aspects that you must prepare for; product or service, location of your space, distribution, licenses, etc. Offline, few prepare themselves for personal or business growth and most fail to understand the risks that they will encounter in business.

Perhaps, one of the simplest examples of risk comes from my days a newspaper delivery boy on a bicycle. Risks to my customers included late, wet papers or non-delivery of the news. Risk to me included the weather, wet news, bicycle breakdown, and dogs come to mind. You know, the unchained dogs that chase cars or anything that moves; very few bites but a lot of anxiety and commotion. I remember this one Great Dane that looked bigger than a horse; he never chased, barked or put me in danger, however, his stride would easily catch me, he always drooled and would seek me out to wipe his mouth.

One of my offline businesses included business and development financing; as such, I encountered nearly every financial scam or scheme available. I was the risk manager for my clients and my business. However, many of my clients of larger firms didn’t even have a risk management program or policy and few understood what their business risks were. From a financial perspective; I needed to know what their and my risks were in analyzing and financing their requests.

Starting a business offline, whether a franchise or new business is expensive and usually your choice evolves a product or service that you already have a passion for, perhaps a hobby or interest, at least something that you have some knowledge and understanding. This minimal understanding reduces your risk to scams and is a step toward success…

It is true, that starting a business online is inexpensive, but few understand business or business risks; they oversimplify doing business online. Instead of following their passion, interest or hobby, newbies jump at the first sounds good, feels good opportunity proved to their inbox, only to jump to the next and the next opportunity. There is no business pattern, plan or strategy given to their behavior.

Without question, Internet Crime, Online Scams and Spam are our greatest online business risk. Your inability or failure to understand and control your emotions, to recognize the broad range of scam you will encounter online, put you and chances of online business success in grave danger. New Internet users (newbies) are growing at a current rate of 44% or more per year and accelerating. Most of them have little or no background for doing business on or offline

Too many newbies turn to the Internet as a last resort to solve their financial crisis; be it out-of-work, excessive debt and related Further, most of our new users lack the business skills and a basic understanding of just how much impact that Scams would have on their potential for a successful online business. More and more businesses are taking advantage of the low cost Internet advertising and the affiliate models, so readily found online, but most fail to understand or include online spam and scams in their risk management plan.

Our Internet Users Handbook along with our various Internet Scams Anonymous Groups help fill the void with a broad approach to Avoiding Internet Crime while Doing Business Online. While This Handbook was originally prepared originally as resource for our Internet Scam Anonymous (ISA) Groups, Its value serves a much greater audience, truly a one-of-akind Handbook and Resource for All Internet Users, Individuals, Businesses and Risk Managers that want to start, attempt or grow an online business. The handbook is largely written for the individual user reading, but Business and Risk Managers will find this a valuable resource for formulating their own Internet Usage and Risk Management Policies.

Our goals are to combat these crimes by showing our members how to recognize and control their emotional propensity to participate in these scams. With one hand, we seek are helping to protect the members or readers, with the other we are helping by provide them with the tools to succeed online.

THE HANDBOOK HAS A TWO-FOLD OBJECTIVE:

• How to Recognize and Avoid Scams
• To Properly Prepare You to Start or Grow Your Online Business

As you may imagine, the Internet is an ever-evolving and growing network, and while the basics of doing business, as well as the scams, may prevail; the strategies, business models, and techniques also evolve. Therefore we will continue to try to keep up and make periodic revisions to this handbook which are provided to you freely as the owner of the current edition

Forming or participating in business online is so easy and relatively cheap that nearly everybody thinks that they can do it, including scammers. Business failure rates online are about the same as offline, say 95% over time. To be successful online, certain individual traits still apply; mindset, interest, and passion. Because scams and fraud are the greatest online business risks; the due diligence process is just as important online, as offline.

The scope and content of this Handbook cover a broad range of topics from personal assessment to scam identification and avoidance, spam, to starting, growing, managing, and operating a successful online business,

THIS HANDBOOK IS FOR THOSE THAT WILL HELP THEMSELVES!

• We can only provide the blueprint, you must take responsibility to learn and prepare for your own success.

Our Testimonials show that owners, members, and affiliates that use this Handbook have one of the most comprehensive references available regarding Scams, Spam and all aspects of Doing Business Online. It is a compilation of years of experience and the Best of the Net, Articles, Blogs, Tools, Tips and How-To, and other Resources for newcomers (Newbies), as well as seasoned veterans (but still able to learn new tricks). The use of the strategies and techniques offered herein is supported by our ISA Group members who participate and share their online experiences. If you are new to business, or online, then arm and prepare yourself for success online. Learn the business.

As we study Scammers and their schemes, we find that they are Masters of Persuasion and the use of Spam. Microsoft advises us that over 97% of the emails they receive each day are unsolicited. Another source says it is at least 60%. The problem is so big that it ties up both individual and organizational systems with junk, Spam. I am reminded of the garbage in – garbage out days!

To help resolve this problem, Internet service providers (ISP), email providers, advertising agencies and even Instant Messaging (IM) sites are all trying to reduce spam and scams by various blocking or screening strategies. However, as a result, even legitimate email is sometimes spam blocked, because of a selection and use of the wrong word

A great number of, networks, blogs, articles, and groups do a great job dealing with various segments of Internet Crime. Much of their work has been complied herein as The Best of the Web, for I could not have said it better. Of course, there are many others included that ranked high in our hundreds of searches.

Throughout this Reference Handbook, we recognize and appreciate the contributions that these and others have made to the subject of Internet Crime, or Cybercrime, as well as Starting and Growing a Successful Business Online. Every effort has been made to respect copyright issues; sources have been identified, etc.

INTERNET SCAMS ANONYMOUS GROUPS

Ownership of our Handbook is supplemented by free membership in one or more of our Internet Scams Anonymous (ISA) currently located throughout the Internet. Although not necessary, these Groups give you the added benefit of communication with like-minded Internet users, both seasoned and newbies.

These groups are Anonymous Groups because few of us will admit our mistakes and even fewer of us will learn from them. Yes, I too have been a victim. My experiences, lessons, and research are included throughout this Handbook. The most basic lesson that I overlooked was my failure to do my online Due Diligence; something that I had done for years and helped others do offline. Second, I initially succumbed to the temptation of the online wealth headlines. If they can make that kind of money, why can’t I?

Regardless of whether we are an individual or a business, we always have a monetary need that scammers love to play to as they take our money. Most often it is fast money to them and none for us.

Elsewhere in this Handbook, we speak of the senior’s trust in what they read, and the false promises offered by the Scammers. Online, we can forget the “put it in writing for me”.

TIP: A word of caution as you progress online; everything and anything you see online can be fabricated, from fraudulent websites, emails that look like they came from the original source, payment proofs, and testimonials, all!

We do not promise great wealth here, but we do offer you an opportunity to get on the right path to success, and to show you a strategy to control your emotional propensity to join these various scams and frauds. We stress doing your own due diligence to avoid the mistakes that I have made. We are especially concerned for those newbies that can least afford it, from wasting their limited resources on Scams.

To sum this up, we are about business, your business. Again, This Handbook for all practical purposes is a Business Handbook, taking you from personal assessment, start-up, growth, operations, and the management of business risk. In this case, we focus on scams and spam risk.

Thanks for Reading – 1. Our Handbook and ISA Groups, IUH 2009-12, 2ND Ed, R513A

Dr Don, Founder, ICFO

Author Notes: Reference Copy, links to Oringnal Copy removed due to the Age of the Content. See the top Blog Menu for Copyright Concerns, Some Content Removed.

Preface [Intro Internet] IUH 2009-12, 2ND Ed, R513A

Introduction Internet

UCLA professor Leonard Kleinrock said: “‘It’s the 40th year since the infant Internet first spoke. “The fridge-sized computer that sent the first email 40 years ago (1969) … But crashed after just two letters were received. Kleinrock, who led the team that first got two computers to communicate online via a network called ARPANET, added:

“‘The Internet is a democratizing element; everyone has an equivalent voice. There is no way back at this point. We can’t turn it off. The Internet Age is here” The computer expert could never have imagined that the fledgling Internet one day would give rise to Facebook, Twitter, and YouTube. He referred to spam emails, online scams, and malicious software spread by crooks as an unexpected dark side of the Internet. ‘The net is penetrating every aspect of our lives,’ Kleinrock told an audience of about 200 people in Los Angeles. The World Wide Web, www, or the Internet as we know it today was released in 1991. Zakon Timeline

Professor Kleinrock went on to say ‘As a teenager, the Internet is behaving badly, the dark side has emerged. When it grows into a young adult, will it get over this period of misbehaving? Daily News Los Angeles

This handbook, first published in 2009; started to address the dark side of the Internet as it impacts every online user; the student young or old whether online for socializing, gaming, research, shopping, studies, or all of the above. Every business online from an individual start-up to the world’s largest corporations faces the risk of online security threats, spam, scams, or fraud. Even Government bodies and organizations cannot avoid the increasing dark side of the Internet. Countries can hack into almost every system or network if not all, for internal spying. The dark side has always been around, but as the Internet user base grows, so does Internet Crime in the form of Security Threats and Scams and Fraud primarily through social networks. Are your employees online during working hours for personal affairs?

INTERNET WORLD STATS Removed

The rise and popularity of Social Networking sites aided by the tremendous growth of mobile device access to the Internet has helped accelerate the growth and reach of Internet Crime. Your devices and those owned by your spouse, sons and daughters, your business, agencies, and even your government are at risk. As the Internet continues to multiply its user base, awareness of these various risks also grows. Groups, websites, blogs,s and Articles attempt to spread the word. Some focus on a particular type of scam, i.e. Nigerian Letters, PTC Investigations, MLM, Email fraud, Identity theft, etc. As they try to make us aware; many have taken up the difficult task of maintaining lists of banned sites.

Until the Internet Users Handbook was first published, in 2009 as a support guide for the Internet Scams Anonymous (ISA) Groups. No one book, group, company, organization or website has addressed the bigger problem that is anyone who has an email address and logs onto the Internet is or may be exposed to any to the various online scams, and/or malicious viruses. That email from an old friend that has not heard from in years opens with nothing but a dangerous link. That connection can either steal your keystrokes, passwords, and/or identity; or it may simply disable your device or network.

EDUCATE YOURSELF

Educate yourself about Internet risk and risk avoidance. Learn to recognize the signs that may appear in the email headlines from an unknown source, the mysterious free download, the fake bank emails rather than simply pass them to someone’s outdated lists. Offline, the scammers usually spread their scam one-on-one with their potential victims; however, the Internet with a rate of growth nearing 50% per year of new users or Newbies, the scammers have found a haven for Internet crime. One scam or virus can reach thousands, if not hundreds of thousands of users or devices.

LET US TAKE, FOR EXAMPLE:

Sons and daughters say age 8 and above can meet their classmates on Facebook by using their parents’ information or by falsifying their birthdate. Unless we watch over them, they are able to befriend a predator. Everything about the predator can be falsified, a man pretending to be a teenage girl, pictures and all.

A recent Facebook malware disguised as a message allowed the member to operate a “Dislike Button” to go along with the “like button”. Activating this option then sends all of the member’s online activity, passwords, account information to the malware author. Your child could have activated this without out your knowledge leaving your computer and activities exposed. It spread virally. Sophos Naked Security

Perhaps the children, even adults play games online. Other than the fact that the scammers are always looking for information and your credit card information, the next Free Game may contain a virus to shut down your computer or network. Children are exposed to inappropriate material.

Most recently, the death of Whitney Houston popular to young and old alike created another virus. “Warning: Whitney Houston autopsy video links on Facebook are not what they seem and led to a virus download of a fake Adobe Flash update from a bogus page”. Sophos Naked Security

While we cannot learn how many different user or newbies are here for socializing, games or both, we do know that when the world economy turns down, Internet crime goes up. As individuals turn to the Internet for a quick fix to their financial woes, the unemployed as well as the senior citizens that seek to increase their retirement income.

Scammers are excellent salesmen; they anticipate your problems, answer your questions, and stand ready to take your last dollar with false promises of overnight cures. Check your email. Even if you were not looking for such, the email headlines will entice some to open and read and take that chance of earning a quick dollar. If a single web expert can set up 15 authentic new websites per day, how many sites can several scammers set up in a day? Multiply that by the unknown numbers of scammers! It is easy to see the value of knowledge over that of list services and reviews.

Legitimate offline businesses are turning to the Internet to globalize their business. Many of them may be startups operating out of their garages or kitchens – often, we cannot see without some research. Larger companies often do have Internet policies for matters of email usage, socializing during working hours. Still, research indicates that few have risk management policies that address Internet crime and spam. An investigation of your local schools, universities or alumni will show the same result

SPAM AND SPAM LINKS

• Can overload your networks Spread Internet crimes
• Spread viruses and threats that expose your systems and data Can disable your devices and networks
• Spam Blockers can suspend your email, and articles just for using a single word such as adult in the headline or text.

INTERNET CRIME – SECURITY THREATS

• Although covered in some minor detail along with Spam in the 2^nd Edition; the handbook grew to over 500 pages
• This fascinating and complex issue needs a minimum of standalone volume Make it easy and user-friendly for understanding

INTERNET CRIME – SCAMS AND FRAUD

• New and improved readability standalone volume

RELATED TO RISK MANAGEMENT AND DOING BUSINESS ONLINE

• A standalone publication covering the newbie getting started online to companies starting or growing their business online
• We help educate and train the newbies’ startup businesses, as well as more seasoned professional that is seeking to establish or expand their online businesses through personal development and analysis, and business planning

Thank for Reading – Preface [Intro Internet] IUH 2009-12, 2ND Ed, R513A

Dr Don, Founder, ICFO

Author Notes: Reference Copy, links to Oringnal Copy removed due to the Age of the Content. See the top Blog Menu for Copyright Concerns, Some Content Removed.

9b. Which is Better, a Product, or a Service Site?, IUH 2009-12, 2ND Ed, R513A

This is one of the fiercest (and most childish, in my opinion) debates in network marketing, and I feel the need to address it head-on for two reasons. The first and most important reason is that infighting between network marketers for the sake of making their individual home-based business opportunities look superior is silently one of the biggest cancers that attack the credibility of all of network marketing as a whole.

The second reason is to provide some clarity for those unfortunate prospects and/or distributors who may have been confused, misinformed, or misguided (probably a mix of all three) by this catty nonsense.

Here’s the simple answer: it really depends on YOU. What inspires you, what jives with you, and what you feel most comfortable with? Contrary to its notoriously cookie-cutter image, network marketing is one of THE most customizable home-based business opportunities   or businesses period that has

ever existed, which is one of the things that I absolutely love about it. So now for the longer answer! The first time I caught wind of this little debate was about 10 years ago when I had started my first home-based business in MLM. It was a well-respected service company that is still going strong to this day. A leader from the front of the room was making a snide, tongue-and-cheek remark about how he didn’t want to “sell lotions and potions or fill up the trunk of his car with products”.

I didn’t think much about it at the time. I was one of the flocks, and what he said made perfect sense to me. The more experienced team members that surrounded me nodded their heads in agreement like pew-sitters in a Baptist church. (It was much later that I would find out that almost NONE of them were making any real money after YEARS in the business but that’s another article!)

So, my first impression on this whole issue was formed: service companies were the way to go, and product companies were absurd, laughable affairs where you had to carry a trunk full of stuff. This was my way of thinking for years until I joined a product company!

I can’t speak for ALL companies (neither product nor service), but here are just a FEW startling comparisons between my first two companies—one product, one service. The biggest eye-popper was the fact that in my first product company, people were making bigger checks with much smaller organizations. The #1 money earner (my upline) at that time was making about $100,000 each month (I saw his checks with my own eyes). He had 1,000 distributors and 10,000 customers in his organization.

The leader of my former team (in the service company) was making about $30,000 each month. This guy had at LEAST 10,000 distributors and tens of thousands of customers. My jaw dropped when I realized this.

In my product company, it was easier for me to help others be successful. In the first service company that I was in, you’d never make any decent money unless you were able to recruit large numbers of people into your business. So what about people who weren’t that good at recruiting?

In my first product company, I noticed that each time I or one of my distributors got an additional customer that equated in several additional dollars in RESIDUAL income. In that company, I was making

$100 per month in residuals with just 16 customers. In my service company, I had 20 customers and made about $5 in residual each month.

In my service company, your residual never amounted to much unless you had a huge organization that was at least 6 levels deep. The problem with this is that most people will NEVER see 6 levels in their organization. And in home-based business it is critical that people make enough money to keep them in the game until they either “wake up” and start producing, or eventually recruit a superstar.

There was a huge difference in the attrition rate. Because almost nobody made CONSISTENT money in my service company (recruiting bonuses don’t count. These are promotional. In network marketing, the only income that REALLY matters for longevity is a residual check from real customers); the attrition rate was the typical 90% that exists in MLM. In my product company, that attrition rate was much closer to 50%-60% percent.

The people that I brought in made more money. This was what struck me the most. Due to where I was mentally at that time, I never had much success in that product company due to my own unwillingness. However, I learned THE most valuable lessons of my entire network marketing career. One of them was that I noticed was that due to the compensation plan, EVERY person that I ever brought in made money-

–that was not the case with my service company. Because of this, even when people quit, none of them could say that they had not made money and this helped to not put a strain on my friendships as people decided not to do the business anymore.

Now, please understand that this is NOT a cheerleading article for product companies vs. service companies! I am comparing two very specific experiences from two companies that I have personally done business with.

If you were to choose a random service company and a random product company and compare the two, you would find a great deal of variation as far as which one was “better”-and that is my point.

There is no “hard and fast rule” of “which is better” when it comes to the service companies vs. product companies debate. As a matter of fact, as soon as I hear anyone, and I do mean ANYONE going in the direction of making the argument one way or another I immediately know that I am dealing with an amateur that does not get the bigger picture of the network marketing home-based business world outside of their company. So should you. LawrenceCole

THE DEBATE: PRODUCT OR SERVICE

For me that was a question when I started online. As I have said, offline many years ago, I had done the AMWAY, Tupperware etc. Online, I can still do all those; but here is the problem. If you are located in the USA, then products are easy to deal with; you can load your car and garage and sell your products. If you are overseas, many products have to be approved for import unless you claim for personal consumption. In some case, the country must license any products to do business in that country. Even then, some of the products that you may want may not be importable.

Not all products are properly labeled. If health or diet-related, may be dangerous. Often these types of products do not come with USDA approval and all you have is the claims and guarantees of the manufacturers. You take the risks. Nowadays, health drinks of one kind or another and healthy chocolate seem to be the rage. Unlike going out of business in the USA, you cannot easily return products; most online companies are once sold, and there is no return policy.

Over my beginning years online, I tried several product affiliations since most product sites typically have a better compensation plan than do service sites.

MY EXPERIENCE WITH PRODUCTS

XXXXXX Health Net, now out of business, where I learned to understand “autoship” and “bundling” You will receive a shipment every month and you don’t get to pick individual products; you have to take one of the pre-bundled packages. Good for them; not so good for you.

XXXXXX, a health drink, was a terrible experience, If you like downlines, they give you spillover, lots of it – nearly 30,000 names, but the downline is useless to you – if it is even real?

Because you only have a name, no access, the sponsor retains access. With downline, you need access to your team, to motivate them, help them, etc.

Sponsors claim to be available to solve problems, but they were not. Too busy getting more signups than taking care of present members.

They wanted a US address, because when I first signed as they were not shipping to Malaysia, at that time. I would have had to re-ship for personal use.

This should have been disclosed in advance of any sign-up or upgrade.

I upgraded for a $500 shipment during their transition to open Asia operations. Several attempts to get sponsors, support, and management, to stop the shipment for re-shipment to me in Asia,

The company did not attempt to reconcile the matter; then claim backs the shipment, since no one was there to accept it, etc.

Failed. Lost $500. Nobody helped or even read their emails.

XXXXXXX Chocolate, similar problems, wanted a US Address, willing to ship to local and reship, lots of workarounds, helpful, but for $1300 I passed. I had already joined, but wasn’t made aware of the problem until I tried to upgrade, and then only after I had made the order and they wanted to ship.

Most of the better, organized product sites, advise you in advance before your signup that they do not do business here or there. Check the FAQ’s and Terms.

Most products pay better, if you can manage your shipments, etc. For me, I have learned that I prefer to babysit paper as opposed to products. Make sure the company can do business in your country.

LAST NOTE ON PRODUCTS

I have a concern about all the dietary, sliming, health drinks, and beauty products that are pushed via our online affiliate programs. Some come with certifications, research, etc. Few if any are FDA or equivalent agency-approved. And yes, I have seen those that even after stringent FDA approval guidelines still suffer the recalls.

Many companies that market their products through distributors sell quality items at competitive prices. But some overpriced offer goods, have questionable merits or are downright unsafe to use.

The Federal Trade Commission warns consumers to apply a healthy dose of caution before buying products advertised as having “miracle” ingredients or techniques and guaranteed results. Many of these “quick cures” are unproven, fraudulently marketed and useless or even dangerous. Before using one of these products, the best prescription may be to check with a health professional. FedTradeCommission

10 REAL WAYS TO MAKE MONEY WITH YOUR WEBSITE

These days we can all use a bigger income, but it is easier said than done. But the Internet has given us all opportunities that were never possible before to create our success.

Many people make a good living online and many claim to have gotten rich, but many people are trying and trying but nothing is happening. I tried for several years before I started making a good living online so I would like to share some of the things that helped me increase my income. Although I have not tried every method listed below, I have tried several of them and they have worked for me.

AFFILIATE PRODUCTS

Find quality products and services that offer a commission and sell them on your site. Be sure they are relative to your site and if possible try the product out first so you can give a personal recommendation. Personal recommendations can help increase your sales. You can find affiliate products at AffiliateSeek, Clickbank, and AffiliateTips.

CLASSES AND WORKSHOPS

Organize some informative classes and workshops to teach your visitors how to do ‘whatever’.

Sell space to attend these events. Offer a variety of classes such as a week-long class, month-long, etc. You could also produce some effective webinars. You can also recruit affiliates for these services as well.

DONATION BUTTON

You see this more and more often these days. People offer a lot of free resources and content on their sire and ask for donations from the people who utilize this information. You can get the buttons directly from PayPal and place them on your site. To do this, you must provide quality content and value to your visitors so they feel a donation would be appropriate.

DROPSHIP SALES

Dropship means you can sell products without having to ship them or stock them. You find a company that offers drop shipping, sign up with them and start selling their products on your blog. Anytime you get an order, you send it to the main company and they ship the product out to your customer. The customer will think the product came from your store and you get a portion of the profits. You make money simply by taking orders and the dropship company does the rest. Dropship companies will usually require a membership fee, either monthly or annually.

SELL RESELL EBOOKS AND SOFTWARE

You can easily add a digital product store script to your existing blog and sell eBooks and software with resell rights. EBooks are very popular and the demand for them is increasing. You can also sell videos, music, and other downloadable files from your digital store.

EXCLUSIVE ACCESS

Offer private content, forums, classes, etc. to members only. Charge a monthly or annual fee for this membership. People will pay for valuable information they can’t seem to find anywhere else.

GOOGLE ADSENSE

This is not my favorite but it does work well for some people. What this entails is placing numerous ads on your site, chosen by Google. Anytime these ads are clicked on, you will get paid a portion of what the advertiser has paid Google. Google will choose ads that are relevant to your site’s contents. So, what this means is that if you sell jewelry Google will place ads on your site to other people who sell jewelry and related products. So, in essence, you are sending people to your competitor’s sites. Although I do not agree with this, many people claim to make a good chunk of change each month using Google AdSense!

SELL ADVERTISING

Offer advertising space on your blog. You can offer text ads, banner ads and even video and audio ads. You can charge monthly and annual fees to give your customers a better value.

SPONSORED REVIEWS

Companies like Blogvertiser will connect you with advertisers who will pay you to write reviews about their products and services and place them on your site. You will have the option of accepting or declining any deals the advertisers offer. Other sites that offer this service are PayPerPost, SponsoredReviews and ReviewMe.

The methods above might not make you rich, but they can earn you a good income or add to your existing income. Some of these methods might not be for you but it could be worth your while to check them out. David

WRITE AND SELL YOUR OWN EBOOK

Write an eBook about your area of expertise and put it for sale on your site. You can sell it outright, offer resell rights, or recruit affiliates to sell it for you as well. I did this with my first eBook and it worked out very well.

INTERNET BUSINESSES THAT ARE PRONE TO FAILURE

The types of Internet businesses that fail or should I say are more prone to failure are the ones that try to market goods that are widely available in the supermarket and the high street shops.

Do not try and sell bulky goods like furniture, pet food, clothing, or groceries on the web. These demands are already being met by well-established retailers online and offline.

Do not try to compete with large brands like Dell computers or Viking Direct as they have perfected the art of delivering products like computers and stationary direct to the end user. Their buying power is massive and they already have the infrastructure to keep most newcomers from succeeding in the marketplace.

So what kinds of Internet businesses are more likely to succeed? The best Internet business ideas are the ones that allow you to generate repeat orders from hard-won customers. The products supplied will be either expensive or very light or both with decent profit margins built in. The products should also not be readily available in supermarkets or high street stores.

In the best cases you will not be delivering any physical product but instead providing a service on the web whether it is subscription-based or an application like software that can be downloaded instantly and sold repeatedly.

Be wary of the advice that is offered by so-called experts on the Internet. Most of them have never run an Internet venture before, and make their money solely by giving misleading or incorrect advice for a small payment. I call them “the hopeless Internet gurus.”

If you have already run a business successfully then you are much more likely to succeed in an Internet business, as the same business skills are required in both. I would go even further and say that even more skills are required to succeed online as you also have to learn specialist skills like search engine optimization and creating great landing pages.

A final word of warning; do not give up your day job unless you have ample capital to launch your new business and survive the first year.

Chances are that you will struggle to make a profit in year one. It’s not all doom, and gloom though… for those of you who do have the right idea the world is your marketplace, and growth can be dramatic once you move into profits.  InternetBusFranchise

Thanks for Reading -9b. Which is Better, a Product, or a Service Site?, IUH 2009-12, 2ND Ed, R513A

Dr Don, Founder, ICFO

Author Notes: Reference Copy, links to Original Copy removed due to the Age of the Content. See the top Blog Menu for Copyright Concerns, Some Content Removed.

TOC, IUH 2009-12, 2ND Ed, R513A

A Comprehensive Guide top Recognizing, and Avoiding Scams  While Online: Spam, Security, and Doing Business Online

• PREFACE
  • Introduction  to the Internet
  • Balance Removed

1. OUR HANDBOOK AND ISA GROUPS
2. DEFINING SCAMS AND FRAUD

• • IS IT TOO GOOD TO BE TRUE?
  • DOES THE OFFER PASS YOUR DUE DILIGENCE TEST?
  • WHAT IS THE OWNERS’ TRACK RECORD?
  • NON-DELIVERY
  • LACK OF SUPPORT
  • LACK OF. ACCESSIBILITY
  • SCAMMERS ARE SPAMMERS TOO.
  • ARE TRAINING, TOOLS AND RESOURCES PROVIDED?

3. DO YOUR OWN DUE DILIGENCE
4. INTERNET CRIME IS BIG BUSINESS

• • 2008 INTERNET CRIME REPORT
  • INTERNET FRAUD, SCAM, AND CRIME STATISTICS – 2009
  • FBI INTERNET CRIME REPORT 25/02/2011
  • TOP INTERNET SCAMS OF 2010
  • SOME BASIC DEFINITIONS
  • SEARCH ENGINE PAGE COUNTS 11/09
  • INTERNET WORLD STATS
  • SO WHAT IS THE KEY TO SCAM AVOIDANCE?
  • BUYING IS NOT A RATIONAL DECISION

5. INTRODUCTION TO INTERNET SCAMS AND FRAUDS  [removed]
6. COMMON INTERNET SCAMS. [removed]
7. THE $1,000,000 PER DAY PTC/PTR SCAM

• • RETIRED AND BORED.
  • MY BIGGEST PTC/PTR ACCOUNT – PCASH
  • MY USD 1M OR MORE PER DAY STRATEGY.

8a. WHAT IS AN ENTREPRENEUR?

• • IN-BORN TRAITS OF AN ENTREPRENEUR
  • A SUCCESSFUL ENTREPRENEUR IS ONE THAT
  • CHALLENGES OF AN ENTREPRENEUR
  • ENTREPRENEURSHIP OPPORTUNITIES
  • ARE YOU ENTREPRENEURIAL?
  • ARE YOU NON-ENTREPRENEURIAL?

8a & 8b. ENTRPRENEUR /  PREPARING TO DO BUSINESS ONLINE?

• • PLANNING TO DO BUSINESS ONLINE?
  • GENERAL ASSUMPTIONS.
  • WHAT IS AN ENTREPRENEUR?
  • INVESTIGATE – WHY ARE YOU HERE?.
  • HOW MUCH DO YOU KNOW ABOUT LEADERSHIP?.
  • DO YOU HAVE A PASSION FOR BUSINESS?.
  • BELIEVE IN YOURSELF AND BOOST YOUR SELF-CONFIDENCE
  • COMMITMENT
  • HOW ABOUT ATTITUDE?.
  • DO YOU HAVE A FEAR OF FAILURE?
  • ARE YOU A PROCRASTINATOR?
  • ARE YOU READY TO ACCEPT THE RISK?.
  • HOW MUCH DO YOU KNOW ABOUT THE FOLLOWING TOPICS?
  • STEPS TO A GREAT BUSINESS PLAN.

8b. PREPARING TO DO BUSINESS ONLINE

• • PLANNING TO DO BUSINESS ONLINE?
  • IF YOU ARE CONSIDERING A NEW BUSINESS?
  • GENERAL ASSUMPTIONS

9a. FOLLOW YOUR PASSION – ONLINE BUSINESS

• • COMMON QUESTIONS – WHERE DO I START? WHAT IS BEST?
  • WHAT ARE YOUR INTERESTS? OFFLINE
  • ONLINE
  • THE IMPORTANCE OF PASSION
  • WHAT ARE THE BEST TYPES OF INTERNET BUSINESSES?
  • FIVE PERFECT ‘SPARE-TIME’ ONLINE BUSINESSES
    • AFFILIATE MARKETING
    • BLOGGING
    • EBAY
    • INFORMATION MARKETING
    • YAHOO! STORE

9b. WHICH IS BETTER, A PRODUCT, OR A SERVICE SITE?

• • THE DEBATE: PRODUCT OR SERVICE
  • MY EXPERIENCE WITH PRODUCTS
  • LAST NOTE ON PRODUCTS
  • 10 REAL WAYS TO MAKE MONEY WITH YOUR WEBSITE
    • AFFILIATE PRODUCTS
    • CLASSES AND WORKSHOPS
    • DONATION BUTTON
    • DROPSHIP SALES
    • SELL RESELL EBOOKS AND SOFTWARE
    • EXCLUSIVE ACCESS
    • GOOGLE ADSENSE
  • SELL ADVERTISING
  • SPONSORED REVIEWS
  • WRITE AND SELL YOUR OWN EBOOK
  • INTERNET BUSINESSES THAT ARE PRONE TO FAILURE

10a. AFFILIATE PROGRAMS

10b. PYRAMID PROGRAMS

10c. MLM PROGRAMS

10d. MATRIX SCHEMES

11. MANAGING YOUR ONLINE BUSINESS.

• • GET COMFORTABLE.
  • WORKING AT HOME
  • SELF-DISCIPLINE
  • MANAGING YOUR COMPUTER AND SOFTWARE.
  • MANAGING YOUR TIME AND COMMUNICATIONS

12. WHAT IS SPAM AND IT’S IMPACT?.

• • WHY SPAM?.
  • HOW TO AVOID THE SPAM FILTERS
  • ALL I WANT TO DO IS SEND AN EMAIL AND MAKE SOME MONEY.
  • FIGHTING SPAM.
  • WHAT HAPPENED TO SOCIAL ETIQUETTE?
  • FIRST LEGAL CASE FELONY – SPAM

13. ADVERTISE YOUR BUSINESS

• • ONLINE ADVERTISING
  • ADVERTISING – AIDA.
  • HOW TO CREATE NO-SPAM HEADLINES
  • HOW TO ADVERTISE WITHOUT SPAM
  • TESTING AND TRACKING YOUR STRATEGIES.
  • SEARCH ENGINE OPTIMIZATION (SEO)
  • BUILDING YOUR KEYWORD LISTS.
  • WHY SEARCH ONLINE ADVERTISING IS VALUABLE
  • COSTLY SEARCH ENGINE OPTIMIZATION MISTAKES.
  • HOW WEB ADVERTISING WORKS
  • IS THE ONLINE ADVERTISING INDUSTRY SHRINKING?.
  • LIST BUILDING
  • BLOGS AND ARTICLES.
  • INCREASING BLOG TRAFFIC
  • EMAIL MARKETING
  • FREE FOR ALL (FFA) & CLASSIFIEDS
  • PAY-PER-CLICK ADS
  • SAFELISTS
  • TRAFFIC EXCHANGES (TE)
  • HOW TO INCREASE YOUR SALES UP TO 500%
  • HOW TO KEEP YOUR #1 RANKING

14. FOREX (FX) FOLLIES – A GAMBLERS HEAVEN

• • WHAT IS FOREX (FX)?
  • BENEFITS OF FOREX TRADING
  • FOREX BROKERS.
  • THINGS TO AVOID
  • WARNING SIGNS OF A FRAUDULENT BROKER
  • THE FOREX CURRENCY PAIRS
  • THE TRADING PLATFORM
  • FOREX CHARTS AND INDICATORS
  • FOREX EXPERT ADVISORS AND ROBOTS
  • THE FOREX MINDSET.
  • TYPICAL FOREX HEADLINES
  • FORGET THE FOREX HYPE
  • IS FOREX A GAMBLERS HEAVEN?
  • MY FOREX EXPERIENCE

APPENDIXES [removed]

ABOUT THE AUTHOR [removed]

Thanks for Reading – TOC, IUH 2009-12, 2ND Ed, R513A

Dr Don, Founder, ICFO