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| “Know Who You Are: The Four Worlds of Small Business.” (1) Reputable Small Business, (2) Work-At-Home, (3) Opportunity Schemes, (4) MLM. |
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| Modern trends in general and the Internet in particular can blur distinctions in “small business.” It is increasingly difficult to “know who you are”—and in addition, more necessary to understand those you are not. |
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 Our sponsor: For a list of top opportunities, don't miss our home page. The following four types of business interests are likely to come to MoneyData. You will make best use of this site, and of the Internet in general, if you read not only about yourselves, but also this entire article. (1) REPUTABLE SMALL BUSINESS. You may own a store front on Main Street, or you may operate a successful handicrafts operation in your home. Perhaps your customers are telling you to “get on the Internet,” or perhaps you are already there and wondering if you can get it to “take off.” You are an established, serious entrepreneur who wants nothing to do with “opportunity schemes” or MLM. We don’t need to tell you who you are. Nonetheless, by the end of this article, you will probably feel more comfortable for your knowledge of two things: (a) how to avoid “Internet Promotions” and “Network Marketing Courses” that are really “opportunity schemes in disguise” and thus can waste your time and damage your reputation, and (b) how to use “Internet Bargains” that sometimes might also be associated with sleazy schemes, but if understood properly, can bring you tremendous traffic for little time or cost, and without abusing or offending anyone. OUR BASIC ADVICE FOR THE REPUTABLE SMALL BUSINESS: After this article, you should read the entire "Top Internet Values" section. (See in the Table of Contents margin on your left.) (2) WORK-AT-HOME SEEKERS. What you originally have in mind is making, doing, or selling something “real” at your home, with minimal startup capital, and not necessarily Internet based. You are probably “skeptical but open-minded” about MLM. You want nothing to do with “pyramid schemes,” “chain letters,” or any other type of “money scheme.” But you may already have been unknowingly side-tracked! What you may not have realized is this: (a) People like you are the primary targets of “money schemes in disguise,” or what MoneyData loosely calls, “legalized chain letters.” (b) Thanks to the rise of MLM and the Internet, there is not always a clear distinction between what is and is not a “money scheme.” (c) After reading this article, you may decide to “stick to your principles,” or you may decide to “slightly relax your principles.” Either way, the purpose of MoneyData is to help you to know what you are doing. OUR BASIC ADVICE TO WORK-AT-HOME SEEKERS: (a) When confronting a new “opportunity,” always ask this question: “Will I be telling people, ‘This is something you need,’ or will I be telling them, ‘Sign on so that you can sign more people on’?” I.e., “Does this product honestly compare to similar products in its price range, or is it primarily an excuse for getting money out of people——based on the hope that they will be able to turn around and do the same to others——in essence, similar to a chain letter?” (b) In this crazy modern world of ours, this question is not always as cut-and-dried as it seems. For example, practically any “multi-level” product line can be promoted either as a product or as a “money scheme” or as any combination of the two——this depending largely on how you choose to present it. (c) If you browse the MoneyData website regularly, you will probably find many weird and unusual combinations——hopefully presented to you in a manner that is more straight forward than you are likely to find elsewhere. (d) If you want to stick to “pure” work-at-home opportunities, we try to list the best of these at the bottom of the home page. But even MoneyData can be fooled, so always proceed with caution. (e) Whereas if you want deliberately to enter the shady world of “opportunity schemes”——or perhaps just to better protect yourself from it——then please read on. (3) OPPORTUNITY SCHEMES. Long before the Internet existed, there were little ads in newspapers, magazines, and comic books everywhere, reading something like this: “Earn $100 weekly stuffing envelopes at home. Send $1.00 for complete information.” So you send in $1.00 and what you get is something like this: “Put this ad in the newspaper: ‘Earn $100 weekly stuffing envelopes at home. Send $1.00 for complete information.’ (Followed by your name and address.)” This is of course somewhat of an over-simplification. What I have just described quickly became legally recognized as a “chain letter” and was illegal. Nonetheless, all that was needed to make it “legal” was to add a 1-page “booklet” on “How to make your own soap,” “How to make your own cockroach powder,” or perhaps, “How to make money selling plans to make money.” In the interest of clarity with perhaps a touch of sarcasm, MoneyData likes to call such things “legalized chain letters.” A man named Lew Card made a very good living by combining three such “reports”——and for all we know, he is still out there. Here is some basic knowledge which everyone who uses the Internet should know about “opportunity schemes”: THE DEFINITION MAY BE A MATTER OF OPINION. Today, laws can be more strict in certain states, such that even legitimate “multi-level marketing” has to be careful. Nonetheless, the “legalized chain letter” is in fact related to “multi-level marketing,” and continues to be the foundation of every “opportunity scheme.” There is no way that every variation can be made illegal, and often the definition is a matter of opinion. For example, if you sign up for a multi-level “associate program” selling a fact-filled, full-length book for $17.95 on “Associate Marketing,” is that a “legalized chain letter”? We would say no——because you can not go to Barnes and Noble and get any better value. But what if you pay $200 for a course on “Associate Marketing” which contains no more information than the same book? And which is no doubt full of hype to pressure you to “sign on” to this or that program? This is certainly a “scheme” of some sort. HOW DID HE MAKE HIS MONEY? Perhaps the most common appeal used by the promoters of “opportunity schemes” is this: “Look how rich I am——therefore, do as I say and you can get rich too!” As soon as you hear something like this, be sure to look for solid evidence that this “expert” got rich by doing something “real”——not by taking advantage of people by claiming that he can make them rich! If clear evidence is lacking, it is a safe bet that he is the latter type. This of course does not necessarily mean he has nothing to offer——but it does mean that he is not going to teach you how to be a “solid citizen,” and that you had better not trust him any farther than you can throw him. WATCH OUT FOR EUPHEMISMS. No “opportunity scheme” is going to say, “this is an opportunity scheme.” When they work through the mail, they call themselves “mailorder” and thus imply that if you join them, you will be on your way to becoming another L.L. Bean or Land’s End. Whereas on the Internet, the phrase, “Internet Marketing” seems to be in vogue. Such phrases can of course be used by the fully “reputable” Internet companies. The lesson is to be sure you are not misled one way or the other by impressive phrases. WATCH OUT FOR NON-CONTENT ADVERTISING. “I have the ultimate money making plan! You’ll like it! Send for free details!" "I used to be poor just like you! (Followed by life story...)" "Gambling doesn't work, but I have something that does!" "MLM doesn't work, but I have something that does!" Etc., etc. Perhaps 90% of the “business opportunity” advertisements on the Internet read like this. They may be no more than a link, or may go on for pages about what they are not----but say nothing about what they are. Save yourself a few lifetimes and never even read them. Whoever writes such an ad clearly has nothing to offer, and on top of which, is an idiot. An intelligent person who wins your attention, even for one sentence, will not waste it. In the first paragraph, at most, you will have a clear idea what he is offering. Even if he has nothing meaningful, he will think up something meaningful-sounding to suggest he does. And such a person is in fact more likely to have something. Being “conned” a bit here and there is all part of the learning process. But if you are going to be “conned,” at least let it be by an intelligent person who seems to assume you are intelligent, and not by an idiot who seems to assume you are an idiot. Now for the big question: “ALL ETHICS ASIDE, DO OPPORTUNITY SCHEMES PAY?” In general, the answer is “no.” The average person is definitely better off working part time at MacDonald’s. However, this conventional wisdom needs to be qualified by the following: (a) The person who is “above average” can always find a way to stand out from the pack. (b) For every person who is “above average” there are always going to be a thousand who think they are but are not. (c) Even an “average” person can get lucky. (d) Using the Internet, it is possible to give it a try for next to nothing. (Not including the money you would have made by working all those hours at MacDonald's.) OUR BASIC ADVICE ON OPPORTUNITY SCHEMES. (a) One of the primary goals of MoneyData is——perhaps for the first time anywhere——to make it clear what is and what is not an “opportunity scheme,” and to what degree. We want to make sure that naïve “work-at-home seekers” are not misled. Thereofore, opportunity schemes usually will not be featured on the home page. If you are an enthusiast of opportunity schemes, perhaps the place to bookmark is features such as the “Associate Deals.” Here you will find “opportunities” rated not only according to how much money they are likely to make, but also according to how ethical they are. (b) Also please consider that there are "respectable" alternatives. For example: if you are clever at Internet opportunity schemes, it is likely that you are clever at search engine rankings. This is a task needed by every legitimate business that has a website. Perhaps you can learn to do this professionally. Read our ideas about this in the "Shoestring News." (c) Also don't miss reading about the pros and cons of free websites, owning an FFA, etc. Until you know exactly what you are doing, your prime directive should be to risk as little money and time as possible. (4) MULTI-LEVEL MARKETING (MLM), aka, “Network Marketing.” In case you don’t know, “MLM” is any business opportunity that works like “Amway.” I.e., you can not only buy a product, but you can buy the right to sell the product. Furthermore, you will forever more earn a “commission” on every product bought by each person you “sign on,” also called your “downline.” If you still don’t understand, just ask around for anyone in your neighborhood who does “MLM.” They will not only be happy to oblige——they might be as difficult to get out of your ear as a Jehovah’s Witness. Just remember that this time it’s definately Mammon and not God who inspires them. There are many kinds of MLM, both on and off the Internet, and MoneyData has something to say about them all. Just look in the “Table of Contents” margin on your left. MoneyData is primarily interested in helping to make MLM more practical and ethical for the average participant. That is to say: objective ideas about MLM that you are not likely to hear from the typical MLM adherent. If MoneyData is not to your taste, then you might prefer something like the Network Marketing News website. This might be called a “Grand Central Station for MLM Junkies.” They have a free newsletter in which you might find some good advice. Otherwise, it is a real “dog-eat-dog” scene——or to be more precise, “dog-hype-dog.” Caution: we advice against their “free e-mail autoresponder” and “free fax autoresponder” services. Based on our experience, every fax number or e-mail they get is likely to be spammed. OUR BASIC ADVICE ON MLM. Multi-level marketing is very popular for a reason: it is in fact probably the first and foremost chance to “make money at home” for the average person. Many people who never thought they had the flair have ended up making several hundred to several thousand dollars per month in their spare time. Full time is also a serious option. Anyone can do it, the investment is small, and if you use your noggin, it does not have to be nearly as sleazy as it often is. Don’t miss the articles on MoneyData’s “Standard MLM” forum page. Here we outline our basic formula for giving any type of MLM a try in a safe and ethical manner.  CAUTION! Don’t be fooled by “passive MLM,” aka “passive networking.” As MoneyData thoroughly explains, these are not MLM at all, but outright pyramid schemes.WE LOVE TO HEAR FROM READERS. We will publish your comments both pro and con, and even give you free advertising space, if you so desire. Please find contact information on our FEEDBACK page.  This page and every page in MoneyData: copyright  1999 by Christopher Oey, all rights reserved. |
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