Cash gifting, in simple terms, is a “gift” of dishing out or giving cash to other people in the hope that they will return the favor by giving back. It is a pyramid scheme where about 90 percent of those who take part in this kind of activity end up losing the entire of their money. Bet it! If you are interested in finding a cash gifting system, then I will give you my two cents: Just steer clear from cash gifting completely. Don’t even think about it.
Cash giving does not operate within the legal framework meaning it is indeed an illegal business in most of the countries and states. So that they stop getting around the law, the gifting programs refrain from calling themselves a business, and they alter the pyramid structure so that it does not appear like a pyramid straightaway.
Anyone who does not critically evaluate how these shoddy businesses work may not be aware of what is happening, and they are duped to get into yet another pyramid scheme. At times, you may find something, which says, “You are aware this is not an investment and you may not expect to get anything back in return because this is a gift you are giving to someone else”
And a snapshot showing information taken from the Peoples Program’s FAQs indicated that it is not a company and claims it is a team of individuals who give gifts to each other. It further indicates that we are not an investment or business. Furthermore, the information hinted that a company cannot withhold or misplace their gift. The guys claim that they are totally in control and also in charge of their own gifts, and they give gifts directly to one another.
In the website page of the Peoples Program’s FAQs section, it also states that by law, anyone is allowed to receive an amount total up to $12,000 as part of the gift from another person in a year without needing to claim it as an income.
When I critically looked at this information, I found it quite conflicting and troubling. I don’t think that the idea of receiving $12,000 as a gift and not claiming it as income would apply to anyone who is involved in such a scheme. In the event that you were to receive some large sums of money in the form of a gift from a cash gifting program, it means that you would have to be subjected to tax. What I mean is that, if you don’t pay tax, then you will be putting yourself into trouble with IRS.
However let’s face it, hardly, there is anyone who is joining such programs to give up their cash voluntarily— in their mind, they have the mindset that they will receive something in return, and probably make some large profit.
Why Cash Gifting Is A Pyramid Scheme
A majority of the cash gifting programs will tell you that it is not a pyramid scheme. Many of the cash gift organizations say that they aren’t a pyramid scheme because they know people won’t immediately realize it. They have structured their system, and they appear different as some are kind of marketing systems, however, in my honest and humble opinion, it is just not all that differ from a pyramid scheme.
Definition Of A Pyramid Scheme
A pyramid scheme is a kind of a formal investment (but note that, it is illegal in the US and elsewhere), and in this investment, each paying person or participant recruits some two further participants with the returns of the new recruits being given to the early participants. Therefore, early participants are given the money that has been contributed by the later participants.
The cash you pay to enroll in the scheme is actually given to people who are above you in the scheme. In this case, the only way you can make money is to ensure you continuously bring people to join the scheme. The more you recruit people, the more money you are paid. So, eventually, with more recruits, the profits will begin to trickle to you.
And, this is exactly what cash gifting is all about
There is no service or product that is being sold. One would want to ask themselves— where the hell on earth would you get returns from somewhere you have not investment or done some business. There must be someone to lose in this kind of scheme because no real investment is bringing in money to support the business, model. It will come tumbling down in the end.
In cash gifting, you are handing money to some people in order to enroll or join, in hopes that you will also get more people who join the same scheme, and those people again bring more friends to join, and the thing goes on, and so on.
Contrary to MLM programs that apply legitimate— albeit overpriced products in their business model, with pyramid schemes like cash gifting, no money that is put into the system apart from the cash that comes from newcomers which they pay as a gift. Therefore, you can see exactly why cash gifting is a pyramid scheme just like any other.
How One Up Cash Gifting Programs Are Different?
Some and probably all cash gifting systems claim that they are neither a pyramid scheme nor an MLM program since they are using one up marketing. Nonetheless, even though the system may vary in structure from a pyramid scheme, they remain that the only profit they get is by new membership.
Cash Gifting Won’t Be The Solution To Your Money Making Struggles
Although I have reviewed many products, schemes, and services in this online money making industry, I would say that cash gifting is among the worst things you would even attempt doing. If I were you, then I would definitely try to seek another method or alternative online money making a business that is sustainable. I would recommend you affiliate marketing. Although it is not easy, the good thing is that no one is going to throw hundreds dollar bill your way. And, it is a legal thing.
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