What is cash gifting 1 :The activity of cash gifting is when people send you a money gift in exchange for no product at all. However, in order to make these programs legal, many promoters now include some digital product with their programs.
Accordingly, gifting clubs or programs refers to the practice whereby one person sends another, frequently a total stranger, money as gift. This money is supposedly given without any expectation of a reward or compensation. However, we all know that in practice, the motivation for sending the cash in the first place is precisely the expectation that this would lead to an opportunity for the giver to receive in turn more money from others who join the program after him or her.
Suppose for example a person (Peter) decides to join a particular gifting club or program. He does this by sending the person who introduced him to the program (Mr. Paul) a gift for say $500. After Mr. Paul receives the money from Peter, he confirms this with the program administration through the tracking software. After this, Peter can now invite others into the club who would be required to send Peter cash in amounts not exceeding Peter’s initial level of $500 per gift. Each person can invite an unlimited number of people into the program. For variations on this basic scheme see our gifting structure section.
Mutual Aid Societies and Rotating Credit Societies for the Internet Age?
What is cash gifting 2: Another answer would be that cash gifting programs are nothing more than modern versions of the mutual aid and rotating credit societies of the previous centuries. In the past these were private members clubs, in which members in the different chapters apply to join and to get to know each other and to even socialize. In the global village of the internet age, the old structures have had to give way to the new. Most of the dealing is now with anonymous strangers, and it is no longer possible to restrict the membership to be strictly private.
Giving to a stranger?
What is cash gifting 3: It is people giving to strangers! When encountered for the first time, many people often find the idea of sending money to total strangers and expecting to receive likewise from other strangers rather bewildering. In particular, would sending money to someone you don’t know much about not be a recipe for scamming? But on reflection one quickly realizes that the receiver of the cash would have no reason not to acknowledge the gift to the program. In fact, as we will see below, gifting clubs are one of the safest online business opportunities.
In most gifting clubs, sending your first gift (occasionally 2 gifts) qualifies you to start introducing others to the program who would in turn send cash to you, their inviter. Generally, the more people you recruit into the program the more gifts you can expect to receive. Depending on the particular program, the value of each gift can range from as little as $5 to $12,500 or even more.
Confused? Still not sure what is cash gifting ?, Not sure whether it is the same as mlm, a pyramid fraud or scam? Read on.
Cash Gifting is Not MLM!
What is cash gifting 4: It is neither mlm (multilevel marketing) nor is it affiliate marketing. In both of these latter activities you sell other peoples products for a commission, with the bulk of the money usually going to the company.
Once understood, many people find the idea of cash gifting more appealing than mlm and other work at home schemes. First of all, the cash is paid immediately from member to member. Unlike, mlm there is generally no upline/downline pyramid structure characteristic of mlm, where those at the top are making all the money, while those at the base struggle.
On the other hand, after stripping away the hype, anyone considering joining a cash gifting club should realize that this is not a get-rich-quick scheme. To make money you would need to recruit others into the program. That requires effort and skill. If a cash gifting program is well structured and well run, then in principle, the recruitment process should involve no selling or convincing of others to join. Receiving money is after all, the aim of most business opportunity seekers.
In the current crowded online market place, it requires effort, skill and marketing before anyone can expect to start receiving a steady flow of gifts. The stars of hundreds of cash videos on the internet create the misleading impression that all you need to do is join a program and turn on the cash tap.
Cash Gifting Requires Effort!
What is cash gifting 5: It is not an automatic cash generator or cash cow. It requires effort and skill. The reality is that you would need to advertise the program in order to introduce others to it. Cash gifting is not easy, but it is certainly much easier than your typical 9-to-5 offline job!Given the right gifting club program, training and the determination to succeed, one can certainly make a lot of money. Many do receive 6-figure incomes a year from gifting, while there are others who fail to make any money at all. Like in the offline business world it all depends on your input and attitude. If your vision of gifting is that of a turn-system in which you pay your enrollment fee, send your first gift and sit-back to start receiving money by the bucketful, then you better think again. If on the other hand you approach it like a business opportunity requiring effort, skill and investment in time and money, then this could be one of the most lucrative opportunities available on the internet. Beter than MLM, and most 9-to-5 jobs. Beleive me.
Cash Gifting is Not a Scam!
What is Cash Gifting 6: It is not a scam but beware of scams. Just as with every other form of business opportunity, there are many cash gifting scams and fraudulent pyramids chains on the internet. One should therefore exercise due diligence before joining any club. A common error is to join a program which is no longer active. Like most online home business opportunities, the average lifetime of cash gifting clubs is less than 2 year. This is more than twice that for mlm but it is still short-lived. On the other hand there many gifting programs that have been operating sucessfuly for more than 10 years. An important question to consider is the nature of the company behind the program and how long they have been in business, and their rating, if any, with the Better Business Bureau. In our reviews section we do our best to provide you with up to date information on the leading programs.
Cash Gifting is not Illegal:
Cash gifting is not illegal but some, otherwise legitimate programs, are illegal in some countries. The question of whether gifting clubs are legal or not is a gray area of the law, and has been much discussed and debated. In the US, for example, there is no law explicitly forbidding cash gifting clubs. Operators of cash programs frequently appeal to sections of the US IRS tax code on gifting to justify their operations. However the spirit and intent of the IRS law was never meant to apply to gifting clubs. The purpose of tax code in question is obviously meant to lower the future tax debt of the recipient, by distributing the giver’s assets during his lifetime. In fact, if you ask some of those opposed to this activity, that what is cash gifting, many will simply define it as a scam or fraudulent pyramid. A case of a few apples spoiling the lot I suppose.
What is cash gifting then? It is all of the above: It is is a very lucrative activity, but which like any other worthwhile activity, requires effort to accomplish much. Like every other money making opportunity out there, in cash gifting expect to come across the good, the bad and the ugly. We hope the above answers your question what is cash gifting, and how does cash gifting work?