Monday, April 28, 2008

Cash Gifting: Would You Recognize a Cash Gifting Program Today?

Cash Gifting Programs Today

Cash gifting programs are quite popular on the Net. But, would you recognize a cash gifting program if you saw one?

Let's first understand what a cash gifting program is. A cash gifting program is one in which you can receive cash from someone without providing them a product in return. You get into a cash gifting program by giving your sponsor cash. After that, you can find others who will give you cash.

Now, that's the bare bones version. You'll find a number of these programs on the Internet. If you receive email you've undoubtedly gotten ads for cash gifting programs showing the UPS man arriving at someone's door. They open the envelop and pull out a stack of hundred dollar bills.

But, there are a number of people who think such "schemes" are unethical. And, they wouldn't even think of getting involved with such a program.

So, many entrepreneurs have dressed up the cash gifting opportunity in new clothes. While the essence of the cash gifting program remains, these dressed up programs usually include a variety of products, usually digital products.

You'll find a number of programs being offered that include hundreds, if not thousands, of digital products. These can include software programs, ebooks, as well as audio and video courses. Most of these products are offered with resale or even master resale rights. This means a member can resell these products and keep all their profit. And, many people who join these organizations do make a substantial income from the sale of these products.

But, most people who join these organizations make the majority of their income from getting other people to join the opportunity. In most cases, nearly all the cost to join these organizations goes to the sponsor of the new recruit. That can amount to a thousand dollars or more.

Such organizations typically collect the new recruit's joining fee and distribute a share to the sponsor. The new recruit does not send cash directly to their sponsor.

Some organizations provide significant services to their members. To finance these services they take a cut of the joining fees. This cut funds such activities as the development of web sites, training materials, and providing online training to members. But, still, the majority of the joining fee goes to the sponsor of the new recruit.

One new development in this opportunity niche is residual income. Traditionally, members of most cash gifting programs receive income only from new recruits. An innovation in the industry has members now paying a monthly fee. Some of this fee may go to support the organization's infrastructure while the rest of the monthly fee goes to the sponsor. This feature greatly increases the income a member can receive as a good recruiter.

So, it's the aspect of making lots of money by recruiting others that makes these organizations cash gifting programs in new clothes. So, look closely at the commission structure of organizations you are thinking of joining to determine if they are profitable cash gifting programs.

For more information, visit Cash Gifting Explained

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