Nowadays, I see a lot of companies emerging from the internet that offer high-yielding, low-risk businesses or investment products to the public.
These companies usually have some type of marketing system that enables an individual to get rich in a very quick way.
These companies attract millions of people and for an average individual, these businesses are great opportunities to grow their money big and fast.
These companies go public, and before you know it, a lot of people are already promoting these businesses on social networking sites and video sharing sites.
After a few months, you see individuals flaunt their six-digit earnings in the form of photos and videos with the intention of sharing this news to other people so that they can entice new people to join them.
These people talk about financial literacy, financial independence, open-mindedness, positive thinking and perseverance. When you have a conversation with them regarding their businesses, you sense so much excitement, agitation and stimulation on their words about the possibility of achieving your dreams in a very quick way and wants you to open your mind and think of the possibility that you too can get rich quick by following their business plan.
You even see them exaggerate publicity by creating questionable claims, methods and do all sorts of tricks to intensify the get-rich-quick effect.
Now, if you know someone close or dear to you that’s involved in these type of businesses, I suggest you guide them to this blog and let them read what I’m gonna write here. If you are that someone, open your mind like what you did when you started to join and see the other side of the coin.
Get-rich-quick investment scams have marketing plans that are designed to REALLY make you rich.
This reality is why there will and always will be individuals who will be involved in these companies. The simple mentality is this, “If other people are getting paid, then it isn’t a scam.”A super motivated individual who knows about the concept of leveraging but lacks how the market works are the people who are most lured into these businesses. They are best and professionals on presenting the company’s business plans but can’t give plausible explanations on how the company operates its businesses to sustain the marketing plan they provide. But since they are empowered by the concepts of leveraging, they mostly succeed. These businesses produces millionaires in the long-term and it is for this reason why people join and their successes are used as examples to let people know that the business they are offering are legitimate and real. This explains why members of these companies are so defensive into criticism because they think that as long as they earn a lot of money and see other people involved in the business earn money, there’s no reason to believe that the company they are involved with is a scam.
Get-rich quick investment scams are populated with individuals who think they are financially literate but in reality, they are not.
Individuals involved in these businesses talk about financial literacy as if they are born with electronic mind detection tools that detect illegitimate businesses and investment scams automatically. They believe that their businesses are legitimate even if there are already SEC public advisories regarding the companies they are involved with. They even find ways to professionally explain about how the SEC is wrong and how legally the business runs and generate revenue to pay off its members but when you try to ask them to provide and explain the company’s technicals, fundamentals and financial statements, no one can explain the questionable figures or why there is none. If you ask them who are the people behind the company, they can’t even provide you with a single name but they’ll give you other information like some other offshore office addresses where the company operates their business. These people think they are financially literate because they simply earn a lot of money. As long as they get their six-figure income monthly, they believe that they already know all they need to know. But in reality if you question them on how the business performs with respect to the current market conditions, how to read and interpret the figures on the company’s financial statements or what a Ponzi Scheme is, they don’t know what to say.
What matters to these people is that they earn a lot of money and that’s what really the business is all about. They build their passion of persuading people to join them towards the promise of financial freedom that’s why financially illiterate people view them as financially literate individuals. Now, when a financially illiterate person meets this pseudo-financially-literate individual, the values and beliefs of the pseudo-financially-literate-individual will become the basis of the financially illiterate person and will become another pseudo-financially-literate person. The cycle repeats itself and the result is a never-ending hoard of pseudo-financially-literate people populating the entire world of the promise of becoming rich.
Get-rich-quick investment scams are driven by GREED.
The reason why many people are still persuaded to join these companies is GREED. People nowadays are attracted by businesses and investment opportunities that generate impossible high rate of returns with little or no risk involved. When people find a a new get-rich-quick opportunity dubbed as “The next big thing”, they rush into hysteria of joining thinking that they can multiply the money that they have for a short span of time. Oftentimes they succeed, but oftentimes they fail too. They let greed take over themselves that they overlook and forget the need to see both sides of the coin. They advise you to not invest in mutual funds because it’s risky and the rate of return is low. They advise you not to invest in the stock market because of market fluctuations. They don’t like the idea of investing for ten, twenty or thirty years. They don’t like long-term investments simply because of GREEDINESS. So these people in search for financial GREEDom, turn to these type of businesses. They search for other greedy people to join them in their quest and the cycle goes on. As human beings, it is impossible to not be greedy. But by being a true financially literate person, we can minimize greed. By first criticizing and analyzing why such a business and investment generate impossible high rate of returns with little or no risks, we can safely decide if such business or investment is sustainable in the long run.
If you find yourself or someone you know in a similar type of business, open your mind and try to learn more about how the market works. Study about the basic investment vehicles available like the stock market, commodities, mutual funds and real estate. Read articles on how a Ponzi or a Pyramiding scheme disguise themselves as legitimate businesses and then compare or re-study the company’s business plan that you are involved with. If you realize that something isn’t right, find the wisdom to get out as soon as you can and learn about the legal ways on how to grow your money.
Happy investing!