SCAMS AND FLAMS

This page will be dedicated to the bad and the ugly --  scams and flams you don't want to waste time and money on. The list will continue to grow as we discover more and more money-losing oportunities.

What is a scam?  Among others, pyramid schemes are scams.  In our opinion, any scheme where you have to spend money, recruit in order to generate an income, and get nothing in return except a prayer and a promise is a scam.  Sometimes you receive "something" in return for your expense, but it's rarely worth what you've paid.  Most pyramid schemes give you nothing at all except the right to recruit others to pay their money as well.

What is a flam?  Many MLM's (multi-level marketing) are flams.  Of course, some are down-right scams, but MLM's come in all different shapes and sizes that pay "distributors" through multi-levels.  Most involve selling a product or products and sponsoring others to do the same.  We have rarely seen an MLM or network marketing plan that doesn't grossly overcharge for the same or nearly identical product that you can purchase at a retail outlet. (They need to charge so much more because they have to pay "multi-levels" of distributors a commission.)

Remember, anything that smells of "Get Rich Quick" is either a scam or a flam.  You can only get rich quick if you are lucky enough to win the lottery or have a rich relative who wills you a bundle.  Anything else takes WORK!

SFI (Six-Figure Income) - A Flam of Great Proportions

We've yet to figure out how to make money with this flam.  First, you must recruit others to join SFI.  But in order to get paid a commission for any of the recruits you sign up, you must spend a minimum of $29.95/month each and every month no matter how many people you recruit. Each recruit must also spend $29.95/month, and so on, and so on, and so on.  Above all, we question how much value there is in the products they offer.  Someone is getting very rich with this flam, but we're sure it isn't the 4 million or so souls who have been recruited into this web of flammery.

Note:  Compare every MLM to Amway, the grandaddy of MLM's.  There is a small, one-time charge to become a distributor.  You can make money by selling products (albeit we believe highly overpriced as are nearly all MLM products), sponsoring, or both.  Amway, even though it may be the butt of many jokes, is a truly legitimate MLM program. (Notice we say program, not scheme.)  If an MLM doesn't measure up to Amway, take a pass. 

Chain Letters - If It Involves Money, Run. Major Scams.

After hundreds of warnings, people are still being sucked into chain letter scams. The best that can be said for many of them is that the loss of money is mostly minimal - $5 - 50.00. But they have become more and more elaborate over the years, especially with the advent of email.

Investment Club -- Run, Don't Walk Away From This One

This scam has disappeared from our radarscope for some reason, but that is not to say it isn't still around. It was started by a group out of Austrailia. Your investment is $25/month for which you get advice on how to invest in the stock market and make money. The promoters of this scam don't even have a background in investing. If you really want to know about investing in the market, immerse yourself in The Motley Fool. There is no better site for newbie investors.

Global Wealth Builders Network -- A Pyramid Scam

This one will only cost you $99 and you can make a million without having to do a thing -- just sit back and watch your million roll in. Give me a break!! Need we say more. If you're foolish enough to believe in this one, you're beyond help.

Dietary Supplement MLM's -- Overpriced and Overused

It seems like every other MLM or network marketing plan that comes out is promoting a new, improved, never before seen dietary supplement. These products (and the products of nearly every MLM or network marketing scheme) are so grossly overpriced it is amazing to us that people still buy into these get-rich-quick schemes. If you want dietary supplements, go to Costco, GNC or online at Puritan's Pride for all the supplements you'll ever need at prices that won't choke a horse.

Debt-To-Freedom -- What A Way To Go Broke!

Well if "Instant Millionaire" isn't shouting out from this scam, then it's a pretty close second and a definite red flag. It appears that this is a membership driven scam that provides members with information on how to get out of debt and start investing. Gee, there are volumes about this in the public library, on MSN, The Motley Fool, and many, many other places for FREE. Why would anyone want to pay for this info? Problem is, we can't find out how much it is to join. What we do know is how much you get paid for recruiting new members. There is some sort of "Cash Card" one needs to purchase in order to get paid commissions. This appears to be another scam. So we now have two scams in one. Wow, you can go broke twice as fast. Forget it!!!