Coupon Book Scam - What Coupon Clippers Need To Look Out For
These scams are offered as an authentic business opportunity for entrepreneurs
, work-at-home moms and even charity groups. A lot of money is scammed from the distributors, manufacturers and consumers every year using this method.
How The Scam Operates
The scam artist approaches people to become distributors of these coupon certificate booklets. In order to become a distributor, these targeted individuals are asked to pay a distribution fee which gives them the right to sell these booklets.
These booklets contain anywhere from 20 to 50 coupon certificates which can each be redeemed for $10 worth of coupons. The booklet is therefore marketed as being worth from $200 to $500 each. The distributor buys the booklet for a reduced fee and is instructed to sell the booklets for $20 $50 each to consumers.
How The Scam Artist Sells The System
- He makes claims of high profits, amazing income or incredible savings in a short period of time
- He states there is no risk involved
- He puts the individuals under pressure to act immediately
- He maintains that the system is too good to miss out on
Who The Scam Artist Targets
- Individuals (men and women) running businesses from home
- People who have restricted income opportunities
- Individuals looking for an additional source of income
- Charity organizations wanting to sell the books to raise money
How The Consumer Is Scammed
The booklets are sold to the consumers who then need to fill out a form and mail it. In this form, they select from a variety of products choosing approximately 30 to 50 of them. They then mail the form, a self-addressed and stamped envelope along with a processing fee. They are guaranteed to receive the coupons once they have completed this process.
What The Consumers Dont Know
It is not often that the consumers receive the total amount of savings they believe will happen if they buy the booklet. The techniques used to fool consumers include;
- For the value of a $500 coupon booklet, consumers can pay up to $100 for processing and mailing
- Consumers end up paying approximately $1 (or even more sometimes) as a processing fee for each coupon they want to redeem
- The consumers need to select a minimum number of coupons to qualify which often means they are buying more coupons than they actually need
- The coupons are sold with no expiration dates which results in the consumers buying more coupons as they think there is no urgency to redeem the coupons
- The actually savings on the coupons is very low approximately 10 or 25 cents off for each coupon
- The booklets come with a disclaimer that states the coupons are redeemable on a first come, first served basis. This means the consumers may receive substitution coupons, or no coupons, if the products they checked are not available
- Most of the coupons sold are available free in magazines or newspapers
Who Profits From This Scam
It is only the promoter of the coupon certificate booklets that make money from this scam. Individuals looking to work-from-home or make extra money should stay clear of this type of business opportunity. The consumers looking to save money actually spend more money buying the coupons when they can find better deals for free.
by: Trent q Grant
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