subject: How Does Cash Gifting Work [print this page] How Does Cash Gifting Work How Does Cash Gifting Work
What is cash gifting? Cash gifting is a private activity where participants pledge a cash gift in various dollars amount to participate within a certin the activity. Because there is no product or service being exchanged this activity can not be considered a business. Every activity regardless the participation requirements require each member to sign a gifting statement and non solicitation agreement.
Some of the many misconceptions of cash gifting is they resemble a pyramid, a Ponzi or chain letter scheme which are pretty far fetched. First pyramid requires several layers of participation and each layer pays a portion of the proceeds to those who higher on the pyramid, the concept is that eventually thwey get to move up in the pyramid by recruitng more participants. Becasuse all csah gifting opportunties are one on one invitation and no oher parties are included it would be impossible to even form a pyramid. The other misconceptions is cash gifting is similar to a Ponzi scheme. A Ponzi scheme is when an individual sells fictous products or services with an higher the average expectation of return on one's investment. Many cases have recently been brought to the forefront with Bernie Madoff however again he was selling shares to investors that did not exist evntually he is at a point where three isn't enough cash funds available to payoff the investors and the scam crumbles and the con runs.
With all gifting programs they require each participants to sign a gifting statement so they understand that there is no promise of return on investment or exchange of any products or services.
There are several different types of gifting opportunities 1st the 1up program. A 1up program means to qualify you must give up your 1st person to qualify to receive cash this establish your residual cash flow source, another is the no 1up. In this activity a percentage of what ever gift you bring in goes to your inviter again this establish your residual cash flow. If you have good members who are your team they could help replace your monthly income without any additional effort on your part, either system has the advantages and disadvantages and if you where interested in either you would want to get involved with a program that has good training as well as a good mentor.
Some of the advantage is most gifting opportunities operate within the IRS Tax code meaning the levels of participation are under the $12,000 cap so the recipient of the cash gift is not required to pay taxes on the gift received. The reasoning behind this is the individual is who sending the gift has already paid taxes on it once so the IRS does to not require additional taxes to be paid. Some have a fairly low cost to get started as low as $25.00 and most opportunities have some type of training program on how to attract others who maybe seeking an opportunity to increase their cash flow. The one thing that is common among all the cash gifting leaders is the amount of cash that's received on monthly, weekly or even daily basis. With the right mentorship one could really establish an unlimited income source.
Some disadvantages just like any business or opportunity results are not guaranteed and there is no promise of mentorship or training from many gifting opportunities. However unlike Multi Level Marketing you don't have to recruit hundreds of people to generate decent amount of cash. If you can bring just a handful of people to your program the residual cash flow could be enough to replace your income.
In summary if programs like this interest you then you should do your research find one that has a top notch training system. Find a good mentor, one that is not going to be afraid to take your calls and help you get your system setup. You may never know it may be the creation of the wealth that you have always wanted. Be sure to checkout my resource box for more information concerning this or other opportunities
