What Is Cash Gifting?
Cash gifting is one of many names given to a variety of make money schemes. In determining if cash gifting is legit or a scam, the first thing to consider is if cash gifting is illegal. It works in much the same way as a chain letter which is used to send money out to addresses listed with the promise that the names below yours on the list will soon send money to you. The problem is, the number of people needed to contribute money continues to grow.
In a pyramid, there is one person at the top with several at the bottom. The people at the bottom give a specified “cash gift” to the person at the top which will usually total several thousands of dollars. Then the people at the bottom move to the top and new people must be brought in to give gifts to these. With each advance, more people are required to fulfill the financial requirement to pay off the ones at the top of the pyramid. It isn’t hard for most of us to determine if cash gifting is legit or a scam. Sooner, rather than later, there won’t be enough people to support the pyramid and it will collapse. In fact, only ten percent of the people that participate in cash gifting ever receive any payoff from their contributions.
Cash gifting also operates in a “1 or 2 Up” system. This systems works by the new person recruiting having to give their 1st and 2nd sales or new recruits to the person who sponsored them. (One or two sales depending on the program you are involved with). That means you would have to make Three sales before you would be entitled to receive your Cash Gift.
Who Participates In Cash Gifting?
You may assume that only people with plenty of money to spare would participate in this high stakes game. Not so. People have taken out mortgages on their homes to provide them with the money to participate. They have also resorted to selling their valuables for a chance to get the big payoff. When you realize the addictive behavior associated with cash gifting, legit or scam becomes easier to determine. If ninety percent of the participants are that eager to lose their money, then it seems to be just another gambling addiction.
Cash Gifting – Legit or Scam?
Some people have not only participated in cash gifting or pyramid scams once, but have bought back in after they completed the pyramid to try again. They claim that their money is going to a good cause and they don’t expect to receive the payoff. If this were true, then they would be content to donate the money to their favorite charity instead of gambling with it in a no-win situation. Apparently, it makes a great difference what name is given to these groups as to how the participants perceive them. Those named for charity groups or that are designed for women’s care are especially appealing to women while one that was focused on Nascar has become extremely popular with men.
People don’t always consider whether cash gifting is legit or a scam. They are attracted to the idea that the group represents and to taking a chance on the big payoff.