Making Money Online - the scams...

I started this blog a few years ago to find out if it is possible to make some money on-line. My conclusion can be summed up as 'Yes, you can make money on-line... but it is not easy'. At least it is not easy to make a significant amount, it is very easy to make small amounts.

In today's post, I am highlighting some of the schemes that will confirm your worst fears that anything that appears to be too good to be true... generally is - The Scams:

Pyramid schemes are the king of all on-line scams - you appear to be getting something, but you only get something when you can persuade two, three or more others to sign up for the same thing. They only get something when they get others to sign up...and on...and on. Inevitably, there is no actual 'product' and the whole scheme works on the chain-letter principal where sooner or later there is no-one else left to be suckered.

I have seen them in all sorts of guises - in one, you appear to earn 'precious stones', but I strongly suspect that beauty is very much in the eye of the beholder here, and the stones will prove to be nothing more valuable than Cubic Zirconia. To be honest, the scheme makes no sense at all, and if you apply the reasoning 'where does the value come from?' there is very little value in the scheme therefore there can be very little value in the 'rewards'. This principle applies to all Pyramid Schemes, if there is value going in (ie. $10 from each contributor), the average value across the scheme per person CANNOT exceed $10 per person... it is a lottery where the only winners are the people at the top of the pyramid - ie: those that started the scheme.

I have also seen this same principle applied to the selling of web domains - the selling of '.WS' sites began very much like a pyramid scheme, you buy your site with (relatively pricey) hosting with the idea that you can use this site to sell... that's right... more .WS sites with hosting, which can be used to sell... you get the idea? There is no actual 'value' other than for the web host who sells more and more hosting packages. all of the individual sites in the scheme are cloned 'splash pages' offering the same thing.

I believe that the .WS domain is not ONLY restricted to this type of pyramid, but it is true to say that an awful lot of them are, and if I am honest, I will admit that this is one of the most ingenious pyramid schemes that I have come across.

Although not all online scams are pyramids or 'ponzi' schemes, they are one of the most prevalent and prey on the gullibility and (let's not shy away from it..) avarice that tends to cloud judgement a little.

Also in this series:

The minnows - easy money, in very small amounts...

The starters - relatively easy and close to being worthwhile

The big fish - don't pack in the day-job, but nice little earners