subject: Is There Such A Thing As A Money Machine? [print this page] When you hear the term, "money machine", what images flow through your mind? The Automated Teller Machine or ATM as we call it? Some investment firms and online business are branding themselves as some sort of money machines. But are they really what they claim to be or is it just a ploy to capture our attention and make us hand them our hard-earned money? Let us find out. So why utilize the concept of a money machine? Because it represents ease and convenience, it makes it so appealing as opposed to the cold truth that it is actually hard to earn money. So we buy into the idea. Yes! We want a money machine for ourselves, if we could afford one. But is it for real? Is it a fantasy that some businesses concocted to recruit people? We have to wake up to facts. What they intend to make us expect is that when we join their programs, we sign up, probably pay initial membership or joining fees and then just sit back and relax, waiting for the cash to start rolling and piling in. So again, does such a scheme exist for real? There is in all of us a healthy skepticism that should not be ignored. When something sounds too good to be true, it probably is. When an offer promises to shell out cash whether initially or periodically and we are supposed to be positioned to receive it, we have to understand where those funds are coming from because 100 percent of the time, someone else is paying for it, and the sad truth is, sometimes the ones paying for it are not even aware of it. Where are the funds coming from most likely? The sources of the funding for elaborate compensation schemes are the product margins, service or set-up fees. It implies then that a product or service has to be exchanged in order for it to be a valid transaction. Otherwise, it would mimic a pyramid scheme where those coming in last are funding those that came in first. If there is no product or service involved, and the compensation plans are just too ambitious, it is most likely a scam. Keep this in mind when you are evaluating options. Whenever somebody else is trying to raise capital and soliciting an investment from you, and in exchange is promising a very hefty rate of return, by all means, DOUBT! Are they just trying to lure you into putting your money as a placement with them, and they have actually no intention of paying you your interest earnings much less your principal investment for that matter. How do you know what they are truly offering is feasible? Ask about how they will turn it around. What this means is, If they are willing to pay you say, X percent interest per year, then they should be able to either invest it someplace else where it would earn considerably more than X percent. Or they could make it yield X percent+Y percent. The Y percent being their turnaround income and thus justify their being able to pay you (the investor) such returns. It could also mean that their cost of borrowing those funds from someone or from an institution would cost more and so they choose to raise funds from you. Whatever rates are applicable in your country of origin, ask around and compare if the rates promised you do make sense. And never forget the old adage as well, "the higher the risk, the higher the return". Even if they explain "this and that", verify their claims first. Now let us move on to the claims of the online business recruiters. Is it really that easy to make tons of money off the internet? The answer is...(drum rolls please)... I'm afraid not! All of the networking companies, even the ones with affiliate programs will require your share of the effort to receive your share of the revenues as actual money for your pocket. So, I am sorry to be the one to deliver the bad news and burst the bubble. No, the money machine is a fallacy. To be able to succeed online or offline, you need to go back to the fundamentals. We need to have the discipline, determination and actual work put into our endeavors. So am I shooting the idea of extra inflows and residual incomes? Of course not! The online business venture, while it requires regular and consistent effort on the part of its owner, is still proving to be more convenient, more practical and more profitable in the long run than the traditional brick-and-mortar businesses. This is because there are no physical plants or stores, little manpower required and the absence of inventory. In terms of time spent and actual money tied up in capital, the online business wins hands down. Do not get me wrong; I am not out to discourage the traditional businesses. They comprise a major portion of our global economy and generate much needed employment. They have their own merits but it is not for everybody. Not everyone is cut out to run an enterprise like Donald Trump or Bill Gates. On the other hand, the online business presents itself as reachable, viable and affordable for the ordinary person without a huge well of resources to draw from. And for those who are actually willing to work at it consistently for the long term, the passive and residual incomes could indeed be their own proverbial money machine if they actually work on it. But they really have to work on it!
by: lauren quinn
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