Gifting programs have actually been around for many years in some form or another. But they are all basically illegal. The way gifting clubs work is like this. To get into their club, you are required to pay a fee of between $500.00 and around $3,500.00. And you don’t actually get anything for your money. You simply get the right to now say you are in the club and the ability to now recruit other suckers into the club.

Here’s what makes gifting clubs illegal. Just by their very name “Gifting” you’d think these clubs are just about giving. And that you are dealing with a group of very kind people that just likes to give out of the goodness of their hearts. BZZZZ!! Wrong! I’ve talked with these people and they are some of the greediest people you’ll ever talk to. Now this is where my point about why these gifting clubs are illegal starts to make sense. These clubs try to get around the law by saying that their members only care about giving gifts and that there is no law against giving gifts. But we all know that when one of these new members gives $500 or $3500, they fully expect to get that money back and much more back as well. This is exactly why this type of scam was made illegal a long time ago.

Instead of “Gifting” programs, these clubs should be called “Receiving” programs or “Greed” programs.

Now there is a new variation of this gifting program idea that thinks they have a way around that law. This new type of gifting club has now gives you a product when you pay your entry fee to the gifting club. One club I know of offers 3 options for gifting fees. Their first package is $500 and they give you some web design software. By the way, I have seen this same type of software free at tucows.com and download.com so this product is a joke!

Their next package is $1,000 and they give you a slightly better piece of software, but again I’ve seen the same quality of software available as freeware at tucows.com and download.com so the product is a laugh.

Their last package is $3,500 and you get a multimedia cd rom that has an ad for your website on it. Now this is probably the only product I couldn’t find for free anywhere, but still, my website designer told me he’d give me the same disc they offer for only $200 instead of their ridiculous $3,500

But I know from talking to these gifting club members that their products are only there as a technicality to get around the law. A representative of this particular gifting club told me himself and I quote “We are not about selling quality products” He continued to say “Yes, I admit, these products are a joke, but this club is simply about getting new people to send us large amounts of cash.”

The way it works is like this: You pay your entry fee of around $500 up to $3500 and this money goes to the guy who told you about the gifting club and signed you up. Then when you recruit your first victim into the club you don’t get paid for that first sucker. Where does that money go? Once again, it goes to that person who signed you up. You give your first sale away and that now makes you eligible to begin keeping your cash. Every member throws away his first sale and gives it to his sponsor.

It will probably surprise you when I tell you these gifting clubs can actually make you a good chunk of money. I have a friend who did very well in a gifting club and made a solid income for 3 whole months! But all gifting clubs go down, crash and burn in a ball of flames. And after 3 months of putting in 10 hour days recruiting people, his club, like all the rest, went fell apart. And of course none of the newer members of the club even made their money back so they all complained to the ftc and the attorney general about this person who recruited them. The ftc investigated this club and when it was all over my friend was ordered to pay back the sign up fees to all of the people he recruited, plus he now had misdemeanor conviction on his record. He thought he was getting into a lucrative club with a bunch of friendly loving gift givers but it turned out that he made a bunch of enemies.

If these gifting clubs were legal, and if they never got attacked by the ftc, and were able to stay around for a few years, you could actually make some money from them. But since every gifting program I’ve ever studied has been shut down or fallen apart on its own, I would never recommend this type of get rich quick scheme to even my worst enemy! They go by many names such as pyramid schemes and ponzi schemes and if you get involved with one of these things, you are in for nothing but a head ache. I know the guy who is trying to sign you up is going to tell you a completely different story than what I’ve told you here, but again, he just wants you money. He wants to get one last sucker into his club before the whole thing ends.

And remember, don’t let the fact that the club has products fool you! It’s still a gifting club and it’s just a matter of time before the FTC makes it’s rounds.

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