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How to Detect the Web’s Most Popular Scam

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On the Net, the old saying if it sounds too good to be true, it probably is, does not apply. If you use a simple test, the most popular scam used on the Internet doesn’t sound good at all, and the websites look even worse.

The web’s most popular scam is “an ease of entry” scam. All you do to get in on the deal is to pay money. Scammers tell you “they’ll take care of everything”. You actually buy a feeling that success is simply a matter of time. A typical con game.

Examples in this article come from actual companies which have been put out of business by state or federal regulatory offices. The most common scam of this type involves websites from which retail consumer items are sold. Since you can lose $45,000 without trying, I suggest you consider the following test:

The example used here describes a typical company with a fictitious name, Virtual Smoke and Buried Mirrors, Ltd. (VSL). VSL claims to have “100s of thousands of products”. (Not unreasonable since they claim to “sell products from Sears, Dell, Wal-Mart”, and 20 or 30 others of the biggest businesses in the world.)

Now for the first part of our test. If you had 100,000 products and did represent 50 different companies, how would you make it easy or your 10,000 website owners to make money for you?

*Volume discounts *Your own search engine so associates can buy from each other *Malls for categories such as cooking, gardening, etc. *You could think of more, but it’s not necessary

Now the second test: Look at the websites. How many are doing any of the above. You won’t find anything but a bunch of sites that look the same.

In fact, this would represent a typical site: a golf club, a wireless phone and an electric handsaw. You would not see more than 200 products displayed if you visited all the thousands of websites.

VSL sells three sites and calls it a “mall”. One sucker actually paid about $400 each for 10 malls. Why did he pay that much for a business in which he actually has no say so as to products, web design, or advertising?

Examples of products under two headings from the sucker’s mall: OUTDOOR EQUIPMENT: a tent, a backpack, a bag of dehydrated stew. JEWELRY: a necklace, a silhouette pen, a heart pendant. If this is your idea of a $40,000 per year mall, just wait for the scammers to start again under a new name. You can get your chance then.

The attorney general of a large industrial state notified federal bank regulators in May that they were investigating VSL’s “business practices”. The bank froze VSL’s account. Their top managers resigned. VSL was out of business.

The attorney general charged VSL with violating a code which prohibits “operating a business devoted exclusively to selling distributorships rather than products”.

Let’s go back to the part of the test where we examine websites. How could you promote any of the sites in the above examples? “Dear Yahoo: I have this great claw hammer for sale, and just wait ’till you see my diamond necklace and matching chainsaw.”

Remember the “sucker” with the hyper mall? What would his target market be? People who wear diamond pendants while using a chainsaw to open a package of dehydrated meat? Victims soon realized the only way to make their money back was to sell websites. That’s exactly what VSL wanted them to do.

Scammers don’t care if you make money selling products from your website. They don’t do anything to help their victims make money. Scammers don’t intend to be in business very long. Do you?

So the test then is, how many chances does the company selling the websites pass up to make money. They simply pass up too many chances to make money themselves. So how do you yourself expect to get rich following their plan?

James Lessenberry’s fascination with scams began when he met
a beautiful woman during his investigative reporting days. Please
go to www.wealthfunnel.com/thirdpaycheck and signup for the
free newsletter. It’s dedicated to starting newsletters through joint
venture.

How to Detect the Web’s Most Popular Scam
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About James Lessenberry
James Lessenberry's fascination with scams began when he met a beautiful woman during his investigative reporting days. Please go to www.wealthfunnel.com/thirdpaycheck and signup for the free newsletter. It's dedicated to starting newsletters through joint venture. WebProNews Writer
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