If some residual income business opportunity tells you that… you can earn hundreds and thousands of income without doing anything, chance is it is a typical hype business. Because you do not want to invest money in a business which will definitely disappear before you could cash out your “earnings”.

It is the first priority to filter those hype ones and find a legal and sustainable business. There are four easy steps you can do to identify them without being misled.

Step 1: What Product/Service It Provides

If that business offers a product or service which everyone or at least majority of people will enjoy, you can go ahead with that business. Because that means the product or service they provide has great potential.

Ask yourself what will make you stay with that business for a long time? If it is the product or service they offer, I’ll guarantee it’s a good sustainable business and you can go ahead with that without any doubt.

Step: What Is Their Pay Plan

Find its pay plan and read it carefully. Does it say that you have to be the paid members first to earn money? If yes, sometimes it’s fine as long as the membership fee you paid really worth the product/service you’ll get. And they have to show you clearly how to make money before you become paid member.

But if it allows people to join for free, it will make your marketing job a lot easier. Because people like to test drive the new business and do some research before seriously getting into it. Once they see the value in the product or service that business provides, they are comfortable and more willing to upgrade to paid members.

Step 3: How Will You Be Rewarded

Read and study its rewards plan. Does it tell you that you should become paid member earlier than others so that your income is guaranteed? If yes, you’d better walk away. Because it is more likely an illegal pyramid scheme.

However there is a fairly new recruiting system called “power line” system. It is a great way to encourage people to upgrade because it will automatically line up members into a straight line. Once one of the members upgrade, all his uplines will receive the notification and then upgrade.

That’s a revolutionary marketing way to encourage people to upgrade but not necessarily tells you that it’s a pyramid scheme or not. You still have to check its pay plan in details to see whether they reward people for being in the business earlier or reward people for achieving a high personal performance.

Step 4: Don’t Forget Its Terms of Service

Don’t forget to check its terms of service. Does it offer money back guarantee? If yes, how long is the guarantee period? If not, which is also OK, but will you be bound for that fee for a long time? For example, you are requested to subscribe its service for at least 6 months. Will they charge you a cancellation fee if you cancel your subscription any time?

What’s the minimum payout amount it requires? How long is the payout processing time? If it tells you that you could cash out whenever it reaches $1000 and the processing time for one cash out is 60 business days or longer, stay away from it! Because it clearly tells you that it is a hype business. Use your common sense, if it seems ridiculous to you, it won’t make sense for other people.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

If you enjoyed this post, make sure you subscribe to my RSS feed!