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How to Avoid Internet Money Making Scams

By: Brian Kim - February 16, 2008

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It’s a very appealing dream for most people. You wake up in your pajamas and work from home using the Internet and checks just get sent to you in the mail. It’s a button many people want pushed and there are those out there who know it. And know exactly how to push it.

The niche has become an easy target for a mass flooding of Internet money making offers – take surveys, read emails, surf the web and make money, do data entry, cut and paste and make money, put up a website and the money will roll in, don’t even put a website and the money will still roll in, etc.

So people just fork over the money to find out more about these Internet money making offers only to find out all about the hidden costs and the catches and because they consistently purchase information about these offers, the market explodes with more and more offers flooding the market as it has become a very profitable niche.

But scammers are smart though. They know the market is being flooded so they take advantage of that with the introduction of “review” type sites. You’ve probably seen a proliferation of these review type sites - sites where they claim to have reviewed every single Internet money making product on the market and they present to you the 10 best ones. Well the 10 best ones just happen to be the ones that cost the most (and some of which might very well be their own offers at the top of the list) and pay the most as they are of course affiliate links. These scammers know people out there want somebody to do all the dirty work and sift through all the junk out there to come up with the real, legitimate offers and when they stumble upon a review site, it’s easy to blindly trust them. These review sites might have worked well in the beginning, but now that strategy is becoming oversaturated as well as more and more people are beginning to see through all the smoke and mirrors.

Marketers of these scams are very adept at describing their offers in a circular way by talking about all the benefits, but never about the costs, especially the hidden costs such as advertising. They’ll say things like you don’t need a website, it’s easy to do, all you have to do is type, and the checks will be in the mail.

One popular Internet money making offer involved writing Google Adsense ads and inserting an affiliate link at the end (a link that identifies your account and would credit you with a certain % of the sale if the person who clicked your link bought the product/service it was advertising). You would hope that the person would read your ad and click the affiliate link at the end of it and buy the product on the webpage and then you would get a cut and hopefully the difference between the advertising costs and your affiliate revenue was positive so you would make a profit.

The trouble is, a person with no experience in writing ads can rack up huge charges in advertising with no sales. And even though he/she can get on the learning curve and improve the odds, statistically speaking, the sales to click ratio is about 1:100, meaning for every 100 clicks, one person will buy. And that ratio is considered very good in the marketing world of direct mailing which is essentially what this is all about.

Another problem with this is that word spreads out about this system so it becomes flooded and it costs more and more to create ads with the best keywords as people are bidding on them, driving advertising costs up and creating competing ads of the same product on the same pages so the profit margins are shrinking for each additional entry.

That’s another thing that most people don’t realize. As soon as a “system” comes out for making money online, that system will eventually get flooded and it will get harder and harder for new people to make money as the profits are being squeezed among the many. It doesn’t become sustainable and the system is rendered ineffective.

One of the #1 rules in business is to be the first, especially from a marketing standpoint so you can grab the market or else you suffer the effects of over saturation as other competitors try to get in your niche or use your system which leads to the profit margins shrinking for every additional entry.

It’s best to avoid all the hype, all the sites, all the ads that profess you can make thousands of dollars in your first couple of days online or that you can become an Internet millionaire and work from home in your pajamas in less than a month.

If you hear about somebody who claims that they made over $24,000 in 24 hours online, they very well might have. But there is a catch of course. They had access to a list of leads that they sold to, a rather large one so it was just a matter of crafting a great time sensitive offer and sending it to the list.

The average Joe doesn’t have access to a list of large, well targeted leads so that kind of information doesn’t do him any good.

And more often than not, that list of targeted leads took many, many years to build. They never mention all those catches in those fancy sales pages as it’s much easier to get the prospects to focus on the immediate gratification of making a ton of money in so little time and build a false hope within them that they too can do make twenty four grand as early as tomorrow morning.

People seem to think that the Internet is a cash ATM somehow that will magically send them checks to their houses and that the fundamentals of “brick and mortar” business don’t apply. They still do. It will take time to build a legitimate Internet business that will make you money. It will take work. Hard work. It won’t happen overnight. And you will fail. Many times.

Forget about all the hype.

Go back to the fundamentals of making money by looking for a way of how you can provide value to others through the use of the Internet and harness its technological advantage of performing systematic tasks.

The Internet is just a medium - a tool that you can use to help you provide value to others. It’s not a golden goose that will lay eggs for you.

Look past all the smoke and mirrors and learn about the real deal on how you can really make money online.

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