Get Rich Quick Schemes [And How To Avoid Them]

Do you want to get rich quick? Do you think it’s possible to make a lot of money quickly? For decades now, folks have gone on the internet to figure out how to make money online. As a result, numerous get rich quick schemes crop up daily to take advantage of the young, old, green, and naive. Are you among them?

Let’s get into it.

You have probably seen it somewhere. Maybe you read a story about it, saw a late night infomercial, or saw an advertisement on social media. People everywhere are getting rich, while doing little work. 

Are they really?

Most get rich quick schemes are disguised as efficient “business models” that just work extremely well when done right.

Online Business v. Get Rich Quick Schemes

According to the FTC, 99% of individuals who start out in MLM will fail. The table above will show you real numbers to support this statistic from top MLM’s. If you want to get real, take a peek at the profit column. Yeah, it’s very depressing…

Many MLM leaders will try to distract you from this shocking statistic by pointing out that more than 95% of all online businesses will fail in their first few months. Unlike what they tell you, a study done in 2019 reveals that more than half of all online start-ups last into their fifth year (56% to be exact), while 80% last more than a year.

The graph above depicts the average number of years small businesses will remain in operation. More than 20% make it past 17 years. What exactly do these statistics mean? It means starting and running a business isn’t the impossible part, it’s the vehicle that determines success.

That and the fact that there are dirty little secrets the industry hides from you, but we knew that already.

Starting an online business takes time, money, and focus. There are no cheap shortcuts and there is no way to cheat the system. Anybody that tells you you can get a Ferrari in the next 6 months with $500 and access to their system probably has something to hide. They might even cop out and tell you it will take a long time and a lot of hard work, but their pictures on social media with, “call me to live a lifestyle like this!” tell a different story.

What Do I Know About Get Rich Quick Schemes?

The short answer: way too much. The longer answer includes a few too many zeroes in the form of dollars lost. I started this blog to educate others on ways to be successful, but also on ways to avoid failure. Let this article be a cautionary tale. Even if you throw yourself 100% into anything, it won’t work if it’s not legit.

I tried the MLM thing several times. Each time, I threw myself into it more, with a higher level of commitment. 

After I lost over $15k in a so-called “franchise-like” business model back in 2016/2017, I decided multi-level marketing wasn’t for me, in any way, shape, or form. I had tried so many network marketing programs and even made money in many of them, but never a profit. I’ve earned more money on slot machines than I ever did in MLM.

I used to have what I called, “that MLM itch.” My friends would pitch me or I would see people I knew in different programs and I would feel an immense desire to join them. I can tell you with 100% certainty that itch is gone. That is not to say I’ve thrown in the towel regarding internet marketing. I am a staunch supporter of affiliate marketing. 

How To Spot A Get Rich Quick Scheme

Whether you are new to internet marketing, or you are looking to get started in a program or company, you need to be aware of the warning signs. Ever since the dawn of time, man has attempted to take advantage of their fellow man, and the internet makes it even easier to do so.

The biggest takeaways I want you to remember are that words matter and that deception is everywhere. Words are used to dress up the lies so they sit pretty and get overlooked. So, let’s go over the top 5 red flags you need to be aware of.

#1 No ironclad statistics available regarding success rate

It seems like common sense, but you’d be surprised how some “businesses” dance around the issue. Statistics can’t be made up and are never subjective. If a complete novice can’t come into your business and replicate success, the statistics will show it.

If your sponsor says you can expect a certain level of success, but can’t produce company-wide statistics, they could be are probably lying to you. The best strategy they will employ to cover this up is to focus on the wild success of the top members. Be aware!

#2 You must recruit to make money

Many MLM’s require new customers to replace other customers that quit. The ratio between customers that stay with respect to customers that have joined is referred to as, retention rate. The rate at which people leave is called the attrition rate. There is certainly a correlation between companies with a low retention rate and the requirement to recruit.

 I read a very apt description of MLM recently that I wanted to share here. You are essentially trading human capital for dollars. There are two professions that push this model: human trafficking and MLM. Emphasis is not placed on sales so much as getting people to join. The FTC looks for this feature and will shut down all companies that focus on recruitment sooner or later.

#3 Your sponsor has been successful with “many” other companies

This isn’t exactly a red flag for MLM in general, but more as a caution for who you join under. If you join an MLM solely because your sponsor has seen success with multiple companies and has vowed to plant roots and grow with the current company, be wary.

There are many folks out there that are successful because they have cultivated an entourage of people that follow them everywhere they go. Very similar to locusts, they target companies with huge growth potential and feast on huge gains for a short period of time.

These marketers will always leave and go to the next big thing, citing some bogus reason to save face with their followers. Ironically, these same people will preach the importance of loyalty, but they aren’t talking about the MLM they’re in: they’re talking about your loyalty to them.

#4 The products in the MLM are trendy or fad products

There are MLM’s that last 20-50 years because they anchor their products as useful, no matter what. These companies may not seem flashy and may have had run-ins with the FTC before, but they are still around and paying their customers. These include companies like Avon, Amway, Vemma, Mary Kay, Tupperware, etc.

The other companies look for huge industries that seemingly come out of nowhere. Current fads include, CBD oil, essential oils, cryptocurrency, etc. There are literally MLM’s that pop up daily based on these fads. Will the MLM you chose shut down? It is HIGHLY likely. These products will not stay hot forever. When they cool down, the MLM’s will close.

#5 They target the hopeless and downtrodden

Every product and company has one or many target markets. To be successful, every company needs to have their perfect customer clearly defined. Many MLM’s have done their homework and have figured out an awful truth: the folks most likely to join are those that are stuck between a rock and a hard place.

Some of these potential customers include the unemployed, soon-to-be retired and, college students. If your MLM focuses on these individuals, it could be viewed as a deceptive practice at best. It’s not wrong to want to help these people. It’s the fact that you are targeting them to get ahead yourself, knowing they cannot afford to lose what they still have. They are paying you for hope and you are ruining their future.

Get rich quick schemes usually result in people just getting poor more quickly!

How Can I Make Money Without MLM?

Like I said before, 99% of people fail to profit with MLM. This means that only 1% make a profit. Far fewer even make enough to live off of. This means those people that say they work online 100% must either be lying, or doing other stuff on the side to make up the difference.

There are numerous ways you can make money without having to rely on recruiting people for cash. Let’s go over just 4 of the ways you can focus on to make some money today.

#1 Affiliate Marketing

This method is broad, very broad. There are several good ways to rake with affiliate marketing.

• If you are good with writing, you can build a website and write product reviews. 
• If you are good with analyzing data, you can focus on paid advertising and optimize based on results (Check out this free webinar to learn advanced paid advertising strategies).
• You can build a list of email addresses and use email marketing to drive sales. 

Many affiliate marketers become masters of at least one of the above techniques, while some employ all three for their campaigns. No matter what you prefer, they are proven to produce real results and real income.

Clickbank has released their latest affiliate marketing product for a short period of time. Get my Clickbank Breaks The Internet review here.

#2 Adsense

If you own a website, you can monetize it with Adsense. This is just a Google digital advertising medium. Google will pay you for every click to one of their ads on your website. If you get a decent volume of traffic, you can make decent money with Google Adsense.

Better yet, if you are lazy and don’t know how or don’t want to build your own site, you can buy a domain from an Adsense vendor/expert. You can buy established domains that get a given volume of traffic and input your Adsense ID on the site. Just understand that if you want the decent income sites, it’s gonna cost you way more than you’re gonna make upfront. This is definitely a long-term strategy, but can make you successful if you play your cards right.

#3 Create a course/product and sell it online

In the world of digital marketing, there are two types of sellers. There are affiliates and there are vendors. Product vendors are the folks that position themselves as experts of something and create a product or course. Many product vendors create incentives for affiliates to sell their products.

This method is attractive because you can create passive income from work you’ve already done. You can also establish yourself as an expert in a given niche, be invited to JV with big-time marketers, and create a huge list off of other people’s efforts. It will take work to create the product, but it can reap huge benefits in the short and long term.

#4 Develop a useful skill and sell your services

Don’t want to create a website, product, or sell other people’s stuff? That’s okay, you don’t have to do any of that to make money online! All you need to do is make yourself useful in some way and others will hire you to do some work for them. 

These skills can range from highly technical to just plain grunt work. SEO skills, graphic/web design, writing, keyword research, business planning, competition analysis, data entry, language translation, copywriting/editing, are just a few ideas. Chances are you are good at something you can sell to other entrepreneurs.

This list is by no means comprehensive, but it should give you some idea of what you *could* do. There is a model or business plan out there for everyone!

Get Rich Quick Schemes: The Summary

I totally understand there will be people out there that will hate this post or try to dismantle my arguments. My intent is not to cry “scam” or belittle anyone’s chosen career path. I only want to educate those who will listen and share my story. Believe me, I was once that 100% recruiter that harassed people on Facebook to join my opportunity.

Probably the biggest danger in get rich quick schemes is the misinformation and misdirection. You are lied to and told that 99% of all businesses fail – your only choice is to follow their proven business model. On the contrary, the majority of businesses actually succeed for the first few years.

MLM leaders will distract with whatever they can to keep your eyes on the horizon so you don’t look down and see the irreparable harm you are causing yourself. They will throw live events to keep you motivated, tell you your breakthrough is right around the corner; meanwhile, you continue to spend precious time and money with little to nothing to show for it. I watched this happen to friends and myself for years and years.

It’s time to stop the lies. It’s time to realize get rich quick schemes are really just a glorified way to get even poorer, more quickly. If you’d like to learn more about the solutions presented, feel free to contact me at freedomfromfailure[at]gmail.com. If you love MLM and want to start a dialogue, feel free to comment below. Let’s keep this constructive. Have a great day everyone!