Dec 252012

Businesses from home are becoming more and more popular because of the ease and flexibility they offer to their owners. The easy to work from home is the older feature that is over taken by the feature that a business being done from home however small in scale it may be; it replicates the entire business culture and proves to be a better alternative to physical business ownership. The Home Business owners are always reluctant to fall a prey to a scheme or agency that can result in the downfall of their home business.

There are plenty of ponzi schemes actively working over the internet and they have been attracting a lot of people lately. Rather than offering an interest on payments, they offer referral bonuses to their members. Before investing money in such a company it is important to first know all about how they work and what are their objectives and most importantly, how they pay their members. Home Business owners are the major target of these schemes because such people are always looking to make quick cash.

The ponzi schemes act in a way that they offer memberships to the people against some cash deposit. When they do, the members are asked to bring more people to the network. When the new members are brought in the network by previous members, they are also due to pay the membership charges. These charges become constant revenue for the scheme owners and the previous members who had referred the new ones get to take the portion of the membership charges. A person running a Home Business can easily be attracted to such a scheme as it requires little investment and asks for social contacts.

The great setback happens when people get to know about member-unfriendly policies and rules made by the companies after a while. Home Business owners sometimes get misguided by the sugar coated features and then repent for not having the best of response from the ponzi scheme. There is not a very pretty opportunity for investment as such a scheme does not work on the rule of investment. There is no return-on-investment for the investors, they have to bring more people to join and pay membership fees in order to raise their profits. Several Home Business owners have shown their concerns over the methodology of ponzi schemes as they do not have a sound investment system and are highly vulnerable to be called a spam or to crash causing the investor’s money to sink.

Saad Ghafoor