Being unemployed is one of the worst dilemmas a person can face – it brings up the most damaging emotions we have . . . fear, loss, hate, dread, panic, diminished self respect, and we could go on and on. In addition to losing their job, many are on the verge of losing their biggest investment – their home. 

 

The unemployed need some kind of hope to bring them through this period of their lives. Right now, as we look at the state of our economy, it’s not very encouraging, and it could be several years before we have a healthy and robust economy again. They need to find something that can quickly bring money into their lives. 

 

What if there was some way these people could, for a very small initial investment, replace their employment income? There is a way, and it’s called gifting or peer-to-peer wealth building.

 

First let me tell you some of the reasons why gifting is such a great activity for anyone who is unemployed.

1. People need money NOW. They don’t have time to build a huge downline (network marketing) before a reasonable amount of money can be received.
2. You can start receiving money almost immediately in a well functioning gifting program.
3. There is a small one-time investment required to get into a good program, and it is flexible. No monthly subscription fees, no need to dip into one’s savings.
4. The unemployed have eight free hours a day, or the equivalent of the time their previous job required (plus the time spent commuting), to spend developing a new business for themselves.
5. Unemployed people usually know others who are unemployed and could use help.

 

Now, before we go on to talk about what elements are involved in a good gifting program, it must be understood that there is effort involved, and one should never get involved in any program unless they are willing to invest the time and effort that is needed to be successful . . . it’s no different than any other activity where monetary compensation is involved. The difference is that the payout comes much more quickly in a gifting program.

 

A legitimate gifting program can be very beneficial for anyone, whether they need money to pay their bills or if they simply want to increase their nest egg. I know of one gifting program that has been operating for more than seven years, has around 300,000 members, has put a half billion dollars in the members’ pockets and operates in more than 60 countries. Not bad for an activity that requires a one-time, out-of-pocket investment and can be done out of the home.

 

There are many who think gifting is an illegal activity and a pyramid scheme. This is not true. The gifting rules for the United States can be found in the IRS TAX CODE, Title 26, Sections 2501-2504 and 2511.  There are, however, gifting programs that operate illegally just like other scam programs. However, they are short lived and collapse pretty quickly on their own or are shut down by authorities.

 

These are some things that should raise the red flag when looking into gifting programs.

1. There is company ownership.
2. It is not treated as a private activity and is blatantly advertised as a business.
3. The money is funneled to the top of a "pyramid" where only the owners make money and the activity of the members is strictly to recruit people.

 

The activity of a well-designed gifting program is by invitation only. It is composed of like-minded people who willingly give and receive gifts of money. There is no company ownership, and all gifts of money are distributed to the members . . . 100% in, 100% out. A good program should provide members with their own website to use as a presentation tool and should include a well functioning back office to track and accommodate the giving and receiving of monies. This is usually funded by a small subscription fee.

 

A typical gifting program is based on a "1 Up" system. There are variations; however, this system is the most common.

 

To make this easy to understand, let’s say you are a member of a gifting activity. You have invited two people (we’ll call them Bob and Mary) to join you, and Bob and Mary each invited two people to join them. You now have six members in your group.

 

Let’s say you all made pledges of $100. The 1 Up system is designed so the pledges of Bob and Mary go to the person who invited you. The pledges of Bob’s two people and Mary’s two people would be received by you – you have now received $400 and pledged $100. At this time you would take $100 of the $400 you received and pledge again to keep yourself active in the system and ready to receive again. You would then have $300 remaining, and that would be yours to keep.

 

You can invite as many people as you like into a gifting program and keep pledging and receiving time and time again. There may also be a tax benefit in gifting. Since the taxes on the gift have already been paid by the pledgor, many times it is not required to be included in the gross income of the recipient and taxed again. But, check with your accountant just to be sure your situation isn’t different.

 

Since gifting is such a quick way to bring money in, I predict it will become one of the most popular home-based business activities.

 

 

To learn more about gifting programs and how you can get involved, contact Swanie Brandt directly at swanie@powerimage.com, or you can visit www.powerimage.com/g1g4.

 

Swanie Brandt has been involved in the network marketing industry for more than 8 years and has extensive experience and knowledge in getting past the network marketing “hype” and focusing on achieving success. Her primary goal is helping people succeed in the network marketing industry so they can attain the dreams they envision.

Tags: Entrepreneur, gifting program, Home Business, network marketing