This series is devoted to exposing online moneymaking scams. This is the first installment of several types of rip-offs that will be listed here.

Randomizers

First things first. These are illegal. While there are a lot of scams on the Internet today that are illegal and that doesn’t deter people from joining and promoting them, these can cause you more grief than they are worth. You could even lose your PayPal account if you get caught in one of these things (although a lot of them are going to different payment processors just because of that).

As with any "get rich quick" scheme these are flawed from the start. This is how they work (or don’t work to be more accurate). You join, usually from someone’s link who is promoting it. You’ll pay anywhere from $5 to $20 to join. When you do, a portion of your payment is given to the person who’s link you used, some goes to the site operator, and the rest gets paid to a random member of the program.

Now it may look like the site operator is getting such a small amount that he can’t be in it for the money, but see how many members there are and multiply that by the site operator’s "small" take.

So say there are 5000 members on a particular site. Say the site operator gets $2 per sign-up. Now you join for $20. Of this, $8 goes to the person that had the link you used, $2 goes to the site operator, and $10 goes to a random person in the program.

Now say the very next day you got lucky and you received a $10 random payment. Wow, you have received half of your money back in one day! At this rate you’ll be rich in no time right? Wrong! Now you have to wait for 5,000 more people to sign up before you get your next $10!

And to make matters worse, once you get the second payment, meaning another 5,000 people for a total of 10,000 now in the program, you have to wait until they are all paid before you get the next $10! Then it’s 20,000, then 40,000, then 80,000, then 160,000…. I’m sure you catch my drift. Even if the payments were totally random it wouldn’t be any better than playing the lottery.

Now you can go out and try to make your money by getting people to sign up under you but if you’ve never tried, let me save you some time. If you promote heavily even using free as well as paid advertising methods it would probably take you a month to get 5 sign-ups. That’s $40.

Figure minimum 30 minutes a day for the 20 working days in the month. You just made yourself around $4 an hour and worked 10 hours in the whole month. So you say you can work more hours? You can, but it’s been my experience that you will start to see a curve of diminishing returns.

You’ll work more and more for less and less return on your time. I don’t know about you, but I would rather spend my time working a real program that has the potential of making at least a couple hundred dollars a day working that same 30 minutes to an hour a day.

Do yourself a favor and do not even consider these Randomizers, not only are they illegal, they are a total waste of time, energy, and money. Google is your friend… do a quick search for "randomizer scam" like I just did and it returned 423,000 hits. Read a couple then do another search for "randomizer illegal" and you come up with another 766,000. I’ll save you the bother… you don’t even have to read any of the pages, these things are illegal, period!

Until next time, to your success!
Kind regards,
Ken

This entry was posted on Tuesday, December 22nd, 2009 at 1:54 pm and is filed under Internet Moneymaking Scams Revealed. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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