Watched item ending soon

December 26, 2007

How is a Get-Rich-Quick ripoff different from a scam?

Filed under: Get Rich Quick schemes — estreet @ 7:30 pm
Tags: , , , ,

A friend’s father paid $7,000 to Paramount Marketing Group Online Inc. for a web page last week. And here is wonderful work of art: http://www.5317.supereasyshopping.com/

Thanks to the following articles, he recovered his money through his credit card company.
http://www.ripoffreport.com/reports/0/276/RipOff0276387.htm
http://www.ripoffreport.com/reports/0/229/RipOff0229876.htm

A couple of identical requests from the top eBay Pulsers made me stop and think: What is a scam? First according to Wikipedia,

A Get-rich-quick scheme is a plan to acquire high rates of return for a small investment. Most such schemes promise that participants can obtain this high rate of return with little risk.

Most get-rich-quick schemes also promise that little skill, effort, or time is required. They often assert that wealth can be obtained by working at home.

This is the part I like, “Economic theory states that risk-free opportunities for profit are not stable, because they will quickly be exploited by arbitrageurs.”

This means that once you sell a get rich secret, the niche is gone because there are too many people exploiting it. The competition will take all of the profit out of the trick.

This means get rich secrets don’t have much value once they are sold.

Now on to the difference between a ripoff and a scam. I use Wikipedia because it’s a good concensus of generally accepted opinions:

A ripoff (or rip-off) is a bad deal. Usually it refers to an incident in which a person pays too much for something. A ripoff is distinguished from a scam in that a scam involves wrongdoing such as fraud; a ripoff, on the other hand, is in the eye of the beholder. A scam might involve, for instance, a scheme in which a person pays $20 for a startup kit related to stuffing envelopes for a living, but the kit never arrives; upon receiving the money, the recipient flees.

A ripoff, on the other hand, might be a business opportunity in which a person pays $375 for bulk vending machines worth $75. The fact that the advertised product actually arrives – even though it is worth far less than the purchase price – makes it a ripoff, not a scam.

If a product is delivered, it is not a scam. So I stand corrected. The word “scam” was removed from my posts. 😉

www.ripoffreport.com provides a community that can help you determine if other people have had bad experiences with an organization. They also provide recourse information so you can best assess how to get your money back.

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