Today we see new online business opportunities sprout up every day….many promising money for doing nothing. Well as a fairly conservative guy I want to look under the covers to find out as much as I can before I or anyone working with me will/should spend their hard earned on any online opportunity.scam4

Every day I receive inquiries from the online public wanting to know if this or that online business opportunity is legal or not. It is difficult to give an absolute answer because I do not always have the full information on these operations.

Regardless, it’s every individual’s own legal duty to determine whether a scheme is a pyramid/ponzi scheme or not, and for this purpose I compiled a few pointers to help you spot the difference between legal and illegal operators.

A LEGAL Online business:

1. Sells real products or services.

2. Pays commission, interest or profit share on the products and services sold to their members, customers or referrals.

3. Trades from a registered office.

4. Trades in a registered entity like a company, trust or corporation.

5. Their operations are monitored, controlled or regulated by a controlling body or authority.

6. The directors of the affiliate companies are registered, known and reachable. They’re not just faceless fake names on a website.

7. Facebook Admins provide real personal detail ie a photo

8. In an investment opportunity it has security such as KYC (Know Your Customer)

9. Has recognized Payment Processors such as Paypal, Payza, Coinpayments etc

10. Website is fully functional and original.


An ILLEGAL operator:

When one or more of the 10 characteristics above are not present, the operation is most probably a pyramid or ponzi scheme or scam.



Okay, now you know why most of the “get rich quick” schemes are illegal – and don’t forget, if you participate in an illegal scheme: in the eyes of the law you’re just as guilty as the operators….and in some jurisdictions you may be entangled in the financial mess when the “wheels” come off.

A very important principle in law says; “Ignorance is no excuse in the eyes of the law”.