Dubious ways to 'get rich quick' you need to avoid.

I can give you one surefire way to get rich very quickly. Buy a winning lottery ticket. Unfortunately not very simple. So why do people often fall for the promise of getting rich quickly or seek it out? And why is it that people from low incomes are usually the hardest hit? This week alone I have seen short videos that say there is a trick to earning £1k-£3k a month from reviewing Rolex watches with loads of people responding saying 'Please tell me how', numerous videos showing people apparently making huge swathes of money making journals on Canva to sell on Amazon and various other videos where the maker is making money from the video views, not the product they are trying to push. Social media doesn't help with influencers posing next to a Lambo (probably not owned by them), or next to a pool at a luxury mansion (Air BnB) or renting out a jet (how many interiors look the same?). Unfortunately, these videos generally target the worse off; people who need money and hope they can get it fast and often have the most to lose. Here are my top four get-rich-quick schemes I would implore anyone to look into more before separating with money.

Cryptocurrency and the latest 'Fad' coin

Despite being an unregulated market crypto has emerged as a way to diversify an investment portfolio with a decentralised digital asset. Coins such as Bitcoin and Ethereum have fluctuated over the years but in crypto terms can be argued to be relatively stable. Whilst there are various nefarious ways that crypto can be used people can quickly be taken in by the launch of a new coin and the promises of great riches. Whilst the FTX debacle has had the most significant news headlines in the last few months regarding crypto the 'rug pull' is the scam I am concentrating on.

There are different types of rug pull scams but the most well-known is the 'pump and dump'. In this scenario, a new coin or asset is hyped up by the creator and other 'investors' as the next big thing. Just looks how NFTs (non-fungible tokens) blew up! In some cases, celebrity endorsements may have been provided and/or people paid as influencers to promote it on social media with wild stories about how it will change the world. As more investors rush to buy in the value soars only for the original owner who had a massive holding to make a lot of money and leave the rest penniless when the value plummets. It is often the vulnerable and those with the most to lose who end up with nothing having put their savings into a project they hoped would be the next Dogecoin and make them rich.

If you are going to invest in crypto do as much due diligence as you can as anyone can set up a cryptocurrency and trade. Do not rely on 3rd party advice; instead, try to find as much information about the currency as you can and read the white paper and try to see what value it adds to the market. Remember it is not a regulated space and think about sticking with well-known currencies such as Bitcoin and Ethereum and trading platforms such as Coinbase. Cryptocurrency and NFTs have a future; just be careful not to get scammed.

Ponzi? Pyramid? Good old Multi-Level Marketing?

All three are related to each other but only one can be considered legitimate; although some companies may be more legit than others.

• Ponzi: Although not the first to this type of scheme Charles Ponzi was a con man and it was named after him. It works by offering investments that promise high returns for little or no risk - crypto anyone? The investor buys in and the initial investors may make their money back with a profit, but it won't be from business activities. Instead, the money from newer investors pays back the previous investors and so on and so on with the person at the top taking the biggest cut for themselves. They rely on a constant cash inflow; if it dries up the scheme collapses. As usual, if the returns sound too good to be true...
• Pyramid: These schemes do not involve a product or investment but instead promise services or money in return for an initial buy-in. For every person they recruit, they will receive a payment. Those at the top cream off the most whilst those at the bottom lose everything. Eventually, it will fall apart as there is no infinite supply of people to support it.
• Multi-Level Marketing: In itself, MLM is legitimate as people working in a sales role make money by directly selling a company's products but also by recruiting new members into the company. In the UK a company called Avon is an example of an MLM that for the most part is considered 'ethical', at least amongst other MLM companies. So unlike a Ponzi or pyramid scheme, there is a product to sell although more often than not the product does not take centre stage and the non-salaried staff take a commission in a pyramid-style system. Potentially a message from someone you know but haven't heard from for a while will invite you to a seminar. The offer is likely to come as a life-changing opportunity to become a millionaire and financially free but you will need to invest in and promote the product, work hard as. a 'distributor' and always stay positive; no negativity. They hook you in through a cult-like mentality centred around 'self help'. But in order to make real 'passive' money you need to recruit more people, so you try family and friends and attempt to sell them the dream. If sales are pushed it may be a legit MLM, but if the recruitment is pushed it is nothing more than a pyramid scheme. Only those at the top 1% will make real money whilst those at the bottom are left with nothing. Tread carefully.

Courses that promise the world but may not deliver

Ever since the pandemic hit there seems to be an abundance of courses; some free (at least initially) and others selling for £000's. Not a day goes by that I am not hit with an advert for Forex trading courses on YouTube, courses from YouTubers on how to become a top YouTuber, crypto investing, affiliate marketing and property.

If you were the real deal at what you do, a multi-millionaire, then why would you sell courses? Is it because they need the extra money? Or because maybe they are not the expert they claim to be and make their money from courses, taking advantage of vulnerable people who don't have the cash to lose? That isn't to say there are no legitimate courses, like any course though make sure you do your due diligence because if something sounds too good to be true, chances are it is.

• Forex: Literally anyone can get into Forex training but a day or week-long course will not be enough to become a trading expert. It takes time (though the amount will depend on the individual), commitment and money upfront. The ads I have seen on YouTube promise that you can become a millionaire working a few minutes every day but this won't happen overnight. It will take hours a day to learn and that's time you may not be able to afford and could be making money from a job instead. Experience is also key; you may sell too early worried that you will lose the profits gained when you could have made more; or potentially lose everything by not selling because you hope the markets will reverse - they let their winners short and losers run. Can you make money Forex trading? Yes, but don't go into it lightly thinking you can make quick easy money.
• Property: A quick search on the web will provide a plethora of supposedly amazing reviews for property courses but reviews can easily be made up it's also easy to find many people who feel they have been scammed or even worse in extreme cases where people lost their entire life savings. Normally it starts with the opportunity to attend a free (or £1) course to learn the basics. This is often to learn a technique such as 'rent to rent' which can be done with little money initially and although not illegal is generally frowned upon. At the course they will big themselves up, probably sell you a rags to riches story to show that you can do the same as them and then say that you need to believe and commit. Some people will stand on a stage and wax lyrical about what they learnt (probably a paid shill) and how much extra they got from additional courses. Places on courses are limited and plants in the audience will pretend to sign up giving you less time to think and sign up through fear of missing out. These courses will cost money and sometimes into the thousands and this is where the money will be lost. And if you don't lose out on the course alone chances are you will when it comes to the property investment. If you don't own the property then you have no assets and with 'rent to rent' you may have to pay rent to a landlord if you cannot find tenants and pay for the upkeep of the property if it is trashed. It is a highly leveraged position to be in and therefore not recommended. The internet has plenty of info on how to get into the property industry with reputable companies but like Forex it will cost time and money and definitely won't make you rich quickly.
• Dropshipping/Affiliate Marketing/On Demand Printing/Books and Journals: These all group into small online presentations/courses. There are so many around all saying the same thing. If you look at the people selling them claiming you can make £10k - £30k a month chances are it is a bit of a fib. If they were they wouldn't need to be pushing it on TikTok. Although not a scam they are definitely not a way to get rich, especially if everyone is trying to compete in a saturated market.

Conclusion

Not every cryptocurrency is a scam nor is every MLM company or property course but do your due diligence and I know I am repeating myself here but if it does sound too good to be true chances are it is.

Instead, maybe try investing in yourself more...