Entrepreneurs Connected

By MIKE SELVON

 It is always important to keep track of and have a good business strategy. This is very true for the direct marketing industry as well as telemarketing. The goal of these strategies is to get people to purchase the largest number of products possible.

The strategy chosen to bring about this goal is what can make a business survive or fail. For telemarketing, there are usually two strategies of direct marketing that are used to sell products.

The traditional strategy for telemarketing is set up much like any other call center. The companies practice direct marketing services, and try and get people to purchase their products. Each telemarketer calls a list of people and tries to convince them to purchase whatever product the telemarketing firm is selling.

There are two main categories to traditional telemarketing: business to business and business to consumer. Each call center is set up into four main segments, depending on the kind of job being done.

The lead generation gathers the information about potential customers and targets the best people to call for the particular product that the company is selling. The sales team tries to sell the product in the most persuasive way possible.

The outbound callers solicit people through cold calling and the inbound phone people handle the requests for orders and other such matters. This system of database marketing has worked for many years, but the recent legislation, which is designed to stop telemarketers, has had a major effect on the traditional telemarketing system.

The traditional format of outbound telemarketing has had to change with the new laws surrounding telemarketing jobs. A lot of these telemarketing companies are incorporating the internet into their new business practices. The call center services of the past are changing into the virtual call center services of the present.

These centers allow companies to hire people from home, saving building costs as well as being able to pay home business workers a reduced salary. This is a very popular business strategy for telemarketing companies. Other companies are abandoning the call centers and are moving on to other marketing ideas altogether.

One of these areas is internet marketing, and many businesses are having great success with it. Still, it is impossible to know if online marketing will last forever or will fade into obscurity in just a few years.

The business strategy that is used for a business is quite important to the survival of the business. Traditional strategies are being changed to meet the demands of today’s society.

Internet marketing is a new way of doing telemarketing business. A virtual call center is a good way of bringing telemarketing into the future. Time will show if telemarketing will be around in the future or if these are its last days.

Visit Mike Selvon portal to learn more about telemarketing business strategy. Your feedback is much appreciated at our telemarketing training/a> blog where a free gift awaits you.

Your Connection Source For Entrepreneur Minded People

Telling Your Story for More Profit
By Nicholas Nanton

 Telling stories is not only one of the oldest forms of communication; it is also one of the most effective. Accepting this statement as true should help you see why creating a business story is a reliable way to connect, and to create a bond with your customer that helps you rise above your competition in their eyes.

Your business story should be real and personal. The more you can connect your story to your customer, the more it will help your business. This is why we often talk about the importance of finding a niche market with which you can identify. Telling your story to your niche market helps them identify with you. Sometimes the stories and the identification become so strong, that customers will not even consider going somewhere else for their business. Doing business with you at that point becomes more than buying a product, it is a relationship.

Using the power of storytelling is easy to see in the political arena, and we are being bombarded by it the closer we get to the Presidential election. Both Senator Obama and Senator McCain are masters at the art of telling their story. Obama’s is the classic story of the struggling hero who overcomes obstacles and finds himself on the hero’s quest. John McCain’s story rests more on his past successes, and the experiences of a hero who is now able to step in and solve the crises the country faces.

You and your company should learn from the lessons we are seeing in the political arena to create your story and sell it to your customers. By create I do not mean make it up, but show people who you are, what you have learned and how this relates to your business and your customers. I still remember Lee Iacocca’s personal appeal on television to get people to do business with his company. His challenge to the American car buyer was bold and simple, “If you find a better car . . . buy it!” Surely no one would make that kind of statement unless they were supremely confident in their product. Consumers bought the dare and it saved the company.

Other stories have been used to put a face and an image on a company. Disney did it twice; once with Walt himself, and later with Michael Eisner — both of whom came into your living room via television to tell you a story and create an image. They don’t call Walt Disney “Uncle Walt” for nothing. It was done to create a particular image and it succeeded.

Although stories are unique to the company and individuals running them, they do follow themes. Examples are the “Mother” (Oprah), “General” (Iacocca, Jack Welch), “Statesman” (all former Presidents), “Wizard” (Steve Jobs), “Explorer” (Richard Branson), “Faithful Servant” (Al Gore), and “Wise Man” (Warren Buffet). Naturally, these themes rise and fall with the times — as heroes sometimes turn into villains then goats and back again to hero — ala Martha Stewart.

What is your story? What is the story of your company and your brand itself? How did it all come about and what is the connector to your market and customer base? The more you are able to answer these questions, and more importantly, the more you understand the importance of the story and constantly reinforce it, the stronger the bond you will build with your customer.

Nick Nanton, from TheBusinessGrowthLawyers.com, publishes the Business Growth ezine covering topics that every business needs to know. Get more FREE business growth tips at http://www.TheBusinessGrowthLawyers.com

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 Carhartt Jeans

If you can answer affirmatively to any of the above questions you may find that bargain clothes shopping is very worthwhile. There are several ways to go about bargain clothes shopping.

Dior Jeans

Know the stores that are your favorites. Keep track of the prices and watch for sales. On top of these two things you need to be aware of any coupons that may be available. You can often find coupons for bargain clothes shopping in daily newspapers, special mailings and even online. If you are truly a bargain clothes shopper you will want to always be coupon-savvy.

Dickies Jeans

Is it necessary that your entire wardrobe consist only of pieces you have obtained through bargain clothes shopping? Not at all. You can build a fantastic array of clothing by combining a few more expensive classic pieces with those found while bargain shopping.

Diesel Jeans

You may want to begin with one or two items that you really love and build your wardrobe around those. Sometimes you will be able to find an amazing piece of clothing while bargain clothes shopping that is deeply discounted. Purchase it and then build around it. You may be able to come up with three or four excellent outfits that center around one really good piece of clothing.

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How To Save Time And Money
By Shaun Parker

 Given that there are now two cut off points in the year to get tax returns in, is it any wonder that there are constant reminders in the media to get them in on time?

Of course, the minority may find this a useful reminder whereas most others will just growl at the reminder, not wanting to know that they have to pay so much of their hard earned cash to the government. However, as we all know only too well, it has to be done, there is no escape and even returning tax forms late can incur huge penalties.

Of course, paying tax is just one side of business accounts that needs to be taken care of but it needs to be taken into consideration when you are considering profit and loss and this is the basis of a company - that you make a good profit, whilst monitoring incoming and outgoing cash flow, including tax paid, so that you can adjust your business accordingly.

I know a man that collects receipts in a plastic bag and dumps them on the desk of his accountant twice a year, passing on his headache to someone else. However, in this day and age it’s hardly a good idea to have such a slap dash attitude to accountancy as this man is never aware of how well he is doing, or not doing.

Given the current credit crunch it would be a good idea to know exactly where money is being wasted, how it can be saved and exactly where your company stands at any one given point.

For this reason, some companies like to use business accounting software. This is easily set up and can be used by several different people. It will keep a record of everything that is happening with company finances and is a true and accurate record that means that any surprise visit by the tax man will not be an issue and that those in charge will know their company’s standing at all times.

There are many useful software packages set up for a business these days. Business accounting software is one that keeps track of cash flow. Of course, this is the main objective of a business for its owners so has to be a worthwhile investment, particularly for those who want to offload the stress of trying to keep account of everything.

There are also software packages that cover stock control and even staff movements. Many of these are available off the shelf in a good business IT store but if you have need for more detailed or tailored software, there are companies that will design a particular software package to accommodate all aspects of your business, whether it be business accounting software or bespoke software for a company that offers a service rather than a product.

A business accounting software package would make the paying of wages so much simpler. Simple entries mean that tax, insurance, deductions and net pay would be calculated at the touch of a button, making the whole process quicker and easier.

At the end of the day, life is complicated enough and we are all looking to save time and money. Utilising computers to the maximum to do most of our work for us is the way to go to save on both.

Shaun Parker is a leading business expert with many years of experience in the IT industry. Find out more about business accounting software at http://www.e1business.com

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By Aydan Corkern

 These days it is not easy at all to keep a small business up and running. With all the overhead that can be involved, it can be hard to find a profit for yourself after everything else is paid. Sometimes the paperwork that comes with keeping up with taxes, employees, bills, and anything else you can think of can be a big responsibility in itself. You probably already know that all of the receipts, documents, licenses, insurance policies, contracts, and files have to be kept accessible in easy reach when you need them.

Many business owners, both large and small, have discovered what an inconvenience it can be to get their business operating well again after they have experienced a fir or flooding situation. What adds to this problem is when they had much of their paperwork and other documents destroyed during the event. If they had only known what was coming, it would have been easy for them to see the precautions they should have taken to keep these papers and media material protected from damage.

It is essential that when a business of any kind has important files or records stored on their computer systems to have them backed up on another disk. This way id the computer crashes, is stolen, or damaged by fire or flood, you will have a copy of all of those important things. It is just as important to keep that backup disk in another safe place besides your office.

Printed paperwork and other documents need to be kept in a fireproof and waterproof safe or other container. Copies of these important things should be scanned and backed up to a disk as well in case they were to go missing or become damaged anyway. They might not be the originals, but at least you will have a copy and this might help having them replaced or proving a claim of sort somewhat easier.

If you have already had a tragedy like a fire or flood happen in your business, there could still be hope to have the paperwork or other media material restored. Document restoration can sometimes be helpful when they have been wet, have smoke damage, some fire damage, or even mold damage. Media materials are sensitive and have to be looked at closely to see if they can be restored, but it is possible in some cases for this type of material to be fixed. Locate a good document restorer in order to have them access the damage of your valuable paperwork, documents, or media material to see if it can be saved.

Aydan Corkern is a writer of many topics, visit some of her sites, like

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Are You A Business That is Interested In Advertising In Another Language?
By Kristi Ambrose

 Those of us that own businesses online realize that all sorts of people can visit your website at any given day or time, be they from India, Rome, Arabia or Brazil. Obviously unless you know something I don’t, then you will need to advertise your business through ads and marketing campaigns in order to reach more and more people around the world. Hey, if your content on getting just people from the language and country you advertise in, that’s fine. But just so you know, you could be missing out an entire market full of people from all sorts of other countries that speak all sorts of different languages.

Ultimately if you don’t want to build your business and become successful, then you won’t want to use this idea. However, if you do want to build your business to an all-time high and you do want to become incredibly successful at what you do then you will use this idea! One of the first things that came to mind for me, when I realized I wanted to advance my business in the Japanese culture was that I didn’t speak Japanese, and not only that but, I didn’t know anyone that spoke Japanese as well!

Asia is second place when it comes to the number of people who have Internet usage world-wide, so this is a country I definitely wanted to dig into, even more Japan is second place (after China) to have the most people who use the Internet. In order to translate my ads into Japanese I was either going to need to learn their language really quick or else I was really out of luck!

I really wanted this so I decided to search online for translation services. Now I already was well-aware of the free translation service but, I also was aware of the poor quality, so I knew I needed something better, quicker, and easier! I decide to visit a few paid services and ask a few questions about their service, what they could do for me and how much it would cost me. In the end, I sent them all my ad campaigns and other marketing promotions and they really did an awesome job of translating it from English into Japanese!

I can honestly say it was well-worth it because my profits have sky rocketed through the roof. Eventually I want to start using some other countries as well but for now the Japanese market is keep me pretty darn busy! These paid inclusions are the best type of services I have ever used and it really was easy and quick! Really, what more could you want from a company?

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By Murtuza Abbas

 What is your attitude of starting an internet business?

What if you learned that starting an internet business is tough initially, infact you will not make a single dime initial few months on the net?

Considering this fact if you imagine that a job pays you $2000 per month…

- What will you consider doing? A job or an internet business?

The reason 95% people fail on the internet is because they don’t accept the fact that it takes time for an internet business or infact any business to develop and nurture fruits for life.

Your business is like a tree, it takes time, patience and efforts initially to soil, water and plant the tree for years.

But once it grows it will keep giving you fruits for the rest of your life, infact you will have a property that you can sell for thousands of dollars.

This is what you have to keep in mind before you start an internet business.

Lets consider a simple example…

You start a simple membership based site where you focus on getting only $9.95 per month from your members for a particular service.

You will have to struggle initially for few years to build your membership base.

Infact initial few months or years will go in testing your system that might not even pay you $500 income per month.

Considering the fact that a job pays you $2000 per month there will be many who will be ready to quit.

Here’s who will succeed…

- The person who builds a formula of increasing atleast 50 to 100 members per month after years of testing.

Imagine what will be his income if he grows his members base by just 1000 in next few months.

What if he reaches 2000, 3000 and 10,000, imagine the guy will end up earning a massive six to seven figure income in future.

This is how patience is tested when it comes to success and failure online.

To keep yourself motivated make sure you write down a goal that you want to shoot with a deadline.

Then read your goal every single day atleast 100 times, this will keep you motivated to continue during tough times.

Your subconscious mind will present you ways and ideas to move towards your dream goal. Make sure you note down the ideas and take massive action.

Write down a simple plan to execute. A plan is a simple road map to reach towards your goal. Once you have a plan make sure you take action and work on your plan every single day.

This will finally get you want you want…

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By Ben Needles

 You can find various business ethics quizzes around the net. This one is different. Each question has only one WRONG answer, doesnt analyze your answers and tell you where you went wrong. Rather, it is simply intended to raise your ethical consciousness, maybe even stimulate a little discussion between you and your peers or family.

Enjoy!

1. My reputation
a. Is only as good as my word
b. Precedes me
c. Once lost is hard to regain
d. Is the legacy Ill leave behind
e. Doesnt matter to me.

2. Following my employers Code of Ethics
a. Could be important to my success
b. Requires interpretation to get it right
c. Will make me a better leader
d. Is a waste of time
e. Requires a certain level of consciousness and some attention to detail

3. Pointing out ethical transgressions at work
a. Can be awkward
b. Helps raise awareness for us all
c. Is a career ending move
d. Can backfire
e. Could be educational all the way around

4. Keeping the workplace ethical
a. Makes it a better place to work
b. Is hopeless
c. Requires clarity around ethical standards
d. Means top management has to do it
e. Leads to a more profitable company

5. My employers ethical reputation
a. Is in the dumps and dropping
b. Reflects on me
c. Is partially set by how I behave
d. Makes a difference in the bottom line
e. To some extent determines whether people will buy our products

6. Accepting gifts from vendors
a. May be fine within limits
b. Should under no conditions affect my willingness to buy from them
c. Has stricter rules in the US than is some other countries
d. Is a great idea get as much as you can!
e. Should probably be disclosed to the ethics office, particularly if it is valued at over a certain amount

7. I care about business ethics because
a. Americas reputation has suffered recently
b. Good business ethics can restore better profits
c. I dont want to work somewhere slimy
d. Good business ethics creates a more just workplace
e. They substitute for my complete lack of business ethics.

If you enjoyed taking this quiz, share it with your friends. If you work in an office that cares about ethics, share it at the next staff meeting. Leave it in the lunch room. Pick the one question that you like most and talk about it over beers this weekend. On your commute home, think about what you want to do differently going forward. Send the quiz anonymously to your boss. Keep the discussion going about the importance of ethics in business!

Copyright by Sally Rhys of Coaching for Perspective, July 2008

About the Author (text)

Sally Rhys, MS, coaches and consults on business ethics. As the former Director, Ethics and Compliance at a $1.5B publicly traded company, her expertise will help you increase both your business knowledge and professionalism. Contact her at http://www.coachingforperspective.com

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Your Connection Source For Entrepreneur Minded People

Features of Joomla Web Templates
By Sherlinanna

 Joomla is an award winning open source content management system (CMS) that allows users to rapidly build websites even without any skill in web designing. Though it is open source it nevertheless comes built-in with a lot of free and commercial extensions. With Joomla you don’t need specialists to maintain web pages, as in the case of HTML. In this way, Joomla has created a revolution in the world of web designing. Let us see more about this software in the following article.

Joomla acts as an easy interface that separates the complexities of updating web content from the novice user. It can help in adding features to an existing site like Blog, Forum, Gallery, Shopping Cart, guestbook etc. Joomla organizes website content as Sections, Categories, and Content Items and this data is stored in a mySQL database. What joomla does is it acts as a graphic user interface for this database. Joomla template uses HTML with PHP hooks that contains information on where particular parts of the content should be placed. Joomla’s core engine uses this information from the database and uses it in the template file to produce a webpage.

A Joomla template is divided into a number of zones. Each zone has a position name called module positions E.g. left, right, top, bottom, user1, user2, etc. The template designer can assign the modules to a certain position by adjusting the module parameters. In this way the we can define to which zone the module will belong to. The user can then assign some content to one of these positions. So all you need to know is how to install Joomla to create a free template and build your own website. You will never need HTML knowledge or help from a web designer.

Joomla has something called Components which are actually add-on programs that add additional functionality whose administrative features are integrated in the Joomla Administrator. Another Joomla term is Mambot, a script that is run just before rendering the content for doing any final changes before outputting your website.

Joomla helps you to create websites using CSS with least use of tables. In this way the template code will be easier to validate W3C standards. Also CSS templates developed with Joomla load faster and do better in search engines.

Joomla can be used for designing wide and diverse websites ranging from simple to more complex corporate websites.

Some of the website types served by Joomla are:

Online marketing websites,

Corporate websites,

Web sites of Non Government Organizations,

Government websites,

Sites of Churches and other religious institutions,

Websites of Educational Institutions,

Personal websites,

Magazines and portals,

and more.

With Joomla you can easily and quickly add features by installing pre-built add ons. Joomla templates can make your website look more professional and your web content much easier to manage. No wonder, joomla usage has increased manifold. Today there are millions of sites offering support services to people using Joomla as their web designing tool. So you wont find it difficult to clear your doubts on joomla through forums and blogs. As the number of people using Joomla is ever increasing, more and more free Joomla templates are available for download. Go ahead, order a Joomla and enjoy easy and trouble free content management.

Buy templatesis a wonderful resource for buying instant and professional website templates for all your web designing needs. The site also provides different membership schemes in order to facilitate a long-term relationship with webmaster, web developers and web designers.

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By Ben Needles

 If you are considering establishing a business of your own, it is important to understand the key benefits to having a business plan. This type of plan is a document that is strategic in nature and explains the current status of a proposed business. It then outlines the future expectations of that venture by carefully outlining the financial endeavors, basic operational functions, marketing endeavors and tactics, and other techniques that will enable that particular business to achieve certain goals. If you are in the developmental stages of your endeavor this plan is an essential component to the achievement of the goals that you have for your new venture.

The business plan has been noted by successful entrepreneurs as the single most important aspect of their success. This element will serve as the guide. Without having directions, goals, and a detailed plan on how to go in the right direction and achieve those goals, it is quite likely that it will fail. By developing an effective plan you will be able to know exactly what it is that you need to do in order to get to where you want to go. If you fail to integrate this very important outline into your endeavors it is very easy to get off track and lose your way altogether.

The second key benefit to having a business plan is the fact that it can assist you in acquiring the necessary financing that is required in order to achieve your goals or to fuel the start up of the company. When seeking assistance for the financial means to start your new endeavor, you will find those lenders and various types of investors that may be in a position to provide you with the money that you need, will ask to see a detailed description of your business as well as the outlook of it. This plan can serve this purpose and is actually quite effective in winning the approval from those that have the financial backing to assist you and your new endeavors.

The business plan is an effective means of describing a companys future objectives for the operations of it. This comprehensive outline works to describe every single aspect of what you are working to establish. It will identify the products that you will specialize in, the services that you will offer, the marketing that is required in order to successfully provide those goods and services to your customers, and even the goals that you have for staffing, your physical facilities, and similar projections. There are many personal, professional, and financial key benefits to having a business plan.

If you are in the process of starting your own business there are many steps when it comes to preparing it, that must be completed in order to ensure your success. The business plan, above all other measures, is one of the most important aspects of your success. Here you have learned many of the key benefits of having a well defined plan. As you map out the road to success for your company, you will discover other unique benefits that will allow you to maximize your profits and succeed in ways that you never before imagined. Develop your business plan today!

About the Author (text)

Chris Simpson is dedicated to helping people find honest and legitimate work at home and home based business opportunities. Find a legitimate work at home opportunity today at: http://www.HomeNetPro.com

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Get out of Dodge, Share Your Opportunity With Friends And Family And Not Get Run Out Of Town
By Ben Needles

 The first thing you will need to do before you start approaching family and friends about your opportunity is have professional sales presentations that will give the perfect pitch for your opportunity every time. Almost every current MLM or network marketing company has professionally done presentations now. Now it can be a website, it can be a pre-recorded sales call or it can be a cd or tape. If you do not like your company materials, there are many companies that offer professional videos and websites you can use for a small monthly payment. With the technology you have available now, there is no need to draw the circles anymore.

The reason for this is, if your contact does take a look at your opportunity, you want them thinking I can do this. If they think they have to be a salesman, you probably will not have much luck. Professional pre done presentations are critical to your success, especially with family and friends.

You have a few options how you will contact your family and friends to share your home based business with them.

1. Simply call them and let them know that you recently joined so and so company and just a brief description about what products are offered and what is unique about the company. Tell them you are just letting them know what company you are with, so if anyone else approaches them, you hope they will contact you back if they have an interest. This lets them know that you are honest and just getting the word out. If you peak their interest they just might take a look at one of your professional presentations.
2. Write a letter describing the opportunity you are with and how they can get more information, and let them know about the systems your company and mentors have in place to help them succeed from their home based business opportunity. Very good technique. If they have an interest, they will contact you. Do not be afraid to create a generic type letter you can let your down line use to help build their home based business.
3. Create a pre-written email that is like the letter, that you can send your contacts. Make sure it is available for your down line to use also.

This is a very good way to quickly contact those you know and not burn any bridges. Next start educating yourself with online techniques you can use to help explode your home based business opportunity. Things like videos, blogs, social sites, article writing, posting to free classified sites and Google Ad words, auto-responders ECT.

The internet is the most powerful way to promote and build your home based business any where in the world your company is currently operating. If you do not take the time to learn online marketing, and spend your time trying to convince your family and friends, you will most likely just spin your wheels going nowhere fast.

Here is one of my favorite quotes a mentor of mine told me. I am not for sure where the quote came from so Author is unknown. Take the time today to do the things others wont, so that tomorrow you will have the time and money to do the things others cant.

About the Author (text)

Bryce Woodard is a self desribed workaholic. I love good health and nutrition,constant learning and self improvement and helping individuals earn money from a home based business. See what I think will be the next mega trend. http://www.nextmegatrend.info Unleash Life and Prosper.

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How To Build A Six Figure Income Online-00-911
By ralf24Hourwebcash

 Everyone is looking for the secret wealth formula and a get rich fast scheme online these days. The truth is, building your online business and earning six figures a year from home can be accomplished, but not overnight. Let me remind you, I said “can” be accomplished. Before we go any further in our discussion, let’s take the preconceived notion that every business is a scam out of your head and clarify a few things. 95% of businesses fail online due to two simple factors. Number one, the level of your advertising and internet marketing experience and number two, finding a business that offers real value to the end user. If you are able to master these two factors, you will find that anything is possible online.

Becoming a marketing master There are so many different techniques used today in internet marketing, it’s easy to become caught in the next best thing that you lose focus. Right now there are two techniques that are proven to work and one of them is cutting edge that every internet marketer should be doing. The first technique is called, “article marketing” In article marketing, the internet marketer writes informative articles discussing or reviewing a particular product or service. Taking this article, then submitting it to article directories provides content for hungry web masters. In return, when a web master posts an article on their website, it provides a link back to your service or product. Writing an effect article can lead to highly targeted web traffic and potentially a substantial influx of sales.

Your next question may be, “how do I know what to write about?” There are already plenty of pre-written articles on your subject matter. A simple search at www.ezinearticles.com will bring up articles related to your keyword search. Using a number of pre-written articles to re-write your own article is a good start. Craig Garcia, the co-founder of EDC Gold, says As a member of EDC Gold, we have several pre-written articles in a number of niche markets available for use. All you have to do is copy and paste them into the 110 article submission hubs in our members area

In addition to article marketing, video marketing is a new and upcoming technique. Google recently bought out youtube, a place where individuals can go and record videos of themselves promoting their business. Recording a simple video introducing who you are and the service or products you have available builds credibility and marks you as an authority in your niche market. Secondly, the Google search engine loves youtube. Posting a video on youtube in the proper categories using the proper keywords in your heading can earn you top positions in the Google search engine.

Both techniques are proven to work and have been working for many internet marketers. Obviously the more you do for each technique stated above will drive more traffic to your business and ultimately put you in a profit building position.

How to Determine if it is a Legitimate Business or Ponzi Scheme?

Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, an Italian immigrant who used technique in New England in the 1920’s. Although it was he who is most well known for using this scheme, the concept has been around for a long time.

These types of schemes are quite common and you have probably seen those hundreds of times, perhaps without realizing it. They are often in the form of messages that claim that for a relatively small investment, you can make huge amounts of money. There are many variations, but they all are based on the same concept: the promotion of what starts out to be, or appears to be, a real investment opportunity. Many times it involves the development of a valuable resource such as oil, gas, minerals or real estate. In a lot of cases, the resource does actually exist; however, the promoter has significantly overestimated its how much it is worth. In other cases the resource does not even exist. Either way, the promoter convinces investors that the asset can be further developed if they invest into it. In return, the promoter will share the profits with the investors.

The concept works in the beginning and the initial investors do make the huge returns that they were promised. Because of this they are likely to invest more money and recruit new investors. The money being paid out, however, is not coming from the asset, but in the influx of new investors. For this reason, the only way that the investors will continue to get paid is through the continuous reinvestments or investments from new investors. As soon as investing slows down, people stop getting paid and the scheme begins to collapse. When the scheme collapses, most investors lose their money and have no way to recoup their losses. Although Ponzi schemes can last for a fairly long time before collapsing, legal authorities often break them up before they even get the chance because a Ponzi scheme is suspected and/or because the promoter is selling unregistered securities.

The best way to avoid becoming involved in this type of scheme is to thoroughly research any investment before investing into it. If you see: a reliance on funds from new investors to pay commissions, a need for an inexhaustible supply of new investors, and/or absences of a profitable product or efforts to make profits through productive work; there is a good chance that it is indeed a Ponzi scheme.

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