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Get-rich-quick schemes
Get-rich-quick schemes assure high rates of return for a small investment. Most such schemes assure this high rate of return whilst at the same time promising that they are legal and risk-free. Most get wealthy schemes also promise that little skill or effort is required. They often declare that wealth can be obtained while also working at home. Legal and quasi lawful get-rich-schemes are frequently advertised on infomercials and in magazines and newspapers. Ones that are illegal or scams are frequently advertised on the Internet through spam or from side to side cold calling.
It is clearly easy to (potentially) get rich quickly if one is ready to accept very high levels of risk -- this is the premise of the gambling manufacturing. However, gambling offers the near-certainty of totally losing your original stake over the long term, even if it offers regular wins along the way. Economic hypothesis states that risk-free opportunities for profit are not stable, because they will rapidly be exploited by arbitrageurs. Nevertheless, many people long for riches, and find these schemes highly desirable.
In all cases one must use caution before bearing in mind any "money making scheme". Most significant of all is the agenda of the persons placing ads advertising these schemes. They may want to sell you a "secret" technique for winning at casinos, for example. If this person really did have a secret method, he would certainly keep it a secret from anyone, and play the casinos in darkness, keeping all the profits for himself alone. Revelation of the secret would thin returns, because more people would take advantage of it, and the casinos themselves would find out this method, and correct the loophole. If it worked he wouldn't want to (or have to) sell the clandestine on the open market. Selling the secret is intrinsically flawed, because the seller has discovered that he can make much higher proceeds selling small booklets of "secrets" in the mail then he would be risking his own money live the casinos himself. The seller has made guaranteed profits without the skill, and the buyer has established he has wasted his money. The person who had "got rich quick" was the doer of the scheme.
Legal get-rich-quick schemes
Multi-level marketing is potentially extremely profitable for those who first
start the scheme. However, it is mathematically unlikely that all the participants
in a multi-level marketing scheme will all turn out to be rich from selling
to one another. Usually, the lowest tiers of the scheme end up trailing money.
Work at home tasks such as filling envelopes or assembling trinkets. Essentially
hut work only small fees are paid per piece, and to make real money huge quantities
of work are required.
Training courses, many get-rich-quick-schemes offer preparation courses in areas
such as real estate, estate auctions, rare coins, or gemstones. Generally they
assure that the trainees, after purchasing instructive materials costing several
thousands of dollars, will be clever to locate cheap or discounted items that
can then quickly be resold at great profits.
Gambling software, get-rich-quick schemes frequently sell software programs
for betting on horse racing or other for of betting, promising that if run correctly
they will pick winners. They hardly ever do and most users lose money. This
software usually sells for hundreds or even thousands of dollars.
Selling "miracle products" over the Internet, telephone or to friends
and neighbors.
Illegal get-rich-quick schemes
When there is no pretence at advertising a product, multi-level marketing degenerates
into a pyramid scheme or matrix scheme, which is prohibited in most countries.
Ponzi schemes are illegal in most countries.
Insider trading is illegal in the majority countries.
Advance fee fraud
Credit card fraud
In common, if it seems too good to be true, there is typically a catch. Many
apparent get-rich-quick schemes are the work of self-assurance tricksters.