What is a gifting program?
A gifting program is a type of money making program based on the concept of reciprocal gift-giving.
It is based on the notion that it is perfectly legitimate to give a gift of cash to another person.
There are many verisions and different methods by which gifting programs have been designed to produce income.
Gifting programs have certain requirements that need to be met by the participating gifters in order to remain a legitimate gifting program, and to not lay over into an illegal MLM scheme.
As there is no product involved in a gifting program, but only gifts of cash given, there can sometimes be a fine line between what is a gifting program and what is an illegal MLM operation.
I would advise referring to an attorney or the law books regarding a particular gifting program and it’s legality.
You can Google the term and find completely confliting stories about the legality of gifting programs and just end up totally confused.
Such an issue gets into semantics and disputing of words.
Essentially it’s just some people who decided to give a gift to another person, under a certain understanding that by doing so, they themselves would receive gifts in return, according to a certain plan, which all parties would have agreed to before accepting their invitation to the gifting group.
Participation is by invitation only.
Some gifting programs have a matrix or a board system similar to that used in many MLM companies.
A person joins the group after being invited and then gives a gift to a particluar group member.
Other new invitees do the same and thus the receiving group member earns an amount much larger than the original gift he gave when he entered.
According to whichever matrix system is being employed, those new members would at a later time, depending upon certain requirements being met, then be able to become the receiver of gifts and the even newer invitess would then be giving to our original gifter as these new folks enter.
The easiest way to think about it is simply as an MLM, with no product, wherein all the members understand and agree that the money they are paying in is simply a gift to another member, is paid directly to that member and not any company, and that they are not purchasing any type of product, but are only argeeing to the terms of whatever plan the program has in place for advancing the giftor to become the giftee.
Much money can be made in this fashion.
I know of one program in particular where you give an initial gift of $100 and in short time you recieve 8 $100 gifts from other members.
In this gifting program, you would take $400 of your initial $800 in gifts and cycle yourself into another gifting board where you would now give a gift of $400 to a particular member. In short time then you would become the receiver of 8 $4000 gifts, for a total of $3200.
Then you would take $2000 of that last gift amount and cycle onto another board, with the end result being that you were gifted $16000 for this board, and a grand net total of over $17000.
As you cycle from each new board you would begin with another $100 gift back in the first board and so the cycle would continue.
There is a lot of money to be made in such a gifting program and as you can see you can begin with a small amount and have it rapidly grow to many thousands.
The problems one would face with such a thing would be the same problems one would face with any network marketing program, minus any product, administrative, or technical website problems. One would also need to examine the program to be sure that what is occuring is legal.
If the administrator of the program is cutting a profit this could be a problem as it would violate the idea behind the gift giving and would then become a profit operation for the creator.