| p>I have some good news and I have some bad | | | | At these seminars the pitch is feverish and it is easy |
| news. First the good news. The number of | | | | to be lured by promises of success into parting with |
| infomercials on television is decreasing. | | | | your money. They are designed to work off the |
| Some might say that is great news. But, before you | | | | herd mentality. Don't fall for the nonsense. |
| yell hurray, here's the bad news. They are | | | | On the Internet, the herd mentality is engaged |
| reincarnating as web sites. Changes the whole | | | | through testimonials and a rush to action. You are |
| picture, doesn't it? | | | | encouraged every step of the way to BUY NOW! |
| For those who've never seen an infomercial, it is a | | | | There are only so many days left and this |
| program-length TV commercial touting easy ways to | | | | opportunity will be gone forever or some other such |
| make money in a variety of ways. | | | | nonsense. |
| Real estate is probably the most often run program. | | | | The FTC, and everybody else who has studied these |
| Others include low-interest government loans or | | | | programs, gives the following advice: |
| grants to start a new business or go to college. | | | | 1. Be skeptical about "get-rich-quick" advertising claims. |
| Then there are the old standby classified | | | | 2. Ask companies for written substantiation for claims |
| advertisement sections in newspapers or magazines | | | | in their presentations, especially those about success |
| promising "big money" business opportunities and/or | | | | rates. |
| work-at-home schemes. The companies behind these | | | | 3. Be aware that "experts" who endorse a product |
| infomercials and print ads claim that by using their | | | | often are paid by the advertiser. |
| products and services, you can learn how to increase | | | | 4. Be cautious about "testimonials." They may be paid |
| your wealth or start a business from the comfort of | | | | for and probably owrse, do not reflect the |
| your home. | | | | experience of most consumers. |
| These infomercials and advertisements make it very | | | | 5. Be wary of purchasing a program if company |
| clear you can make the big bucks only by purchasing | | | | representatives give you evasive answers or aren't |
| their books, audio and video tapes, or computer | | | | willing to answer your questions at all. |
| hardware and software. The materials range in price | | | | 6. Before you buy, decide whether the price reflects |
| from less than $100 to several thousand dollars. | | | | a fair market value. |
| To clinch the sale, some promoters include a toll-free | | | | 7. Be wary of promises of free money or |
| telephone consulting service with your purchase and | | | | low-interest government loans. As a rule, these are |
| offer a money-back guarantee. The fine print in the | | | | available only in limited circumstances. |
| guarantee is what gets most people. | | | | 8. Dont be pressured to purchase immediately. Good |
| Web sites promoting these same type of | | | | opportunities are not sold through high pressure |
| "opportunities" look like an infomercial. Hype, glitz and | | | | tactics. |
| promises of big money adorn the screen. On the | | | | 9. Before you buy, ask about the companys |
| other hand, contact details, other than ordering | | | | qualifying requirements and refund policy. |
| information, is scant if existent at all. | | | | 10. Check out the company with your local consumer |
| On television, these infomercials are designed to look, | | | | protection agency, Better Business Bureau, and state |
| feel, and sound like real TV programs. The FTC says | | | | Attorney General's office. They should be able to tell |
| "they often imitate the format of genuine talk shows | | | | you if any unresolved consumer complaints are on |
| or investigative consumer news programs." | | | | file. |
| Because they imitate real programs, "the products | | | | Additional consumer protection resources are available |
| being sold often are discussed as part of the | | | | at your local library. Check out materials on personal |
| program and touted by paid "experts," "moderators," | | | | finance and those geared toward the small business |
| or "reporters", according to the FTC. The programs | | | | owner. |
| may last for 30 minutes, interrupted by | | | | Your local community college may have a marketing |
| advertisements for the shows products with ordering | | | | department. Call and ask to speak with one of the |
| information. | | | | professors. Explain the program and ask his/her |
| As in the offline world, online promoters of | | | | advice/opinion. |
| wealth-building schemes claim that if you follow their | | | | The Small Business Administration and your state and |
| methods, you can make substantial sums of money. | | | | local government have publications and programs for |
| The means to easy wealth have shifted from real | | | | new and potential business owners. Write or call and |
| estate and government auctions to web site sales | | | | ask for a list of available publications. |
| and development, autoresponder sales, gift clubs and | | | | Tap into the Internet. That's right, search engines |
| bulk email programs. | | | | could turn out to be your best friend. A host of |
| The offline world uses the infomercials and | | | | scam busting sites exist and expose scams online and |
| advertisements to invite you to attend seminars | | | | offline. |
| where you can learn more about their program. You | | | | As always, common sense is your best weapon in |
| can rest assured the seminar is a slick sales pitch. | | | | the fight against this garbage. If it sounds too good |
| The smooth-talking salespeople tout the programs, | | | | to be true, it probably is. However, if you have more |
| materials, and services and use testimonials of the | | | | than a passing interest, do your homework. Getting |
| people in the back of the room selling the materials | | | | too much information is not a crime or a hazard to |
| to illustrate what easy money you can make. The | | | | your wealth. |
| truth is these people are paid to give testimony. | | | | 2000(c) All rights reserved. |
| They are on the payroll as salespeople and that's it. | | | | |