The People’s Program is a business and was created for the “Little Guy” out there that can’t afford the other popular gifting businesses. TPP appeals to many people because it has very low levels of participation, with the lowest entry level of all at just $150 but can cost as high as $10,000!
It’s professionally administrated using a 3rd party tracking software system that keeps track of referrals and gifts received, etc. The tracking software charge is $50 per year.
They use a credit-based gifting system, which many in the industry have called into question through experience. They have a residual payment system in place.
Upfront costs / expenses
Participation in this private activity does require a cash pledge. 10 Levels of participation are simple (US dollars): $150, $250, $500, $1,500, $3,500 to as high as $10,000. They want a cash pledge so that there is no money trail for the IRS to track.
Well, one must ask if they say these are gifts and non-taxable , why not send a check? Why must they be cash pledges? Something is not right here.
They also charge a $50.00 admin fee. The rest of the cost constitutes advertising/marketing. The marketing costs will far exceed the initial cash pledge. They really downplay this aspect, yet without marketing every business is doomed to failure.
This is true of all business and should be over stated rather than understated. Their co op advertising will cost at least another$125.00 and results of the leads are no guarantee of success, you could end up with no profits at all. They also sell post cards at a cost close to $1.00 per card sent with again no guarantee of success. Most people will lose out in these deals. The operators are the only one’s guaranteed of making money in these methods
There has been a lot of speculation surrounding the actual legality of these gifting businesses. Now, we should like to caution here that the operators of these businesses do not like to be referred to as a business. They insist they are a private activity where entrance is only gained by invitation.
They often will refer to a IRS statue that declares gifts up to $13,000 are tax free. So, on this basis they declare that the money you receive is tax free because it is a gift.
A new element that they have put into this business is a 20 /80 referral split. So, because there is AN RESIDUAL OR REFERRAL FEE IN THEIR COMPENSATION PLAN, this would certainly cause the IRS to further conclude that this is in fact a business that the owners are trying to conceal behind a gifting law which clearly does not apply to this companies financial structure.
We feel all participants will likely find themselves facing tax evasion charges in the future.
After conferring with our legal consul, we have come to the determination that this concept will likely fail to hold up in court for the simple reason that in the past the courts have taken on the view that when a concern is operated like a business, advertises like a business and in truth “everyone is in it for the money” that no true gift was ever actually intended and the whole purpose for its members is to enrich themselves while attempting to avoid taxes.
So we feel that there is a very high likelihood of the courts ruling that this concern is in effect a business without products designed to enrich its members while trying to avoid the taxes on profits from the business. Therefore one could easily find themselves charged with tax evasion. So, for this reason we find this a problem certainly if you think you will be able to skirt the tax issue.
On another front the business plan is operated without any products and this too has caused us to be concerned. One has to ask “just what am i getting for my hard earned money”?
As far as we can see , Nothing? So, again, the courts are likely to see this as just another money game and they will very likely invoke the statues for you to prove that this not just another form of a ponzi scheme where innocent people are left holding an empty bag.
The Peoples Program gifting business has their lowest level being $150, it’s accessible to a fair amount of people out there trying to get into the gifting arena. The People’s Program also provides replicated websites for members to use in their marketing online.
The People’s Program also has a average training call for members where The People’s Program will promote their poor marketing system to its membership.
The wide variety of levels starting at only $150 will lead to higher conversions at the lower levels. We feel it is much too labor intensive to enroll people that can only afford the $150 level, which may limit many potential sign ups since even this amount may be beyond the reach of people who are out of work. The marketing costs one will have to pay later to attain success in a reasonable amount of time will far outweigh this $150 starting level, so most people will fail at this business.
The peoples program gifting business has this actual text right at the top of their web site regarding the likely hood of being compensated by joining this business:
“Anyone seeking to profit from their endeavors are encouraged to investigate the many profit-making opportunities available today – no such program is offered here. Participants give freely of themselves and expect nothing in return.”
We have to agree that for the most part this is likely VERY GOOD ADVICE. Don’t expect to profit from this program.
The peoples program gifting business has many offers of assistance if your willing to foot the bill. Costly Post cards, web sites, and some help in placing ads on the internet again at a big premium. Bottom line here, we suggest you get educated on how to promote on the internet as you will have to work quite hard to over come some of the issues that this business faces.
With the right marketing this may offer some people a way to make some potential profit within 12 months.
The peoples program cash gifting business is unfortunately experiencing a lot of failures of people who just could not sustain the costs in terms of time, commitment and available capital to properly finance the necessary outside marketing costs required to succeed on the Internet which are easy to find by doing a search on their name.
Final Analysis / Recommendation:
The peoples gifting business is OK if you can find a good team and marketing system, you could have a shot at being successful if gifting is your passion. One of the weaker systems we found when compared to other systems.The peoples program should only be considered if you have a strong background in Internet marketing as well as the ability to defend the likely legal issues that may arise in time.
Again we feel that there are many suitable alternative businesses which have significant advantages over this gifting program. However if one wishes to avoid the anxiety associated with the direct selling approach so common with legitimate businesses yet still insist on having a legitimate business model that offers a reasonable opportunity for success for most people then, your options will certainly narrow.
We can easily direct you to a host of companies that we have reviewed in the past which provide quality products. However, this always involves substantial expenses for your inventory or to auto ship your products each month.
If you truly want to avoid these issues then three businesses which we favor can be recommended because they have all the benefits of this gifting business but with none of the negatives associated with this gifting program. They are: Passport To Freedom, People’s Concepts Inc. and IWIN.
Of these 3, the IWIN business has to be considered the stronger of the 3 for several reasons. One being they offer lower levels of participation which are more attractive to the masses and yet with very low expenses. They offer possibly the best marketing / teaching system that we’ve ever reviewed for the average person.
Additionally they offer a robust compensation plan which is among the top in the industry. In fact in an earlier review they earned our coveted “5 STAR TOP BANNER” award. You can visit their site by clicking here.