Javajune's Blog

Someone once said… “Laugh as much as you breathe and love as long as you live.”

Gifting Circle- Crash and Burn

Please welcome Jessie to the sofa.

It’s pretty sad, I have an Aunt in Florida that’s in a gifting circle, it was going strong, well amazingly strong & then bad press hit the paper from an upset ex-husband that raised hell w/the media & the circles broke down. She had been through it twice, paid off her daughters college tuition loan & started up a pet adoption home… and now she had put in money for herself & 3 others she knew to get through this and they all collapsed because people actually believe these scare tactics! It’s so sad… something good can get turned into something bad so quickly! It really does work… not for everyone in different circles b/c greed plays a role in some peoples hearts & they can ruin in! I can speak for my Aunt when I say that she’s changed a few people’s lives & it’s sad when it comes crashing down when they were so successful and doing nothing wrong.

Junie: I’m sorry to hear that your Aunt’s gifting circle didn’t work out. Risky investments are always a gamble, especially when they’re subject to the behavior of others. People get crazy when it comes to money.

jj

February 20, 2009 - Posted by | confessions, family woes, rants | , , , , , , , , , ,

7 Comments »

  1. Sounds unfortunate but I still worry that even without the ex husband this eventually could have faltered anyway.

    Comment by Ricardo | February 20, 2009

  2. I’ll hafta agree with ricardo on this one…all it would’ve taken to take it down is one person…

    Comment by libby | February 20, 2009

  3. It is not a circle, it is a pyramid.

    Since the individuals participating cannot create money, where is it coming from? Answer: from several people a level below them (a.k.a. a pyramid). The people at the bottom of the pyramid suffer the worst.

    The only way for it to be a circle is if each person gives the money to another person, but the money is never spent. At that point, you might as well not be giving money.

    Comment by Hecate | February 25, 2009

  4. Welcome Hecate, From what I’ve learned it does indeed look and smell like a pyramid scheme. You were right when you said the people on th bottom suffer. The one I was asked to join was called a gifting heart. After reading the comments and confession of others I’m very thankful I declined.
    jj

    Comment by javajune | February 25, 2009

  5. …really? Would love an invitation to a gifting circle. Recently widowed & with four lovely daughters and an insurance which feels they don’t have to honor a life insurance that we ave clearly carried our entire working lives.
    ..and so, right..wrong…legal…illegal, I don’t give a hell. I’d take an invitation.
    …my friend, single mom, benefitted greatly from a gifting
    circle. Wish I could have participated but couldn’t.
    ..well, here’s to one nuther opinion. xo!

    Comment by rennaemeow | March 15, 2009

  6. The things is, the money is literally being used as a credit card system. You have to pay it back in some way. And to do that, you need to recruit people to pay back that money to you. There is nothing of value created, no growth of the money done. If it were for an actual true business endeavour, which would generate both value, revenue, financial growth, and interest, then perhaps it would be workable. But as it stands, gifting circles are 100% pyramid schemes.

    Rennaemeow – What is your reasoning for wishing to participate? If you’re looking to get finances from it, then you’re sorta mistaken. YOU need to GIVE $5000, at the beginning, just to participate. Then you have to FIND more people to GIVE $5000 as well, before you eventually get it back. It’s unsustainable, because people are using it like a credit card. “I’m going to pay off a loan! I’m going to go out and get shoes! Ohh I have to find some way to pay it off!”.

    If I were to use one of these things, I wouldn’t. I’d, instead, use the $5k to create/work with a proper business, build it so that I had something where these women could properly use their skills to gain $5000. A proper commerce system.

    There are plenty of better ways to gain $5000, and in quicker order than through a pyramid scheme like this.

    What’s interesting is that people who are called out on this being a pyramid scheme say that it’s just ‘scare tactics’, yet they know that this has no substance to it..

    Comment by Garrett | October 29, 2013

  7. http://www.rd.com/advice/scam-artists-praying-on-women/

    Comment by Garrett | October 29, 2013


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