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MLM vs Ponzi-scheme

Multi-Level Marketing model and Ponzi-scheme. In many eyes, they are absolutely equivalent. Buy they aren't.

You know the interesting story behind Ponzi-schemes, how Ponzi scammed hundred thousands of people selling stamps that did not exist. If not, Google it out after reading this short post.

So, the difference between MLM and the Ponzi pyramid model is that there is product behind MLM. And this product is basically such in nature, that customers order it because they need or want it, not because they are forced to. A huge difference. In the Ponzi model, usually a product does not even exist, or there is a product, but it's not beneficial for anyone.

Ponzi schemes are always scam, and they are illegal in most countries. They build on the naivety of people, who believe that they could be extremely wealthy. But in fact, they are forced to create a network and encourage more and more people to join and pay, till the pyramid collapses.

So we separate the two concepts by the value of product behind them. 

Which hosting is the best for me? (Earn money online making websites, 7th part)

There are way too many to choose from. From free, cheap, to horribly expensive. As always, not just the money counts, these are the main points to be aware of:

Drop unlimited hosting


Unlimited hosting sucks. They provide unlimited storage place, unlimited bandwidth, unlimited everything, then they are scamming you. Of course noone can provide unlimited services, as there are physical limits. That's obvious. Yet there are lots of unlimited hosting packages, Godaddy, Hostgator, Bluehost, and all the biggest providers have at least one. What's the trick then? It's easy. The long terms and conditions shit you always read word by word tells you, that it is only unlimited within 'normal use', unlimited with limits. When the servers are loaded with traffic, first the priority users are served, then the "unlimited" users. Because they HAVE TO give 100Gb bandwidth and fast reach if they promised in a legal agreement. If buying 100Gb bandwidth and 10Gb storage, you can be sure, you get exactly what you order.


Don't share your space with others


Sharing storage place for some money at a hosting plan where multiple or unlimited websites are allowed (such as Godaddy's deluxe or unlimited packs), you take responsibility for everything hosted in your room. So don't share with anyone, not even the ones you trust (it's against Godaddy's ToS - another thing you probably didn't read). Imagine, that your friend makes a news portal and you are made responsible for one of the articles, because it's hosted on your property. (There are some countries, where there are other regulations, but be careful about this.)


Free stinks


Don't use free hosting. It always comes with strings attached. Adverts, frames, or a backdoor allowing them to take away or shut down your site whenever they want. Without a reason.

More birds, one stone


Yes, you can host more websites with a single hosting plan, and usually it can save a lot, especially having more websites. Godaddy and Hostgator provide such hosting plans. (Which are unlimited, so watch out and don't plan to run websites that require constant memory usage, lots of cronjobs, many database queries, etc., if you have something such awesome website, host it with the most expensive plan on any of the biggest hosting providers).

Written by Andras Rapli, continued very soon with the 8th part of how to earn money online making websites. Have a nice day :)

Choosing the right domain (Earn money online making websites 6th part)

After constructing the perfect plan, we'd like to move on and register some great name for the business we wish to create.

Domain names are the stuff typed into the browser address bar to reach websites, such as google.com, or e-a-r-n.net. Yours should be something easy to remember. The shorter the better in this case.

If planning to build a brand, you would use a brand name as domain, otherwise you'd better just pick some keywords, like "swimmingpools" if your website will deal with swimming pools. This is for SEO reasons, aka getting better rankings on search engine results page.

The domain extension does not really matter, but for most of us it's more convenient to memorize a .com or .net ending. Local businesses use country-specific extensions (TLDs). By the way, ICANN, the global authority of domains will release hunderds of new domain names such as .shop, .london, .travel, ... very shortly. You might want to pick one of them while the treasure box is open.

To register your domain, you'll need the help of an accredited domain registrar, such as Godaddy, Name.com, Bluehost, Namecheap, and so on. I'd recommend Godaddy if planning to run multiple websites over time, they have really favorable hosting prices as well.

When buying hosting together with domains, usually the domain is free. But hosting is not neccesarily needed, if you can host somewhere else, such as at Blogger, Wordpress (they also give a domain registration opportunity), etc. 

It's not required, but highly recommended.

.com, .net, .org domains should cost less than $13 a year, so don't get scammed. All the domains are the same in quality as long as they provide full DNS and zonefile editing. These two usually comes with every domain, but if not, you still need them, so move on as you can for a better one.

Andras Rapli