The Multiple Personalities of Cash Gifting
As alluded to in other sections of this website, cash gifting programs come in a multitude of forms. There are 1-Up Cash Gifting Programs, 2-Up Cash Gifting Programs, Reverse 2-Up Cash Gifting Programs, and so on. For the purposes of this article, we will limit our discussion to just these forms of cash gifting.
1-Up Cash Gifting
As discussed in the section, "Cash Gifting: Legal or Illegal?", 1-Up Cash Gifting was one of the most common structures of internet driven cash gifting programs. To recap, in order to avoid the appearance of being an illegal pyramid, the 1-UP Cash Gifting Structure creates a beginning and an end (ie. receiving line) for every cash gifting transaction. The structure of 1-Up Cash Gifting is fairly straight forward. For example, "Cash Gifter 1" brings "Cash Gifter 2" into their respective program. "Cash Gifter 2" now brings "Cash Gifter 3" into the program. However, "Cash Gifter 3" must send their "cash gift" to "Cash Gifter 1", as "Cash Gifter 2" must pass up their first gift to the person who brought them into the program, hence the term, "1-Up Cash Gifting." Thereafter, "Cash Gifter 2" is free to collect "cash gifts" from future recuits, as "Cash Gifter 1" is no longer in their receiving line.
However, cash gifting administrators took 1-Up Cash Gifting a step further by introducing different cash gifting tiers. Members can join at different tiers, which in turn determines the size of gift which they are qualified to receive in the future. For example, a program might have a multiple tier system beginning with a "Starter Tier" which requires a $250 gift, then a first tier, (ie. Tier 1) which requires a $500 gift, all the way up to the highest tier (ie. Tier 5), which requires a $10,000 gift. If an individual joins at the "Starter Tier" with a $250 gift, under a 1-Up Cash Gifting structure they would be required to pass up not only their first gift of $250 from a new recruit, to their sponsor, they would also have to pass up every other gift above $250 (ie. $500, $1000, $2500, $5000, etc.) until they are qualified to receive gifts at that level. Qualification at a specific tier occurs either by giving the "cash gift" required by the respective tier (eg. qualification at Tier 1 = $500) to their sponsor, or the next qualified individual in the receiving line, or recruiting a new cash gifter at the desired higher tier, passing the "gift" up to the their sponsor or the next qualified person in the receiving line, and subsequently being automatically upgraded to that tier. At this point, the individual who just passed up the "gift" at the desired higher tier, will still need to pass up their first gift at the new tier to the their sponsor, or the next qualified person in the receiving line.
2-Up Cash Gifting
If you understand 1-Up Cash Gifting, 2-Up Cash Gifting is not too difficult to follow. All of the rules of 1-Up Cash Gifting remain the same, but-for the fact that instead of passing up your first "gift" to your sponsor, you will pass up two gifts. Often times this is staggered so that you pass up your first and third "gifts" to your sponsor, or the next qualified individual in the receiving line.
I am sure that at this point, you can see some additional inequity occurring, as this structure of cash gifting is beginning to resemble a pyramid more so than 1-Up Cash Gifting.
Reverse 2-Up Cash Gifting
In order to take away some of the sting caused by 2-Up Cash Gifting, administrators became somewhat creative and developed what is called a Reverse 2-Up Cash Gifting system. Unfortunately, Reverse 2-Up Cash Gifting is a very close cousin of 2-Up Cash Gifting. The only difference is that instead of passing up your first and third "gifts" to your sponsor, or the next qualified person in your receiving line, you would receive your first "gift", and pass up your second and fourth "gifts".
As you can see, the inequity still exists, but at least you have a better chance of not being the last person in the chain.
All in all, I am sure that we have made our stance on cash gifting clear on this website. If you are trying to figure out how to make money, we suggest that you steer clear of this activity. Aside from its questionable legality, it offers absolutely nothing to the public, is not a long-term solution, and most importantly, costs you money. Unfortunately, the vast majority of people who try to use cash gifting a a money making scheme end up losing out in the end.
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