Sunday, October 20, 2013

Circular logic compensation plans that make your head spin


Circular Logic Compensation Plans That Make Your Head Spin


At the time of this writing, Multi-Level Marketing is more than 50 years old. Its truly amazing that such a ludicrous business model has survived, and even experienced incredible growth, over such a great length of time.

On the surface, this type of business has a lot of appeal. Many people are attracted to the idea of selling quality products and sharing a lucrative opportunity with their friends and neighbors.

But once you take a good hard look at the nuts and bolts ...


MLM, affiliate program, compensation plan, business opportunity scam


At the time of this writing, Multi-Level Marketing is more than 50 years old. Its truly amazing that such a ludicrous business model has survived, and even experienced incredible growth, over such a great length of time.

On the surface, this type of business has a lot of appeal. Many people are attracted to the idea of selling quality products and sharing a lucrative opportunity with their friends and neighbors.

But once you take a good hard look at the nuts and bolts of how 99% of these so-called opportunities intend to pay you for your efforts, much of the initial appeal goes right down the drain. Its fairly common for an MLMer to sell a $50 bottle of herbal tonic and make only a few bucks for themselves.

A big reason for this is the complex structure of most network marketing programs. Money is divided among so many different parties that its difficult to squeeze a decent profit out of a retail transaction.

For example, you might sell a bottle of your programs super tonic at $50, but three of

 



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