Showing posts with label compensation. Show all posts
Showing posts with label compensation. Show all posts

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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