by Charlie on June 30, 2010
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“Learn how anyone, (even internet dummies) can create “sick amounts of money” by turning $25 into a Mega Fortune!”
Hmm, well maybe I’m an old fashioned guy but a website headline like that sure sets off warning bells for me. Is that the tone you would expect from a respectable and ethical company?
This MLM opportunity is backed by a 12 year old debt free company. That sounds fine. The next thing we see is that you can earn $12,750 in 8 weeks. That definitely sounds like ‘get rich quick’ to me but let’s have a look at how you can earn. The website states:
- You join for $25 (zero admin fee)
- You get access to a HUGE bank of educational tools worth hundreds of times more that what you paid.
- You get the $25 back instantly with your first person.
- You make serious money.
- You make residual income every 30 days. [click to continue…]
by Charlie on June 5, 2010
There are several travel MLM companies out there just now. TVI Express is one that is under serious investigation. According to Rod Cook of MLM Watchdog.com, it is a seriously flawed business model which is nothing short of an illegal pyramid. OK so it’s not fair to tar all similar companies with the same brush, but let’s take a look at what makes for a legal MLM set-up.
Front end commission is fine. This is the cash you earn from sponsoring a new team member. Many companies pay this. But the crucial thing is that it must not be the main source of income. If it is and there is little or no product sale, then you have a pyramid. In other words the money you earn is being generated from the sign up fee paid by new team members. The thrust of the business is to keep sponsoring. When that stops there is no cash in the pot to pay you. You don’t have true residual income.
PYXISM makes great play of the fact that they have no monthly autoship requirement for distributors, just a one-off payment of 349 $US to join. [click to continue…]
by Charlie on April 30, 2010
I get pitched all the time with deals to tempt me to jump in quick. Variations of these hit my inbox constantly:
- Get in during pre launch or you’ll miss out
- Unique compensation plan, 20,000 in your downline in 2 days and earn from them
- Get a position now
Pre launch is one of the big ones. “If you don’t get in now, you’ll miss out on the big bucks”. OK, so you can question the exact figures, but around 90% of new companies don’t make it past 2 years and most of the ones that do, collapse within 4 years. That’s scary yet pre launch opportunities are still hyped up as the best deal you can get into.
But you know what? Any business (MLM or traditional) takes a while to get established – I know from experience on both counts. [click to continue…]
by Charlie on February 3, 2010
“Prelaunch; get in now; great positions available………”
You hear it all the time. The first thing you must know is that 90% of start-up companies don’t survive past the first year. Of those that do, the majority fall before five years. For sure every company has to start and if nobody joined them, our whole industry would be stagnant.
But you need to do some serious due diligence on a new business opportunity to be sure it’s worth the risk. Remember the recent sad case of eFusjon, launched with massive hype early in 2009, only to be taken to court in less than a year. [click to continue…]
by Charlie on January 4, 2010
This type of company is one of the hot movers and shakers right now in the industry. As far as I am concerned, someone is innocent till proven guilty. But if you are considering joining such a company, there are some key points you need to know.
Two major features separate a legitimate MLM from an illegal pyramid. Is there a value priced product which you need to sell on a regular basis? Do you earn most of your income from sponsoring new distributors? Answer ‘No’ to the first one and ‘Yes’ to the second one……..well it fits the bill as an illegal pyramid. [click to continue…]
