*** The REAL Network Marketing Opportunity ***
Fred Coles
Re: *** The REAL Network Marketing Opportunity ***
Truth In Advertising
Re: Multi-Level Marketing o Pyramid o Ponzi Schemes
Consumer Education
************** DO YOUR DUE DILIGENCE BEFORE YOU INVEST **************
First you need to understand the simple numbers:
The "pyramid" scheme is essentially a business variation of the
familiar "chain letter", no matter what someone may tell you. It
works this way:
Month Participants
----- ------------
1 6
2 36
3 216
4 1,296
5 7,776
6 46,656
7 279,936
8 1,679,616
9 10,077,696
10 60,466,176
11 362,797,056 (Exceeding US Population)
12 2,176,782,336
13 13,060,694,016 (Exceeding World Population)
Why are there so many matrixes? The answer to this question is to
confuse you. To prove the point; ask the individuals of various MLM
programs to explain their compensation matrix to you. Most of them
can not state what they were told, this happens because it's all
babble meaningless information and not being able to give a logical
rational answer, they will usually say the computer will take care of
that aspect of their business for them.
The primary question here is; Why create a complicated matrix to
pay commissions? Why not just go into business, and sell your
products as do other legal businesses do? Well the answer is to
CONFOUND, CONFUSE the investor. And eventually take the investors
money.
It uses the art of babble to appear to help the investor. Even
legal industries use these techniques, for example:
o You have gone to the supermarket, only to find the
products have all been rearrange d on different isles.
Does this action help the people going grocery shopping?
NO!
o The management usually a notice saying "Please bare with
us, We are changing to better serve you!" The shuffle is
done to keep you in the store longer viewing products you
did not come to purchase.
All MLM programs have compensation matrixes some are distributor
profitable but all are company profitable.
In order for the MLM company to exist the company must make money.
However, many MLM companies have a matrix and compensation plan
designed that only the first 25 or so will make a lot of money.
Other MLM companies have their program designed so the distributor
must continue to make direct sales to make a lot of money.
And some MLM programs make most of their money off their
overpriced kits. The kits are extremely important to MLM companies.
Why do you think the kits are so important to the MLM company?
The kits are instant Money to the MLM company. The revenue generated
by kit sales is not paid out in commissions to the distributors nor
are the business tools. Shipping products is still another way an
MLM company can make money. There are many MLM companies that
require a certain amount of money to ship any product to the
distributors far above the price of normal shipping charges for the
same weight.
Downline building organizations, they ultimately will inherently
fail. This is due to the natural geometric progression of a matrix
and the sheer numbers required to feed each associate of that matrix
an associate. (AS NOTED AT THE BEGINNING OF THIS TEXT) Once the
numbers get so large say 200 associates. The next month the downline
building organization must produce 200 associates for the previous
200 and the next month 400, next 800. As you can see a downline
building organization will only work well with in the first 200
people. They are usually guises to build a shifty characters
downline. His downline does get built and as for the rest of the
people, well, good luck!
These downline organizations disappear quickly as they appear, and
99% of them with one goal in common which is to build the owners
downline only. Downline building organizations also commonly charge
for their services regardless of how the associates came to be
associates and promise to put people under you which rarely happens.
Then there are the "Mailing Lists" (as sold in the MLM industry).
99% of these are also scams. The catch is all the companies charge
for the same list of people in a given year. These lists are
obtained by getting a huge downline report of say 50,000 names from
an MLM company either by paying off an informant (thief) in the
company, or an actual downline report of an associate with thousands
of people in their downline. When you think about it is kind of
stupid to pay for the same list with the same names that the next guy
is going to pay for.
The "Matrixes". There are forced & unforced period! However, if
worked correctly any matrix can be built as a forced matrix. There
is what many believe not to be a matrix and is called a binary. It
looks just like a matrix because it's a matrix.
o Forced Matrix: The matrix is only as good as the product
and the compensation plan. In other words a forced matrix
selling broken rubber bands is not going to sell very much
product at $20.00 a rubber band at 50% commission.
In other words: In most of these schemes the investor is
told they are buying the product at wholesale, when in
fact they are buying at full retail (or higher), and told
to sell at retail/list price. This list price is usually
two times retail. How long can the investor continue
before the customers find out they have been legally
ripped off.
o Unforced Matrix: One major problem with this MLM is
someone recruits someone who recruits someone who does not
recruit. The forced matrix helps this problem but not
nearly enough to be successful.
o Binary Matrix: Hundreds of thousands of dollars will be
lost due to this "non matrix" as MLM promoters like to
call this MATRIX. There is virtually no help from the
upline on the weak leg. In order to make any money both
legs must match. Therefore, the distributor only gets
paid on the weakest leg. These programs often get many
people to join in a single day or week. The promoters
will say something like "By the end of the week we will
have 10 people under you" The distributor checks back in a
week and sure enough there are 15 people under them but
none on the weak leg why? If and when the distributor
figures out there is no money to be made in the program
without building the weak leg the individual that got them
into the program is making thousands of dollars.
It works like this:
The promoter has three business centers. The promoter
only opens the left and right business center. The
promoter tells both left and right legs the same story
about putting 10 people under them by the end of the day.
You see the promoter builds both legs. The promoter does
not have a weak leg! It does not ever benefit the
promoter to build an individuals weak leg. The only reason
the 10 people were put under you in the first place was
not for your benefit but the promoters . These promoters
can and do switch programs once a month. Why? usually
the people that joined realize by the end of the second
month there is no money to be made but little do they know
the promoter might have made as much as $50,000 dollars
that month. The question becomes us what if I planned on
building my weak leg as well. Then you would be a
promoter and not a distributor. There are two reasons
people mainly get involved in MLM. They are #1 to work
hard and build a lasting downline. #2 to get under
someone that is working hard to build their downline for
them. The binary matrix eliminates the possibility of #2
making any money. Therefore the very people that are
looking for #2 get into the program on the premise of the
10 people in a week thus building the downline of the
promoter but the promoter knows FOOL well that #2 will not
make any money because he does not intend to work the
program.
Another MLM scam is where about 5000 people are rounded up and ran
through an engine of a matrix. The people at the top, usually the
first 25 make all the money in a single month. However the promoters
then reverse the matrix and run the 5000 people through another MLM
program. The people are led to believe the people at the bottom will
make all the money the second go round.
o Lets take a closer look. We will use a 5X5 matrix for the
example. Top 0 = 1 Level 1 = 5 creators Level 2 = 25
creators friends Level 3 = 125 suckers Level 4 = 625
suckers Level 5 = 3119 suckers + 6 creators
In the first go round who will make money. The creators and the
creators friends. In the second month, the second program who will
make money. If you think the people at the bottom, think again. We
can quickly see this is a suckers game by asking the question which
one of the 3119 suckers will be at the top and then which thirty of
the 3000+ will be on level two. You see the only people to make any
money in both runs of the downline must be on level 1 or 2 in and
that is only 31 people out of 3906 people.
REPORT FRAUD TO: National Fraud Information Center
EMail: nf...@internetmci.com
Telephone: (800) 876-7060
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************** DO YOUR DUE DILIGENCE BEFORE YOU INVEST **************
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Robert Keith
$300/Month With 9 Distributors
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PLUS
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Visit: http://www2.imm.com/~trogers/fast/fs347047.htm
24 Hour Info Line: 1-800-935-5171, Ext 1110
Wishing you wealth and prosperity!
Michelle