Are there any ethics or morals in network marketing

Posted by Jay Carey
6
Oct 7, 2015
184 Views
Image

Let me just clarify why I am making this post.

My name is J Carey and I have been in the Network Marketing industry since2003.  Over the course of 10+ years I have learned many things and would like to share with you.

In the last 10 years not much has changed in online network marketing. Sure, we now have Social Networks so making contact and building a business brand is much more streamlined but the models of these work from home opportunities remains the same. 

When I first started in this business I was, like most, very naive and trusting and the first time I decided to explore the possibility of making an extra income online I was basically in the position to believe whatever I was told. This is when I met a German marketer who introduced me to a system called EZWealth.

The way this guy sold this opportunity to me was very much the "You will be rich in no time" and I actually believed him. It wasn't until 6 months later and a whole lot of time wasting I learned that this particular opportunity was nothing more than Cash-Gifting where you paid an amount each month and depending on how many people you had under you (referrals) you would make the same amount back multiplied by the number of referrals. Put simply if you have 10 people under you and you paid $47 you would receive $470 back from your referrals providing they also paid.

Not so much a means of securing an income but more of a way to make some money with no guarantees that the next month would be the same. Many, many months were spent trying to get others to join me in this opportunity and to some extent I succeeded in making a profit whilst continuing to pay the monthly fee but the amount of time spent convincing others compared to the actual pay off just was not worth the effort so I left the program.

Several programs later and a whole online lifetime wasted promoting brought me to the conclusion: Making a living online is NOT easy. Despite the sheer amount of BS that is shoved down your throat daily then unless you are prepared to put your ethics and morals to one side and basically steal from others you areNOT going to get rich quick online.

So as I mentioned earlier the RevShare model is exactly the same as it was 5 years ago. Lets take the current RevShare taking the net by storm: Traffic Monsoon

Now this is not a pitch for the program, in fact quite the opposite. This program basically defines the lack of any moral or ethical qualities in network marketing today. You can compare this program to the equivalent of stealing money from the poor to fund the rich lifestyle because basically that's all it is. 

People never question a programs legitimacy when it's paying them but maybe if they actually knew where the money was coming from they would think twice before taking it. Traffic Monsoon has been hailed as the most successful RevShare since JustBeenPaid and we all know what happened to that! (if not then just google JustBeenPaid ponzi)

You join the program and pay $50 for an Ad-Pack. This Ad-Pack matures and you receive $55 back. But where is the other $5 coming from? That's where the system becomes unethical. The $5 is taken from new signups as they pay their $50. It can also be taken from current members who re-purchase their Ad-Pack.

Now at this point you are probably thinking "It's only $5 from the new signup" unless you already went ahead of me and figured this out on a grander scale. Lets say there are 30,000 people in Traffic Monsoon and each pays $50 to purchase 1 ad-pack.

30,000 x $50 = $1,500,000 is now in the system. Nice right?

What you are forgetting is that each one of these members is expecting $55 back. The return should be:

30,000 x $55 = $1,650,000. Already from 1 Ad-Pack purchase the system is now in debt to the tune of $150,000.

Lets say 500 of those 30,000 members have a downline of more than 50 people. This entitles them to 10% of the purchase a referral makes under them and even with 10% the site debt is increased even more.  10% is $5 to you.

30,000 x $5 = $150,000 and 30,000 x $55 = $1,650,000 

And now the system is $300,000 in debt. Now those numbers are just from 500 people getting 10% ($5) commission and the entire member base purchasing just 1 Ad-Pack.

Do you see where this is going? The Average lifespan for a RevShare (ponzi in this case) is 2 years and the reason is obvious. Any longer and the debt will reach a point where it is no longer possible to pay anyone anything. Now depending on the popularity of a system the lifespan is determined by the activity and in the case of Traffic Monsoon it's time is very close. Soon the owner will shut up shop as he has done so 6 times now with 6 different RevShares and write off the debt.  

So over 10 years and basically nothing has changed in Network Marketing. Ignorance is a rampant as ever and the money just keeps changing hands.

In fact the promoters are so convinced Traffic Monsoon is their answer there is actually a hotel meeting booked in Manchester this weekend to market it!

Taking into account the numbers I just showed you there is no doubt Traffic Monsoon is going to implode and owe its members hundreds of thousands of dollars but with these ponzi schemes (aka RevShares lol) its just a question of moments. 

By the way you can question the reasons as to why I would make this public knowledge but you cannot argue with the numbers. The reason the RevShare model is so popular is because it preys on the lazy and if they are lucky they may actually make something back before it all falls apart but why would you be trying to build a business and financial future on something that is nothing more than gambling?

My story is much to0 vast to include here so just treat this post as the introduction with a warning :)

I will explain more in time.

Comments
avatar
Please sign in to add comment.