I‘m John Counsel, CEO of The Profit Clinic, but this is my personal blog, so I won’t be wearing that hat here. Instead, I’ll be talking about Fourth Generation™ principles and practices as they apply to network marketing in general and in companies and distributor organizations in particular.
No, I won’t be trashing or promoting specific companies here. I’ll be addressing specific principles and practices and highlighting the differences (and desirabilities — or otherwise) of FIRST Generation versus FOURTH Generation. (There are effectively NO Second or Third Generation companies and opportunities, but I’ll explain more about that later.)
I look forward to sharing ideas, insights and income-earning suggestions with you.
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The Power Lead System is a terrific concept that I’d love to be able to use with my various “funded proposal” products, especially my PearlMaker Sponsoring System.
It’s such a good strategy, with enormous potential — BUT…
If you want to join the residual income stream and tap into all that monthly income potential, you have to pay a monthly “administration fee” that almost doubles your monthly commitment.
That’s when the alarm bells began ringing loudly for me.
Frankly, it would be better if they simply built the reward system into the product or service price. But they haven’t — and that means if you want to earn the rewards, you have to purchase the product — and then pay an “administration fee” that’s almost the same cost as the product/service.
It’s not hard to see how regulators will view this, because most anti-pyramid selling laws around the world start with the same criterion:
If earning any kind of reward from referred purchases requires the referrer to purchase the product personally in order to qualify, then it qualifies as a pyramid selling scheme.
That means you could be vulnerable, as a member, on two counts:
More than two weeks of brute-force attacks (149,000+ separate attacks) have forced us to delay release of the update to ensure no malware or similar has been added to our sites. As far as we know, no sites were compromised, but we’d rather be safe than sorry. Stay tuned for announcements.
In the next week I’ll be releasing the latest update of this acclaimed, generic sponsoring tool (works with any reputable network marketing opportunity — but will sabotage any attempt to use it to promote scams or shonky bizopps!) in the lead-up to full release of the long-awaited PearlMaker Sponsoring System.
Fully-updated for 2014, the entire back-end delivery and support system has been simplified and now includes access to a FREE autoresponder system, pre-loaded with series of messages that can be easily customised by you and personalised — automatically — with your prospects’ name, email, etc. (And yes, it can be used for any other projects for which you need a powerful, feature-packed autoresponder and broadcast email system — a saving of at least $29-$79 per month!)
Stay tuned for more details in the next few days! In the meantime, check out this short video excerpt from our new webinar series…
Now check out the new site — it’s working, but the downloads won’t be available until everything is in place.Visit the new website now!
This article was written in response to an article by Dave Taylor of Intuitive.com about what’s wrong with network marketing as a business model.
Your article articulates perfectly the widespread confusion over network marketing as it’s typically practised. The problem is that what’s typically practised is a bastardized, distorted version of the concept, one created by company owners and high-flying team leaders to maximize their own profits.
In life (and business) it’s rarely WHAT we do that makes something legal or illegal, ethical or unethical, desirable or undesirable… it’s WHY and HOW we do it. Our motives and methods/means.
This is one of the reasons why countries have such difficulty legislating against pyramid selling schemes: you can only legislate for specific behaviour — actions and practices — not for motives or attitudes. So the laws become too technical. There are too many loopholes or the laws impinge on constitutional rights, etc.
One of the earlier responders raised a salient point: many of the companies CLAIMING to be MLM simply aren’t. They’re either clever counterfeits or ignorant clones of counterfeits. The reason they’re so hard to spot is because there are so few examples of what REAL network marketing companies should be.
I received this request for help recently and it set me thinking: discipline is one of the Four Cornerstones of Success — but only when it’s self-discipline. Otherwise the discipline has to be imposed — forced! — and that’s a boobytrap that will quickly erode the very foundations of your network marketing business and your potential for lasting success.
It’s a question of vision and motivation… and both need to come from within to be effective in the long-term.
Answers can be found in the following articles I’ve written over the past 25 years. All links will open in new windows for your convenience.
The Lock Nut System (series of 8 articles)
The Lock Nut System (multi-media presentation)
Rippln (distortion of Rippling — as in “the ripple effect”) is the latest buzz program to hit the online world. It’s new, but Rippln is being promoted using old and proven hype, buzz and spin marketing techniques (including secret, personal-only invitations and Non-Disclosure Agreements — NDAs) that we normally associate with new network marketing programs in pre-launch mode… all of it typically targeted to attract the desperate, ignorant, gullible, lazy and greedy.
That alone doesn’t mean a lot in terms of risk or reward, whether or not this new “emperor-on-the-block” is really wearing any clothes, or whether the Rippln system is legal or not. That will be determined by whether or not it complies with local trade practices and related laws wherever it spreads. The acid test will be the usual definitive tests, including…
- The products and how they’re priced and distributed.
- The compensation plan and how people earn income.
- Whether people are paid for recruiting.
- Whether products are genuine or just an attempt to legitimize the compensation plan
Those are usually the key factors that regulators focus on when evaluating schemes of this kind.