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FIB - Scams 101 - Ye Olde Archives
Posted By: Larry Foster <blackstonecap@yahoo.com> In Response To: Do You Know What MLM Is? (Nathan Haines)
Monday, 7 August 2006, at 6:14 a.m.
Although most of what you say seems correct, there are a couple areas that you are stretching it a bit.
Marlon Sanders runs a 2 tier affiliate program. There is no payment for recruiting, only sales of products.
He doesn't charge for his right to sell. I have yet to see a MLM that doesn't have a fee just to join.
> Gurus. Don't listen to what they say watch what they do. They use MLM.
> They create products with "resale rights", which people purchase
> and then sell to others, who in turn sell...
Each and every time a product is sold, there is no reward for referring.
> For example, read the sales copy in Marlon Sander's "Amazing
> Formula". Notice how he explicitly encourages his customers to resell
> the product? That's just slipping MLM through the back door.
I answered this. I don't think MLM is slipping through the door because it's not MLM.
> Additionally major companies like Paypal have used MLM-chain selling to
> itself. They did something simple. They gave a $5 credit for referring a
> friend, who in turn referred a friend who... Worked like a charm.
Does the first referrer get anything for the friend's friend? If not that's just lead generation.
Paypal is pretty strict on MLM schemes. It is next to impossible to run a 2 tier affiliate program through them.
Marlon Sanders is one of the very few that does. Leads me to believe that Paypal isn't endorsing MLM
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