Any advise, comments and opinion on this?

2 replies
Hi guys,

I have been interested in programs that are related to matrix scheme.

Have been researching and reading alot on them.
Just want to have some input here from people.

Basically its something like MLM.
But to me there are 2 kinds, 1 offline MLM where its big companies selling health care stuff with matrix payment scheme and the other is the online one.

Whatever it is, i just feel that there is a negative conotation to it.

And i was curious to find out once and for all if its illegal or people just dont like the way they push products and membership on relatives.

Legality of business is one thing, hating the sales people is another.

I have been seeing alot of online ones poping up.


I dont think im able to post links here for reference.
Will update it here in future when i can.
But basically what it is, is that they offer you some kind of membership, like any ordinary IM club, there are materials inside but the main thing is the membership and the opportunity to make big bucks by refering.

So the ones i saw is like $10 to $20.
Then the account types are associated with precious rocks like ruby, sapphire, diamond etc. WIth upgrade etc etc.

So i was finding out more..
and basically this is what i understand from wikipedia and other sites.

1. It can be quite confusing as different countries and states have different law ruling the land.
-so this in itself is quite hard, especially for online "mlm". Because online mlm are not bound by geographic location.

-so example, what happens if the company is in US, and it complies with US laws, but i am part of it, as in promoting the schemes in singapore and the business doesnt comply with singapore law. or the other way round, i start the Business in singapore which doesnt comply with the law, it does comply with US law however, and i market to US.

This 2 situations can be quite confusing.

2. FTC and other countries law do have an issue with MLM or matrix schemes, in terms of the legality part. But after much tweaking of the laws in the last since 1973, there were exceptions that some kind of MLM were allowed and others were not.

So 1stly, Insurance companies, health care companies, banks, etc they are examples of what is a legalised matrix or pyrimid scheme.

Then they went on to explain what is not allowed.

- Having no product or service to sell but just a membership fee.
- Recruiters recruit recruiters and so on, not actually selling the product.
- Prospects must buy or pay or financially benefit the scheme to be part of the scheme to earn money. [meaning they cannot be just affiliates, they must be paying customers too]
- Scheme's main focus is not on the product/service but the money manking opportunity. Thus most of the time, a low quality product is in place just to cover up or for show only.
- Scheme's product/service must have reasonable measures which comply with the trade industry for example quality of product, and refund policies.


So actually all this are good, it makes sense. i can go on and on BUT just pointer 3 alone kills all MLM, network marketing, pyrimid, matrix scheme. Whatever you call it.

Because if it does allow you to make money without actually personally benefiting the company in any way, then that makes you just an affiliate or an agent.
And then the question will be, do you promote the business's product or do you promote the business's money making opportunity. ?

If you promote the money making opportuniy then you will be recruiting recruiters and since all are "agents" and there isnt a need to pay anything then no one will be earning anything. And anyway, this in legality is illegal.

That leaves you with promoting the business product. Then what you get are consumers. And it ends there. 1 level deep only. As consumers will only buy and not push the product further down the levels.
So in other words you are just as good as an affiliate.


What you guys think?
#advise #comments #opinion
  • Profile picture of the author new2this
    Originally Posted by Ken_Caudill View Post

    you'll probably make money provided you have no scruples about living off the efforts of others.
    i do agree with you.

    But isnt this the same as other 2 teir affiliate system.
    Like cpa networks, they pay you 5% of whatever your downline earns.

    Like you recruited another affiliate, they pay you 5% of what he earns.

    Then i heard the arguement of the effort.
    Where by you did some effort to recruit this guy, whether it is advertising, marketing etc. And also maybe training him to earn money, so of cos it make sense to compensate you with a portion of what he earns.

    does it?
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