MLM with 100% commission true or scam?

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Hey Warriors friends,

Am I right to assume these big shots make THEIR money recruiting members who pay THEM $50/month for membership?

Of course they don't care if you sell or not, they're making $50/month regardless!!

100% of ZERO equals ZERO!!

I've either misunderstood something or it's definitely a SCAM!!

What do you guys think about this?
#main internet marketing discussion forum #100% #commission #mlm #scam #true
  • Banned
    MLM commissions of "100%" usually turn out, when you read the fine print, to be "100% on selected sales only". Just saying ... :rolleyes:

    (And if you don't like reading the fine print, don't ever join an MLM!).
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    • And after you read the fine print you will not join any MLM. Just saying.
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    • whoa alexa, you look like a singer I once knew in LA.

      Anyway, yea making serious cash in MLM is tough, but it is possible. Depends on which MLM you're referring to, but many of these enormous companies, Amway, Herbalife, MaryKay etc, make billions and are indeed paying out commissions, so someone is making money. Usually the guy at the top of the pyramid though.
  • It could be true because in order to grow some MLM networks do that but they also would have some other twist where they would make cash.
  • I think it's safe to say that MLM is a bunch of BS!!
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    • I think it's even safer to say you don't know what you're talking about.
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  • hopefully the sandwich will be good..
  • "Gee mom, that sandwich looks great."

    "It sure does, but did you know that you can double your sandwiches if you just give me this one."

    "But, it's my only sandwich..."

    "Don't worry. My patented system will ensure that you get two sandwiches every week for the rest of your life. What could be wrong with that?"

    I wonder if the creators of EN like bologna sandwiches. I mean, they basically are a bologna factory, right?
  • "Son, if you want my sandwich you gotta buy it from me"
    "Buy it from you?? Some mom you are!!!"
    "Yes my son, you must know how good it tastes before you can sell it to your sister"
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    • This is classic. I'll have to post on my refridgerator.
  • The information you've presented isn't enough to determine whether or not it's a scam...

    If they're doing exactly what they say - charging you a membership fee, and you keep 100% of whatever you sell while you're in their program, then it's not a scam. If they don't hold up their end, then it is.

    Of course they're making their money on the membership fee - they can't make it on the products if they're giving you 100%. But is this particular model "scammy"? I say no.

    Detach yourself from the MLM mentality and think about it like this ... your web hosting company charges you money to host an online store, right? You are paying them $5 or $50 or whatever per month for that service they provide, and you get to keep 100% of whatever you make as a result of your site being up and running.

    No one would call that a scam, would they?

    So... how is this model any different? They are charging you a fee to access a product or group of products that you can resell, and you get to keep whatever you make. Nothing wrong with that model at all.
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    • You can not detach the analysis of this model from its multilevel nature. Because that is the fundamental to both the analysis of the problem. It also is why your comparison is invalid.

      Here is why you comparison is invalid:

      In your comparison people buy web hosting for say $25 per month, but then sell other products from their site to generate revenue.

      In the multilevel variant however, people buy web hosting for say $25 per month, but the only product they can sell from their site, is the same kind of web hosting. As such, the web hosting has no value, other than to promote the scheme. Plus: It's an endless chain. There is no reason to join the chain other than to get others to join. And at any point in time, there will be more losers than winners.

      The
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    • That's assuming they have a real product to sell. Most of these companies sell other sales of sales of sales. their "product" is the training you get "once on the inside" which only teaches you how to go out and continue selling sales of sales of sales.

      Mary Kay, Avon, etc - they have a real product. You pay to play and you pay for demo supplies - but you make money on real product being sold. That's the distinction I draw between scam and truth - if the buyer actually receives anything of real value in return. Vs a pipe dream built on stage magic.
  • Oh yes the theory is legit.. But the dream they claim is what it is, a dream. Maybe scam is the wrong word but the creators knowingly are selling fluff for 50 bucks a month. That's the scam ..
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    • You didn't give us enough information to come to that conclusion though - you only mentioned the pricing model.
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  • Banned
    Scammy scammy bullshit scam!
  • 100% on MLM? if i get this right, when i buy into the network and sell to my buddy, i get 100$ commission, right? then if my buddy sells it to his neighbor, he gets 100% of the sales, right? so, as a MLM, i should get a commission from my downline's sales, too. where's that gonna come from? and it goes on for some more levels deep (usually, 7 or 10 deep).

    how could that work? who's going to shoulder the downline commissions? or is it just a single level network (affiliate marketing) pretending to be MLM? lol
  • The pricing model is a scam because in order to sell the products we gotta first buy them. And yes we all know we're talking about EN..
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    • EN? Oh. Well in that case, I change my answer.
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  • I find all of this a bit unfair guys. The fact that some people NOT the owners are making a lot of money with these 100% commissions clearly shows that they are NOT a scam.

    Scam is a big word and I think people use the word SCAM when dealing with MLM companies because either

    1. They have tried it and didn't make money or
    2. They are sitting on the side lines bashing these companies to make them feel better.

    It is just like me saying all GYMS are SCAMS. You join a gym knowing you have to pay monthly subscriptions and you KNOW you need to be committed and go all in to get results. Just like these MLM companies, no difference.

    Same results, the majority of people just end of slacking off but keep paying the monthly subscription. Is this consider a scam? No. But when it comes to making money, scam gets used immediately as soon as they realize it is not a push button get-rich-scheme.

    In fact, can someone please point out a MLM company that is NOT a scam?

    Sorry, I got carried away, just the word SCAM makes me upset.
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    • The fact that some people may make money does not mean it is not a scam.

      In any illegal pyramid scheme, there will be some net winners and some net losers. However, it is mathematically inevitable that there will always be more losers than winners. It is a scam, even though some will profit.

      In any illegal ponzi scheme, there will be some net winners and some net losers. However, it is mathematically inevitable that there will always be more losers than winners. It is a scam, even though some will profit.

      For an MLM company to not be a scam it really only needs to do 2 things (obviously ianal and this isnt an attempt to list every legal requirement).

      1. Describe, Market and sell its products fairly and honestly and according to what is legal (just like any other business).

      2. Deliver a valuable product, such that the substantial majority of the company's sales revenue comes from sales to retail customers (that is people not participating in the mlm bizop).
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  • Yeah, you got a point. lol

    So all this being said, and I'm pretty sure it is asked quite a lot of times within this industry.

    What MLM companies are worth joining? Cause if these so called 100% commission MLM are no good. What are good?
  • Ok, first of all, MLM is not a bunch of BS. MLM is not the be all and end all that it's often referred to and it rarely results in meaningful residual income for the work invested, but it's a legitimate business model and some MLMs do very well and some people do very well in them. I have a ton of friends who make 6 and 7 figures a year doing MLM. There are some great questions to ask about an MLM though before getting started:

    1. Would you buy the product at the price they are selling it for if there was no business opportunity attached to it? If the answer is yes you're off to a good start because ultimately it is sales of a product that drives the long term success of the company, that's why companies like Melaleuca, NuSkin, etc. are so successful because they have legitimately high quality products at reasonable price points. This is the fundamental of any business.

    2. Is the product something that's consumed on a repeated basis frequently? If not it generally isn't a great candidate for an MLM for example there's a reason you don't see successful MLMs selling cars, you need consumables in order to make it worthwhile because at the lower commission rates compared with pure sales (MLM is glorified sales and sales management) you make it up on the recurring sales. This is why utilities, skin products, etc. tend to make good MLMs

    3. Does the compensation plan provide reasonable incentive and enough money to actually make it worthwhile as compared with simply marketing and selling the product directly where you'll get much higher margins

    4. Are you willing to go talk to a lot of people constantly day after day for years? That's what MLM takes, it's a people busy, being on the phone, having coffees, etc.



    As for Empower Network, now that we've at least cleared up that this is the MLM in question, from what I understand it's not a scam, whether it's a great MLM that's a completely different question, people do definitely make money at it but don't judge the external veneer of the comp plan, delve into it to see what it really means.
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    • Aside from the obvious that has been discussed here (legit product etc.), one of the key criteria for me would be what it takes to go "all in" - meaning all the products members would have to purchase in order to qualify for ALL commissions that their new leads might make them eligible for if only they had "gone all in."

      In the case of SOME network opportunities that amount can go into the hundreds and even thousands. And exactly how much that would be should be disclosed very clearly up front (in nice charts, the same kind they show when they discuss the commissions you could earn), so people will know how much they have to spend BEFORE they join the network and can make an informed decision.
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  • lol it depends on the company. my best advice is do your research and stay away from people from both ends (those who say MLMs are the best thing since sliced bread && those who think all MLMs are pyramid schemes and major scams)
  • I have 2 membership sites where the member make 100% on any product sales. I'm about to open another where the member get complete sales funnels with squeeze pages, main products, upsell products and downsell products, all hosted for them with all the advertising tools supplied.

    I make my income on the membership fees. This is not MLM.

    GVO is selling Pure Leverage and I believe the members receive 100% commission on their first month only. Not sure because I don't promote MLMs.

    Best regards,
    Steve Yakim
  • With EN, After fees and more fees, you'll get like $87 deposited to your affiliate account; which you pay $20 per month for.

    After that, they charge you a fee to withdraw your money.

    It's no wonder leaders from EN are creating their own products and selling them outside of EN. No more triple fees. :-)
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    • I hear you, I have dabbled in the Network Marketing/MLM space since 2007. I created my own course in 2011 and mainly focus on my own product. I do funnel people who don't by my course in some of the better Network Marketing/MLM that I am still part of....but your right. Creating your own product is the best way to go. Hands down.....



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    • I verify it every month when I cash the check.
  • While I somewhat agree with Alexa that there are some legitimate MLM companies:

    I believe they are the devil, and wouldn't touch them with a 10 foot pole
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    • Same way i feel about working for a major corporation. You can work your butt off and never even see who's at the top.

      I don't like MLMs either but everything in life is a pyramid. There are just some that relinquish more control to you. Example is Network marketing opps.

      Just like skydiving isn't for everyone, network marketing isn't for everyone. Only the strongest (or slickest) survive. If it's not for you, then let it be.

      That's why i dropped all network marketing opps. They don't even appeal to me anymore.
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  • Banned
    You guys need to understand that MLM is list building, just for someone else, however it is literally no different than affiliate marketing, you just get lower commissions but its residual, so it makes up for it. Its like owning a site, th more traffic you get to the offer you get the initial commission and then the residual percentage. The only downside is that you dont own the list but the upside is, a majority of the companies at least the legit ones let you contact your "direct" downline directly and it is residual. So long as the product and service is worth it, viable and is something that everyone is going to use in that market anyways is good.


    NOW! shit like legal shield, amway etc...those things suck because it is those things that make MLM look bad because 1) it requires direct selling 2) the ones selling it are not professionals 3) when you buy it you feel scammed because the person who sold it to you 99.9% of the time aren't professional or successful enough to coach you 4) it is exactly that reason why it is scammy, it wouldn't be scammy if they provided a business coach. Your basically left on your own. It is crap like this that makes MLM look bad.

    Online MLM programs are legit and are definitely worth it, its like a building blocks game and its fun because all you have to do is build the list and you dont have to manage any of it, the companies product/service will do it for you.

    MLM is not bad the dumbasses that sell "Opportunity" to you like the gurus in IM are bad.
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    • So true.. The biggest problem is your upline does not learn how to be a proper coach or mentor for you. When you go into Network Marketing, you need to buy the proper training if your not willing to stick it out and learn to be professional yourself. The most successful network marketers invest in thier learning through programs outside of the company.
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  • The numbers don't lie. I believe mlm companies have been given a bad name because so many people join on hype and think something magic will happen. They often don't want to put in the work it takes and actually are not business people. The mlm business model is actually a very sturdy one. Even Donald Trump spoke highly of that type of model. Just sayin'
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    • My problem is that this is EXACTLY what MLM companies tell you will happen!

      THEY are the ones who drum up the hype and THEY are the ones who promise that you'll be sitting on your butt making 10k per month.

      I'll agree that MLM is a legally sound business model but the more successful ones gain popularity by promising the road to easy and quick riches. You can't blame the people if they think that MLM's are magic if that is EXACTLY what they themselves purport to be.
    • True. The main reason for failure in mlm is that people sign up, buy as little product as they can to be a distributor and do nothing. They expect magic to happen. When nothing happens and the first or second autoship comes due, they call it a scam and quit. Very similar to buying a WSO and not even reading it. The fact that you bought the WSO is meaningless if you don't apply what you learned.
      I personally wouldn't use Donald Trump as a reference.
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  • Usually there is another payment on top, for example $19.99 a month to become an affiliate and promote their products, then there's a basic 5% fee on top of all sales, so you don't get the full 100% commissions.
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    • That's true in many cases. I work with Xplosial and they too pay 100% commissions but as was stated earlier in this thread not 100% of the entire cake.

      They charge 20 bucks per month to be an affiliate too, but I mean come on they have to make something right?
      All in all though I love it because you can make some good money! they pay 29 dollars every month per person you recruit! and 129 per person that goes platinum membership!

      I also looked into EN but I do agree with you all it's just not realistic for most people. I mean to buy "all in" is like 3500 dollars!!!!

      No way I am gonna do that but to each his own....they do have like 74000 active members I heard.
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  • MLMs are a scam in general. 100% commission or not.
  • Making real $$$ with MLM is just as unreal as making real $$$ with a lemonade stand.. Now if you want to believe the hype, go right ahead.. but before you do, just make sure you pay the "all in" amount of $4000+..
  • I like MLM... not every so called mlm company ofcourse but some ...
    i have lost more money listening to every shiny "real deal offer" here in wf.
  • Many warrior members dont like MLM and most of them, are broke and complaining about the situation. Sometimes i get messages on Fb from warrior members asking me how a 20 year old boy is making enough money to have a nice lifestyle.
    Many warrior members trying to make for years but nothing...lol
    I can tell this because in my team we have more than 50+ from this forum.
    MLM can be the easiest thing to start building a 10k/mo business and just few months.
    But many people are just trying to build a mini website,blog and ebooks to sell for $7 on the warrior forum.
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    • Haha, I like this guy

      So true. What a 'funny' crowd here. MLM - despite it's flaws - is a proven system where people with little or no capital can work hard and eventually make very nice incomes. Heck, some even get rich.

      Instead, these same people will foolishly buy 'get rich quick' WSO's!
  • A "scam" is when the feds come and take you to court.

    If they say they'll give you 100% commissions then they will.
    People on Warrior Forum do it all the time.

    They make their money back and much more on the Back-End.

    So be happy with your 100% Commissions and eat your sandwich.

    JP (jelly and peanut butter)
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    • Banned
      Or the industry regulators do. Or the state's Attorney General does.

      Exactly as has happened with the predecessors of this company with the same sort of business model and without a high enough proportion of retail customers to satisfy the legal requirement (just as this company also doesn't have - by its own admission).

      Yes - I agree with you: those can certainly be among the defining characteristics of a "scam". And courts are quick to say so, when eventually asked. And they are, inevitably, "eventually asked", just as they will be in this case. And the reasons for that - as many lawyers are saying - are perfectly apparent: it's not like there'll be any "big mystery" or surprise about it, when the inevitable happens, exactly as it has done to all the others.
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  • MLM has a bad reputation because the top players are great at selling the dream of easy riches - no different than many get rich quick program sellers here and elsewhere.

    When people fail those that do manage to make money in their MLM bring out those old tired lines about people being too lazy, big failures, etc. However, when they are recruiting these same folks, they fill them full of dreams of easy riches. So, who is responsible for people thinking that they can do well by bringing friends and family on board?

    Of course, people not used to selling anything are going to go for the low hanging fruit. What MLM hawkers don't tell you upfront is that you really need to have natural salesmanship skills in order to build a strong downline.

    Most people don't have this sales talent. Sales is a skill that takes training, but most are not cut out for it. So, you have those people that are talented in sales rising to the top. They look down their noses at those without these skills and say they are losers for failing.

    No, most people just do not realize that MLM requires a lot of time and effort selling. Selling the opportunity and selling products.

    If MLM would be truthful and tell people they need to be good in sales, there would be a lot fewer joining. When a sales job is posted, the applicants are going to be those that are willing to learn sales or already good at it. A typical sales job does not bamboozle applicants about how how they can make thousands with hardly any effort.

    Another thing that I know from my own experiences with MLM...

    Most companies have successful MLM heavy hitters that build huge downlines and move from company to company. New MLM companies bring these people on board to give the company a jump start.

    Then they convince people without this huge advantage that they can easily recruit and build a downline. Sure, a few of these experienced people take time to offer training, but most don't.

    Even when training is offered, most people without a built-in downline will fail because they realize they've signed up to something that requires a lot of direct SELLING to get people to join. They don't want to do this type of SELLING (or find it too difficult) so they naturally drop out.

    The MLM rah rah brigade insists people fail because they don't have what it takes to be successful. Ha ha ha. No, most don't want to be a part-time salesperson on top of their regular job. It is difficult to promote MLM no matter what products are being offered. That's reality.

    Some MLM companies advertise directly to salespeople by disguising the opportunity as a regular sales job. Then they do the same song and dance of promoting the good life, etc. Even most salespeople pass because they want a real job with a brick and mortar company.

    MLM companies suck you in by getting you to become a TRUE BELIEVER in the company culture. It's almost cult like in some companies.

    This is the truth about MLM. Those doing well can say what they want, but in my opinion, it's not a good business model at all. Those at the bottom help make a few at the top rich. Shoot. You can do that at a regular job while earning a paycheck. Who wants to pay someone to do that?

    Not me.

    It is okay to try different business models and fail. That's how you learn. MLM is one model that does not work for most. Those of you that are doing well with it - good for you. You are part of the fortunate few.
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    • You just described EVERY BUSINESS that exists.

      The people at the bottom - aka the 'bottom dwellers' don't get rich. Why would they? They haven't demonstrated the drive, skill, or ability to rise the ranks.

      That's true of ALL JOBS in all fields. The CEO makes the big money, while the worker bees do the heavy lifting.

      The same is true of 'Affiliate Marketing.'
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  • The best way to succeed in MLM is to start your own.
  • after When You Done reading The fine Print I Know You will Change Your Mind From Joining The MLM.
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  • You have just learned the biggest lesson of life. If it sounds too good to be true then it probably isn't. Yes, are their exceptions to this rule; absolutely, but life is a game of percentages and you have to work the majority of the time with the percentages or odds in your favor to win consistently. Las Vegas does not exist because the majority of visitors are taking more home than they bring! Think about it.
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    • Which would all make perfect sense if running a business were like shooting craps.
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  • I think EN makes their money from the payment system they use, eWallet, at $19.95/mo which they charge their members. On their blogging platform of $25/mo and all their other digital products, you get 100% commissions.
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    • A lame first post. I think you need to revisit their compensation plan!
  • From what I've seen when i've dug into these models is they are giving you 100% commissions but its like of every other person you get on board... so in reality that is just 50% commissions skewed into making you think you're getting a lot more out of the deal

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