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Barkers
Eggs in Network Marketing
Any
MLM “opportunity” that offers a false vision of
success without time, effort or self-discipline is almost certainly a barkers’ egg. Discover why this
is so critically important: download this eye-opening FREE Insight Report now. (Click on the cover image
to open in a new window.)
You
rarely realise how much time and effort you’re wasting
until the realisation dawns that you’re not making any
money. You’re usually just spending it, instead.
Compensation
plans are the prime area for finding barker’s eggs in
network marketing. That’s because the reality behind the
fancy names and packaging is typically a lot less attractive
than they’re made to sound and appear (because so few
of them really deliver on their promises). For example...
“Infinity”
Bonuses
The
inference the promoters of Infinity Bonus plans (usually
uni-level plans of some kind) want you to draw from the
name is that you’ll be paid bonuses to infinity
or the entire depth of every leg of your business, forever.
The
reality is nothing like this. In fact, being paid “to
infinity” on any leg of your business is actually
a worst-case scenario in most instances. Here’s why...
No
company can afford to pay out more than it receives for
its products. It will go broke overnight if it tries.
In fact, it usually needs to keep at least 40% of the
wholesale price to survive and be profitable. So paying
out to “infinity” would really mean that the
amount you’d receive on each level in any leg would have
to be so small it would hardly be measurable!
Unless,
of course, that leg is very short a few levels
only.
“Infinity”
bonuses and uni-level plans were invented to overcome
the perception amongst network marketers that breakaway
plans are undesirable because you lose your downline.
(Fear of loss is a powerful force in overcoming rational,
objective reason. It triggers inflammatory
emotions that lead people to do the wrong things for all
the wrong reasons, consistently.)
Stop
and think about that for a moment:
Companies
can only afford to give away a limited percentage of the
product wholesale price of they risk going broke.
Breakaway
plans mean that, once your downline reaches a certain
level of sales volume each month, they break away from
your personal group. (You usually receive override bonuses
on their volume for as long as they continue, at a higher
percentage than you actually received in the months before
they broke away but people forget about that fact
because they’re so focused on their fear of loss of their
downline.)
So
the smart operators who invented unilevel plans, with
their “infinity” bonuses, were able to promote
them very effectively to people who feared losing their
downlines.
You
don’t lose your downline, ever.
You
get paid to “infinity” on every leg of your
business.
Yeah...
right.
Except
for the harsh reality that NO company can afford to pay
out more than it needs to survive and be profitable...
and stay in business!
So,
even though you never lose your downline, once they reach
a certain level of volume and qualify for their own “infinity” bonuses, YOUR infinity bonus is shared (read “reduced”)
until it’s all gone or “blocked”. And
that can be from your very first level if the people you
sponsor achieve the same rank as you.
Uh
oh!
Never
losing your downline? Sure. You keep them forever.
You
just lose the income they produce instead!
Ever
heard of a Barker’s Egg? (In unilevel plans they’re called
“infinity” bonuses.)
Similarly,
beware of MLM programs that use fancy names and packaging
to disguise methods or concepts that are proven failures.
Example: The automatrix has been an consistent flop as a way to
build MLM since it was introduced in the 1980s. Even the
name is a barkers’ egg. It’s often little more than a
distant relative of the old, illegal pyramid selling schemes
or ponzi schemes. (Learn more about these at www.IsItAPyramid.com.)
Of
all the automatrix structures, one stood head and shoulders
above the rest as a failure, in crash after spectacular
crash around the world. That was the 2 x 12 matrix. No
other automatrix has ever come close to matching its dismal
record.
Then
out of the blue, in the mid-1990s, we had a new crop of freshly resurrected 2 x 12 automatrix schemes
but with fancy new names and fancy new packaging to obscure
their very ordinary history.
Instead
of a breakaway 2 x 12 matrix, they’re now non-breakaway,
open-ended 2 x 12 matrices where you simply re-invent
yourself downline as your own “great-great grandchild”.
To obscure the reality even more, they sport fancy new
names to create the exciting illusion of something fresh
and different.
Reality
Check!
A
“Binary Lateral” plan is nothing more than a fancy way
of saying “two-sided” (just as “Barkers’ Egg” is nothing
more than a fancy way to say “stale, bleached dog turd”).
Reality can’t be kept hidden for very long once the misleading
packaging is stripped away. Nor can your motive. It’s
plain old deception (or stupidity, if you really believe
all the nonsense), no matter how noble your claims.
Another
example: Just because a scientific principle applies
to the growth of plants and animals doesn’t mean it has
any relevance to MLM reward systems, no matter how emotionally
appealing the notion may sound.
The “Fibonacci Sequence” may stop your nose from growing as
long as your leg, but using it as fancy packaging and
a fancy name may hide just another Barkers’ Egg if you’re
not careful. Especially if it’s wrapped up in the appealing
concept of making money before you buy any products.
And especially if that means you could be in breach
of the Australian Trade Practices Act. (It did. And it
was. It’s now long gone, and deservedly so.)
Remember…
the courts judge you on the reality of what you DO,
not the illusion of what you SAY you do. Hiring
a MLM company as a “marketing consultant” to do your recruiting
for you may sound like a quick, effortless way to build
long-term financial security. But if the reality is that
your rewards are coming from what is effectively a “head-hunting”
fee, you could find yourself in illegal pyramid selling
territory, facing the hefty fines and jail terms that
apply to people and organisations convicted of inducing
others to join such schemes.
Do
your homework!
Look
beyond the fancy labels and glamourous packaging. Take
a long, hard look (and an even longer, harder sniff) at
what’s behind them. You might just save yourself a lot
of time and effort — and court-applied discipline!
Remember…“all
that glitters is not gold” is especially true of
MLM.
Download
the FREE Insight Report “The Little Known Law
of Success (and the even lesser-known Law of Failure!)”
from here...
http://www.TheLawofSuccess.info
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