I guess when you think about it, for
years there have been those that
have tried to convince others
they can sit back on the couch
and address postcards, or surf the
internet and get rich!
Seriously this is probably the craziest
mlm product I have ever seen.
At least it is consumable.
Just proof that any Moron can
start a MLM Company. This is
going to be interesting to watch.
I wonder what the response
by the government is going to
I heard the Grateful Dead are
doing a concert at their 1st
company convention. LOL
I found this old article that was written by
Len Clemmons around 1996, Yes that is
14 years ago.
Why Are Internet Malls A Scam?
Everyone wants to cash in on the Internet explosion
and the rapid growth of e-commerce on the web.
Every week some 20 year old opens a new Internet
company with an IPO on Wall Street and becomes a
And Internet Malls look like a great opportunity
for the average person to participate in this
new financial frontier.
At first it was simply Internet “Discount Shopping Clubs”,
such as “Top Secrets” where you could become a
member for only $198, plus have the opportunity to sell
club memberships to others, as well!
The fact is, the only reason anyone bought the
membership was so they could have the right
to sell it to others. The “Discount Shopping Club”
was a virtually worthless commodity.
And now the network marketing fad is “Internet
Shopping Malls”. They are showing up on the Internet
at the rate of two or more a day, it seems.
BigSmart.com, KM.net, PriceNetMall, teamglobe.com,
SkyBizMall, PrimeBuyMall, and many, many more.
The people who start these malls make a lot of
money, because people unfamiliar with the Internet
really believe they are on the cusp of a great new
And the first few levels in the downline make money,
too. This generates checks they can wave at their
new recruits and the MLM “get-rich-quick” fever
quickly spreads. This works well with any new and
different product and good honest hard-working
people invest a lot of their time, effort, money and
emotions into promoting their new Internet “business”.
First came the subscription web sites offering links to
other people’s “free stuff”, producing MLM’s pyramid
schemes such as “Free4U Online”, “thewwwlink.com”,
“FreeMart Online”, and “YourFreeMall”.
All scams… All failing.
And now “Internet Malls” are the MLM “sizzle” gimmick.
So are these malls a genuine business opportunity or
a potentially illegal MLM pyramid scheme and money
Here are parameters posted by the FTC:
“Multilevel marketing plans, also known as “network”
or “matrix” marketing, are a way of selling goods or
services through distributors. These plans typically
promise that if you sign up as a distributor, you will
receive commissions — for both your sales of the
plan’s goods or services and those of other people
you recruit to join the distributors.
Multilevel marketing plans usually promise to pay
commissions through two or more levels of recruits,
known as the distributor’s “downline.”
If a plan offers to pay commissions for recruiting
new distributors, watch out! Most states outlaw
this practice, which is known as “pyramiding.”
State laws against pyramiding say that a multilevel
marketing plan should only pay commissions for retail
sales of goods or services, not for recruiting new
Why is pyramiding prohibited? Because plans
that pay commissions for recruiting new distributors
inevitably collapse when no new distributors can
be recruited. And when a plan collapses, most
people — except perhaps those at the very top
of the pyramid — lose their money.”
All of the above mentioned “malls”, “free stuff” web
sites and “SkyBiz” are smart enough to present their
opportunities in a way which dodges the FTC
definition. But take a look at the “product” they
are all selling-
Web sites – cyberspace – virtual reality – electrons…
The cost to self-replicate all of the web site design
including the personalization involved for each web
site business owner amounts to pennies. So if you buy
a “Tripod” from SkyBiz for $330 or three standard
BigSmart.com malls for $929.85, the money is almost
all pure profit.
There are better products available which offer more
for much less money in every case.
So the product itself has virtually no intrinsic value.
Are these products useful?
A few people will use their SkyBiz web sites for fun
and for posting pics of the kids so Gramma can see
them from across the country. But this could be
done elsewhere for free (with or without sponsor
And will the Internet public shop at these individual
“Mall” web sites? No! Why does anyone believe
that Wal-Mart wants to see everyone in town own
their own Internet shopping mall? There is no
evidence that a need or demand exists for millions
of Internet shopping malls.
A product no one really needs, wants or asked for,
sold at an outrageous price, which is pure profit.
MLM pyramid scheme designers are clever enough
to use a phony product sold at a high price which
pays large “commissions” to new recruits. In fact
what is happening is that people are making
money by simply recruiting new people and being
paid from their investment in the new “business
opportunity” and nothing else.
Their only income is from an ever-expanding
network of new people being brought into this
shell game, until the largest leg and the lowest
level of the MLM pyramid collapses and the
whole game ends.
The people at the top get rich, the folks
in the upper levels do well, but the majority
of the people get burned.
But at least these people still have their
Internet Malls, right? They can make money
from commissions paid on mall sales, right?
Not likely in the first place. More importantly,
once the MLM expands as far as it can and
the money stops flowing, the owners will
vanish to an island in the Caribbean, the
ISP will turn off the servers, and the entire
Internet Mall community will vanish in an instant.
No malls, no refunds, no commissions.
Every bad MLM opportunity makes money
for the people who start it. And where
does that money come from? From the
thousands of people who do not research
these companies and their products before
investing their hard-earned money into
The Internet Mall fad will pass – and the
sooner the better!
NOTE FROM DALE
I find it interesting that in the last few months
this business model has been tweaked with
very low paying affiliate programs and and
gained popularity again.
As we have talked about many times.
The Attraction marketing affiliate promoters
of today are the “mail audio tapes” network
marketers from 25 years ago.
Not following me?
Ok, let me see if I can locate another old article
that will put this in more perspective from my
friend John Milton Fogg …
I FOUND IT HERE IT IS ….
Start of Article (Keep in mind this was
written over 20 years ago)
Prosperous Prospecting Alone Does Not a
Successful Networker Make
John Milton Fogg
The new generation of mass-action prospecting
has me concerned for two reasons:
First, many of its proponents seem to be saying
the old “warm market” person-to-person approach
is dead, or should be, and that the “so-called”
experts that advocate same are killing Network
Second, I am witnessing an exponentially grown
group of once-upon-a-time distributors who were
persuaded to get into the business at the eyes or
ears of someone’s book or tape blitz. But now
they are out of business, because they were never
trained to do anything more than mail me a cassette.
SIDENOTE (Today you could say run google adwords
join safelist program, or join every social media site)
DO NOT, please, get me wrong – prospecting with
tape cassettes (or books) is a great innovation –
proven, positive and powerful. Uplineâ„¢ writes, records
and sells lots of them, so you know weâ€™re all for them.
What I am not all for is the promiscuous prospecting of
hundreds and thousands of “leads” without the prerequisite
training and support that keeps those who take the plunge
in, growing their businesses and continuing to succeed.
And I predict that some companies and some distributors
are going to crash when the prospecting merry-go-round
is forced to go around all by itself.
You send me your hot little 12 minute tape with a
personalized Post It (Iâ€™ve missed you, too.) Funky tape,
but something intrigues me. You call.
Did I listen? Yes, I did. Did I like? Sure. Will I give you
$50 to become a distributor, buy some initial inventory
(of tapesâ€¦ of tapes â€¦) and send them to all 8,205
people on my Christmas card list without pre-qualifying
them? (Hilary who?) Sure.
Now what â€¦? In less than six months, I have an
exploding Network of Tapers: ordinary men and women
who have mastered the extraordinary prospecting-by-tape
system pioneered by a technologically-handcuffed
Successful prospecting alone does not a Network Marketer
make. The tapes are probably the best way in the world
to get people interested and into the bizâ€™ cause theyâ€™re
so simple and duplicatable. But unless your prospecting
success is followed by teaching the knowledge of Network
Marketing business-building and people skills, itâ€™s a
short-term, get-rich-quick , pyramid scheme where a
few make money at the cost of the many.
A business built on sand.
It takes more than sending out tapes and faxing-back
signed applications to make your Network Marketing
business last – much more.
-Reprinted with permission from Uplineâ„¢, 800-800-6349.
NOTE FROM DALE
Is it me or the similarities between this and MLM Training
Pro whatever affiliate systems the same model, just
25 years later?
The tape mailers of 25 years ago, sound like the
“Attraction Marketers” of today. Blah Blah Blah,
Warm market is dead, blah blah blah, proven local lead
generating systems are dead.
You need to be mailing tapes, I mean doing it all
on the Internet.
I apologize, I realize this post has gone in a different
direction than I had originally planed, anyway ….
Here is what you really need to understand.
A generated lead is a generated lead.
It doesn’t matter if they respond to a Google
Adwords add or picked up a Drop card at your
local CVS drugstore.
The failure rate of people is NOT GOING to change.
The people that were misguided 25 years ago and
thought mailing tapes was the answer had the same
mentality of the do it all online networkers of today.
As most of you know I have over 100 websites in
various niches. I buy expired domains weekly.
You would be shocked at how many domain names
LeadSystemsProGold (I actually saw that one this
week, I would have bought it but it was getting no
Attraction marketing that, MLM Coach I am,
Online MLM Pro whatever domains are expiring
Now think about it, look behind the curtain.
What does this tell you?
Exactly people bought into the you can do it all
online BS and then failed miserably.
70% of the population will die and not even be
able to pay for their own funeral. You are not
going to change that, I am not going to change
that and neither will any “Secret System” your
upline doesn’t want you to know about.
I better stop now, but if you want more thoughts
on this subject you can check out this post:
It’s only a word.
But it carries with it so much pain
and so little concern so much frustration
and so little respect …
so much stress and so little
understanding that people spend their lives
running through their days
in the hope of avoiding the long arm
of this little word. To test our vision, you
must risk failure.
To temper your ego, you must attempt
To tell your story, you must
take your chance.
To see beyond the horizon, you must
spread your wings.
To be all you can be, you must
stretch, flex, try, and go beyond
your proven limits.
To bridge the silence, you must risk
To advance into the unknown, you must
risk the peril of all your previous beliefs and
emotions that feel so secure.
Failure is not negative. It is a teacher.
It molds, refines, and polishes you
so that one day your light will
shine for all to see.
It isn’t the failure you experience
that will determine your destiny,
but your next step and then the next
that will tell the story of your life.
Before we get into this topic, which is not
really a MLM Training, but something to
think about, let me ask you another question.
What is the difference between investing
money and spending money?
When you invest you are expecting a return
correct? That might be in knowledge, experience,
or cash to your bank account.
I have always tried to live my life by 2 principals
I learned from Jim Rohn, years ago.
#1 Formal education will make you a living, if you
become “SELF EDUCATED” you can create a fortune.
#2 Spend 10% of your income on personal education.
Books, tapes, seminars. (That is why most wealthy
people have Libraries in their home)
When I got married in October I told my wife, I spend
money on 2 things: MEMORIES & EDUCATION.
Yes my computer is full of ebooks, that I haven’t
read yet, but I keep telling myself I will catch up.
I am usually just looking for 1 key idea, that I can
add to my existing marketing systems. Over the
years I have learned the value of creating and
This morning, I bought a new onlilne marketing
system, for one reason. The sales letter said,
if you don’t earn $300 in your first 5 days, you
get your money back.
Now I have no idea what it is really about, but
it could be something that I teach my consulting
and coaching students in the future.
It may or may not be, put the point is I will
find out. Yes, most marketers today over
promise and under deliver. But I will pay
$77 for 1 good idea any day of the week, because
I understand the concept of investing and not
The truth is if I buy 10 $77 products online at
least 3-4 are going to stimulate thought that
can lead to new ideas. That is really all I am
Most network marketers have never really
bought into the concept of “Self Education”
Most big money earners did it with the skills
and attitudes they entered the industry with
and most entrepreneurs have a READY — FIRE–
Cash Producing Activities (CPA’s) are mainly
- Generating leads to build Your Prospect List
- Getting prospects to play 2 so they can hear the
- Giving strong, directional, systematic leadership
to your new team members
1. Spending 3 Days designing the perfect
business card, with a great logo, flashy colours
and an expert design DOES NOT produce cash.
Handing out business cards DOES.
Espcially these (http://www.100BillDropCardReview.com)
2. Surfing the internet for the best ways to build
your online business DOES NOT produce cash.
Doing the activities that build traffic to your website
3. Learning every single product your company
offers DOES NOT produce cash.
Scheduling prospects to be on your weekly
webinar/conference call DOES.
4. Learning every part of your company’s compensation
plan DOES NOT produce cash.
Advertising your business and getting prospects to come
to your website and the company weekly presentation DOES
5. Purchasing a new set of pens, some binders,
a stapler, printer cartridge, and a new day planner for
your new home-business DOES NOT produce cash.
Investing in proven training like http://www.LocalMLMLeads.com
program to get prospects to invite to the presentations DOES
6. Attending the Live Presentation Calls about your business
by yourself to make sure that they are “still there” DOES NOT
Inviting Prospects to the Presentation Calls DOES
7. Reading through every page of the “MLM Help No Fluff Newsletter”
to see if you can find a spelling mistake or should I say, (to see how
many spelling mistakes you can find) DOES NOT
Completing Follow-ups with prospects that have been on
your company presentations and “scratching them off
your list” DOES
8. Calling your sponsor or your new member to chat about
what you’re going to do on the weekend DOES NOT
Setting appointments with new prospects on a training call
or with your new member DOES
9. Printing out this list and re-reading it over and over DOES
NOT produce cash.
Taking Action by putting this information into action
10. Trying to re-invent the wheel to make the “system” better DOES
NOT produce cash.
THE RIGHT ACTION DOES
(Listen to webinar at http://www.StartRightMLM.com)
Hope this helps. Always stay positive and if you find that you’re
business isn’t growing as fast as you want it to, ask yourself:
Does this activity produce CASH?