Oh No I Hear You Say! Yet Another Pyramid System

Copyright (c) 2013 Erika Beumer

Pyramid schemes -- or multi-level marketing. People are getting rich by selling nothing really and getting other people to help them do it.

I have to admit those were my initial thoughts too, but then I stopped to think. Isn't that what commerce is about?

One person gets an idea, design a product and find someone to make a prototype. The prototype is tested, refined and finalized. In the end it is approved and the person starts to look for a distribution channel. The person then distributes this product to many wholesalers, who in turn distributes it to many retailers, who may sell it to many street vendors, who sells it to members of the public.

All of this is perfectly exceptable if the product is a hairbrush, or bicycle or piece of clothing.

So why is that any different for an electronic product? Most of what we are using each day is virtual anyway -- think about electronic banking, Wi-Fi and mobile phone signals.

What is wrong with a product that helps you earn money? Is it really that different if you take that product, and sell it to "wholesalers", who in turn find "retailers" that are selling it to other smaller retailers (let's call them "street vendors") - who then sells it to members of the public?

Is it wrong if the product is a group of domain names?

If you take the product (a website in this case) and pay $10 per month for it. Well you have actually bought something you could use -- as an internet space for your company, a photo gallery or a shop to sell products.

You then tell 5 friends about this group of domain names, they each tell 5 and so it continues.

The company that originally created this group of domain names "product", then pays you a fee for advertising, or let's call it commission.

$1 for each product sold -- so you get at least $1 for each customer.

$5 a month's sounds like a measly income for life, you would think, but what if the company also pays you commission on your customers, customers. So that would mean you get $25. To that you would be able to add $125 from commissions for the next level, $625 from commissions for level 4 and $3125 from commissions for level 5. So that means that you would get a total of $3905 if all your levels have 5 customers.

Not too bad for someone that only needs to get 5 customers and then help them to each get 5 -- I think.

You can do the calculations -- increase that to 8 customers -- each getting 5 and the total for 5 level is $6248. I'll let you do the calculations and dream the dream -- but first join me, so that we can get started.

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