John Bell | insidmal
VLBplus.com is revolutionizing the Viral List Building Industry!
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I can not stand idly by...

Oct 17th 2010 at 4:59 AM

Those of you who use sweeva even half as regularly as I do will have completely noticed the amount of garbage illegal ponzi scheme sites being promoted, and the controversy surrounding them..

I have very vocally expressed my view on the comment sections of people promoting these sites, and have taken a lot of wrath and hate speech because of it..

No one with a single shred of dignity would ever promote such garbage. These people are ruining the industry for those of us with legitimate businesses.

I want you to do the math.  If you are, for example, member 2,500 to join one of these illegal ponzi sites. You bought in to the hype and said wow, I don't have to refer anyone? Everyone who joins gets equal portions? Well that sounds great.  You are wrong.  You spend $30 as user number 2500. Your $30 paid the previous 2499 members 1.2 cents each.

How is anyone making money?  If it is split evenly among all members ,you personally would need to have at least another 2,500 members to sign up after you to break even.  But none of those people are breaking even when you do.

It grows exponentially from there, member number 2501 will need 2501 more members to break even, and user 2502 will need 2502 more members to break even.  The more that join, the more that are needed to join to even break even.

This guarantees that at least half of the members are not breaking even, and in these cases half the members are thousands of people.

These illegal ponzi "profit sharing" programs not only do not work for a majority of the users, but are destroying our industry.

In the situation of, not only the American, but the World Economy, more and more people are turning to online business to try and make money to eat, to feed their children, to pay their bills. When you spread stories of hope and hype and say, you don't have to do anything, you just sign up, you really are making them an offer they can't refuse.  And they join, unknowingly.

Every single member who joins will make less than the member who joined before them, and over half the people involved will lose money, it's inherent in the business model.

Now you've successfully conned another 2500 people in to joining.. Congratulations, you broke even, but at what cost? the cost of 2500 people who didn't know any better and are new.  What happens when these people try it for the first time and lose money?  They don't do it again.  You have officially cost the entire industry it's credibility. You could have been promoting a legitimate business.

You could have been supporting your peers, instead of hoping they would join so you could make a quick 12 cents.

You are destroying this industry.  You are ruining the reputation of not only yourself, but by representing our industry you are ruining the reputation of all of us.

I get a lot of grief from people for being so vocal when they are promoting these types of sites.

I wish I could say "I'm sorry, but.." I'm not sorry.  I mean every word.  I can not sit here silently and watch others exploit and take advantage of those who do not know any better.  You can hate me all you want for blowing up your Sweeva page with truth and exposing these for what they are, but I can sleep at night.

I can't sit here in good conscience and watch you exploit naive marketers in droves in to joining your program where they will all lose so you can win, and if there was an ounce in legitimacy in you, you wouldn't be able to either.

The wonderful thing about Sweeva is that their is a photo and your name next to every page you display, and these actions will never be forgotten by myself or many others.

 

 

On the other hand.. maybe this is what we need, there were the days of sites like 12 Day Pro and other similar schemes were a big deal, and after they were shut down by the government and their owners charged and sentenced to jail time, people took a little more precaution on care and invested more time in the research of what they were getting in to.

Over the past several years I have watched things become even more shady and shady to the point now where over half of the pages I see on TE's are not even selling a product, but an opportunity.  I recently received a response when I asked "So, what are you selling?" and was told "We are selling a home based business where you cycle every 4 positions"

I was always under the impression that my job here was earning commissions on selling products.

While these ponzi and illegal schemes destroy our industry and turn thousands of new potential business people away, maybe it is the wake up call people need to realize the illegitimacy of not only these, but so many other "business opportunities."

The business of affiliate marketing is commission based sales.

A successful Affiliate Marketer buys products, while an unsuccessful affiliate marketer buys opportunities. If you want to succeed you need to be buying and selling products you BELIEVE in, that have value and utility to help you or your business grow, and to teach others to do the same.

 

Maybe it will take the feds shutting down all of these illegal operations (like they have literally hundreds of times in the past) for people to realize how serious this really is.

6 comments
Please to comment
Dec 13th 2010 at 1:59 AM by fredds
I know its impossible right now, but I hope the day will come when there will be some sort of regulation on the internet that will thankfully weed out these scams. As of now, all of us have to take a lot of care and conduct a lot of due diligence.
   
Dec 11th 2010 at 3:10 AM by drkelp
Excellent and polemic article John. A warning to new people on IMFaceplate to take the same care and diligence with business decisions as they do offline. There is no quick way to make money. The proven long term way is to work hard and persevere.
   
Nov 20th 2010 at 2:01 PM by tonyn13
Very eloquently stated John. Thank you for stepping up on this topic. The profit share is just 1 step away from a gifting activity, which ultimately has the same structural challenges. I join you in support of legitimate opportunities based on intrinsically valuable products. They are out there.
   
Oct 20th 2010 at 1:31 AM by insidmal
A lot of autosurf traffic comes from indonesia and china too, I see a lot of it on my sites from those sources so that might have something to do with also.. figures these same people promoting these scams are using autosurfs, maybe they're terrible branding and surfing techniques are why they are failing and fall in to such a scheme
   
Oct 18th 2010 at 5:55 PM by teambuilder
I checked Alexa to see where the traffic is coming from. Looks like Indonesia is the top source. Looks like a great deal of traffic and I presume new members come from the lesser developed countries, places where they can less afford to "invest" in these opportunities.
   
Oct 17th 2010 at 5:45 AM by lulubel
What John said. There's nothing I can add to this. You said exactly what needed to be said.
   

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