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Old 06-03-2008, 11:56 AM   #1
bren
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Market America - Direct marketing, Pyramid without the scheme

I have a poor friend who is brainwashed into this "new age" idea of making money. Will absolutely not listen to me whatsoever - people still fall for this crap? Intelligent people to boot??


Any thoughts on this??

http://www.marketamerica.com/corpora...ices.wpAboutMa

They call is the "unfranchise". Meaning it is likened to a franchise offering all the benefits of a franchise without the traditional overhead expenses and fees that are associated with a franchise. Market America is a product brokerage and one to one marketing company specializing in Mass Customization. Founded in 1992 by James Ridinger, Market America makes its headquarters in Greensboro, North Carolina.

The Business Model

Market America is part of the network marketing industry. Each unfranchise owner is encouraged to recruit others into the network of unfranchise owners. By doing so they will create leverage for themselves and their unfranchise business. The requirements to activate and qualify your unfranchise to begin receiving profits is as follows. You must recruit two people one on your left and one on your right side of your business. You must qualify your business by purchasing 200BV worth of product and then remain on an "transfer buy" of 50bv to 150bv each month. (BV is approx. 80% per $1 spent. Example, $100 = 80 BV) Once your network begins to grow your points start accumulating. Upon reaching certain points or bv on your left and right you will start to receive commission checks.

Here are some specific details regarding the binomial compensation plan that Market America uses. First, as stated before you have two sides of your business. To qualify your business you will need to purchase 200 - 600 BV of product, this equates to $350-$1000 worth of product. After that you will be encouraged to spend an additional several hundred dollars in business support materials. Once you qualify your center with your initial purchase you are required to purchase 50BV - 150BV of product per month, depending on your position within the pay plan. We will use an average monthly order of 100bv as we get further into the plan.

Now that you are qualified you must activate your business by sponsoring or recruiting two people one person on the left side and the other on the right. To do this your sponsor will encourage you to make a list of 200 people you know and then begin inviting them to a hotel presentation, one on one meeting or home party. Upon activating your center with your two new people you are now able to collect commissions based on the volume created within your two lines or legs.

For this example we are going to talk about the part of the business that matters the most. The residual income that can be generated. To generate an income of $300 you will need 1200 points on your left and 1200 points on your right. The next level is 2400/2400 = $300, 3600/3600 = $300, 5000/5000= $600 for a total payout per cycle of $1500 at that time your volume resets to 0 and this can happen every week.

To make that residually we will use a month as an example. You will need 100 people in your group 50 on the right and 50 on the left each ordering 100 bv worth of product or a total of about $12,000 in product and you will be paid $1500 on $12000 worth of sales.

In conclusion this compensation plan is better than most MLM or binary compensation plans out there. Market America's compensation plan is not a scam, however to only receive $1500 on about $12,000 in sales is not very lucrative. I personally chose to not participate in Market America as a business. Currently, when $12,000 of products move within my business I receive $5400 that is a substantial difference. While the compensation plan is average, I would encourage you to take a look at the wide arrange of quality products that are offered by Market America.
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Old 06-03-2008, 12:16 PM   #2
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Pyramid schemes are great, if you're one of the first in.
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Old 06-03-2008, 12:18 PM   #3
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Sounds a lot like Amway
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Old 06-03-2008, 12:22 PM   #4
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Originally Posted by TheMechanic View Post
Sounds a lot like Amway
the founder was part of Amway but apparently decided to leave and market his own "better" thing
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Old 06-03-2008, 12:37 PM   #5
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Originally Posted by TheMechanic View Post
Sounds a lot like Amway
These are the differences I guess

4 Differences Between of Market America (The Un-Franchise) and MLM (The Illegal Pyramid Schemers!)

The MLM companies- so called the pyramid schemers and also like other companies does create JOBS (a low rank employees working for the uplines-supervisors,managers,directors,vice pres to Pres. and CEO of the company)

1)Paid Monthly
2)Leaders Break Away
3)Monthly Volume Flush
4)Paid on Levels
5)Continuous Recruiting
6)High Monthly Requirements
7)High Atttrition Rates (90%)
8)Limited Training
9)Front End Loading
10)Warehousing of Products
11)Single(Limited)Product Lines
12)High Prices (Can't Retail)
13)Very Difficult to Succeed
14)Large Investment
15)Profit From Other's Failures
16)One Business Center
17)Reorders in 001 Center ONLY
18)6 Figure Income-8 to 10 years
19)Small Payout (80k GBV=4K)
20)First In: Most Money

21)Private-Non Disclosure
22)Limited to Regional Growth
23)Pre-Conceived Notions
24)Group Competition


MARKET AMERICA - The Un-Franchise Business Development System and Binomial Network Marketing with MPCP (Management Performance Compensation Plan)

*Paid Weekly
* No Breakaways
*Accumulates for One Year
*No Levels(Computer Search to Infinity)
*2 Good People (Can be made)
*50BV (Min)-150 BV(Max)
*High Retention (80%+)
*Structured NMTSS Training
*No Loading (Sales Rep for 0)
*Company does Warehousing/Shipping
*Mall without Walls (Growing)
*Competitive Pricing (Can Retail),with High Standards of GMP (Good Manufacturing Practices) and Advance High Quality Standards and Science of its Products
*Designed for Average Person to Succeed
*Small Investment/NO RISK
*You ONLY PROFIT when Others Succeed
*Unlimited Business Development Centers
*Downloading of Business Volume
*2-3 Years(Just follow the Plan)
*Large Payout (80,000 GBV= $22,000)
*'New People Earn from what others have Learned'
*Private with Full Disclosure
*Poised for International Expansion
*New,Innovative Concept
*Group Synergy/Placement-(After first Two-one on left,one on right-any other recruits are placed Under existing distributors-Including your own re-entries)
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Old 06-03-2008, 12:38 PM   #6
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And they're both pyramid schemes...

*You ONLY PROFIT when Others Succeed
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Old 06-03-2008, 01:52 PM   #7
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Originally Posted by H3llphyre View Post
And they're both pyramid schemes...

*You ONLY PROFIT when Others Succeed
My GF's brother got suckered into one of these (not sure which one). It completely f'ed up his life, he was a hardworking person who had saved a decent amount of scratch, next thing you know he's broke and put 60k+ miles on his car.

They are based on the premise that people will buy into anything that sounds good enough. The GF even got dragged to one of his meetings and called me up wanting to join (luckily i beat her straight.....i mean convinced her it was stupid).

These things exemplify everything that is wrong with the human race as far as i'm concerned. Pulling the wool over other people's eyes to profit on their behalf is just wrong (to the extent that this goes).

That's just my opinion, but man, how anyone can be so desperate i'll never understand.
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Old 06-03-2008, 01:57 PM   #8
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Originally Posted by 89DaytonaShelby View Post
My GF's brother got suckered into one of these (not sure which one). It completely f'ed up his life, he was a hardworking person who had saved a decent amount of scratch, next thing you know he's broke and put 60k+ miles on his car.

They are based on the premise that people will buy into anything that sounds good enough. The GF even got dragged to one of his meetings and called me up wanting to join (luckily i beat her straight.....i mean convinced her it was stupid).

These things exemplify everything that is wrong with the human race as far as i'm concerned. Pulling the wool over other people's eyes to profit on their behalf is just wrong (to the extent that this goes).

That's just my opinion, but man, how anyone can be so desperate i'll never understand.
the problem with Market America is the people in it are firm believers what they are doing is 100% different then Amway and the other guys - since Market America uses google now and partnered with them and has record quarterly profits etc.

It's the same spin with a slightly better business and incentive plan.
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Old 06-03-2008, 02:02 PM   #9
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Ugh, I got approached twice by pyramid scheme people while at work at Staples while in college. I can see how someone with half a brain or someone who is desperate would be enticed by these - but I could barely keep myself from telling them to pound sand.

One was Quixtar and the other was Primerica.
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Old 06-03-2008, 02:12 PM   #10
89DaytonaShelby
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Originally Posted by bren View Post
the problem with Market America is the people in it are firm believers what they are doing is 100% different then Amway and the other guys - since Market America uses google now and partnered with them and has record quarterly profits etc.

It's the same spin with a slightly better business and incentive plan.
I'll admit i'm on the ignorant side when it comes to the working of these schemes. But that's mainly because I have no interest in what they're selling.

To me all of the information way above reads like this:

"You buy X amount of stuff from me, and recruit other people to buy the stuff from you, and eventually when you've rounded up enough idiots, i'll start sending you checks."

"Oh and by the way, there's hundred of other people trying to get the same people to buy the same ish, so the market will be over saturated"

I mean again, i'm slightly ignorant on this subject, but by the basis of the structure (i.e. pyramid) eventually someones stuck on the bottom of the structure losing all their $$ so the ones above dont....who in their right mind is so confident they won't be the ones on the bottom....
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