Traditional MLM -vs- Revenue Sharing

Discussion in 'Network/Multi-level Marketing' started by Rob VP, Mar 3, 2013.

  1. Rob VP

    Rob VP New Member

    Industries are constantly evolving; this is no different in network marketing. Back in the 80s I believe a certain company came out with a new MLM business model and it got some attention from the regulators. They were put to the test and taken to court. The courts ruled in favor of the company finally realizing the business model is profitable and sustainable. Even since then all MLM companies have followed this new model and it became the standard.

    Almost 2 years ago a company was born that went out to revolutionize the MLM world. This company was called Zeek Rewards. Zeek introduced revenue sharing to the world; and it made a HUGE splash in the MLM world. Zeek made it possible to earn lots of money with little or no affiliates. I'm proof of that. I tested this business model by only sponsoring 6 people in my ENTIRE downline. In just over a year I was bringing home over $700/wk, and I replaced my income. Unfortunately, because Zeek grew so big, so fast they had their share of issues. Also, just like the company in the 80s that tried something new; Zeek too was under the regulators microscope. The Zeek management team struggled trying to fix the challenges they were facing. Shortly after the regulators came knocking. The SEC was able to convince a judge that Zeek was a ponzi scheme without ever needing any type of proof. The SEC came in and shut down Zeek Rewards for good. After Zeek was forced to shut down many other revenue sharing companies started sprouting up all over. They saw the HUGE potential, and how powerful revenue sharing can be. Most of these programs were trying to ride the wave Zeek created. Many of these companies launched before they were ready and couldn't handle the interest. Until now...

    There is a company right now that has taken the Zeek model, and tweaked it to please the regulators. As the company says "They were the myspace, we will be the facebook!", "We didn't invent it, but we are going to revolutionize it". Again, it's the same business model as Zeek where Joe and Susie average can earn a living, but done in a way to satisfy the regulators. They are also changing the game with the ability to move your personal affiliates around in their separate UniLevel plan. I never saw that done before! Think about it... someone on your 3rd generation is working hard but can't seem to recruit anyone.. You can give him one of your "legs" and they can earn off them (you will earn off them as well, so you don't lose money). Thats an amazing idea!

    Are we in the early stages of MLM transformation? All the companies that I've noticed that launched lately all have some form of revenue sharing plan built in. I know some are scared to get back into revenue sharing after the Zeek shut down. In my opinion all it takes is one STRONG company to do everything right, and to prove this model works. What are your thoughts? Do you think revenue sharing is here to stay?
  2. payment proof

    payment proof Well-Known Member

    Unfortunately, a great number of people got burned by Zeek. They believed in it, put money into it, got others to do the same, and then they all lost everything. There are some legit Rev Share models, but the revenue should be produced by a legitimate product or service and not by requiring initial investment from participants. That's just my opinion though and others may disagree.
  3. Rob VP

    Rob VP New Member

    Well I see your point payment.. but it almost has to have some sort of investment. Revenue sharing is based off the idea of giving away samples (real product or digital product). Someone has to pay for those samples. Even though you have to pay for the product up front.. I still find people can get in at a good start for the same amount they'd pay to join any other traditional MLM. I was in ignite and that was like $300 to sign up
  4. mountainmom5

    mountainmom5 Gold Member

    Payment Proof has a point, especially in this day and age with all the crack-downs in the industry. Whenever revenue sharing isn't coming from product being moved, there is a danger of the company getting shut down. I'm gonna check out your link Rob cause I am always curious what's happening, but after Zeek, I think a lot of people are much more catious about where they stick their money into.... but then again on the flip side, a TON of burnt Zeek members turned right around and stuck thousands into HYIP programs, hoping to recoup their investment quickly. It worked for some and others just lost more money. We all have a bit if gamble in us I guess :)
  5. Rob VP

    Rob VP New Member

    Exactly... Zeek I believe had the right intentions and sparked a revolution within mlms.. but yeah then the scams started and bad hyips.. I looked at a few other revenue share penny auctions but backed out.. I think revenue sharing and penny auctions don't mix well. Revenue sharing and actual physical products might be exactly what it needs... It could be what changes the game. I look at Jubi as just like the popular Body by vi.. but with revenue sharing. We will see how this goes.. I know a lot of eyes are on Jubi. I truly hope they can successfully pull this off and prove this business model.. I truly believe revenue sharing gives Joe and Suzie averagethe ability to actually make money.
  6. FreeCashMan

    FreeCashMan Well-Known Member

    Revenue Sharing is not anything new in and of itself. Many successful network marketing companies have it, it's often called a "Pool Bonus" based on product sales. The difference that is evolving now with companies such as JubiRev is that such Pools are being opened to all from sign up. To that extent it's a revolution.

    While it is exciting to say "everyone gets paid without a referral", the broader challenge is that a diluted bonus pool is like going to a real swimming pool and seeing that it is excessively crowded and you aren't able to truly enjoy yourself.

    I think revenue share is nice and it has sparked ways for more people to benefit, but success in mlm and network marketing is not as simple as getting revenue share. The facts were that the people making the big money in business such as Zeek were also the top referrers. Thus, ultimate maximum success goes back to building your network marketing business....REFERRALS!

    All the best!
  7. Rob VP

    Rob VP New Member

    I agree with all except referrals.. you don't have to have a big referral network to make good money. In zeek I experimented with an account that only had 6 people in the entire downline (not much at all).. they didn't put in big money. That account after one year was bringing home $700+ dollars a week. That person replaced their income. I would assume it would take someone with no refferals a little longer but could easily be done. It would never get dilluted because its all based on percentages and sales.. if you don't make your sales (buying and giving samples) you won't get your daily reward. Therefore if your not doing what's required you don't get paid.. it would get dilluted if there were no requirements.. but that's not the case.
  8. mbasa

    mbasa Member

    I secretly believe that revenue sharing programs have revolutionized the MLM industry completely. It will never be the same again. Eventually smart companies will find a way to use loopholes in the legal system to legalize them. It will take time BUT I really believe that it will happen one day.
    It is the same model that has inspired the team build approach when building MLM down-lines. Time will tell, but it the meantime I get involved for fun and not as a major source of income.

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