Credit Cards Go MLM?

October 10, 2005 by Chuck | 7 Comments

Free Card Matrix

Stay in the work at home business long enough and you’ll soon hear the headline…

“____________________ goes MLM!”

The implication is “Get Rich Finally!”

“Credit Cards Go MLM!” is the latest such headline.

And yes, it could make you rich. But here’s an important fact to remember.

Every product sold to the end user has the cost of marketing built into it and MLM doesn’t change that … unless, sadly, it overprices the product and creates something that just wouldn’t survive without the MLM hype.

And MLM won’t change the fact that Credit Cards can be distributed to the end user and companies are only willing to pay so much to accomplish that.

I haven’t checked lately, but affiliates used to be able to market the Amazon Credit Card.

What was the commission to affiliates? $30 per approved sign up as I recall.

From what I’ve read at this site, the first level pays $10.

9 sublevels pay $2 each.

Add up the levels and what do you get? $10 + (9 x $2) or $28.

(Of course there are extra commissions built in, otherwise Amazon and other companies would have no incentive to promote them through an affiliate force.)

In other words, taking this product MLM lowers the commissions at every level far below what could be obtained by marketing it directly.

Why MLM then?

This company and it’s distributors hope that there will be synergy created by the network so that their team efforts will surpass what might have been produced individually.

Hopefully it will.

The real money is in the back end interest charged to card users not the distribution fees.

In Work at Home Blog

Related Posts

Related Resources


  • Matt Sterba on October 11th, 2005 at 12:12 pm

    I looked at this a few weeks ago. From what I remember, it doesn’t have any “residual” aspect to it. A person would just get payed the two dollars per sign-up only once.

  • Chuck on October 12th, 2005 at 11:40 am

    Yes, you’re correct, the income derives from the fees the distrubution system uses to put a card in your wallet… it’s spread through a downline.

    The “residual” effect only comes if new sales are made.

    The credit card companies are the only ones with residual income!

  • Brian on November 16th, 2005 at 10:16 pm

    Really good cite as mlm for this stands for multi languishing men (or women) to be politically correct. It’s kind of a dreadful business concept that I don’t think will fly very well. Hopefully they won’t get a case of overexertion as it just might not be worth it in the long run.
    Great Writing,

  • Doug on November 18th, 2005 at 9:37 am

    Love your site Chuck. Your comments and critiques are usually bang on the money.

    MLM is a legitimate way to market certain products. As you point out, it is not suitable for all. The associate has to be aware of and evaluate the claims including just how legitimate the pricing and costs are in relation to the product value.

    Unfortunately as you mention, just putting an MLM tag on a marketing system puts dollar signs in one’s eyes or fills one with fear of being scammed. Both are extremes that have given MLM a great or a bad rap.

    Keep up the good work.


  • Dennis on February 12th, 2006 at 5:49 am

    I’m an associate of Free Card Matrix. I have not made millions, but it is possible. I can tell that none of you are associates. This is a business unlike any other. Where else in the world can you go in business at zero cost? There are not many out there. The commission is OK and I agree that it could be a little better. I think that will come. There is a residual plan coming this year were we get paid every time someone uses their card. That is going to make FCM explode. The thing I like about FCM is that there are no products to order, deliver, or anything like many other MLM opportunities. Check me out at

  • Mac on October 12th, 2006 at 11:35 pm

    I agree with Dennis. There is a lot more to FreeCardMatrix than you have mentioned. With only 5 people on your first level and then assuming there is an average of 2 referrals per person on down through the 10 levels the income has the potential to be a lot more than you show in your blog. Then when the swipe program starts it will bring in more for the participant even at 75 basis points.

  • Chuck on October 13th, 2006 at 6:18 am

    I hope your assumptions about 2 referring 2 work out well for you. I’ve heard such assumptions for over 10 years and rarely see them happen.

    I’ll make you a deal though…

    When someone’s making a full time income (let’s say $35,000 per year net commissions for one year) from Free Card Matrix as a simple distributor and they’re willing to tell me how they did it so we can help other FCM people do the same, I’d love to interview them and tell about their success on this blog.

    So keep me informed I’d love to break that story.

Leave a Reply