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 Amazon.com 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.