Is Empower Network a Scam? Watch This Review For The Truth!
Автор: Making Money From Home
Загружено: 2014-06-05
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Is Empower Network a scam if it complies with the regulatory authority criteria?
Let us look at the following reason why it is considered a scam, and you can make up your own mind.
EmpowerNetwork is a MLM company.
Many people claim these multi-level marketing companies are nothing but scams. Multi-level marketing (MLM), or network marketing, is technically marketing to friends who market to their friends, who market to their friends and so on. This creates tiers of purchasers in the marketing process. For instance, you have twenty friends who have one hundred friends who have five hundred friends who have a few thousand friends.
Conventional Pyramid Selling
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One manufacturer has twenty wholesalers that distribute its products to a few hundred retailers who sell the goods to thousands of customers.
From the above example, it appears that multi-level marketing is the same as the conventional distribution of goods. As the goods pass down each tier of the chain from the manufacturer to a wholesaler to a retailer to the customer, they become more expensive to purchase. The conventional pyramid for marking up the price is accepted business practice when it comes to the distribution of goods. The truth is conventional business practice is pyramid selling.
When a customer pays $10 to a retailer who paid the wholesaler $4 for goods when purchased from the manufacturer for $2, it is obvious that the cost of goods becomes more expensive as they pass down the line.
Empower Network is a MLM company but does not practice pyramid selling. Empower network sells products that do not increase in price because each person pays the same price for the product. Unlike other MLM companies, there is neither discounts nor a commission structure that is based upon volume.
Affiliate Marketing
Affiliate marketing is common internet marketing practice. Affiliate marketing is not just used by the likes of ClickBank to market products for hundreds of thousands of merchants, but also by Amazon to market its products. Affiliate marketing is big business.
Affiliate marketers are paid a commission on sales of the products they sell through their marketing efforts. These commissions can range from between 10% to 90% of the sale price.
Resale Rights
Unlike affiliate marketing, resale rights give the person the right to keep 100% of the sale of a product. The person pays upfront for the right to sell the product and keep all the profit. This occurs when a product can be reduplicated or reproduced again and again.
The Empower Network Difference
The difference between Empower Network and other companies is it combines two types of marketing strategies with what appears to be an accepted form of MLM structure by incorporating down-lines. Down-lines are a genealogy of sales history that enables rewards to pass up the line. Empower Network incorporates this with an affiliate form of marketing where its affiliates retain 100% resale rights on a percentage of its sales.
Affiliates get to keep 100% of four sales out of five made. The fifth sale passes on to their up-line. Overall, this means as an affiliate you get to keep 80% of all sales made. The fact that you get to keep 100% of your sales and forfeit the fifth, means as a beginner you are rewarded immediately you make a sale. This is the Empower Network difference, the reward is immediate, which is what happens with resale rights.
The reason Empower Network appears to be an internet scam to many people is they do not understand some basic marketing strategies that are employed on the internet to market products. Internet scams are common, but Empower Network is not an online scam.
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