I have been around this industry for right abotu 3 years now. During that time, I have seen dozens of such programs come and go. There is a very simple reason why such programs as AutoXten can and will never work in the long term.
The comp plan is not sustainable.
What does that mean? I will tell you. The promise of the program is, make a one time investment of $10 and sit back and draw thousands of dollars. The people who get in at the very beginning can make a bit of money from it, although they will never see the kinds of checks that were shown in the over-hyped marketing campaigns. This makes it all the more difficult to explain, to someone in the program, why it will not work. They are getting a check, so they think it's working. WRONG!
The quick test is, what happens to the income when the recruiting stops? if the income stops when recruiting stops, the it is not only a bad business model, but most likely illegal. At best, they are riding in a gray area and hoping the feds do not come knocking on their door. Ongoing sale of product is the only way to keep a business, of any kind, in business. From an MLM start-up to Wal Mart, if they did not continue to generate sales, they would not last.
Then ask, why will the recruiting stop? History has shown us why. Programs like AutoXten have a HUGE hype machine going prior to and just after the launch. Most people who are going to join will do so within the first month or two. After that, growth slows to a trickle. A few newbies here and there, that do not know nay better, might get roped into this deal, but otherwise, it has gone flat at that point. So, members have a hard time recruiting, and if nobody can recruit, nobody will get paid.
This is why AutoXten and other programs like it can never work. Their entire business model is not self sustaining. Every one of these companies I have seen, over the past 3 years, has been gone within 2-3 months of launch, if they even launched at all.
I hope everyone who reads this gets this concept. This is one of the first lessons I want people to learn when they look into the Educational program I mentioned not long ago. I am still working on putting that campaign together, so keep your eyes open for it.
You are spot on, Bill. These programs never last long. No matter how they word it (gifting) or how they think they find a loophole (entry buys software that can be found for free), it's all wrong in every way. I wish those involved would wake up to reality & realize the damage they are contributing to because it gives the industry a terrible reputation.
ReplyDeleteI could not agree more Tonia. I normally will not mention companies by name, but I wanted everyone had a good example of this as surely everyone has at least seen this program.
ReplyDeleteIt is programs like this that make people turn up their noses whenever you mention anything about earning money online or network marketing. This is why I am working on a campaign to put an end to this garbage, or to at least slow it way down. The idea is, if enough people know better, then these programs will not be able to recruit enough to make it viable, and they will stop doing them. Especially when you realize that it is the same groups of people coming up with new versions of these SCAMS all the time. These people will have to go legit or go broke.
Hey bill, thanks for the autoxten report. You are spot on my friend and thanks to onest marketer like you, less people will fall of these kind of program.I hope people will read this and understand what is going on on the internet.Tweeted and past on.thanks
ReplyDeleteThank yo Ralf. It is amazing how defensive some people get when they are faced with such facts. One of the Syndication elation members, Wendell, was the rare exception to this. He expressed that we have a difference of opinion, and left it at that. most will get irate when they read something like this.
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ReplyDeleteBill, if you had stuck to the facts, and not tried to make accusations such as saying I'm using "Black Hat" tactics, I would not have deleted your comment.
ReplyDeleteI still say, this program will never last, but only time will tell.
Feel free to contact me in 6 months if this program is still running, and growing, and I will be more than happy to publish a retraction.
Amazing that someone has the guts to tell these people this stuff. I too have been around in internet marketing since the 90s and have seen programs like this come and go. It is programs like this that make it difficult for me to recruit people to a legitimate program. People are scared, they've been lied to and they don't know who to trust. Thanks for posting this.
ReplyDeleteThank you LaTease. That is exactly my point. These programs are damaging the industry as a whole. both the network and internet marketers alike suffer from this. I really wish the previous poster had not gotten personal. I would have loved to keep his comment up here for all to see. Once this thing collapses, I hope some of the doubters out there will start to take this seriously.
ReplyDeleteThe mindset of those creating, supporting and propagating dubiously legal schemes like AutoXTen is difficult, and in many cases impossible, to sway. It may even be that the mindset itself is reflected upon by those having it as truly congenial, beneficial and altruistic. The intention is benign. Unfortunately, it seems that even experienced marketers who should know better are soothed by those good intentions and neglect the bleeding obvious.
ReplyDeleteHowever, when presented with a glaring contradiction between the (possible) intentions to the past-proven negative outcomes for such a model, the short circuit represented by silence or vague endorsement without reasoned rebuttal manifests. It remains for those not so conditioned to appreciate and learn how to proceed with caution and not become victims of the “well-intentioned”.