Barker’s Eggs in Network Marketing
Any MLM “opportunity” that offers a false vision of success without time, effort or self-discipline is almost certainly a barkers’ egg. Discover why this is so critically important: download this eye-opening FREE Insight Report. (Use the download link at the end of this article.)
You rarely realise how much time and effort you’re wasting until the realisation dawns that you’re not making any money. You’re usually just spending it, instead.
Compensation plans are the prime area for finding barker’s eggs in network marketing. That’s because the reality behind the fancy names and packaging is typically a lot less attractive than they’re made to sound and appear (because so few of them really deliver on their promises). For example…
The inference the promoters of Infinity Bonus plans (usually uni-level plans of some kind) want you to draw from the name is that you’ll be paid bonuses to infinity — or the entire depth of every leg of your business, forever.
The reality is nothing like this. In fact, being paid “to infinity” on any leg of your business is actually a worst-case scenario in most instances. Here’s why…
No company can afford to pay out more than it receives for its products. It will go broke overnight if it tries. In fact, it usually needs to keep at least 40% of the wholesale price to survive and be profitable. So paying out to “infinity” would really mean that the amount you’d receive on each level in any leg would have to be so small it would hardly be measurable!
Unless, of course, that leg is very short — a few levels only.
“Infinity” bonuses and uni-level plans were invented to overcome the perception amongst network marketers that breakaway plans are undesirable because you lose your downline. (Fear of loss is a powerful force in overcoming rational, objective reason. It triggers inflammatory emotions that lead people to do the wrong things for all the wrong reasons, consistently.)
Stop and think about that for a moment:
Companies can only afford to give away a limited percentage of the product wholesale price or they risk going broke.
Breakaway plans mean that, once your downline reaches a certain level of sales volume each month, they break away from your personal group. (You usually receive override bonuses on their volume for as long as they continue to exist, at a higher percentage than you actually received in the months before they broke away — but people forget about that fact because they’re so focused on their fear of loss of their downline.)
So the operators who invented unilevel plans, with their “infinity” bonuses, were able to promote them very effectively to people who feared losing their downlines.
- You don’t lose your downline, ever.
- You get paid to “infinity” on every leg of your business.
Except for the harsh reality that NO company can afford to pay out more than it needs to survive and be profitable… and stay in business!
So, even though you never lose your downline, once they reach a certain level of volume and qualify for their own “infinity” bonuses, YOUR infinity bonus is shared (read “reduced”) until it’s all gone — or “blocked”. And that can be from your very first level if the people you sponsor achieve the same rank as you.
Never losing your downline? Sure. You keep them forever.
You just lose the income they produce instead!
Ever heard of a Barker’s Egg? (In unilevel plans they’re called “infinity” bonuses.)
Barker’s Egg Alert!
Similarly, beware of MLM programs that use fancy names and packaging to disguise methods or concepts that are proven failures.
Example: The automatrix has been a consistent flop as a way to build MLM since it was introduced in the 1980s. Even the name is a barkers’ egg. It’s usually little more than a distant relative of the old, illegal pyramid selling schemes and ponzi schemes. (Learn more about these at IsItAPyramid.info.)
Of all the automatrix structures, one stood head and shoulders above the rest as a failure, in crash after spectacular crash around the world. That was the 2 x 12 automatrix. No other automatrix has ever come close to matching its dismal record.
Then out of the blue, in the mid-1990s, we had a new crop of freshly resurrected 2 x 12 automatrix schemes — but with fancy new names and fancy new packaging to obscure their very ordinary history.
Instead of a breakaway 2 x 12 matrix, they’re now non-breakaway, open-ended 2 x 12 matrices where you simply re-invent yourself downline as your own “great-great grandchild”. To obscure the reality even more, they sport fancy new names to create the exciting illusion of something fresh and different.
A “Binary Lateral” plan is nothing more than a fancy way of saying “two-sided” (just as “Barkers’ Egg” is nothing more than a fancy way to say “stale, bleached dog turd”). Reality can’t be kept hidden for very long once the misleading packaging is stripped away. Nor can your motive. It’s plain old deception (or stupidity, if you really believe all the nonsense), no matter how noble your claims.
Another example: Just because a scientific principle applies to the growth of plants and animals doesn’t mean it has any relevance to MLM reward systems, no matter how emotionally appealing the notion may sound.
The “Fibonacci Sequence” may stop your nose from growing as long as your leg, but using it as fancy packaging and a fancy name may hide just another Barkers’ Egg if you’re not careful. Especially if it’s wrapped up in the appealing concept of making money before you buy any products. And especially if that means you could be in breach of strict laws like the Australian Consumer Law. (It did. And it was. It’s now long gone, and deservedly so, under laws against illegal pyramid selling in most countries around the world.)
Remember… the courts judge you on the reality of what you DO, not the illusion of what you SAY you do. Hiring a MLM company as a “marketing consultant” to do your recruiting for you may sound like a quick, effortless way to build long-term financial security. But if the reality is that your rewards are coming from what is effectively a “head-hunting” fee, you could find yourself in illegal pyramid selling territory, facing the hefty fines and jail terms that apply to people and organisations convicted of inducing others to join such schemes.
Do your homework!
Look beyond the fancy labels and glamourous packaging. Take a long, hard look (and an even longer, harder sniff) at what’s behind them. You might just save yourself a lot of time and effort — and court-applied discipline!
Remember…“all that glitters is not gold” is especially true of MLM.
See also: Barker’s Eggs in Internet Marketing
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