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August 11, 2013, 02:13:36 AM |
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In my case, I felt morally obligated to make BungeeBones.com multi-level but started from the same beginning as the skeptics of it. Here's what made me go to MLM:
I had created my own script (a web directory) that can be installed on yours (and any number of other) websites that pulls its links and categories from my server. In other words, all the installs pool their traffic and their link subscribers. One advertiser gets listed in all locations.
Each location, in turn, gets to market the total traffic volume in the network (which is much greater and a better product than just the traffic their site generates). In return, they get a 50% perpetual commission (in Bitcoin) for each ad sale they make. No moral or ethics dilemma so far right?
But, uniquely, since every advertiser is also a prime candidate to add yet another web directory to their own site as well, and, if they do, they too start to generate sales FOR ME, then I felt paying an over-ride commission on their sales to the site that first registered them a requirement for my own conscience (since if they had never registered them and sold them advertising I never would have gotten them to add a web directory too and start making sales). The site that registered them was the prime and procurring cause I got them as a web directory installation site.
I did a lot of research into the difference between MLM (legal) and pyramids (illegal). As I understand it, the difference is that a pyramid makes their money by selling the membership or the business "opportunity" rather than a product like MLM does. So, in order to stay as far away from that line as possible I don't pay anyone for recruiting another web directory but only for the ad sales of their recruit. And I don't charge for the "business opportunity" either since the web directory is free as well as my management services of the directory are free also.
I hope that helps clarify the difference.
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