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Fast Start Scam
In
just about every MLM there is a Fast Start, Fast Track, Quick Pay, Jump
Start, or Higher Buy In Level. The purpose of these programs is to
sell you as much goods or services as they can while you are still in
the Fog State of the MLM Dream and the excitement of going for the brass
ring. Think about it. How many times did the Dream Weaver
tell you you had a special opportunity here to build a business without
employees, overhead, or INVENTORY. Then why in the hell are they
selling you $500-$5,000 dollars worth of inventory?
It
is called Front End Loading. In it's hay day a Dream Weaver would
come in to town, flash his "gangster money" bonus checks
around and would proceed to load up some garages with $10-$20 & $30K
worth of highly overpriced products. I know of people who still
have enough water filters in storage to rescue a small city should there
be an outbreak of koodies in the city pipes. Front End Loading is
against the law in all 50 States (for good reason) so the MLM companies
have created the Fast Start Bonus Programs. Most of them lure you
into the huge buy in by letting you know that you would be leaving money
on the table if you were not qualified to take advantage of all the
different income streams. Fortunately you can avoid the pain of
loosing this money by buying into the program at a higher level.
Other companies let you buy advanced positions or additional income
centers in binary plans. Basically they are all the same.
The
Dream Weavers know that you only have a 10-15% chance of being with them
after a years time and most of the people who drop out will do so at the
6-9 month point. If you are buying $100 worth of products a month
to stay active and you drop out after 6 months because the negative cash
flow is really getting your goat, the upline Dream Weaver (who in most
plans is making the bulk of over-ride commissions) only gets 6 months of
pay off you. Now if they can sell you a $1,000 Fast Star kit and
you still drop out the Dream Weaver has done much better.
As
I rose in the ranks of one company I would walk away with almost $500 of
a prospects $1,000 "Hit the Street Running" pack. I must
tell you I was motivated to sell those packs. In one year with
that company about 40% of my income was from that part of the
compensation plan. Now here is teh rub. The story to the new
prospect goes like this; The upline doesn't make money unless you make
money. There are all of these upline people who are invested in
your success. These people in essence work for you but you don't
have to pay them for their help. The company takes care of
that." Well I found out that the Fast Start Bonus stuff was a
Scam all on my own. Even before I learned of compressed pay plans
and the like.
I
mentioned earlier that on year I made fistfuls of money off the Fast
Start part of the compensation plan. The next year rolled around
and I was expecting to cash the checks all over again from these same
people when they bought into the program for another year.
Wrong! I did retain many of the distributors but they opted back
into the program at the lowest possible level to continue getting their
products for wholesale. I was dumbstruck. I thought this
program was the best thing since sliced bread and here all of these
people all but dropped out. The added inventory didn't help these
people build a business any more quickly. What would have helped
them more was taking that $1,000 and investing it into marketing the
products, not buying them. In Fact I stopped pushing the big sign
up program altogether and actually experienced the biggest growth period
in my time with that company. I would tell people; "Look it
is true that you need a small amount of inventory to effectively build a
business. But more than inventory, you need people to sell
products to. Take you money and get marketing materials and use my
inventory until you get on your feet." I would then purchase
extra business building inventory under people who were actually trying
to build a business to get them qualified for the larger bonuses because
I learned that if I could get them paid they would stay. I
actually had more people buy in at the higher levels in three to six
months when it looked like they were getting somewhere with the
business, than I ever did right out of the gate.
Front
End Loading is plain and simple screwing of the little guy. I have
yet to see a company where this practice is really working for
them. What I mean by really working is that they are getting
higher retention rates than similar companies with out the fast start
programs and that the rank and file part time MLMers are making more
money than comparable companies.
Do
every one a favor and don't buy into the Hype of the Fast Start Scam.
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