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Telecom / Tech MLMs

Every Week I see a new telephone or "proprietary" Internet Technology company pop up out of the abyss.  These are about the worst MLMs there are.  The reasons are simple.  Take the phone service MLMs.  99% of them try to offer Flat Rate Unlimited Calling.  To date no a single one of these Bozos have survived the 18 month to 2 year mark.  The reason is simple.  It can not be done.  They get an access code and oversell memberships to the service and then they fold.  Actually that is the plan.  The people who start these things know it can't be done but they don't care.  They are just looking for the sign up money.

Then there are the MLMs that offer legitimate 1+ long Distance service.  Great, would you want to be trying to build one of these businesses with companies like 2cents Long Distance.com out there who provide not only 2cents/min service, but do so over MCI lines?  The only way to support the commissions is to charge more money.  Then you are back to the old question of whether or not people are involved for the value of the product or for the money game.  If it is the money game it will fail every time because it truly doesn't offer value.  So to make these phone service MLMs go they do massive recruiting and massive Dream Weaving.  They have to.  They will tell you that you are getting into the multi billion dollar communications industry, the largest industry on earth.  Now is your opportunity to cash in, so all you need to do is buy these income centers here.....

They go after new blood like a vampire chasing an ambulance.  They have to.  Unless you have massive volume you will never make any real money from long distance.  You can only split a penny so many ways before it gets to thin to to stick a knife back into it.

Then there are the technology based MLMs.  Their claim to fame is almost always some hot new secret advantage that will let you talk over the net for free better, increase your download speed over regular phone lines, market e-commerce enabled web sites yadi-yadda-yadda.  Again there hasn't been a one of these companies that have made it past the 18 month to 2 year mark.  I should say legitimately made it.  There have been lots of these companies that are in the perpetual "Pre Launch" phase.  That simply means that you can buy into the company now, even before they have this imaginary new technology to deliver.  Talk about the MLM emperor has no clothes!!!

I wonder how long it will be before we see the Dream Weavers selling us the advanced technology they have waiting to be released to colonize the moon.  I mean they have been selling us the moon for years now anyway, Right?

This is probably as good a place as any to discuss the Pre Launch or Soft Launch phases that many MLM companies are becoming rather fond of.  When a group of Dream Weavers get together and want to have a MLM company of their very own but they either lact actual products or enough funds to actually open their doors, they go into Pre Launch of Soft Launch mode.  This lets them do what they do best.  Get people excited and signed up.  It is the ultimate Ground Floor Opportunity without all those messy products to cut into their profits.  The track record for start up MLMs is bad enough at 300:1 odd that they will not make it.  It is even worse for Pre Launch companies.

 

 

 

 

 

 

 


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