Manipulated: The 12 Deadly Lies of Network Marketing by Mark Davenport

Author:Mark Davenport [Davenport, Mark]
Language: eng
Format: epub
Tags: Non-Fiction, Marketing, Media, Tv, Business, Handbooks & Manuals
ISBN: 9781544503929
Publisher: BookBaby
Published: 2019-08-26T20:22:25+00:00

The Lie about Unlimited Depth

Another traditional payment lie is unlimited depth, meaning if you build a team of a million people and any of them make a sale, you receive a portion of the sale—a scenario which is mathematically impossible.

Suppose I sold a product that retailed for one hundred dollars. Let’s assume it cost twenty dollars to produce the product and another twenty dollars to run my business. The final sixty dollars, I offer as commission. If we pay twenty dollars for each sale, we can pay three people, max, before 100 percent of the commission will have been used, leaving nothing to pay anyone. Even if the company paid one dollar per sale, a maximum of sixty people could make this one dollar. It will never be unlimited.

At that point, I can only pay people one layer deep in my organization. As soon as another layer is recruited, I’m in the red.

If the company grows through recruitment to create a thousand layers, there are only two possibilities:

I’m running a pyramid scam where the product increases in price with each layer, until the last layer is dealing with such an expensive product that they have no way to sell it.

I’m running a Ponzi scheme using the money from new buyers to pay old buyers instead of producing a product, using lies about production delays when the product never shows up.

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