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Real and Genuine Online Business Opportunity
#11
(2012-12-30, 09:13 PM)ibofightback Wrote: Right, I worked it out. People need to be "Executive Affiliates" to begin to earn money, and the way to become EA is to sign up for the "International Association of Home Based Entrepreneurs", which requires a monthly membership fee and is owned by Carson Services Inc, which owns SFI

EA's seem to primarily earn money by recruiting others to become EAs.

And IAHBE seems to be mostly concerned with providing MLM recruiting type material to get people to sign up to SFI.

Clearly the revenue primarily comes from IAHBE, and people purchase it primarily to become EA. This is a classic "product-based pyramid scheme" with a product of little value outside the network.


Where did you get that mis-information? You become EA by earning VersaPoints (VP) which comes through doing certain activities that grow the business such as sending Team Mail to your team, Rating your sponsor and upline, etc, etc. Also, you earn direct commissions always whether or not you are an EA. EA's gain access to the Executive Pool which is 40% of all of the profits from TripleClicks sells; each VP earned is one 'share' in the executive pool. If any purchases were 'required' I would have nothing to do with SFI because I was raised in Amway to utterly despise Pyramid Schemes. Why don't you sign up and evaluate the business plan for a week or two and then opt-out if you don't like it instead of pre-judging it from the outside looking in and then you could give a more accurate report on your findings? I'm telling you that you would be impressed by the business model that they have even if their products and services needs vast improvements...I agree with you there.

-Yosef
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#12
(2012-12-30, 10:07 PM)Ploni Wrote: Where did you get that mis-information? You become EA by earning VersaPoints (VP) which comes through doing certain activities that grow the business such as sending Team Mail to your team, Rating your sponsor and upline, etc, etc. Also, you earn direct commissions always whether or not you are an EA. EA's gain access to the Executive Pool which is 40% of all of the profits from TripleClicks sells; each VP earned is one 'share' in the executive pool. If any purchases were 'required' I would have nothing to do with SFI because I was raised in Amway to utterly despise Pyramid Schemes. Why don't you sign up and evaluate the business plan for a week or two and then opt-out if you don't like it instead of pre-judging it from the outside looking in and then you could give a more accurate report on your findings? I'm telling you that you would be impressed by the business model that they have even if their products and services needs vast improvements...I agree with you there.

-Yosef

You need to earn 1500VP every month to be EA. If you fail one month, then you lose any allocated downline (CSA), correct?And if you want to move up to Team Leader it's 3000VP.

I've looked at what is needed to earn 1500VP and while there are a bunch of "free" things to do (so-called "action versa points", it's virtually impossible to do without buying somethings yourself or selling something - and therein lies the problem.

Most of the stuff you buy doesn't earn VP.

I've reviewed lots of "how to earn 1500VP posts" Yosef. Can you show me how to do it through actual revenue generating actions? ie things that bring revenue in to SFI so people can be paid.

ETA: I was wrong to say revenue was just from IAHBE, it's also from selling bid packets.
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#13
Yes, to reach EA requires some sells or purchases however, only a maximum of 2000 VP can be used for Team Leader qualifications. This is MLM, multi-level-MARKETING; it is all about generating sales, nothing wrong with that. The VP system encourages sales. My dad always taught me that a good MLM business must be LTD; learnable, teachable and duplicatable. The SFI business model certainly qualifies as being LTD. Reaching at least EA every month is over rated. Gery himself has told me that it is not all important. One still receives their commissions from sales whether or not they reach EA. You do lose any Co-Sponsored Affiliates that you may have but none of your Personally Sponsored Affiliates.

-Yosef
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#14
(2012-12-31, 06:36 AM)Ploni Wrote: Yes, to reach EA requires some sells or purchases however, only a maximum of 2000 VP can be used for Team Leader qualifications. This is MLM, multi-level-MARKETING; it is all about generating sales, nothing wrong with that.


Sure, bit the motivation for purchases matter. If it's from legitimate market demand for the product, that's fine. If it's in order to qualify for bonuses/commissions, then it's not fine. This is the case for Amway and other well known MLMs as well. Ant-mlm critics like Jon Taylor ("consumer awareness institute") and Joecool admit that when they were involved with MLM, they were purchasing products to reach certain perceived "quota" levels rather than out of legitimate desire for the products.

If that was widespread in their groups, they were operating as an illegal pyramid within legal MLMs.

I have found people online admitting to subscribing to IAHBE so they got the points for EA. I have found elsewhere people offering calculations on the profitability of reaching certain levels in SFI based on product purchases as a business expense - ie not a personal expense, but an expense to operate their business, they were buying stuff to get the VP.

Quote: The VP system encourages sales.

But does that occur in reality? So far from my checking, while there are some good deals on the site, the vast majority of the exact same products can be purchased online cheaper (or even obtained free).

Even if they are legitimate sales, there's a problem. Very little of the product range is produced by SFI. IAHBE is one of the few. All the rest are from third parties, which means there are very very small margins available for paying SFI reps. Amway got in to this problem with Quixtar. Groups that were heavily promoting the partner stores and catalogue products, as opposed to Amway brands, had their profitability levels plummet. The margins simply weren't there to support profitable businesses.

So how does SFI do it? Where does the money come from?

Quote:My dad always taught me that a good MLM business must be LTD; learnable, teachable and duplicatable. The SFI business model certainly qualifies as being LTD.

Irrelevant. Murder is learnable, teachable, and duplicatible.

Quote:Reaching at least EA every month is over rated. Gery himself has told me that it is not all important. One still receives their commissions from sales whether or not they reach EA. You do lose any Co-Sponsored Affiliates that you may have but none of your Personally Sponsored Affiliates.

There's a HUGE incentive to remain EA qualified. Commissions on sales alone will generally be small (and most are not consumables, so reordering rates will be low).

I simply don't see a sustainable business model outside of the IAHBE subscriptions and TCredits, and both of those types of MLM models have previously been found to be illegal (Burnlounge, Zeek are examples)
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#15
You have years of experience in MLM and I appreciate you taking all of the time to look into all of this. Based on all of your experience, what would you recommend for me? I mean, I live in Israel, so Amway is out of the question also my social skills are pathetic so I wouldn't feel comfortable doing anything that couldn't be done entirely online. Also, I have very little money that can be invested in an opportunity, is one reason that I liked SFI where money can be exchanged for time instead. Any ideas?
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#16
Honestly, I would suggest considering improving your social skills and widening your pool of opportunity. Some of the biggest and most successful Amway distributorships were from people who started with poor social skills.

It's a skill, not a talent! And you need it to succeed with online businesses as well as offline ones

Start with this book -Skill with People

Success grows from discomfort, not comfort.
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