At June 1st, 2014 LSN – LEAD System Network is going to launch. Now in may 2014 the Internet (well, at least mlm-prone part of it) is buzzing about it. What is is? Is it a scam or pyramid scheme or legitimate MLM?
LSN – piramid scam or MLM
Let’s think first, what is it? Is it MLM with good and useful product, or is it pyramid scheme, where people down the line pay for those up the line?
To decide we need to analyze the product (good solid and needed product indicates MLM, shady virtual useless product indicates pyramid scam). We also need to look at compensation plan.
Lead System Network: the product
The product here is a set of “marketers’ tools”. Many people do not look deeply at the product, they just talk about finding new downline members, But let’s see what we have here:
- Autoresponder – if it is good autoresponder then it has some value (if you know how to use it), otherwise – there are some free autoresponders out there. So it needs to be good to be worth anything.
- Blog. Well.. anyone can start a blog for free. On many platforms. And you must have something to write about, or it is useless otherwise.
- Voice Autoresponder. Very interesting, looking forward for details.
- Lead management – is it for LSN leads, or external use?
- Lead capture pages – same as above
- Chat. A chatroom? Who you gonna talk wiht there? There are plenty of free chats.
- google hangouts – really? It is free
- Postcards (post leads followups). Who will pay for stamps? In which countries will it work? Anyway, interesting.
- Webinar room. For how many people? Is it stable?
In $100 pro packet there is also mobile app creating tool. There are free tools, maybe this one will be better. And bulk mailer?. To do… bulk mail? To who?
Very interesting. The company promises 100% commission. I wonder how? And if so, how do THEY earn money? Who pays for the tools costs (server, transfer)? Let’s not be naive. Santa Claus will not pay for running those tools.
I see a simple solution to this puzzle – you pay $50 a month, and your “sponsor” gets $30, and this is called 100 % commission . The company gets $20 (19,95 to be exact), sponsor gets $30 and he is convicted that he gets 100%. Everyone is happy 🙂
Note also that the 100% commission is for $30 products only. And just for customers you find directly, not those that spillover (or spillunder) in the matrix.
In the case of the pro package ($100) however, the commission is 50 %, and the other half goes to the “matrix”
Many people are excited by the fact that they can get $1000 without recommending others – just for the registration. But remember, that you need to spend $150 on products first ($100 for pro , $30 for basic and $20 for nothing)
You must also have 3 levels of paying members – 3 + 9 + 27 people = 39 people , paying a total of 39 * 150 = $5850 per month. And remember that you will get $1,000 without sponsoring anyone just once, if you want more – then you will have to find person willing to pay $ 150 a month.
Note that this is not so, that you sign up you pay $150 and get $1,000. You also need to have 39 people under you in the matrix , each paying $150 a month.
And what if you do not have so many people that bought the pro version ? Then perhaps you will be paying $ 150 a month until you find them 🙂 For example, if you have 2 people under you, each paying $150 you will earn 2$. See first comment after this article for explanation (thanks, WealthTeam 🙂 ).
Here we return to the story of Santa Claus – do you think that someone will give you $1000 for nothing? Or maybe instead of giving that money to you the organizer of this MLM should enter himself in that position and collects $1000 himself – why don’t he/she do it? Continue reading