While MLM is a fair marketing strategy, MLM Schemes are always a scam. Bitcoin users seem to be a high-value target for these kinds of programs. Although there is good money to be made for those who get in when these programs have just launched – assuming they can refer a lot of friends – MLM schemes should be avoided at all costs.
Also read: BitFury joins fintech group and pays the $15,000 membership fee in bitcoin
MLM Programs Aren’t For Everyone
Note from the author: The purpose of this article is to warn users about MLN programs in the Bitcoin world. Other industries offer similar services, which may be far more legitimate.
When somebody tries to talk you into an MLM program, they will most likely refer to this scheme as “something everybody can makes money with”. While this is true up to a certain extent, not everyone is a backstabbing liar emptying the pockets of other people knowing all too well the service advertised will cost them money.
That is what MLM schemes come down to, in the end, as every new “victim” one can bring to the table increases their payout and chances of getting out of the MLM without losing money. Referral programs operate in the same manner, although not everyone has to make an investment to become part of it in the first place.
Note that MLM is a legitimate way of marketing goods and services, in fact there are several billion dollars companies that have been on the scene for over 40 years. In a real MLM program there’s no fee to enter and the commission you earn depends on the volume of sales your network produces. Also, most of the income from a distributor comes from direct sales, while referral commission are residual (could even be big, but require a huge network)
In the world of Bitcoin and digital currency, there are far too many MLM schemes. OneCoin and MMMGlobal are two of the most famous ones. Lots of people have joined these schemes in the hopes of making a lot of money , and a lot of people have been paid out ever since joining. All of these factors make the average MLM seem legitimate, but we all know those programs cannot carry on forever.
As long as new investors keep pumping Bitcoin into the MLM scheme, there is nothing to worry about for existing investors. Everyone is incentivized to bring new members to the table, as they will all benefit from doing so. But sooner or later, there is no one else looking to sign up, as they hear stories of how certain people are not getting paid due to a lack of new funds coming in.
Both MMMGlobal and OneCoin will be facing those struggles sooner or later, as they have grown exponentially ever since their inception. Considering how most of these programs accept a wide variety of payment methods, they are not just limited to Bitcoin users. But in the end, every MLM will come to an end.
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