Monitium: A Scam Or Just A Bad Idea?
Monitium: A Scam Or Just A Bad Idea?
Giving props to the guys over at MLMBlog.net yet again, I had to share this posting. I would love to hear your opinion of these types of opportunity.
Tony
Monitium: A Scam Or Just A Bad Idea?
Posted on 04 March 2011.
The following post is from Len Clements MarketWave Alert:
Since I’ve already reviewed the Monitium program in great detail on my new “Inside Network Marketing”[1] podcast, and half of my typing fingers ache (my right index), here’s the short version of why Monitium’s portfolio system won’t work: All the same reasons it’s NEVER worked! Ever. Of the dozens of similar, or virtually identical portfolio/umbrella deals that have spring up and died over the past 25 years – yes, this “entirely new approach” has been around since at least the mid-1980s – not a single one has managed to produce a single person who has earned even $10,000 for a single month[2]. Not a single one has managed to make it to it’s 10th birthday, and only a single one made it past their fifth.[3]
Just from memory, here are just a few of the portfolio deals that have tried to make this concept work in the past:
Secure Independence
The MLM Alliance
Assurance Network
Team Building Project[4]
Lifetime Downline
Portfolio International
Page One
Bosset Group[5]
InVestWorks
FunTimeNow.com
PAP Systems
The top three on the list were elaborate, professionally ran operations back in the early 1990s that offered practically the identical concept now being offered by Monitium, only with different member companies and no internet presence, of course. So no, Monitium is not at all “a new way of winning in this great industry”.
Basically, a portfolio program is one where a downline is build and tracked within the portfolio system itself, for a fee, and then once an actual MLM company is added to the portfolio all of the participants are placed into the hierarchy of that company, with all lines of sponsorship intact. Members are then asked to activate their position in that company with a product purchase. When a second company is added the entire structure is plugged into that company’s downline. Those who are earning enough in Company #1 to cover the qualifying product purchases in Company #2 are then asked to start buying products from the second company. And so on as more companies are added to the portfolio. The alleged benefit to this system is that it diversifies your MLM income, much like a mutual fund of stocks. Should one company suffer a significant drop in popularity (and sales), abandon the MLM compensation model, or just close down, you won’t lose your entire organization and income. Everything remains intact in the other companies, and the portfolio managers then replace that dropped company with another offering similar products. You never again have to worry about starting over. Just build it once, one last time.
Sounds great, in theory. Reality, not so much.