Trendy Revenue Sharing Explained | You Become a Product!

Feb 20, 2017

TODAY'S SPONSORS

MindMovies: Ultimate Success Formula

ElegantThemes: HeyGen AI Review 2023 (Video Avatars, AI Voices & More)

Systeme: All-in-One Marketing Platform.

Brevo: Award-Winning Emailing Software.

Prezentar: Amazing presentations, videos & eBooks in minutes. Stunning slides in a snap!

DesignModo: Build amazing websites, email newsletters, and marketing campaigns with the most sophisticated design platform ever.

This is an area for advertising & partnerships.

Sponsored Ad

explain-revenue-sharing

The modern business world face tremendous obstacles and not only because of the financial crisis around the globe. Investing programs come to life every single day to attract potential wanna be entrepreneurs by promising luxurious ROIs that are far away from reality. The end results are disappointing leaving the vast majority of participants with loss and the “anonymous” in most cast cases owners/admins escaping ready for their next project.

Although revenue sharing as a business form is legal defining the distribution of profits/losses between shareholders in a company/group of companies, the modern revenue sharing programs do not offer real products.

How Can Companies Generate Profits Without Products?

All they need is an income plan attached to a website membership. The membership can either be free or paid, usually charged per month. Modern revenue sharing companies are in majority advertising platforms offering traffic products sold only to members who invested in the system. They invest because they expect to receive a return after a certain or not period of time.

What happens is that money deposited from members are being transferred to the revenue sharing pools in order to be distributed among active participants. This is the only income source for that kind of companies. There are no products sold to retail/external customers. Every member buys ad packages bundled with ad credits that can be used to advertise their own offers/affiliate promotions.

The Traffic Products found are various forms of ads: fixed, login, text, banner, business directory, cash links and many others.

Every member advertise their offers to other members of the program, making it extremely hard for anyone to sell. A traffic exchange system where most of the advertisers selling money making opportunities and promoting other revenue sharing or HYIP companies.

So, advertising revenue sharing companies sell ad packages and/or memberships to affiliates/investors who become eligible for the profit distribution.

What Happens Next

That business model is extremely unsustainable as you can already imagine and is called Ponzi, but let me break it down a little bit…

The companies starting to collect funds from affiliates who expect to be compensated with the final ROIs. New deposits are being used to pay off the promised ROIs to earlier investors. During those first stages most of participants believe that the companies are legitimate because the withdrawal requests are processed successfully (but a paying company is not necessarily legitimate).

Affiliates as expected, advertise the programs to their financial cycles and a hard recruiting game brings more people into the system.

But when a company is promising 150% ROI in a month or two, soon the problems will arise. Not only earlier investors want to get paid, but new recruited members as well. Everyone expect to get 1.5 X the money they invested. How can that be accomplished?…Simply, it can’t. Those companies need a steady flow of recruited members in order to pay off those that got in before them. As more and more people entering now the system more ROIs have to be delivered…

A mathematically proved formula leading to chaos. As it is inevitable all late participants will lose their deposits because recruitment can not last long. The funds are not enough to deliver 150% ROIs for everyone. A logical and undeniable result. A historically repeated scenario driving those companies to self destruction.

The only case where companies could deliver that kind of ROIs is where real products exist and shareholders/members share revenue based on external sales.

In this model affiliates become the “Products” being sold. They invest, promote the companies to others, click on ads daily and they do not get paid at the end. They are the only power of these pseudo companies and those who will lose money making the owners richer.

Final Words – How Can this Situation Change?

The “Trend” is a response to the high demand of people that are looking for ways to make money online without having to work. They just want to invest and recruit others like maniacs. But even if someone makes money it is on the expense of other investors who at the end will lose their deposits.

In order that situation to be changed we need to act as a whole, as a community. Unless you want to see fraudulent admins escape with people’s money. There are many bloggers, entrepreneurs and affiliates promoting these programs as legit, just to make a profit out of their recruited downline members. They probably believe in the short term of things, or they just don’t care what happens to newbies.

It is in your hand to change it. You can start today by promoting and working only for legitimate companies that provide valuable and real products (physical or digital). It is the minority but you can make a living out of it.

Related

That’s it, another article has finished, here on Web Market Support. I am waiting for your comments and thoughts. Till next time.

Sponsored Ad

Tasos Perte Tzortzis

Business Organisation & Administration, Marketing Consultant, Creator of the "7 Ideals" Methodology

Although doing traditional business offline since 1992, I fell in love with online marketing in late 2014 and have helped hundreds of brands sell more of their products and services. Founder of WebMarketSupport, Muvimag, Summer Dream.

Reading, arts, science, chess, coffee, tea, swimming, Audi, and family comes first.

Biz Opps/Cryptocurrencies

Revenue Sharing/HYIP/Crypto/Binary Options Trading

← Previous post Next post →

0 Comments

Submit a Comment Cancel reply

LATEST NEWS

business/marketing/sales/tech

SearchEngineLand: How Google Search and ranking works, according to Google’s Pandu Nayak
BusinessInsider: AI is the great equalizer. Studies show that the rise of tools like ChatGPT is good news for employees who suck at their jobs
TheMitPressReader: Will AI Render Programming Obsolete?
Forbes: About That Mysterious AI Breakthrough Known As Q* By OpenAI That Allegedly Attains True AI Or Is On The Path Toward Artificial General Intelligence (AGI)
AmericanMediaGroup: US Military and SHARP Unveil 120 Million Quantum Phones and Quantum Voting System – The End of the Spy Phone Era (video)
WealthyAffiliate: 46% of Big Publishers Are Using AI Writing
ContentMarketingInstitute: Clueless Execs? Solve the Content Marketing Mystery for Them
NewsWeek: Donald Trump Files Lawsuit Against 20 Media Outlets—Full List
SproutSocial: 16 influencer marketing platforms to boost your campaigns in 2024
TechCrunch: Siena AI raises $4.7M to develop an empathic AI customer service agent
AnalyticsInsight: 10 AI Tools That ChatGPT Says Every Consultant Should Know
Facebook is going down: Subscribe to use your Facebook account without ads, starting at €9.99/month (inclusive of applicable taxes). Your info won’t be used for ads. [They beg for money! What I predicted in September 2022 may become a reality]
AIOSEO: Discover Trending Websites. Learn how websites with exploding traffic use SEO to rank quickly. Join our email list to be updated as soon as a new case study comes out.
WealthyAffiliate: How to Start a Profitable Food blog
BusinessInsider: Getting emotional with ChatGPT could get you the best outputs
CNBC: The CEO of a $2.2 billion tech startup—who’s sold companies to Yahoo and Google—shares the common mistake he’s avoided
VentureBeat: Iterate introduces AppCoder LLM, allowing enterprises to build AI apps with natural language
YahooNews: Adobe Caught Selling AI-Generated Images of Israel-Palestine Violence
Nature: ChatGPT detector’ catches AI-generated papers with unprecedented accuracy
DailyTimesNigeria: Ponzi Alert: How emerging online affiliate marketing platforms are defrauding Nigerian youths
CNBC: 50% of Gen Z wants to ditch corporate jobs and run their own businesses, according to new research
SalesScripter: How to Use ChatGPT to Write a Sales Script
SearchEngineLand: Google rolls out generative AI tools for product images in the U.S.
NameCheap: Seeing dollar signs: Sam Altman’s Worldcoin
ElegantThemes: Quillbot AI Review: Everything You Need to Know (2023)
UseMotion: The Timeboxing Technique - a Comprehensive Guide
TechCrunch: Why startups should start preparing now for a potential founder breakup. [Excerpt: she started the company to help creators, not ride industry trends to make the most money.]
Dev: Top 5 Github repositories to achieve system design mastery
SearchEngineJournal: New Version Of ChatGPT Gives Access To All GPT-4 Tools At Once
NewScientist: ChatGPT wrote code that can make databases leak sensitive information
SearchEngineLand: How to use Google Bard for better SEO
InVideo: How To Find Your YouTube Niche In 2023: Complete step-by-step Guide
Jeffrey Gitomer: Value On-Hold. Seize the Silence.
ElegantThemes: 8 Best AI Copywriting Tools in 2023 (Reviewed & Rated)
WealthyAffiliate: 5 Steps to Unlocking Peak Affiliate Commissions
TechXplore: Artificial intelligence predicts the future of artificial intelligence research
OptinMonster: 29 Awesome Newsletter Ideas That Will Keep Subscribers Engaged
WealthyAffiliate: The Coaching Scam is Alive and Well. (and costing folks $1,000's)

economy/politics

TrulyNet: Major Swiss Bank Admits to Tax Evasion Scheme, Agrees to Substantial Penalty
NewAmerican: Small Businesses Are the Backbone of the American Economy
LiveMint: Gold Standard hinted by the US Debt Clock
Gold Standard hinted by the US Debt Clock
Reuters: China's state banks seen supporting yuan as Moody's cuts outlook - sources
GoldTelegraph: BIS is warning that central clearinghouses that hold over $1 Trillion in liquid assets may exacerbate periods of financial stress
TheSun: Huge pharmacy chain and Boots rival sells all 1,054 branches after string of closures – is your local affected?
ZeroHedge: 64 US Bank Branches File To Shut Down In A Single Week
[Bank branches are dropping like flies: Wells Fargo, Bank of America, PNC, NatWest, RBS, Lloyds Banking Group, Barclays... The FIAT dollar and the fake economy have collapsed - Time for a replacement after the HAPPENINGS - dark mode]
TASS: Pakistan applies for BRICS membership in 2024 — ambassador to Russia
NewsTarget: 1.8M fraudulent transactions led banks to close accounts of innocent customers without warning or explanation
TheGoldObserver: Dutch Central Bank Admits It Has Prepared for a New Gold Standard
Reuters: China, Saudi Arabia sign currency swap agreement
USDebtClock: Transition from the Federal Reserve System to the US Treasury 1776 has begun [no more FIAT slavery]
DailyReckoning: Wall Street’s Dishonest Accounting
Gazetteller: The Iraqi Dinar’s Quantum Financial Leap Is Here – Redefining Money and Power in the Global Economy!
ChrisHedgesReport: French whistleblower Stephanie Gibaud exposes worldwide banking fraud [VIDEO].
AMGNews: QFS NEWS: All Banks are Transitioning Over Into the QFS – Start Getting Hold of the ISO 20022 XLM and XRP – 7 Billion People Will Inevitably Transition to the QFS.
WatcherGuru: Dubai Incorporates XRP Into Special Economic Zone
CoinDesk: Coinbase Ending Support for Bitcoin SV. [I predict the future of crypto among other things in this video].
TheDailyStar: Prime Minister Sheikh Hasina today launched local currency card TakaPay to reduce dependency on international card schemes like Visa and Mastercard and save much-needed US dollars. [Welcome multipolar - goodbye monopoly].
CNNBusiness: WeWork files for bankruptcy
TheCryptoBasic: UAE’s Al Maryah Bank Selects Ripple ODL Partner for Cross-Border Transfers
GlobalTimes: Yuan-clearing bank launched in Pakistan as Chinese currency gains momentum in internationalization push
Internationalization of Chinese currency gains momentum amid de-dollarization
BRICS currency is almost ready, confirms Economist
TVBRICS: Argentina starts the process of joining the BRICS Bank
Text copied from https://tvbrics.com/en/news/argentina-starts-the-process-of-joining-the-brics-bank/
Mining: Caledonia explores funding options to build Zimbabwe’s biggest gold mine
Reuters: US SEC drops claims against two Ripple Labs executives

multimedia/web development

It'sFossNews: An Open Source Web-Based AI-Powered Vector Graphics Editor: Wait, What?
InVideo: How To Make YouTube Shorts: Create YT Shorts Using AI
Vecteezy: Graphic Design Trends
Videvo: What You Need to Know About Aspect Ratios
ThemeForest: Merchandiser - WooCommerce Theme for Wordpress Block Editor. FREE when you signup with a free account.
Videvo: Think Like a Director: How to Use the Medium Shot
Placeit: Font Pairing Made Easy. A Guide for Non Designers.
VidToon: #1 Top Video Animation Software To Make Explainer, Marketing, Animated Videos Online. HD Background Images and Music Files-Automated Voice Overs-Smart Timeline-Social Media-Animate Text-FHD Export-Camera Zoon In/Out-GIFs & Icons-Transitions, and more.
Dev: 10 Exceptional Developer Tools Launched in 2023
MotionElements: FREE background music for video. MotionElements is the best online stock music site to download free background music. Choose from free stock music to free sound effects to free stock video.
Deeezy: 14 FREE Bakery Store Illustrations
ThemeForest: Up to 50% OFF selected items. 27 website templates from $7 sorted by best sellers. Beautiful website templates from our creative community, reviewed one by one by our staff.
DesignModo: 19 Top Tools & Resources for Web Designers in 2023
CraftWork: FLASH SALE. Save up to 45% on illustrations, UI kits, Framer and Figma templates, and Pro Access subscription plans. Use discounts before 22 September.
PlaceIt App: Boost Your Business From Everywhere. Easy access to our entire library of designs, mockups, logos & videos. Download your designs directly on your device and share in seconds to your social media.

science/world

VentureBeat: Microsoft unveils ‘LeMa’: A revolutionary AI learning method mirroring human problem solving
ThePeople'sVoice: Elon Musk: Ventilators Euthanized MILLIONS Globally, Not COVID
Phys: Scientists manipulate quantum fluids of light, bringing us closer to next-generation unconventional computing
Decrypt: Global Powers Sign International Declaration on AI Safety
TheConversation: We built a ‘brain’ from tiny silver wires. It learns in real time, more efficiently than computer-based AI
NDTV: Time Travel Possible? What Scientists Found Out With Latest Experiment
NeuroScienceNews: Is AI Mimicking Consciousness or Truly Becoming Aware?
LosAngelesTimes: Stanford scientist, after decades of study, concludes: We don’t have free will

BRAND NEW CATALOGS:

Online Education Resources - Books, programs, courses, training, and so much more. I'll be adding many brands in the upcoming days and weeks. Check it out!
BizHub: The Ultimate Resource Catalog for Ambitious Businesses.The ultimate business collection by categories: organisation-administration, marketing, production-supply chain, financial management-economics, human resources management, IT &web development, legal & regulatory compliance, social image & responsibility, design & multimedia, business development, education, innovation. An upgraded version of the 200+ tools collection.

........................

DAILY BREAKING NEWS: Marketing, Business, Economy, Multimedia + The "7 IDEALS" Methodology FINISH LINE 85% 🙂

Some of the links on this page are “sponsored”. For more information, I refer you to the Disclaimer page.

ALL THE NEWS



TODAY'S SPONSORS

MindMovies: Get FREE Instant Access To Natalie Ledwell’s Introspection Process & The 7 Morning Success Rituals PDF!

Tawk: Live Chat, Chat Pages. Review.

Jaaxy: Market Research Multi-Platform – Keyword Research – Niche Research – Competition Analysis/Insights – Site Rankings – Domains. Training and Support.

JotForm: Easy-to-Use Form Builder for any Business.

WebinarJam: All-in-One Webinar Platform.



#3 CONTRIBUTOR

“Here, we honour and reward the most valuable contributors to the blog.” #3 position Evelina Brown: author page. A digital marketer with more than 10 years of experience and a contributor to Content Marketing Institute.

