fbpx

Consumer Behaviour #03: Consumer’s Involvement & Marketing Test 🙂

You're Reading:Trendy Revenue Sharing Explained | You Become a Product!

Trendy Revenue Sharing Explained | You Become a Product!

by Tasos

}

Feb 20, 2017

TODAY'S SPONSORS

MindMovies: Ultimate Success Formula

Register for the Masterclass and receive a FREE Law of Attraction Planner, along with a powerful ‘Manifesting Check.’

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.

roobet-july-2023-720x90

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.

roobet-july-2023-250x250

Sponsored Ad

Tasos Perte Tzortzis

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.

Revenue Sharing/HYIP/Crypto/Binary Options Trading

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

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]surprised
  • 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.

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. 

TOP Quote

Life is a discovery process where the mind is given to us to mirror everything we observe to the divine.

the consumer decision-making journey unveiling the process eBook 333
The role of the business owner featured 666
marketing publishing mastery private training workshops featured banner
roobet-july-2023-250x250
wealthy-affiliate
Divi WordPress Theme

Archives

Find a domain starting at $0.88

powered by Namecheap

Newsletter

Marketing, Business, Economy, Multimedia

Get access to marketing and business training, sales secrets and personal stories from the entrepreneurial world, downloads, exclusive discounts and bonuses, and the newsletter to scale your business

The “7 IDEALS” Methodology EARLY ACCESS

be part of the upcoming movement

Read More

Latest Posts

the consumer decision-making journey unveiling the process eBook 333

The Consumer Decision-Making Journey Book

 

Uncover how your choices are influenced and make smarter decisions with this FREE 232-page eBook.

Explore real-life examples, problem-solving strategies, and actionable insights to enhance your buying habits and boost your business success. 

Download now and take the first step towards becoming a conscious consumer and a savvy marketer!

You have Successfully Subscribed!

Pin It on Pinterest

Share This