The new paradigm, will it work?

Recently I have received several emails about programs that are touted as a new paradigm in Internet programs. These new programs are being called member-to-member programs. Here are excerpts from two such emails:

“Give yourself permission to make money the easy, internet way!

BE A PART OF THE PARADIGM SHIFT THAT IS TAKING PLACE!

The whole program is managed for you! All you do is join!

No company....no matrix...no gifting....just plain and simple profit!

To receive information on how to get started - send an e-mail to....”

And

“The rules of Affiliate Programs have changed!

The new "member-to-member direct payment" business
model is quickly changing the industry. There is no reason
to join another "company-based" program EVER again.

You no longer have to promote anything to earn $150
each and every week!

Still wishing you could make money the easy way---
by doing nothing?

Wish No More!”

These new programs are like one level affiliate programs. Normal affiliate programs pay a percentage of sales to the upline affiliate. They usually pay 25% to 50%. These new programs pay 100% of the money to the upline or sponsoring affiliate.

Another difference between the new programs and the old is that the product offered by most of these new programs is a safelist, or a safelist and an ebook. As some of these programs cost $100 a day, it appears that the safelist is only an attempt to legitimize the program.

The first member-to-member program that I saw was Cash a Day, which cost $20 a month at the entry level and $500 a month at the highest level. Their product is a safelist and some ebooks. The section on their website that describes these products contains this information, “Now Please remember its not the products (heck I could use this system to make money with a couple of packs of chewing gum). Focus on the Income Plan...”.

The plan with Cash a Day is that you join for $20 a month and every one you sponsor pays you $20 a month. As you organization and income grows you move up to the $50 a month level, then the $100 a month level, and eventually the $500 a month level. There is also a small administrative fee.

Another such program is My Tycoon Manager. With this program you join for $150 per week and the program administrator guarantees that they will place two members under you within ten days, so that you will earn $150 per week. Their product is a safelist.

I have received emails on at least three other such programs, all of which resemble My Tycoon Manager. There are several problems with this type of program.

The cost is way out of proportion compared to the value of the product. You can join thousands of safelists for free or for about $10 per year.
So the product is only an excuse to have a program.

These programs either promise that it will be easy to promote the program or that they will do all the work and place people under you. These promises are much like the promises of a typical ponzi or pyramid scheme. There is a very good chance that these programs are illegal and will face federal scrutiny.

These programs feed on the desire for quick riches without doing any work.

As one of these programs grows they must recruit an ever larger number of people every week (for a weekly program) to keep the program working. In fact they must, at the least, double every week. Many of the people that join cannot afford to pay $150 a week with out seeing a quick return on it. So if they do not receive the promised two signups quickly they may drop out of the program.

There will be a constant battle to get new signups under a new member before the member drops out. When a member does drop out that member must be replaced quickly before his upline decides to drop out. Thus, if the growth does not double every week, the program could easily start collapsing on itself. As a program grows it will become increasing harder, and eventually impossible, to maintain the growth. Then it will start to collapse.

Those that start the program or join the program near the top can make some very nice money. However, those that join later will have a hard time to just break even.

These programs violate the work ethic. Men are to work for their bread. To expect it to be given to them with no work on their part is wrong.

I think that we will see more of these member-to-member programs appearing on the Internet. Many of them will not last long. Other will stay around for a long time, but with an ever changing membership.

When you are introduced to one of these programs you will have to decide what you want to do with it. As for me, I will be staying with traditional network marketing programs and affiliate programs. Programs that have a legitimate product that offers a good value for the cost. Programs that pay you on your marketing efforts and are likely to be around for a long time.