- Business and Employment
Why Infinity Downline is a pyramid scheme
Infinity Downline, more commonly known as ID, is an MLM scheme which it claims to pay 100% of its sales to the saler. The company only engage in sending promotional emails to registered users as a major source of income. This is incredible, right? It sounds too good to be true.
About Infinity Downline
Infinity Downline (ID) existed on the internet since 2009, created by Peter Wolfing, claimed to have over 180, 000 members as of July 2011. There was so much hype on how much you can earn with little effort, without any specific knowledge about the internet. Although this sounds too good to be true, which seems to be a multi-level marketing (MLM) scheme, but it survived till today in 2012, with some ID members still promoting the product on the internet.
This ID programme has inspired some Malaysian scammers to create a get rich quick scheme called: "Login facebook dapat RM 100" also known as "Get RM 100 when login facebook" in 2010. This scheme is now non-existent as in 2012. In this article, I will discuss how ID may be able to sustain for a few of years but not in the long term. I am neither an ID member nor an internet market researcher. This article contains only my personal opinions.
Subscription to audio and video library
Infinity Downline provides subscription service to access its audio and video library. You can have access to a wide variety of audios like: "Time Management", "Article Marketing", and "Covert Product Selling Principles", and videos such as "Affiliate Marketing 101", "Camtasia Traning Series", and "Firefox 2 Training Series". Most of these materials are focusing about making full use of your computer and then make money online.
Seems to be a good form of education but is ID serious in promoting these audios and videos? What makes ID different from other websites such as www.learnoutloud.com, and free-ebooks.net? Do you have the motivation to listen to all the audios and watch all the videos? The answer is no because you have not read the books found in library either which is available for free! Let us be more realistic, how many people are willing to pay 25 USD monthly subscriptions just for the access of audio and video libraries focusing about making money only?
I really hate books which talk about making money online. They are not straight to the point. They included lots of craps such as recent economic recession, unemployment, how much you can earn by following their methods, what you can do with your extra money, before discussing their money making strategies. Their money making strategies are not new. You can find them all over the internet! Economic recession and unemployment are common knowledge; I know what to do if I got extra money, you don't have to tell me!
The "Reverse-2-up" system
The "reverse 2 up system" of ID is simple: You just need to refer to at least 4 members in order to make a profit. You break even whenever you get your first member. This means that you can access audio and video library for free. Your 2nd and 4th member will pay to your upline (the people who referred you into the ID programme. They are also known as "sponsors") and you keep your 3rd member payment. You can imagine the rest if your system really works.
Because referral system is more profitable than selling audio or video library, most of the ID members decided to advertise only the referral system as described above. This makes ID no different other than the pyramid scheme. The truth is that you have to pay 25 USD per month or you risk losing your membership. This means that you have to find your first ID member within 30 days of joining or it will be more difficult to recoup your investment later. That's why you find only positive comments on the internet about ID on Google top search results because 180, 000 people desperately need referrals!
This book is a good guide such that how you can concentrate on your network marketing without negelecting your beloved family members.
This book reveals the inner workings of Ponzi and pyramid scheme so that you will not fall into such schemes in the future.
Getting referrals is not easy
Actually, you need to spend much more than your monthly 25 USD membership fee if you are serious in making referrals because you need to learn to set up blogs, buy domains and set up websites, making videos, audios, pictures and to consult website administrators or your sponsor in order to attract more visitors to your site. Imagine there are 180, 000 people competing against you for referrals! "Search Engine Optimisation" (SEO) knowledge is a must for your website to appear on top ten Google searches. All these just boils down to one situation: You already involve yourself in an intensely competitive market which would be difficult for you to capitalize on! You need more than hard work in order to be successful!
A search on the "Google Adwords Tool" shows that the term "infinity downline" attracts only about 14, 800 searches monthly. In Infinity Downline, you have little innovation for your service. Some people set up collaborative groups, offer downline finding services, and training courses. Besides these, what you have limited number of choices to promote your ID programme. The audio and video products are provided by ID and they are not eager to promote them.
That's why so many people fail on this stage. You cannot excel in this business unless you have good website building knowledge. I really doubt whether every upline esoecially early adopters have the time to mentor so many downlines? What is advertised on ID is only true for early adopters.
All in all, Infinity Downline is a disguised pyramid scheme and you are strongly advised from involving yourself in this scheme. It is interesting to note that South Africa, Malaysia, and Sweden contributed most traffic to the ID site, according to alexa.com. But you should ask yourself this question: Am I going to survive in such competitive market of Infinity Downline?