Just a few days ago, I have written an article entitled "Social Networking that Pays!," it talks about Yuwie, a social networking site that shares its profits with its active members. I have joined Yuwie a week ago, but because of work, I couldn't stay active for too long, what I did was add some new friends, do them some favor, comment a little, message a little, and leave. Yet, my network grew in 1 week time. My current Yuwie stats is 1,159 page views + 1,049 referral views. Not bad if you ask me. I'm a newbie to this site, so I am currently trying to understand how MLM (Multi-level marketing) works.. actually, this is the kind of business Yuwie is involved with. Some may say that Yuwie is a pyramid or ponzi scheme, some may even go as far as saying that it is scam.. But no.. Yuwie is not a pyramid or ponzi scheme nor it is scam.. it is MLM but never a pyramid scheme, I'll explain why..
Pyramid/Ponzi versus MLM
Let's start with Ponzi.. what is a Ponzi scheme anyway? A Ponzi scheme is fraudulent investment operation that involves abnormally high returns (profits) to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business, examples of these are HYIP (High Yield Investment Programs), while not all could be considered illegal, most of these programs are unstable and have a high tendency to run away with your money. Some countries prohibit these type of business because of the high risk involve.
In this type of program, you invest your money on a program with a promise of high returns, despite the fact that your money may be put at risk. Remember, that the program does not always win, and you never know where your money goes.. it could be invested on illegal activities as far as I'm concerned, and there is no guarantee that it will return. Also note that Ponzi schemes offer referral bonuses as a means to expand their network, but the high risk involve means to differ.
Now, let's move to Pyramid schemes.. Pyramid schemes are non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. The system works with the top referrer on top of the mountain while his downlines works for him as virtual slaves (ie. offers low reciprocal returns or no returns at all). In this system, the only capital is the mouth and the tongue.. you may add saliva to mix it up. As bad as it sounds, both Ponzi and Pyramid schemes are somewhat bogus by nature.
With the definitions in place, let's define MLM (Multi-level Marketing) or also referred to as Network Marketing.
MLM is a business distribution model that allows a parent multi-level marketing company to market their products and services directly to consumers by means of relationship referral and direct selling. In this system, there is also a top referrer who guides his network to progress. And since, the people below (referred to as downlines) serve as foundation, a teamwork may be necessary to sustain the entire group. In this type of system, the uplines have to help their downlines if they wish to preserve their team's stability. If the downlines collapse, the uplines go with them. So, if you look at this closely, you could see that MLM is a fair business model and is actually based on teamwork. Moreover, MLM is an accepted business model worldwide. Yuwie belongs to this model because of the following reasons..
1.) There are products and services. Your Yuwie account is actually a free service. Yuwie pays all the domain and bandwidth expenses for the sake of its members.
2.) There is a top-referrer who builds up a network, but since there is no money involve, nothing is lost. The group is self-sustainable, each member could become top referrer if he/she wants to. Moreover, you have the freedom to decide whether you would or would not expand your network. However, if you wanted to earn more, of course, it's only fair that you have to work for it.
3.) The referral system also works through teamwork.
4.) Yuwie is also promoting itself through referrals.
Finally, MLM is not a scam, therefore, Yuwie is not a scam. Furthermore, there are people who already got their pay.
Yuwie profit sharing system
Yuwie earns from their advertisers, every social networking does.. these serve as their life blood. Every hit and ad view generated from your page views gains Yuwie a profit. Yuwie shares this through a system I am yet to understand.
Alone, you have to be very active in order to reach your payout (Minimum of $25), it would take you approximately months to a year to get it depending on your activity, and sadly, the payout is not worth it. Many could not even reach this goal. The only way to meet this is to have referrals, and make more friends. Let the system work for you.. The bigger your network, the more page views you can generate, the more money you can earn. And, even if you can't earn, isn't it providing you a social network fun not enough? So, why not join? You got nothing to lose. It's FREE!
Join my Network
To those who wish to join my network, please sign up below..
Sign Up for a Yuwie Account
The advantage of joining under me is that you can be introduced into my network, where you can be seen by my friends and likewise, get page views. Joining alone is OK, but, that option means you're on your own..
As soon as I can get more information about Yuwie, I'll post it here on my blog.
Friday, March 28, 2008
Learning Yuwie and building my network of Friends
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2 comments:
You've done an awesome job of explaining how Yuwie works and if I were not a member I would of joined under you for sure. I really enjoyed reading a lot of your other information too. Thank you for your hard work!
Laura
Thanks Laura, please come to us once in a while, we are updating our site every now and then.
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