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RFS Reverse Funnel System MLM based internet marketing of time share Denver Colorado
I was contacted by an Erik Manos, AKA Director. They forgot a few things about the reality of MLM's. Beyond level 3 ..the exponential factors really come into play. After level 7 or 8..saturation is at such a point that the only people left to sell anything to are the ones already in the "system"
Let us assume that "X" is the saturation point of this product. "X" cannot be determined because we don't really know the true number of people that actually need this product. It isn't as if you are offering a food product...which most of America would consume. So lets take this another route. There are approximately 112 million households in the USA. Lets, for sake of argument and giving the benefit of the doubt, ASSUME that 15% of those households are potential customers. That gives us the ability to sell roughly 17 million units. It takes a short period of time to basically have more people signed up to offer the product than actually may buy it.
The long and short of MLM's is that to be LEGAL they must derive at least 51% of their income from actual sales of product and not from signing up new members. Which is usually the downfall of most MLM's. Saturation occurs quicker in an orchestrated advertised entity than would be from a viable product that is not targeting the masses for the quick buck. I am not demeaning this venture, just realistically looking at the viability of actually being able to make a profit from it. The potential here is, in my opinion, equivalent to that of the chain letters sending $100 to 4 people ..etc..etc..etc... the top of the money tree always comes out...while it dwindles substantially after about level 3 or 4.... sometimes maybe level 7 or 8...depending... with the extreme marketing and positive followup....you may buck the system and the odds...FOR AWHILE AT LEAST!...but eventually the laws of actuarials will catch up to you.
Also, in this scenario of time share sales...lets look at the reality of the money you spend. First off, $50...ok..no big whoop, now you spend another $3000 to join...then they SUGGEST you spend $5000 to advertise on the net to draw people in to look at the opportunity. You pay between $299 to $799 <~their numbers... for one week at one of these fine resorts....OHHH..and don't forget the $350 maintenance fee. ..Lets see..hmmm.... divide that over 10 years... and what have you spent for each 7 day stay? well...goto any travel website and book these properties...you will not spend anywhere NEAR what you spent here..and you don't have 8 to 10k in cash outlayed hoping you sell someone else...