This COP Rule Makes your MLM A Scam
Yeah we all know the story – you join a company and you KNOW this one is
different. Usually it’s “different” because:
– Products are different
– Comp plan is different
– People are different (they REAAALLLLY care about you)
Although anyone on the outside will tell you that:
– These products are just as non-retailable as those in other MLMs
– The Comp Plan is still shafting you
– It’s the same people as in the other companies (often, LITERALLY the
same people just jumping companies)
But it doesn’t really matter. Even if these 3 things were true, there is a just
ONE RULE that makes all MLMs a scam (let’s say ‘almost all’ to be on the safe
That one rule is “Cost Offset Pathway” – otherwise known as ‘COP’. It’s funny
because this ‘COP’ essentially policies if the business opportunity you’re about
to pour your money and soul into is a scam or not.
Here’s what it means:
Do you have a clear pathway to offset your cost for joining the business
WITHOUT RECRUITING others under the same promises?
Let’s say you join a company for $500. Of this cost, about 50% is the company’s
margin. The other roughly 50% is split among your uplines. Let’s say your
direct ‘sponsor’ gets $150 for this sale. Note that this much higher than most
companies pay, but this will make the point nonetheless.
Now you’re told that you have a simple way to make this back – just recruit
4 friends or family at this same $500 level and you’ll get $600, bringing you
to breakeven or profit.
Here’s the problem.
You’re going to need to put 4 of your friends in a $500 loss
for you to break even. And you’re going to tell them the same thing, meaning
they will need to put 16 people in $500 loss them to get their money back.
Essentially, you’re spreading losses and misery at an exponential rate.
The COP rule removes this problem. COP states that you must have a path
to offsetting your $500 cost WITHOUT the 4 friends. As long as you can make
back $500 without selling others on the cost, you have a workable model!
Because now you can make your money back without harassing friends.
Unfortunately no company falls in this category except for a couple that are
barely under the MLM label.
Essentially, if you are part of an MLM, either you are in loss, or exponentially
more people are in losses because of you. It’s a shame but it’s the truth.
ON THE FLIPSIDE:
If you could generate the $500 back WITHOUT recruiting anyone else into the
then company, then you’d have a COP Compliant company.
Of course there are very few companies that meet this criteria. An example is INFINii™,
a company where you can use the software and training provided to generate an income
from running a legitimate ecommerce business. You do not need to recruit to generate
an income with this business.
However, that begs the question – if you can generate profits without recruiting, why would
you recruit at all? After all, the primary reason you would recruit is to generate profits, and
if you’re already making more money by running an ecommerce business, there’s not much
of an incentive to become a recruiter.
As such, we can recommend a company like INFINii for its system but not as an MLM. In fact,
we would have an easier time recommending it were it NOT an MLM at all.
In theory, an MLM is a good business model if the following criteria is met:
1. Good product at below market prices.
2. Product is in demand.
3. Personal relationships are not harmed by selling it.
4. You can make majority of your profits directly by retailing the product instead of recruiting
others to become salespeople or distributor like you.
Without these conditions, a company cannot be recommended.