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Well I have been chasing my tail mostly.  A friend of mine in Malta got me hooked on MLM’s and I still can’t figure out why they don’t work.

Mathematically they look unbeatable, but it is extremely difficult to get people to sign up under you.   Actually most of these sites have a free to join option.   You usually get a fair amount of people to come along with you for free during the pre-launch of any particular MLM.

When the time comes to upgrade to a paying member that’s when most of people are relunctant to pony up a monthly membership fee.

When I say MLM I am talking about the programs with matricies.  There seems to be dozens of them.  2×2, 2×3, 2×6,  2×10, 2×15 etc.  then there are the 2 up programs and on and on.

As I said mathematically they work  just as described, the only difference between them is the payouts.   Some are designed mostly for the designer/developers of the site but some are designed more for the members.

One of them that I joined was a 2 x 8 matrix that was a $32.50 per month membership fee.  The payout was as follows:  you get $15 each for the your first two people who sign up under you as paying members.   Basically when you get those first two people you have broken even.  Then for the next 6 levels (this is 7 levels deep) you get only $1.00 for each paying member but for the 8th level you get $8.00 for each paying member.

For a 8 level matrix, at the 8th level there are 256 people on the 8th level.  This is figuring each person on each level gets 2 people. 2×2, 2×4, 2×8 etc etc.

Anyway if everyone on the first 7 levels pays their fee that is equal to $282 for you, then the 8th level pays $8.00 times 256 people for another $2048.  This comes to a total of $2330 per month.

Of course if each person in the matrix can accomplish the same thing then each person in the matrix can be making $2330 per month.  It just seems this would be extremely attactive to people looking for a simple way to make some money on line.

This particular MLM is paying 97.5% of the membership fees back to the members.   The remaining 2.5% stays with the developer and it pays for the maintenance of the site plus some profit for him.

I imagine a lot of you long time internet marketers are having a good laugh at my naivete about MLM’s, but as I said they are absolutely mathematically sound. 

I suppose the biggest problem with them is that everyone is worried they will be the last to sign up and won’t be able to get anyone to sign up under them.  I suppose at some point there would be a limit to available prospects but with the millions upon millions of people on the internet it seems like there would always be new people.

Anyway I have tried I four different ones but have been unable to build a downline of any size to speak of, so onto my next adventure in this make money on line pursuit.

More to come later about affiliate marketing.  I may be onto something that will make some money, so that is my current activity.  Ever heard of Automatic Traffic Hubs.  If not this is my first one, http://normsgreenenergy.com

Till next time,  Norm