Over a year ago, I provided timeless advice on how to choose a good network marketing home. (You can see this blog here: https://successwithsuber.weebly.com/blog/10-questions-to-ask-before-choosing-a-network-marketing-company) The undertone of this piece was to stay away from hype. It came from research and study from legends in this profession.
Yet history continues to repeat itself and the cool kid on the block today is cryptocurrency. The concept itself is quite innovative; cryptocurrency is a digital currency or asset, created and stored electronically in something known as "blockchains." Wikipedia describes it as "a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies."
Bitcoin was the first decentralized cryptocurrency and a worldwide payment system, which is why it has garnered so much attention. The system works without a central repository, administrator or intermediary, thus playing into why it has become so volatile, profitable and attractive to many. I personally feel that it is very wise to know what cryptocurrency is and to seriously consider investing after thoroughly doing your due diligence. But while many do not dispute its potential, there are several serious drawbacks and warnings many are not heeding to. I will speak to one of these today: using network marketing as an approach to this industry.
As a disclaimer, I'm a huge supporter of Network Marketing/MLM and have been in this profession for over six years. Moreover, I will, again, say that I support the innovation behind cryptocurrencies, including bitcoin and others. Yet it's sad how some people decide to turn our genius model of distribution and cutting edge products and turn it into something fraudulent. In late November 2017, Network Marketing Extraordinaire, Randy Gage published a scathing blog and warning against cryptocurrency-based MLMs. In it he says "probably the worst hustle happening in our space over the last year has been the rip-offs posing as cryptocurrency network marketing companies."
In this article he details what makes this dangerous--in particular ICOs (Initial Coin Offerings), where an MLM will assign a special "token" based on a speculative purchase. However unlike an IPO (Initial Public Offering) in stock market world, the MLM distributor receives no ownership rights in the company. Moreover, there's no regulation. So in effect, a distributor is on extremely shaky ground. Randy describes "MLM cryptocompanies" being "ripe for abuse" over the next couple of years. And if history is any indicator of the future, his prediction is almost certain. Truthfully, while a mega-distributor in one of these shaky MLMs will have no problem in taking their bruised and beaten team to another "bright and shiny, flavor of the day" MLM in exchange for some upfront cash, it will further damage the reputation that so many "stick and stay" distributors have worked hard for. Not to mention leaving beginner and early tenured MLMers jaded and disgusted.
I highly suggest reading Randy's article and sharing this with someone before they make a fatal mistake in joining a cryptocurrency-related MLM. Don't be suckered. And you like MLM model, be sure to ask these questions).
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