He looks at 3 companies - Monavie, Xango and Zrii - and examines why they are commercially VERY successful.
He asks:
He examines the compensation plan of Monavie in detail:How can that be? If their products are made largely with non-impressive filler juices, how can these companies be so commercially successful? What do they have that makes people want to keep buying (and drinking) their products?
The answer, of course, is found in their compensation plans.
Mike makes it clear though:The real root of Monavie's commercial success is the compensation plan and how it leverages basic human psychology to amplify its viral success. The product is practically irrelevant.
Monavie is a commercial success because it's aligned with human nature: It leverages each individual's self-interest and fear of "missing out" on money they could be getting right now. Monavie works because it's in each distributor's interest to enroll a couple of people, even when they are only thinking of themselves!
This is what has allowed Monavie to become a $1 billion company.
Lousy product, brilliant compensation plan.I don't endorse the Monavie product line, what the company has unquestionably demonstrated is the power of person-to-person distribution of health products. This topic, it turns out, has ming-boggling social and commercial implications.
If I read that right, it appears Mike is saying is that it's perfectly OK to scam people - the money is the important thing. Seems Mike, once an anti MLM zealot, has seen the light. He then goes off on a lengthy rant about the wonders of MLM using the Wal-Mart model vs. the network marketing model comparison to show why MLM is so much more efficient.
One thing, Mike. I don't see you discuss market saturation. Ever wonder why there aren't a dozen Wal-Mart stores in town instead of just one?
Of course, in MLM, that's no problem. It's all about recruiting as many people as possible, even though nobody is making money - except the company.