I am still trying to figure out where this is an MLM, Michael? I don't really see it as that intrinsically different than an AVS or another build your own tour type of set up. Of course the big difference is that they are paying the intermediary (PieCash, etc) who is then paying their own resellers, which is once again not the way an MLM works -- the parent company would have to be making the payouts to everyone, not paying the intermediary the entire amount and letting them pay their resellers...
I thought Slav mentioned they were paying out 40 bucks on a 40 buck join, well that isnt rocket science and is easily doable, especially in light of people who pay 35 bucks on a 4 dollar signup...
Obviously if Babenet is controlling the exit traffic and the rebills on joins, it's an entirely doable business model, and from the paying on joins perspective, it's a lot less risky than the traditional setup for both the backend and the intermediary providers.
Is everyone getting 40 dollars per join? Could it be that some are getting more than that? Or less than that? I think there are probably quite a few program owners who would be happy to take a flat 5 or 10 dollars per join and not have the hassle of dealing with member areas, retention, that sort of thing.
What it boils down to when I look at it is that the intermediaries are basically just brokering joins. Not a traditional method no, but they dont have the liability of the unproductive members or traffic on their heads or in their cash flow either...
I'm very curious now as to this whole thing.
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