Topic: Bitcoin and Network Marketing Companies (Read 2772 times)

OP, there were many network marketing companies that are using bitcoin as mode of payment, especially those who uses paypal they are now switching to bitcoin now.
But then bitcoin still need to be introduce to the public or more promotion regarding bitcoin, so it will be essential to its users and others who will try to use to.

If you think about it, you dont need to go to far and look for MLMs using Bitcoin as mode of payment because there's a lot gambling sites that gives commissions to new sign ups and make deposits is like networking already through referral links. You get paid for referring someone to join the site and invest. So that's nothing new. I only heard of that MMM ponzi scheme that uses Bitcoin other than that, those doublers and gambling sites are the ones using it in networking.

In terms of payment it can help as it would give us a clear and a good market of people we can recruit our program. What I see operating a network marketing companies are most likely the HYIPs which is like pyramid scheme, they were able to attract more people to invest since the transaction is fast using bitcoin as payment system, and this HYIPs which turn to scam in the end just make a bad impression of the people about bitcoin since members sees bitcoin as the main investment instead of payment processor only.

If network marketing companies will adopt bitcoin for their payment or the source to pay for the campaigns then they will be accessed to all over the world and then those countries will also like to be the part of that who have any issue because of payment on other ways.

But the altcoins issued by MLM companies are not used in commercial sites. In addition, we can not extract the altcoins from these MLM companies by mining.
The coins released by MLM firms are away from the bitcoin philosophy.

That's the problem. People abusing the power of MLM. When it's about MLMs with a product for sell, it's not a big deal as if people say they are not interested then they are not. But we have situation where people were enrolled in, either with or without their knowledge. Or people abusing their power. TVI Express it was years back, a military general was recruiting the soldiers xD. This said, when a MLM has a real product to sell it's not so bad, but there are lot of garbages with MLM
Regarding to Bitcoin, Network marketing is a good thing as it help to spread the message about bitcoin and at the end have an impact on the price indirectly

I don't consider it a "MLM" company but it uses a multi-level commission system to pay the participants based upon their production. The production is meaured in their sales of web advertising which they accomplish through installing our API on their website. Visitors (those with websites) are our only target market so we don't pay "per click" like other ad networks. If you make a sale you get a perpetual 50% of whatever that advertiser spends.

The above has nothing to do with MLM. It is a straight sales commission no different that real estate (my background), insurance, cars and a host of others. Where it starts to get "deep" is when you realize everyone that signs up for advertising also owns a website. With that now out in the open we certainly would like to get that advertiser to also add our API to their website as well. In other words, each sale results in yet another lead to grow the company.

So for all those that are somehow scared of MLM I offer them the opportunity to opt out of the next FREE payment level and abandon the commissions on the earnings of those we recruit. We'll keep it if they insist and laugh all the way to the bank as they think how they avoided being "scammed".

Bungeebones.com, Blog4bitcoin.club, blogsbystudents.com and blog4healthyliving.com are some of our introductory demos. Feel free to register at as many free blog sites as you like FOR FREE (I hate to kick a dead horse but, darn, how much more FREE shit you want). So while Wordpress.com tells the Bitcoin community to stick it by stopping to accept Bitcoin as payments, I offer the same blogs for free and provide a potential to earn Bitcoin and I get accused of being a scammer! I'm getting pretty damm sick of some of the dumbasses.

If you already have a Wordpress site you can get a plugin. Sign up, advertise your site for free, install the plugin and YOU MIGHT earn Bitcoin. Whether you do or not depends on how quick the other dumbasses realize this isn't a scam - some are a bit slow so it may take a while. But then again, Wordpress runs 25% of the websites on the internet and if they all installed this plugin to earn Bitcoin then Bitcoin would be on 25% of the Internet overnight.

I had to think long and hard about whether to use Network marketing in my Bitcoin-only ad network. Your posts bring up the "danger" flag of MLM which is what happens when "nearly everyone knows the company and knows something about that company.". I call that the market saturation point and the ones that get hurt are those that BUY into it at the end. And it was for that reason that I made my network marketing opportunity FREE. So when people start saying I'm out to steal because I use MLM I start to get just a bit pissed at the dumb asses.

The typical "pitch" of a MLM is that you need to pay or buy in because you are buying a business opportunity. While that is true, there is no guarantee of territory or limits on how many competitors there will be within your territory so there is absolutely no way to appraise the value of the opportunity. To those that buy at the peak, they overpaid as there is zero value for the so-called business opportunity because the market is saturated.

Looking at the buyin cost from a different angle will also tell how close the company is to being an illegal pyramid. If everyone in the company only makes their money by recruiting and getting people to "buy-in" then it is absolutely, positively a Ponzi scheme and an illegal (in the US) pyramid.

If, on the other hand, the MLM opportunity has no buy in free and is truly just an opportunity, and those that participate make 100% of their income only from sales (only if and/or when sales occur) then that is as far away from a pyramid as can possibly be set up.

If these dumbasses who spew "MLM" and "pyramid" and "Ponzi" in the same breath would only take a few minutes to actually study and investigate they might not open their foolish mouths so quickly.

Lastly, any company that wants or needs to grow quickly needs to plan some type of "customer acquisition cost". Another way to say that in the sales area is "recruitment" cost. If you don't pay your sales staff to recruit others they won't. If you pay them too much they will recruit too much as well (and saturate the market with starving salespeople). Of all people, Bitcoin people should understand using incentives to get proper behavior and to reward it.

The proper behavior, (in my mind), is to reward both the sales person and the recruiter but without using a "per-head" price. The correct payment trigger is quite obvious ... you pay the recruiter based upon the sales of the recruit. With that arrangement, MLM is MORE fair than any compensation system I have ever seen. It's better than employer/employee and many independent contractor ones.

It's easier to break eggs than to put them together so those that just want to bash MLM ought to start offering something better!

I think network marketing system had been used by company that is using Bitcoin for a long time.  One that is very popular is the affiliate system or referral system.  This is one kind of network marketing system that had been used by exchanges and other company that is involved in Bitcoin.  Then this MLM (Multi Level Marketing) company take it to the next Level.  We have seen such company like OneCoin, Bitclub etc. that took advantage of Bitcoin concept and Bitcoin market and use it to bait unsuspecting client.  They result in investment of sum of money in exchange of bonuses offers by this company.  They tried to be hard to be or look to be legit but then at the end they are just a ponzi scheme that take advantage of members.

I agree with you. I have worked for one of the network marketing companies in the past. After 5 years of the company entrance in my country, nearly everyone knows the company and knows something about that company. The use of bitcoin at the networking schemes is a good way for the profit and also for the awareness. Especially technology companies can do that easily.

Yes I agree bitcoin investments could result to fraudulent schemes, like in fiat money network marketing offering investments on so called legit company promising people to double their money capital along with its profit, but turns out to nothing after years then when they hit their target the so called legit company declares closure of operation. They really exploit and scam people and the  same with bitcoin users there were threats of ponzi schemes and whatsoever unacceptable act which could result profit losses to anyone.

If you take a "pyramid" and turn it upside down you get a funnel. Bitcoin's problem now is that it is filled with a different kind of "fraudster" (i.e. the speculator).. I made out quite well as I bought in at $10 and lived off of it for over two years. But just getting a bunch a greedy "get rich quick" types getting into Bitcoin is just as much a "ponzi scheme" as there ever was.

What I've said from the beginning is that Bitcoin needs to enable the average person to get some which usually involves some way for them to earn it. Apart from changing all the employment tax laws, the insurances, the escrows etc. associated with "normal" employee arrangement Bitcoin's use to pay workers is doomed. No business is going to go through all that just to pay them with Bitcoin (unless they are making a ton of Bitcoin profits, then they would do that instead of converting to fiat).

So, while I appreciate all the anti-MLM sentiment, it is just a tool after all. So much of your scathing ridicule sounds very much like the ignorance that comes out against Bitcoin from people who know nothing about it but are "experts". MLM (not the illegal pyramid scheme -they ARE different) is a very legitimate way to accomplish what many Bitcoin enthusiasts at least claim they are in favor of (democratizing wealth). The greedy speculator Bitcoin user is not after that, of course, but MLM is a way for someone with little or no capital to get started in their own business. Certainly the failure rate is high but so isn't the failure rate in regular startups high. And, with MLM, you most often start with someone with little (if any) actual business experience or knowledge.

The advantage of the MLM arrangement to the organizer is the savings in cost of hiring all the sales and support staff and the speed and scale at which it can be launched. I see MLM as a way for Bitcoin companies to actually break free from the Central Banks. And MLM created properly and fairly is a contractual relationship. If the contract is clear (not like the DAO that lost 50 million of investor's money) then an MLM will compensate those that actually provide value to the organization a growing stake in the success. An added "natural fit" with Bitcoin is that much more of the MLM "contract" can now be encoded in smart contracts and it can enable the income opportunities globally. I think that is all a good thing.

Compare that to the "employee" serfdom that corporations now provide I would much rather have the freedom to achieve according to my work rather than bank on the fraudulent lies and greed of corporations. Trump is missing the real issue when he talks about bringing back "jobs". The truth is that corporations have not only stabbed their workers in the back, they have repeatedly twisted the knife around. All those corporations that he got to "stay" here are created for one purpose and one purpose only ... to make profits. They stay if they make more profits, and, they leave if that is where the profits are. So, go be an employee for those assholes all you want and whine against MLMs all you want, you're ignorant and don't know what the hell you are talking about. Period.

Well nothing better could have happened to the network marketing world than Bitcoin because their emphasis is on marketing and with marketing your target is people within your jurisdiction and outside but Bitcoin can actually be used to transact business worldwide at relatively low fees so I think if properly integrated into the world of network marketing it will erase all the financial boundaries and enhance marketing.

Could you give the name of the MLM company that you work for if it doesn't matter to you?

It doesn't matter if there is 1 of 10 MLM company which is legit. This whole market is filled with exploits and is based a controversial, pyramid-shaped marketing strategy.
Do we really need something like this associated with Bitcoin? In the end it will only build fake assertion that Bitcoin is good only for fraudulent schemes like MLM payments.

In fact, it is possible for someone who is successful in a good network marketing business to earn millions of dollars. But most people in MLM companies can not make money. Not all MLM companies are fraudulent. But most MLM companies use the ponzi system. MLM firms that use the ponzi system are fraudsters.

I pretty much agree. One little talked about issue is the difference between a pyramid company (totally illegal) and a MLM (perfectly legal).

Any guess as to what separates the two - legally?


When a company earns more from the participants than it does from sales to customers it is approaching the line of becoming an illegal pyramid.

In other words, if the participants all earn their money by getting people in it rather than by actually selling product then they are in dangerous waters.

That's why mine is free. The only "investment" I ask for is that they invest the web traffic to their website (80% of the time they aren't selling it or trying to monetize it so it is usually already going to waste). And, very important is the fact that the only product we sell is one created by the members themselves

For me MLM companies because you are refering to them probably, are like literally scam. They are always with little changes giving propaganda of success. You will be sucessfull, you will become rich, you will be great, you are great... just give us your money . They taking money for books (for you to learn of course), for teaching courses (for you to become great of course) etc.

Stay away from companies like that, you will loose your time and money.

There is nothing bad that bitcoin is being used by network marketing companies. Bitcoin is a currency working like all other currencies of the world bit it is in the form of digital so every company can use it for their requirements without.

I've been working on a Bitcoin-only ad network that resembles a MLM quite a bit but I think has some major differences.

It gets pretty "deep" quite quickly because both MLM and Ad Networks get complicated.

Something really serious I'm attempting is to use the blockchain to enable earners to be able to document their earnings IF THEY WANT so that their MLM commissions turn into its own asset class that they can sell, assign or transfer (like someone might sell an annuity) for a lump some (again, if they want).


Rather than try to explain it, are there any "brave" individuals with websites that would like to walk through it here?

 One step at a time ...

Step 1 - Advertise your website for free across an entire network of cooperating Bitcoin earning websites with just one registration!