Product: EZ Profit 100
Review Summary: An old school ‘mail out’ approach to promote an mlm that is both ineffective and costly. It embraces a ‘horizontal pay line’ compensation structure which limits your residual income potential somewhat. There’s also some pretty wild claims of how easy the whole thing will be which I’m not a fan of.
Cost: $129- $417.75
The Claims Of Easy Money
Probably the biggest thing I don’t like about the sales material is the fact that it states you can easily make between $3000-$7000 per month in as little as 2-3 hours per week. In my opinion this is highly unlikely.
No business in the world allows a complete newbie to just ‘mail out a few post cards’ and magically build that kind of income… it just doesn’t happen.
Building a legitimate home business takes time and effort and it’s marketing like this that leaves people feeling frustrated and lost when it doesn’t happen this way. This approach is designed to get you to sign up, plain and simple. A few months down the track and you will come to realise that making money that easily is a fairy tale.
He also over states the value of the website you are getting… by a long way. He is not giving you a ‘professional’ website at all, he is simply giving you access to his (duplicate) website branded with your referral ID. This website is of very little value, it simply serves as a way to track who signs up under you. Nothing more.
How Does This System Work
You sign up for $129 and get a few mailing labels, some totally irrelevant music and some training you could almost certainly find online for free. You are signing up so that you can then sign other people up, the product value is a front to make it seem more legitimate and enticing.
After paying this joining fee you will then need to buy postcards yourself or through Art Rayburn. Since the system works via direct mailing this means you’ll be buying a LOT of postcards and sending a lot of follow up letters to get any referrals. Quite often to see results in direct mailing it takes several attempts before someone will take action, which means you’ll be sending a ton of postcards and follow up letters to get anywhere.
I checked his website and apparently it costs $108.75 for 1000 post cards, but the costs don’t stop there.
You’ll also need to buy leads if you want to be successful, otherwise you’ll be sending to total strangers. The cost for 1000 of these leads is $180 according to Art’s website.
This means your total cost just to get started could end up being $417.75.
You can just buy less postcards and leads than this and these costs are optional but to make the kind of money Art is talking about WILL require that kind of purchasing in my opinion.
The Compensation Structure
Assuming you’r ok with those costs and actually convince a small number of those leads to sign up, here’s how the compensation plan works.
Most mlm’s have a downline system running 5 or more levels deep to allow you to make residual income off the efforts of your organisation down the line. In this case there is only 1 level which I have never heard of before.
Here’s how this horizontal plan works:
- You sign up your first referral and get a $100 commission
- This referral goes to whoever sponsored you
- You get a $100 commission
- This referral goes to whoever sponsored you
- You get a $100 commission (this continues from here on out)
So out of 5 people you that you bring into this business, 2 of those you’ll give away. The people you sponsor then give you their 2nd and 4th referrals if they get them.
So you really only ever have one level in your downline.
I can see the good side of this but I do question how effective it is in comparison to a typical downline system. It is simple and you get the immediate sales which is good, but on the hand you are constantly relying on the efforts of new people to build your business.
A traditional downline system allows you to reap the rewards of the entire teams work whereas this constantly ‘resets’ to the next person once they have given you two referrals.
Whether you like this or not I think is up to you but personally I am not sold on the idea.
- Art gives people a good amount of information on his website about the opportunity and other costs if you click through
- Products carry a very low value
- The methods of marketing are unnecessary in todays world, given we have the Internet and email
- The costs are actually quite high in comparison to other more profitable business models
- He implies everything will all be so easy and carefree, when in reality building a business requires hard work
Art claims this is the most affordable and lucrative home business available which in my opinion couldn’t be further from the truth. If you do manage to get people signed up it will end up being a time consuming and expensive way to do business in comparison to other methods of marketing.
I do not recommend this as the best work from home opportunity and I think most people will end up spending more than they make.