Wednesday, August 20, 2008

Using Adwords for MLM Programs

The other day a friend of mine asked me for some advice about marketing their 'new website'.  The site was essentially one of these subdomain landing pages pushing the promotion of a multi level marketing program. 

The site in question offered $500 in gas rebates to be paid in $25 increments for the sign up of new referred members.

A new member must pay $199 to get this great benefit of $500 in rebates.  (ergo that's $200 paid out to have the opportunity of earning $25 commissions for referring people to also pay $200).

Now, this is one of those things that typically requires that you refer all your friends and family, who will likely not consider you as their favorite person after they shell out $200.  These things are always pitched by people who have recently become rich, bought a yacht and a second house in Vale and spent a lot of money on Vegas vacations, European vacations and any other vacation you can think of.  They rarely showcase the people that just lost $200 or more and wasted a bunch of time.

So when my friend asked for advice on marketing the site, my first response was that this looked like a pyramid scheme (although likely within the letter of the law) and that I wouldn't recommend investing any more money in it, and definitely wouldn't recommend trying to convince friends and family to jump on board either.

Anything short of that, I stated that if he really believed in this program, that he might consider using Adwords to market the site.  Who knows maybe my first impression was off and this is the greatest money making program since door to door bread loaf slicers.  At least advertising through adwords, would not upset all of his friends and family.

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