Empower Network CEO David Wood recently announced the company's blogging platform surpassed 100,000 "blogging customers." A closer look at figures Wood posted on Facebook shows 33% of these customers are retail buyers, while 67% are affiliates.
The US Federal Trade Commission (FTC) differentiates between legitimate multilevel marketing and pyramid schemes. A legitimate plan bases income on sales to the public. A pyramid scheme, conversely, ties income to recruiting new members and selling to them.
Wood publicly disclosed these numbers. He stated, "Right now, out of our active customers of the blog, 33% of them are customers only." This means approximately 33,000 retail customers exist for every 67,000 affiliates.
This 33% retail figure indicates that most money generated within Empower Network comes from its affiliates. The business relies on its own members purchasing products, rather than a broad base of external consumers.
Individuals can earn from Empower Network without recruiting. But the overall business structure still raises questions. With only one retail customer for every two affiliates paying the $25 monthly blogging fee, retail sales do not form the business's core.
Empower Network launched nearly a year and a half ago, moving past any "new company" phase. The company's heavy reliance on affiliate purchases places its model squarely in the territory the FTC describes as a pyramid scheme.