The last nine months have seen a rapid spread of internal advertising network scams within the multi-level marketing industry. These schemes now overshadow older models that relied on selling "useless" digital products like e-books, becoming the preferred structure for dubious MLM operations.
An advertising network MLM scam uses a network typically downloaded as a script. This script aims to mimic the standard text and banner blocks seen on global advertising networks. Unlike legitimate networks, these MLM versions limit their audience strictly to company members.
This internal focus means a single company's advertising network often fills with promotions for other advertising network companies. The outcome is a circular system where companies advertise similar services as members jump between schemes, seeking "the next big thing."
The advertising network itself has no real market value. The true worth lies in the membership fees paid when someone joins the company. Since these ad networks are closed to non-members, there is no retail offering for the service. The company's only revenue source comes directly from these membership fees. More members mean more fees, which directly translates to higher company revenue.
This revenue model almost guarantees the advertising network MLM will pair with a matrix-based compensation plan. Matrix plans are highly compatible with paying commissions solely from membership fees. The company sets the matrix size, then pays members either when they "cycle out" after recruiting a certain number of people, or for each position filled within their matrix.
The first payment method typically applies to one-time membership fees. The second method suits opportunities with monthly membership fees. Regardless of the model, the advertising service remains disconnected from commission payouts. The system simply takes membership fees and shuffles them among existing members.
Some operators try to distance themselves from the inherent recruitment requirement by promoting a "no recruitment/sponsoring required!" selling point. This claim holds true only if a member relies on "spillover" from their upline or downline. People are still being recruited. "No recruiting required!" functions as a marketing lure for those who expect others to fill their matrices for them.
By the time a new member joins and understands this reality, it is often too late; they have already paid their membership fee, contributing to the scheme.