Friday, 18 July 2008

Shop To Earn

With the internet, running a scam is fairly difficult.

Suppressing the sources that either state, or imply that a company is a scam is merely going to cause more people to sit up, and copy that information elsewhere on the Internet.

Of course Shop to Earn suffers from a fatal flaw.

Furthermore, this flopportunity has a twist on the binary plan designed to ensure that the MLMer is not paid. Binary plans normally are written to provide for the illusion of paying out something.

Shop to Earn: Scam or Legitimate Businessis merely one article that explains why signing up is a bad idea.

And finally, applying the first question at The Legality Test:
Can one make some money SINGLE-LEVEL, that is, without sponsoring another business opportunity seeker?

From http://www.shoptoearn.net/cgi-bin/genesis.exe/CusSignup.html?p_notice=Y&sid=3stGwB1@7Jvz8---09108363408.c1 "Preferred Customers DO NOT participate in the Business Opportunity and therefore do not earn commissions for any purchases made."

Let's see how much one can earn as a "business opportunity seeker" without recruiting anybody.

* "Become a Business Builder and get paid to refer Website Owners! Receive $100 Training Bonus and 200 Bonus points every time. Refer 5 ($100) = $500 and 1000 points. Remember points = cash!
http://www.shoptoearn.net/cgi-bin/genesis.exe/3.html?sid=3stGwB1@7Jvz8---39108373808.08

# That excludes the person who does not recruit;

* Place website owners in your business on your left and right sides.
http://www.shoptoearn.net/cgi-bin/genesis.exe/4.html?sid=3stGwB1@7Jvz8---42108373808.e1

# That excludes people who do not recruit;

* Points come from everywhere. 1. Referral points: You receive 200 points for every website owner that you and other Business Builders in your business refer to ShopToEarn. 2. Shopping Points: When a Website Owner spends $100 at Drugstore.com (10% payout) that website owner receives up to $10 cash back and ten points are generated.

# That excludes people who do not recruit.

# The rest of the pages explaining how to make money are based on recruiting.

http://www.shoptoearn.net/cgi-bin/genesis.exe/1.html?sid=3stGwB1@7Jvz8---51108571408.f0 is the only page that provides information on how to make money without recruiting. It consists of one line: "Receive Cash Back on every purchase from your website."

http://www.shoptoearn.net/cgi-bin/genesis.exe/Retailers.html?p_name=O&sid=3stGwB1@7Jvz8---15108623408.f6 gave me the percentage that one could, theoretically earn, from companies beginning with "O"

OfficeMax purchases offer one a maximum of 4%.
At http://www.officemax.com/omax/home/custom.jsp?id=m220013 Office Max Affiliate Program we clearly see how much they pay affiliates:
* 4% commission on monthly sales up to $20,000
* 5% commission on monthly sales between $20,000 and $65,000
* 6% commission on monthly sales over $65,000

Office Depot is between 1% and 7%.
At http://www.officedepot.com/renderStaticPage.do;jsessionid=0000bkxRy5ilHxoX6nv4QFtrwlO:10gv1nd8u?file=/companyinfo/companyfacts/affiliateprogram.jsp&template=companyInfo Office Depot Affiliate Program we clearly see how much they pay affiliates:
* For Binders/Filing, Dated/Stationery, Notes, Adhesives, Labels, School Supplies, Writing Instruments, Desk Accessories and Breakroom/Janitorial Supplies = 6%
* Office Furniture, Storage & Filing, Business Cases, Imprint/Promo Services, and Books = 5%
* For Ink & Toner = 4%
* For Paper, Computer Furniture, Input/Cards, Surges/Cables, and Magnetic Media = 3%
* For Seating, Lighting, Extended Warranty, Broadband, and Customer Services = 2%
* For Telephones, Network/Wireless Access, Computers, Monitors, Mobility, Printing, Software, Memory, Wireless Services, Drives, Luggage, and Graphing Calculators = 1%
* For Office Depot Gift Cards and Office Depot Premiums = 0%

†At Office Depot's sole discretion, other commission rates and/or sales programs may apply, and commission rates and/or sales programs are subject to change or be discontinued at any time. Please contact your Office Depot Affiliate Program representative for specific rates and programs that may apply to you.

One possible Caveat: Their affiliate program works through LinkShare.
That program gives one access to most, if not all of the affiliate marketing programs that ShopToEarn offers. Furthermore joining it is gratis.

And for the really hard question: Spend money on a cookie cutter website, which research indicates will not generate revenue, or spend money creating one's own website, which research indicates will generate revenue.

Anyway, I think the following two quotes sum up ShopToEarn
1: "This simple test needs to be applied to two aspects of a business opportunity. The first aspect is the design. What do the company documents say about how one makes money? How does the compensation plan work? Not all the fine details of every commission, bonus or reward need be understood, but simply, can one make SOME money without sponsoring. Remember, one does not MAKE money when one buys any product or service for personal use. The application of this test should in no way imply that there is anything wrong or illegal about personal consumption. It is just that it alone cannot be the sole basis for a business opportunity.

2:
California Penal Code 327: Every person who contrives, prepares, sets up, proposes, operates any endless chain is guilty of a misdemeanor. As used in this section, an 'endless chain' means any scheme for the disposal or distribution of property whereby a participant pays a valuable consideration for the chance to receive compensation for introducing one or more additional persons into participation in the scheme or for the chance to receive compensation when a person introduced by the participant introduces a new participant. Compensation, as used in this section, does not mean or include payment based upon sales made to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme.

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