Why I don't like Shop To Earn and similar MLM programs

The person who started this blog is so correct.  Don't waste you time and money.   If you do research, and if you know anything about affiliate marketing, you will know that you can do this on your own.

Without a doubt, this companies do not even know who STE is. 

The people making all the money are the people who started this company. They have set up all of the affiliates in their network.  When you buy your $100 bucks worth of stuff every month via the site, you are putting money in their pokets.   Because they started this big network, just imagine when everyone who is signed up buys every month, how much money you are generating for them.  Yes...you might see some commission checks coming in, but believe me...unless you get people signed up as marketers, you will not see anything.

Do your homework people or you will be pissed.  I have learned my lesson already.

At least with VMDirect, it was pretty cleaver.  STE is not even cleaver.  If you know about affiliate marketing, you can see right through this junk. 

Freddy,

Either you are incredibly uninformed about how affiliate programs work, or else you're being disingenuous in asserting that because STE rewards for purchases at big-name merchants, it must therefore have their stamp of approval...but either way, you're incorrect.

ANYONE can sign up as an affiliate of Disney, Walmart, and Home Depot.  All you have to do is go to one of these affiliate networks and sign up:

DisneyShopping pays 3% (5% to higher-volume affiliates) through Linkshare.com
Walmart pays 1-4% (depending on the item category), also through Linkshare.com
Home Depot pays 3% (2% on gift cards) through Commission Junction (CJ.com)

Any site that is charging you money to receive these levels of cash back rebates is ripping you off, because you can get those rates all on your own for free.  Simple as that.

And if you think that any of these merchants even know who STE is, I challenge you to prove it.  Call their corporate numbers and ask.  I'll even help you do it -- here are their phone numbers:

Disney:  Steve Wadsworth (President of Walt Disney Internet Group, in charge of Disney.com) -- 818-560-1301
Walmart:  Stephen F. Quinn (Chief Marketing Officer) -- 479-273-4000
Home Depot:  John Ross (VP of Advertising and Interim Chief Marketing Officer) -- 770-433-8211

Please let us know what they tell you.  I'd love to hear their responses.

Tracy Coenen
FRAUDfiles Blog
Pink Truth

MLM promoters often use assertions like "Would Wal-Mart do business with us if it wasn't legit" or "If it was illegal or bad it would have been shut down" to promote their scams.

Here are the facts -

Wal-Mart and the other retailers do not vet STE to see if it's a decent company. They let STE sign up as an affiliate with them the same way they let me sign up as an affiliate. Fill out application. Approved! They don't do any research on who's using their affiliate programs.

Law enforcement in the United States very rarely takes any action against MLMs (which are thinly veiled pyramid schemes). I don't know why they allow consumers to be abused this way, but they do.

It's fun to say things like this because MLM promoters think it makes their schemes sound legitimate, and many times (unfortunately) consumers believe them.  

Now back to Shop to Earn...  Do you guys really think HUGE BILLION and TRILLION dollar companies would put there reputation on the line to be involved with Shop to Earn if they were fraudualnt?  Makes you wonder huh?I mean Disney is involved (Trillion Dollar Company) Wal-Mart (Billion Dollar Company).I have great news too.  Home Depot actually signed up as one of the now close to 600 other companies involved with Shop to Earn.

This is the company you want to be involved with.1. www.shoptoearn.net/mysuccess ( http://www.shoptoearn.net/mysuccess )
2. Click on Overview
3. Click on Play
4. Join, have Fun, Make Friends, Make Money! 

Join Now and become a part of the biggest growing e-commerce companies before it gets too big.To your wealth,Freddy 

I think the original article was written very well (even though it had a tone of somebody who had more than there share of friends wanting "just 30 minutes" of their time).  I was coerced into setting through my first MLM presentation over 30 years ago.  And I've sat through a few others over the years.  They all were slick, snazzy presentations with every possible objection covered.  They all promised to make me rich beyond my wildest dreams.  And all I had to do was recruit a large network of other people, just like me, who shared the same dream of having millions of dollars one day.

 However, I could not get rich by just buying and using the products, no matter how good of a bargain they were.  No, I HAD TO RECRUIT others into the flock to make REAL money.  And there you have it.  You have to recruit people (call them marks if you like, I just think they are people) to really make any money.  The real money is not in the product or the service, it is in building an organization.  If you like to build shell-like organizations, and don't care if you alienate most of your current friends, well...

And any of us could create our own affiliate linked site (and for a lot less than $450) and use it, update it and share the knowledge and wealth WITHOUT charging others for that service.  I run over a dozen web sites (most of them do not sell anything - informational and sharing) and I don't pay more than $12 a month for any of them.

From where I sit, it's a matter of choice.  I've seen people enter and leave the MLM world over the years.  And one person I know actually made over a million dollars at it.  But his life was consumed by the MLM organization.  He had no friends left outside of his "channels".  He had no life to speak of outside of his "partners".  And he died before he was 50.

When I look back over the past 20 years, I've earned several million dollars working in an old fashion, we provide the product and service it, kind of business.  It's not glamorous, but it floats my boat.  And I enjoy my life and my friends don't hide from me when they see me coming.  And I'm 52, so I've outlived the one MLM millionaire that I knew.

Tracy,

 I think you have misjudged Shop to Earn. I got onto your site by accident and read your post about Shop to Earn. It does not seem to be a scam. The focus seems to be on shopping and referring. Many insurance brokers and mortgage brokers work off of referral business, as do doctors.

I am a car dealer specializing in low mileage cars under factory warranty so that the retail, consumer can buy with confidence. There are many, many, curbstoner's in this country that need to be investigated. Your investigative power could really be used in that arena.

Or, our banking system is under attack from unscrupulous mortgage brokerage houses who will charge a business owner $1500 for an appraisal and "pre-qualify" you for a loan at say 8%. When you go to closing the rate magically changes to 10% with increases within the first year of up to 16%.

My concern is that this site promotes affilate related cash back programs that pays someone on "clicks" generated. I would hope that there is no vested interest in those sites here. But, it does not seem that way. I would think that your ads on the right side of your web page would link to gov't agencies, etc, Not, shopping sites. 

Tracy Coenen
FRAUDfiles Blog
Pink Truth

*curtsey* 

Contrary to the opinions expressed by the three STE defenders, who all appear to have joined BlogHer simply to respond to this post, Sequence made a very well-written and well-researched post and I agree with her 100%.

Anyone can sign up FOR FREE as an affiliate of these same merchants through affiliate networks like Commission Junction, Performics, and LinkShare and earn these same cashback rates by shopping through their own links... again, for free.  So, in essence, all you get for your money when you join a site like STE is the right to charge other people for something they could get for free, too.  Sadly, there's a sucker born every minute.  Those who brag of the paychecks (huge or otherwise) they earn from taking advantage of people's ignorance and financial desperation should be ashamed of themselves, IMHO.

Bravo, Sequence!

First of all she did state that this is her opinion. Sequence also supported her opinion with facts that she directly experienced or researched.

That is not being negative. That is giving full context to her opinion and prior experiences. Just as some of you were very enthusiastic about your experiences with the company you don't get to knock her because she comes from a different place and perspective.

I'm a little concerned with the concept of running any business as a "No Brainier." It is damn hard work both on and off-line. And yes billions of dollars are being transacted every day but it does not mean that this company is going to get you any closer to those billions than taking the time and doing it yourself. Just my opinion.

There are companies that target folks who very much want to make money. There are also companies that are on the straight up and up.

If this company is legit as some of you believe then I would fully expect to see full disclosure on the website and a detail description of what is being transacted. What do you get for fee for services? What is in the contract?

Yes, I'm skeptical when it comes to my money and someone is trying to convince me to let go of it.

Gena - Out On The Stoop ( http://outonthestoop.blogspot.com )

I totally disagree with the negative assessment written about Shop To Earn by the lady in the photograph. Clearly, before writing the article she should have spoken to some people that are actually members. I joined 3 weeks ago and signed up 5 people in 4 days with NO problem at all. These are highly intelligent people, most own or have owned successful businesses, and recognize a great business opportunity when they hear about it. I have since signed up another 5 members and my check is currently over $2700.00. It is the easiest money I have ever made. This concept, unike so many other MLM, is a NO BRAINER. With the price of gas, more people have begun shopping online, and it is only going to continue. Currently, there has been over $185,000,000,000.00 spent on online shoppig, with a future projection of over $300,000,000,000.00. Yes...BILLION!!

I have been approached many times over the years, to join MLM programs (Mona Vie, Arbonne, etc.) and declined the opportunity.  It was inconceivable to me that I had to spend my time trying to convince people to try "a" particular product (or type of products) that they may or may not continue to use, or even be interested in trying. Shop To Earn is totally different. it is based on a common sense concept of buying products that everyone uses anyway. And, yes, I would much rather sit at my computer in the comfort of my own home and shop, vs. getting into my car and driving to a store/mall, walking around to find what I need amidst everyone else, waiting in line to pay for it, bag it, load it into my car, and then drive home and unload it. On top of that...I may or may not have found anything discounted, and I absolutely will be paying tax!! On STE there are sights that offer free shipping if ordering as little as $25.00 and most of the time NO TAX!

I agree with Kirk (and about 16,000 others). This is a great opportunity to become involved in a venture with such a brilliant concept (and future), for such a small amount of money. There is nothing else I can think of that offers such an enormous opportunity to make thousands of dollars off of such a small "investment". As Donald Trump told Oprah's audience not too long ago when asked what he would do if he lost all of his money and had to start over, he said "I would be involved in MLM". When the audience booed him, he said "That's why you are sitting there and I am sitting here". He went on to say that people do not recognize the difference between Pyramids and MLM'. (These comments are posted on the Internet and were also posted in the Arbonne Representatives Catalogs a couple of months ago).

Just remember...no risk...no rewards.  And I would hardly call becoming a memeber of STE a risk. 

Sandy

Sears (7%) - Washer Dryer $145
Drugstore.com (10%) - General Toiletries free shipping - $9.00
Shoes.com (18%) - pair mark echo shoes + 2 pair of shoes free shipping and $20.00 off coupon code - $18.00
Macy's (10%) - birthday present - $10.00
Itunes (5%) - two albums - $1.00
Total savings - $203.00

I have been in Shop To Earn 3 weeks.  This just shows that if you actually shop on line, Shop To Earn works and you can save.

This post is holey pessimistic and it reminded me that there are two types of
people.  People who make money and don't complain, and people who don't
make money and complain about how much money others are making.

Notice that those making money in STE are not
writing blogs (except me) because they are too busy making money,
saving on
shopping online, and helping others make money.  I figured I would
break that trend and post a comment here.  Let me just touch on a few
key points.

Is STE simply affiliate linking?

Absolutely! But thanks the Shop To Earn, I don't have to spend
money to set up a business, purchase a domain, host a website, and
build a multitude of pages just use my own affiliate links.  That
effort costs well over $448.  To hire a professional web developer would
cost over $4000.00.  If I had the skills to do this myself, it would
take over a month to do which includes getting the over 600 affiliate
links together and working. BTW - when the links are not used, the
affiliate companies pull them from your account so they will no longer
work on your site.
Can you earn money just by shopping?

Absolutely NOT! In no world can you shop and make money.  But you
can change your shopping habits, purchase more online, price compare,
and save a lot with Shop To Earn. However, the earning comes in doing
marketing for the company.  They don't advertise on the radio,
television, or even Google.  They"eat their own lunch."  Just as in
their affiliate relationships, they receive funds for advertising from
retailers after purchases are made, they pay commissions to members
after a new member joins.  That's why it is called network marketing. 
Insurance Companies, Mortgage Companies, real estate agents, Mutual
Funds, investment banks, manufacturing companies, general contracters etc. etc. etc.
follow this exact same marketing model.  I don't see a multitude of
blogs bashing them.
Is the commission structure complicated?

Only to someone who has not earned any money with Shop To Earn. 
When you start to generate commissions and bonuses, everything is shown
very clearly in your back office.  With any of these systems (and that
is all they are... "systems") you should learn the details before you
sign on.  All of the commissions rules for Shop To Earn fit one short
web page.  Then they provide examples for clarification.  Usually,
people don't get it because they only read 10% of the information and
assume the rest.  When their assumptions are wrong, they throw their
hands up and call it "too complicated."
Why did I join?

I joined because Shop To Earn, unlike many others is clear cut,
pays well, and provides savings on products with mass appeal from
retailers with mass appeal.  I am able to find everything I need for my
home through Shop To Earn and do the price comparison I need to do from
the convenience of my home anytime I want to.  Here is my
example... I buy my LG washing machine and dryer online at sears with
7%
(that is on top of their 10% online discount).  I get $145 about back. 
I sign up 2 people.  That is $200.  I have only $103 left to go to
"break even".  In one year, I can get that back in savings alone. 
Especially because I do my Christmas shopping online. 
Is Shop To earn a Pyramid Scheme?

Did you realize that your company is a pyramid?  There is a CEO
who makes 100 times more than you, then his executive staff, then thier
management staff... so on and so forth.  There will always be kings and
there will always be peasants.  There will always be employers and
there will always be employees.  And there will always be those who
seize a great opportunity and those who watch others succeed and
criticize. The people who criticize MLM's as Pyramid Schemes are
usually at the bottom in their jobs.  They just don't see the  pyramid
there because they are looking up from the bottom and only see the flat
base.  Or they tried a bad one and became jaded by the experience and have written them all off.  
The fact of the matter is that not everybody succeeds in MLM's.  Just
as in life, very few do exceptionally well (that is why they are
labeled as exceptional) and most others perform at an average or below
average level.  Look at your job.  There is a rising star there I am
sure.  If he is at your level now, he won't be there long. But everybody has the same opportuniy in Shop To Earn.  No politics, no BS.

It's unfortunate that people write like they know what they are
talking about, then people read it and believe it.  I have picked Shop
To Earn apart from the inside out and I know a few things more than
this author.  It works, it pays, and many many people are doing well. 
It is not a winfall.  Effort is required.  But when you do it, it
works.  Save on shopping.  Earn through referrals.  Simple.