De-Power Empower
- About Empower Network
What is EN?
Empower Network is a multi-level marketing scheme that seeks to recruit affiliates to promote its training regimen to the uninformed consumer.
What is multi-level marketing (MLM)?
Multi-level marketing is a plan for the distribution of products whereby participants earn money by supplying products to other participants in the same plan. They, in turn, make their money by supplying the same products to other participants. Although MLM is legal under the Competition Act, it is illegal for an MLM plan to misrepresent the different levels of earnings or compensation received by participants in the plan, the amount of money earned by a typical participant, and the time and effort required to reach specific levels of income (Competition Bureau, 2011). The reason EN hasn't been reprimanded for their misrepresentations is because their website is drawn out in a way to mask the actual representations and to focus in on the misrepresentations they want to lead people to believe.
"Making money online fast, easy, and now is the most asked question we get pertaining to Empower Network. Most are attracted to the 100% business model and compensation plan because it allows for anyone, anywhere in the world to start earning money almost instantaneously" (Empower Network, 2012).
One could argue that the above quotation is misleading in that it implies that it is possible for any person to make money through this plan. It never directly states that it is fast and easy to make money with EN. However, if you aren't critically analysing every word in this paragraph, it would lead you to believe that EN will make you money quickly and easily.
What is a pyramid scheme?
A scheme of pyramid selling is a multi-level marketing plan that incorporates any one of a number of specified marketing practices that make it a criminal offence under the Competition Act. It is illegal if:
The Product
Basic Membership ($25/month + $19.95 affiliate fee) - This basic membership will give you access to the blogging platform. It will also give you access to basic training. You will be able to recruit new members and receive residual income from those below you who also purchase the basic membership. You will not receive residual income if the person below you upgrades their membership.
Inner Circle Membership ($100/month + $25/month + $19.95 affiliate fee) - The inner circle membership grants you access to additional training, as well as a disk that provides insight into internet marketing tactics (looks like a compact disk with some files on it*). With this membership you will be able to receive residual income from any person who signs up below you for the inner circle OR basic membership.
Costa Rica Intensive Training ($500 one-time + $100/month + $25/month + $19.95 affiliate fee) - The Costa Rica Intensive training kit consists of a set of DVDs that depict a live training session that took place at the owner's home in Costa Rica. This training is focused on using psychology in marketing, but is deeply rooted in promoting EN. Again, you will be able to receive income from anyone who signs up below you with the same membership or those below it.
15K Formula ($1500 one-time + $100/month + $25/month + $19.95 affiliate fee) - This product is another set of DVDs that further promote marketing EN's memberships. These videos are taped by 8 elite internet marketers. At this point I really can't see what benefit you're getting from paying thousands of dollars just for these videos when you could be getting even better training from licensed professionals for a fraction of the cost.
Costa Rica Master's Retreat ($3500 one-time + $100/month + $25/month + $19.95 affiliate fee) -The website really does not explain this product at all. If someone knows and would be willing to fill me in, that would be fantastic.
* I'm actually not entirely sure what is on these disks, so if someone who knows this would let me know.
The Problem with the Product:
The product itself is really nothing special. You can set up a blog for free, or at least for a much lower cost than $25/month. You're also paying to advertise Empower Network itself! Furthermore, the training you receive from the higher memberships is really nothing special. Alternatively you could go to college and spend a little money on a marketing course yourself. At least there you know that your instructor is qualified and successful. The basic training you receive is simply other affiliates pretending they know how a business works. In reality, these affiliates are mostly young adults with no higher education who want to make as much money as they can in the easiest way possible. As with most MLM companies, these people will make a bit of money in their first week by sucking in their friends, but after that really have no one else left to sign up. Those who are successful in MLM are those who push their sales in any way possible. Essentially they bully other people into joining the pyramid scheme because that is the only way they make money.
Additionally, affiliates receive 100% commission on their sales simply because the product is worthless. EN makes their money from the $19.95 membership fee. If you are legitimately interested in marketing your business, you ought to search somewhere other than EN. You can create blogs for free online, and you can also receive superior training for a fraction of the cost.
This page is so-far incomplete. I am doing more research and I will post more information once I have it available.
Empower Network is a multi-level marketing scheme that seeks to recruit affiliates to promote its training regimen to the uninformed consumer.
What is multi-level marketing (MLM)?
Multi-level marketing is a plan for the distribution of products whereby participants earn money by supplying products to other participants in the same plan. They, in turn, make their money by supplying the same products to other participants. Although MLM is legal under the Competition Act, it is illegal for an MLM plan to misrepresent the different levels of earnings or compensation received by participants in the plan, the amount of money earned by a typical participant, and the time and effort required to reach specific levels of income (Competition Bureau, 2011). The reason EN hasn't been reprimanded for their misrepresentations is because their website is drawn out in a way to mask the actual representations and to focus in on the misrepresentations they want to lead people to believe.
"Making money online fast, easy, and now is the most asked question we get pertaining to Empower Network. Most are attracted to the 100% business model and compensation plan because it allows for anyone, anywhere in the world to start earning money almost instantaneously" (Empower Network, 2012).
One could argue that the above quotation is misleading in that it implies that it is possible for any person to make money through this plan. It never directly states that it is fast and easy to make money with EN. However, if you aren't critically analysing every word in this paragraph, it would lead you to believe that EN will make you money quickly and easily.
What is a pyramid scheme?
A scheme of pyramid selling is a multi-level marketing plan that incorporates any one of a number of specified marketing practices that make it a criminal offence under the Competition Act. It is illegal if:
- participants pay money for the right to receive compensation for recruiting new participants;
- a participant is required to buy a specific quantity of products, other than at cost price for the purpose of advertising, before the participant is allowed to join the plan or advance within the plan;
- participants are knowingly sold commercially unreasonable quantities of the product or products (this practice is called inventory loading);
- participants are not allowed to return products on reasonable commercial terms.
Affiliates pay a subscription to participate in Empower Network's program. Any member of this program can recruit new members. The affiliates make commission off of the subscription fees of any new member they sign up. Illegal? I think so.
The products marketed by EN are essentially worthless. I'll touch more on that in the next section. To advance in the program, participants are expected to upgrade their plan at an additional cost. Under bullet point two, this is also illegal.
Unfortunately I have never been an insider in the company, so I'm lacking information for the other 2 bullet points. If someone who has this information could pass that along that would be great.
The Product
Basic Membership ($25/month + $19.95 affiliate fee) - This basic membership will give you access to the blogging platform. It will also give you access to basic training. You will be able to recruit new members and receive residual income from those below you who also purchase the basic membership. You will not receive residual income if the person below you upgrades their membership.
Inner Circle Membership ($100/month + $25/month + $19.95 affiliate fee) - The inner circle membership grants you access to additional training, as well as a disk that provides insight into internet marketing tactics (looks like a compact disk with some files on it*). With this membership you will be able to receive residual income from any person who signs up below you for the inner circle OR basic membership.
Costa Rica Intensive Training ($500 one-time + $100/month + $25/month + $19.95 affiliate fee) - The Costa Rica Intensive training kit consists of a set of DVDs that depict a live training session that took place at the owner's home in Costa Rica. This training is focused on using psychology in marketing, but is deeply rooted in promoting EN. Again, you will be able to receive income from anyone who signs up below you with the same membership or those below it.
15K Formula ($1500 one-time + $100/month + $25/month + $19.95 affiliate fee) - This product is another set of DVDs that further promote marketing EN's memberships. These videos are taped by 8 elite internet marketers. At this point I really can't see what benefit you're getting from paying thousands of dollars just for these videos when you could be getting even better training from licensed professionals for a fraction of the cost.
Costa Rica Master's Retreat ($3500 one-time + $100/month + $25/month + $19.95 affiliate fee) -The website really does not explain this product at all. If someone knows and would be willing to fill me in, that would be fantastic.
* I'm actually not entirely sure what is on these disks, so if someone who knows this would let me know.
The Problem with the Product:
The product itself is really nothing special. You can set up a blog for free, or at least for a much lower cost than $25/month. You're also paying to advertise Empower Network itself! Furthermore, the training you receive from the higher memberships is really nothing special. Alternatively you could go to college and spend a little money on a marketing course yourself. At least there you know that your instructor is qualified and successful. The basic training you receive is simply other affiliates pretending they know how a business works. In reality, these affiliates are mostly young adults with no higher education who want to make as much money as they can in the easiest way possible. As with most MLM companies, these people will make a bit of money in their first week by sucking in their friends, but after that really have no one else left to sign up. Those who are successful in MLM are those who push their sales in any way possible. Essentially they bully other people into joining the pyramid scheme because that is the only way they make money.
Additionally, affiliates receive 100% commission on their sales simply because the product is worthless. EN makes their money from the $19.95 membership fee. If you are legitimately interested in marketing your business, you ought to search somewhere other than EN. You can create blogs for free online, and you can also receive superior training for a fraction of the cost.
This page is so-far incomplete. I am doing more research and I will post more information once I have it available.
Did you know?
Google has deemed a good portion of EN's website as spam, which is why when you search "Empower Network," EN's site is not the first to pop up.
Google has deemed a good portion of EN's website as spam, which is why when you search "Empower Network," EN's site is not the first to pop up.
Updated 20/08/2013
Contents
- What is EN?
- What is multi-level marketing (MLM)?
- What is a pyramid scheme?
- The Product
- The Problem with the Product
