Crypto Currency And Network Marketing Can It Work?
Below article is for once my personal opinion 🙂
In the USA the federal government has a simple answer for Crypto currencies and network marketing: “No way”.
The SEC or FTC will go after any crypto currency opportunity.
However other jurisdictions do not have (yet) such an bold approach.
What has happened in the past with network marketing compensation plan driven crypto currencies?
A group of investors create a coin, appoint a CEO, attract a network marketing professional and they are signing up distributors.
The company get the coin listed on an alt-coin exchange and distributors / investors pump their coins immediately into the exchange and the coin loses its value big time, as its credibility.
Not a great marketing strategy. “Pump and dump” as criticasters call it. Giving the whole concept a black eye.
So the question raises:
If proper executed would it be possible to create an honest, clean, legit, network marketing business opportunity around a crypto currency outside the USA?
What would it need?
In my opinion and after being an guest and independent observer at many crypto launches and having an open mind, at a minimum:
- Clean investors and top notch management. If the maffia is behind the project you are doomed.
- Transparency, the management team and investors should be known.
- A network marketing professional with a clean long standing reputation, leading the field opportunity.
- An other/better/new crypto – blockchain technology then the competition. (The white paper stuff)
- Hacker proof security, many alt coins were stolen or compromised in the past.
- The company needs licenses to conduct financial service transactions in many jurisdictions.
- Distributors have to be protected/ licensed / trained to “un-hype” and should be in for the long run.
- Strong compliance and KYC policies.
- An very smart alt-coin exchange strategy, pump and dump is dead.
- A fair compensation plan with modest start up costs. $10,000 – $100,000 packages are way over the top.
- A merchant strategy, if nobody accepts your coin, it is doomed.
- An ICO strategy, every coin wants to go public, nobody succeeded yet. Banks are very careful with their reputation…
And as a network marketing professional your due diligence needs to be very in depth, high risk / high profit requires a lot of business intelligence 🙂
What is your opinion?