Is MyAdvertisingPays a pyramid scheme or does one earn money with MAP legally?
Feb 3,2016 / By Rainer Barton
Because of many false reports and calculations on the Internet and
because of the many requests I got, partly also from existing MAP
partners, I want to take a stand on this subject. I went to Biloxi on
January 25/26, 2016 to see Michael Deese personally, the founder and
owner of MAP, so I got this information absolutely first-hand.
I’d like to use this opportunity also to respond once more to some of the aspects of the business model.
MyAdvertisingPays is often referred to as an MLM (multi-level
marketing) company, others are calling it even a Ponzi scheme or a
pyramid system. These people spend months, hour after hour, to write
incredibly long reports, and this without ever having understood this
business of MAP. According to the opinion of these Internet experts, and
the emphasis here is on „opinion,“ MAP should have been insolvent
already for the past 18 months. But thanks to its perfect business model
MAP enjoys great financial health and also was able to hire a complete,
experienced and highly qualified team of IT professionals using its own
resources and thus is no longer forced to work with freelancers who
need to share their lifeblood amongst several projects. In addition,
there is a new, modern and unique Website in the works that will allow
MyAdvertisingPays to achieve significantly higher revenues in the
future.
Evidence of financial strength is also demonstrated by the fastest
payouts in the industry as well as the incredibly strong support with an
average response time of less than three hours.
MAP is an online advertising platform that sells products
(advertisements, banner advertising and guaranteed visitors for a Web
page) on its Website, as many other companies do. These products are
offered existing partners of MAP in the form of Credit Packs (CPs) at a
price of $49.99. Other revenues are coming in through renting banner
space to major customers like Adhitz and Traffic Swarm. The amount of
sales due to these key accounts (also called external revenue) varies
daily and the percentage of the external revenue versus the sales of CPs
also varies daily between 20 to 60%. External sales at MAP cannot be
increased much further due to the design of the current Website, which
is one of the reasons for the coming new Website. We even have to turn
away business for that reason at the moment.
With MAP, profits (e.g. revenues minus costs) are distributed to the
accounts of all the partners every 20 minutes, if they own at least one
active CP and they have watched 10 advertisements within the last 24
hours. The number of CPs is the distribution key for the personal profit
share. Simply put, the more CPs someone owns the higher his or her
profit share.
It is often reported that MAP earns money on the advertisements of
its partners in the Traffic Exchange, the internal MAP advertising page.
This statement is, of course, wrong, because the partners have paid for
their advertising here already by buying the CPs. However, five big
banner advertisements are shown here with which MAP does earn money
again. Another false statement is that the MAPper are being paid for
their „clicking.“
To understand the business model, it is important to know, that CPs
cost $49.99 each and that they participate in the profit sharing until
they earned $60 each. Because MAP has an unlimited affiliate program,
i.e. a referral program, the recommending partners are here rewarded
with up to 10% commissions an sales of their partners.
Out of this business model, the following questions arise for the sceptics and critics:
Is this business model legal or a hidden pyramid scheme?
Where does MAP take the money from to pay out its partners more than what these have paid for the products?
Why does Michael Deese pass on incredible 95% of the profits?
Is MyAdvertisingPays legal or a hidden pyramid scheme?
In today’s information age, many thousands, even very well known
companies are using the friendship advertising as a revenue turbo.
From A – like Amazon to Z – like Zalando, you find referral links on
Websites. The commisions people get for their recommendations are far
below the usual distribution costs of those companies. On top of that
comes the quick, free propagation of the brand name on the Internet,
which is an additional value for the publicity of the company. The
referral business is therefore extremely profitable for businesses. One
of the allegations of skeptics is that MAP generates its revenues
primarily through existing members and that it later then distributes or
redistributes the profits to existing partners.
For comparison, let’s look at the ADAC company in Germany with its
nearly 19 million members. Here too, there is a recommendation link and
enormous commissions. Looking at their Website more closely, one
realizes that the ADAC itself recommends many other businesses, and it
probably doesn’t do this for just a warm handshake.
Does the ADAC have a legal business model?
Is the money of the members worth less than the money that is
generated by other sources within the comany, or is this just the
forming of a WIN-WIN situation for the company and its member?
Ok, let’s take a look at another company, this time an international
one as the pay-TV broadcaster Sky. Here, you also have to be a member, a
partner or a subscriber, it does not matter what you call it. And
again, you have to pay for a service and you can then recommend it to
others.
Is this TV station going to be banned now, because here too very good
money is paid for recommendations and also money earned with
advertising?
Isn’t it up to each company alone how much it wants to spend on recommendation advertising from its profits?
Is the government intervening if up to 150 Euros are being paid just
because someone recommends the „Sportbild“ magazine, or, listen to this,
several hundred Euros for the recommendation of health insurance?
So far, I have never heard that this were unlawful practice and there
weren’t any discussions, as far as I know, when washing machines,
books, telephone contracts, electricity contracts or insurances and so
much more were recommended for a commission. But the product
„advertising“ which is marketed here just like all other products with a
one-level referral commission, this should be an illegal pyramid
scheme?
Isn’t that funny?
Now that everyone knows that the recommendation of advertising is
illegal, one could use that as a reason to proceed against Google,
right? They are also paying recommendation commissions. The only
difference to MAP is that the bulk of the money goes to the
shareholders.
Who does not advertise, dies. This was already recognized by Henry
Ford – and a referral commission is the price for an advertisement that
was successful and so, we have another WIN-WIN situation again.
How much more are companies spending on advertising without returning a success, meaning a sale?
My recommendation to all who are doubting, who are skeptical or even
think that these business models are prohibited, please just enter
„affiliate marketing“ as a search term in Wikipedia.
You’ll find that MAP does not differ here from thousands of
well-known companies in this world. There is a highly effective
distribution channel at work here which has proven itself very well in
the fast world of the Internet.
Where does the money come from to pay the partners and why does MAP pay out 95% of the profits as commissions and profit share?
As described already before, every business is living from sales, and
so does MAP. The difference between services or products compared to
the MAP products lies in the production costs. MAP is selling digital
consumer products which are costing virtually no money to produce. MAP
products generate traffic, the gold of the Internet. However, the same
business laws still apply as for any other business. Without sales, no
profit. Of course, MAP has costs to pay, employees must be paid, servers
are costing money, rent and social security as well as research and
development are not going to be given for free to MAP just because Mike
Deese has such a beautiful smile. MAP doesn’t differ from another
company here. If there are no or too few sales, the company suffers a
loss and has to apply for bankruptcy.
For the company itself it doesn’t really matter a whole lot whether
the money comes from the so-called external buyers or from the partners.
At this point, I’d like to make a one-time digression on the subject
of external revenue and the number of active MAPper. The so-called
Internet experts want to draw conclusions from the data they are getting
from Adhitz. Unfortunately, I have to disappoint these experts a little
because the displayed „unique clicks“ from MAP members are showing only
the number of partners who are still logging themselves in via the main
page and not via the Login page as most of the MAPpers now do.
The second disappointment for enviers and hobby networker will be the
kind of payment model that Michael Deese has chosen to use. There are
two common options. With currently over 112 million clicks per month
you’d assume that the „pay per view“ payment model applies where only
the actual display of the banner advertisement will be paid. This is
based on calculations one can find in the Internet. These calculations
are completely wrong.
The actual payment model that Mike Deese as a publisher of the
MyAdvertisementPays site offers is the „pay per click“ payment. A
payment is only made when a banner is actually clicked, this is
happening far less often, but the returns are still many times higher.
As described already above, the external advertising is at its absolute
limit with regard to sales, with the new Website those requests can be
accepted that MAP currently has to turn away. I think it doesn’t get any
better than being completely sold out with a 100% utilization. No one
could have foreseen this and the high number of partners at the start 2
Years ago.
One of the most frequently asked questions regarding MAP from
prospects, MAPper themselves and of course the skeptics ist the question
about the 20% that a CP earns on top of what it had cost.
ALL CALCULATIONS THAT I FOUND ABOUT IT ON THE INTERNET, ARE UNFORTUNATELY TOTALLY WRONG!
This alone for the reasons I have just described. At this point, I
would like to explain this so that it is really comprehensible for
everyone because this is such an important aspect of the business model.
A Credit Pack costs $49,99 of which 5% are going to the company and
up to $5 to the sponsor – his or her reward for having made the
recommendation. $42.50 can now be recorded as profit, i.e. can be booked
towards the profit share. So, we now have a difference of $17.50
between the target earning of $60, that each Credit Pack has to
generate, and this profit share. Based on the $42.50, this comes not to
20% but rather 41%, more than double the percentages than what is
obtained in those known calculations.
But, because 5% of the $60 are flowing into the AdFund, which are
remaining within the company, MAP generates another revenue stream in
this ingenious way and reduces the money that must be generated by $3
down to $14.50.
The amounts in the balance and in the AdFund are always freely
available to the partner. Therefore, the sum of all accounts for both
balances represents the current and exact liability of MAP to its
partners.
This amount, called by Mike Deese the „earmark“, is available to the
system at all times and that is checked several times a day. If a
partner now buys a Credit Pack from his balance, the liabilities are
reduced and the paid amount turns into revenue, as described above. The
„earmark“ total is parked in the so-called Reserve Fund and it is at
this moment no longer money belonging to MAP, but of course managed by
MAP. Purchases from the balance (Reserve Fund) are categorized for the
calculation as new revenue. Additionally, 5% of commissions are flowing
into the AdFund, yet ensuring higher revenues again.
MAP does not want to, can not nor is it allowed to guarantee any profits; if profits are made they are varying every day anyway.
Now, I am getting to the biggest errors that are made in all
calculations I found on the Internet, namely the time factor. Even
without a single cent from external deposits this concept would be
completely legal and function to 100%. The partner would still get the
products from the purchases made but the profit share would be lower, so
that you have to assume that it might take 150 to 200 days until a CP
has reached its target value of $60.
A question to the kings of Excel tables, would this still be a good
deal? I think so, but everyone must answer this for themselves.
Let’s look at the reality. $14,50 per Pack and a runtime of 120 days
corresponds to about 12 cents of external revenue per day. If you put
these 12 cents in relation to the 50 cents profit share per day, this
comes out to about 25% that the external sales have to generate in
revenue.
During my first visit to Biloxi 2 years ago Mike Deese spoke of
fluctuating external revenues between 20 and 60%. Therefore, it is no
wonder that now, at full utilization of external advertising space, the
runtime of CPs lies well below 120 days.
What du you think, are the prices for external advertising falling or rising if the number of page visits increases?
If MAP continues to pass on 95% of the profits even if the revenue is
varying, anybody can figure out that this is a business to stay for
eternity.
Mike Deese knows that he can spend each Dollar only once, so that is
why he took great care that no fantasy figures are going to be paid just
to look better than the competion in comparison. The companies that do
this, more than 40, have come and gone, but MAP is standing here solid
as a rock.
After more than 2 years now MAP has proved this in a very impressive
way, thousands of Diamonds are forced to make withdrawals because of the
limitation to 1200 Packs. Would a pyramid scheme try to keep the money
in the system or would it force its partners to make withdrawals?
Many Diamonds have not sponsored a single partner and yet receive
their withdrawals punctually and quickly; how can that be if in a
pyramid scheme one is paid from the money of recruited people?
Lets get to the question now why 95% of the profits are paid out.
Not everyone of the nearly 250,000 registered partners at MAP is
active. In the Internet industry the percentage is nevertheless very
high compared to other online companies. The number of CPs is turned
over about 3.5 times within a year. With thousands of Diamonds and many,
many thousand partners who are on their way to become Diamonds, one can
assume that many millions of CPs were purchased from MAP. If you
multiply that number, and I’ll leave that number up to your imagination
for now, with $2.50, a very handsome amount is indeed the result. This
amount is definitely enough to cover the costs of MAP, but a fund is
established here in addition.
The prerequisite for this business model is solely traffic, i.e.
visitors to a Website. Search engines like Google, social networks like
Facebook, video channels like YouTube that are all generating traffic
are already in existence and they would be a much too overwhelming
competition for a startup company. So, he came up with the idea to pay
his partners decently for the traffic. True, similar companies exist
already too but in those, 95% of the profits are flowing into the
company and less than 5% to the partners; that these 5% are easily
enough for the entrepreneur and person Michael Deese I have already
proved formidably above.
The success is reflected by the breathtaking number of clicks on the
Website. Every partner is being paid 72 times a day and is looking into
his account several times daily. The saying that MAP is addicting
doesn’t come from nothing but this happens much for the benefit of the
company and for the own account.
So, I hope that I answered this question to your complete satisfaction too.
If you have now recognized the ingeniousness of MyAdvertisingPays, as
thousands of MAPpers have, your questions are answered and you have a
good feeling about starting with MAP, I’d like to offer my knowledge and
my coaching free of charge to you. We are taking your road to MAP
together.
Your success is my priority. Contact me via your comment or send me a mail on nesty_fasu@yahoo.com text/call/whatsapp +2348068518410.
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