Hierarchical marketing: the trick that reappears after it is exposed each time
About seven years ago today, I was visiting one of my relatives at his home, and there I met one of his friends who seemed to be clearly rich in his clothes and possessions in general, and during the usual conversations that included common themes and ongoing financial concerns, my friend's friend started talking, and the subject of his conversation was lack of resources And job opportunities and methods of collecting income for university students during the study. Work, if any, requires long working hours that prevent study and for small wages that are not sufficient for the requirements of life. Of course, he continued the conversation with a “revolutionary solution” to this problem.
The proposed solution didn't take long work, two or three hours a week at most! It did not require large capital or physical effort, nor did it require specific hours of work, meaning that it is largely free.
In short, it seemed quite idealistic, and even though a friend of my relative did not explain any information at the time, he asked us to attend a “seminar” that would take place after a week for details.
What is hierarchical marketing?
The more you talk about a "golden opportunity", the more it talks about "direct selling" and multi-layer marketing, so it is more of a hoax to a hierarchical scheme.
In principle, you will not find anyone saying that he works within a hierarchical marketing scheme, or describes his company with this name. Hierarchical marketing is completely prohibited in most countries and the term itself has become associated with negative meanings, so that it was necessary to disguise it to “network marketing” or “marketing” Multi-layer "or even" direct selling "in some cases.
And with the fact that hierarchical marketing is a phrase that you will not hear from anyone trying to offer you an attractive opportunity, it is better to search for references that indicate that the matter is a hierarchical marketing.
The name hierarchical marketing came from the mechanism through which profits pass in this type of marketing, at the top the founder is located under him and successive and multiplying layers from the previous one, with the arrangement that makes each previous layer of weakness to it is the most prevalent usually.
The basic principle of this type of marketing is the sale of products that are very cheap and devoid of any real value at twice the real price as a cover for what might be called “selling the opportunity”. Buying a product from a hierarchical marketing company allows you to market the product that is already overpriced and make money from the commission.
At first glance, the matter seems very simple and innocent. The principle of selling and marketing for a commission is a well-known principle that many companies adopt, but the principle of hierarchical marketing differs here by converting every buyer of the product into something like a sales agent that promotes the product again, and with the profit that comes to you whether you market yourself Or that someone bought by you has marketed the potential profits seem very large and can theoretically reach millions of dollars in a short period of time.
How hierarchical marketing works:
Of course, commissions do not usually go smoothly, but there are many conditions and obstacles to obtaining the commission, but the form is for the purpose of clarification only.
In principle, hierarchical marketing does not depend on selling products at all. The primary goal of the buyer is not the product itself (which is usually a cheap product whose true value does not exceed a few dollars). Rather, buyers are buying with a desire to be able to market the product again and attract new marketers. The matter enters a vicious circle of customers who become customers because they want to attract more customers.
Even here, hierarchical marketing does not differ from the lesser notorious notion of network marketing, but with more careful consideration of the matter, the difference is clear.
The main way to make money in network marketing is to continue to attract more new customers, in order to obtain small relative commissions on the products they buy, but in pyramid marketing there is no real need to continue to attract customers, as long as you can collect commissions from the people who marketed them and who Anyone who has been marketed within the network below you, there is no need to continue with the actual marketing at the time (see the image above to understand the commission mechanism more clearly).
In fact, the mechanism shown in the picture is the simplified form of the ceiling, as companies usually place additional restrictions for commissions, such that there is a specified number of new subscribers to be able to receive the commission (for example, that 4 new subscribers are required for a $ 5 commission, while 3 subscribers New does not give any commission), or to require the presence of subscribers on both ends of the scheme below to receive the commission.
These conditions are usually used to limit paid commissions and prolong the maximum hierarchical scheme, but they are not sufficient for its stability.
Who are the usual goals of hierarchical marketing?
Undergraduates often struggle financially or worry about getting a later job opportunity, and with their great ambition their recruitment is usually the easiest.
Unlike most marketing operations that target the richer classes, as they are usually more able to pay and buy, things are reversed here, where hierarchical marketing targets the lower and poorest classes in the first place, whether they are unemployed or belonging to classes that are physically impoverished, and in the first place, young people may be targeted during Their university studies, especially if they are trying to support themselves during their studies, or that their families are not wealthy enough to provide them with a significant income during their studies.
Of course, the mechanism of targeting hierarchical marketing for the poorest people seems strange because it is more difficult to get money from them, but when thinking about it it is clear that it makes sense with the fact that the commodity for hierarchical marketing is hope (while the product exists only as camouflage and no more), the most appropriate audience is the people who suffer financially And they have a very big catalyst for financial independence and high income.
In these cases, it is not important if the target of marketing is poor. The more they suffer from financial problems, the more they have incentives to secure the money needed to enter and make profits.
How is hierarchical marketing promoted?
The use of defamation and derogation from not making money and the ability to support oneself is the first part, and then it goes on to explain the financial capabilities of the large to the subscriber.
In the event that you watched the long TV ads for slimming products or exotic sports machines and kitchen appliances, you know the usual method that uses phrases like “Are you bored of such and” and “Do you suffer from such” and others, this particular method is the most used for this type of marketing with Simple adjustments, instead of “Are you tired of cutting vegetables?” The phrases are of the type “Are you tired of working hard without a financial return?” Instead of “Do you feel shy when commenting on your excess weight?” The phrase “Do you feel shy about your debts that you cannot Pay it off. "
The main thing in marketing here is playing on the insecure aspects of the potential customer’s personality. For university students, they desperately need any opportunity that gives them financial independence from their families. For the poor in general, many of the things that are missing from their lives are potential targets for marketing.
So embarrassment methods are used first, such as hinting that the physical dependence on my father is a shame for a young man in his twenty years, or the inability to buy clothes and jewelry is embarrassing for any girl (this is only an example, the focus is on the insecure points, no matter what About her nature).
Of course, the potential customer embarrassment and making him feel sorry for his condition is completely insufficient. Embarrassment and focusing on weaknesses will only help in increasing depression, so the second stage is the stage of raising morale and talking about the unlimited possibilities and tremendous advantages, in this part it mentions the product and some false information about it, such as an hour Cheap said to be gold-plated, or a necklace containing “rare volcanic stone” and many other potential products that are usually cheap enough to cost less than one dollar at a wholesale price, but sold for more than a hundred dollars as they allow the customer to convert into a “free agent” “For the company.
The last stage is explaining how the scheme works and how to generate profits, and with this part being the root of the problem and considering hierarchical marketing a hoax, the focus is on explaining it as simple as possible with a description of the amounts that can be gained very easily, in principle even with the lowest profit rates it is possible to achieve Much money if things go wrong by marketing to two people and each one for two, and so on. Within months, you can become millionaires (on paper, of course).
Returning to the story I told at the beginning of the article, this friend of mine was a complete embodiment of the well-known style of hierarchical marketing, and the most important of all previous tricks is the appearance here, so you can catch new victims and make profits. They must think that you originally made a lot of profits, so clothes Stylish and expensive phones are essential here, and in the case of this example, the clothes he was wearing at that time were the only stylish in his closet, and the expensive phone and watch were not originally owned by him, but he borrowed them from his friends to appear in the form of abundant money and success and tempts customers to Anji to join.