Re: forsage, an ethereum smart contract
@10, most likely because you won't earn what you put in. If I put in $30.00 its unlikely I'll get $30.00 within a reasonable amount of time. The other problems with MLMs like this are things like:
You have to create your own competitors just to sell things and to make the entire thing work.
There's an inherent conflict of passive vs. active income; your supposed to be selling something, but your also supposed to recruit enough people under you to make you, the recruited individuals, and the company behind the MLM a lot of money without them doing anything; in other words, the entire model can't decide on whether it wants to focus on recruiting or sales.
As Camlorn has stated, the model has the fatal flaw of questionable profitability. As one site I found puts it, "For a business to be successful, MLM or not, its products must be marketable with sufficient profit after marketing costs to enrich the company AND its sales people. Unfortunately, for many (most?) MLM businesses, they fail this test miserably. Most MLM products are redundant (already available in traditional channels), overpriced (when compared to known national brands), have zero reputation behind it (being brand new), have insufficient profit margin to cover the company, the individual members, AND pay commission, or various combinations of the factors listed."
There's a similarity between MLMs and pyramid schemes. Go look up Amway if you want an example of this; the FTC charged Amway with this exact charge. Though Amways Rules help this somewhat, it haunts the MLM industry even now, and MLMs (like this one) are constantly attempting to game the system, further blurring the line between MLMs and pyramid schemes.
MLMs supposedly have cult-like indoctrination tactics they use to get new people. I won't go into depth on this one -- I don't even know if its true.
So, there you go. This is why this should be banned -- its not a safe way of earning money and only makes you look desperate. If you want to earn money, do it properly. Go freelance, for example. That's a hell of a lot safer than risking your income on something you don't even know is trustworthy. Just because something uses blockchain does in no way guarantee its trustworthy. Even if its supposedly "hack-proof" and immutable its not infallible, and there's probably a way to alter the smart contract in some way.
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