“Empower Network is a direct response company, that handles front and back end sales conversions – and teaches people how to narrow their focus down to one skill: Getting Traffic.
“The fact? Getting Traffic is easy to teach if you take out the technical and management complications that drive the rest of the marketing niche . . . we’ve now existed for 140 days, and have more than 20,109 customers who have bought our blogging system.” –Empower Network web site
Products: A basic Word Press website for $25 per month, plus training on how to set it up and sell it to others. Upsells from the basic plan include other info products: an “Inner Circle” subscription for $100 per month; $15K per month formula – $250; Costa Rica Mastermind Intensive Retreat- $500 (as of the date of this post)
Founded: November 2011
Founders: David Wood and David Sharpe, co-founders, CEO and President, respectively
Empower Network Compensation Plan: Coded bonus plan that “passes up” your 2nd, 4th, 6th, and then every fifth sale after the 6th to your upline.
Editor’s Note: the plan is marketed as a 100% commission plan. And, it does pay 100% (less fees) if . . . you only count the sales you actually get paid on. But let’s be real here. Of your first 6 sales on every product, you only get paid on half of them. Wouldn’t that be more like a 50% payout?
Location: “Somewhere in Costa Rica”
Mailing Address and Contact Information:
Empower Network, LLC
3530 1st Ave. N, Suite #221
Saint Petersburg, FL 33713
For our knowledge base and FAQ section, as well as our member technical support desk, please visit us at: http://support.empowernetwork.com
If you have any questions about our affiliate program,
please call 512-749-1493 and allow us 24-48 hours to respond.
From FAQs: “Is Empower Network an illegal pyramid scheme?“
“Lol. This [question] is pretty rare, but still pops up from time to time.
“There’s a core, simple differentiation* between pyramid schemes and legitimate direct sales marketing companies – and that is:
“1) Are commissions being paid for recruiting affiliates? Of course, the answer is no. People in Empower Network only earn commissions when they sell a product to someone using it. There is no ‘front loading‘ of any kind, and no required purchases” –Empower Network blog post
*Ah, if only it were that simple to tell the difference between an illegal pyramid scheme and a legal network marketing or multilevel marketing business. The law is rarely so black and white, particularly when it comes to this issue.
Let me illustrate for you perhaps the most common deception that illegal pyramid schemes use to try to look like they are legal MLM or network marketing companies..
Look at this claim from the New Breakthrough, Completely Legal, Pencil MLM:
“Of course we do not pay people to recruit other people. In fact we have no sign up fee at all. What we do is give you a website so you can sell our very special pencils. The cost of our pencils is only $25 per dozen. But every time you sell a dozen pencils, you earn commissions, and so do 7 people upline from you! In fact we pay out a massive 82% in commissions!
Commissions in our hypothetical company described above are ONLY paid on the sale of products. Does that make this Pencil MLM legal?
Well guess what folks, regulatory agencies and district attorneys see through that kind of scheme all the time. No reasonable person would argue that a dozen pencils are worth $25. So the rest of the money is really just fueling the pyramid scheme. It’s a money game. And many times the promoters and top distributors of such schemes go to jail if convicted.
Some have described the Empower Network $25 per month “blogging system” similarly . . . essentially as a very basic WordPress blogging site (that you can get for free elsewhere without required advertising for Empower Network) with some training and special set up so you can sell it easily to others for $25 per month.
Others will argue as the “Daves” do, that all of the special things they do to the blog add value to make it worth well more than $25 per month. Value is a very subjective thing after all.
There is one test that settles the argument in my opinion (and the opinion of many regulators). If a company can prove that they have a significant percentage of customers buying or subscribing to the product who have no interest in the business, the value of the product is established in the open market.
There is much more to consider than the “core, simple differentiation” mentioned above.
For more information on this topic, see Pyramid Scheme or Legal MLM: How to Tell the Difference and this particularly clear article from an MLM attorney that represents companies primarily to help they assure that they will not come under legal attack: Ramblings Of A Tired MLM Lawyer, or Where Have All The Products Gone?
Also see this (IMHO) well written Empower Network review.