Is Wowzza an illegal program? Sure looks like one, as do many of the Internet related "deals" that are being promoted these days!
Having built some of the largest and fastest growing groups in the history of the industry over the past several decades (my 2 partners and I had combined groups of over 600,000 distributors and sales of more than $2 billion in our previous 3 companies), and having a network marketing consulting business with one of my associates being a prominent former Attorney General and being very familiar with legal issues, especially as they relate to comp plans, I think I would qualify as somewhat of an expert on the industry and opportunities in general, and I have to admit I am absolutely stunned at how people could fall for the hype involving Wowzza! (This is also true of most the Internet related "deals" these days.)
I've been asked by numerous people for my opinion, and based on what I have read and how it it is being promoted, this one is a regulator's dream for eventually being shut down, the kind of program they just LOVE to go after for being an illegal pyramid!
First, before we get to the potential legal problems, if you honestly think it is going to unseat MySpace or FaceBook, you are either plain crazy or delusional! Furthermore, there is nothing unique about the program, and a hundred of these types of deals are launching every week it seems like and what Wowzza is selling for $33, they're giving it for FREE! Once the hype of this one wears off, the leaders will be on to the next one, taking a lot of people with them...
Second, nobody in their right mind, other than networkers, is going to spend $33 a month on something they can get for FREE from hundreds of similar sites on the Internet.
Third, matrix plans do not work! Do any of you bother to do any research? You can learn a lot from history! Evidently there are either a lot of newbies not familiar with our industry or they have been in the industry and are completely oblivious to the facts!
There has been one matrix plan in 50 years that has achieved any major success long term, and even that company has changed their pay plan numerous times in the past 10 years in order to retain their leaders. Just one company, which explains why NO knowledgeable person would launch a company around a matrix plan, let alone work one! If you were looking to put the odds of success in your favor, you wouldn't use a business model that has only worked once, not when there are other compensation plans that proven far more lucrative and successful!
Fourth, the program as promoted is a regulatory nightmare just waiting to happen! It is being promoted as a global opportunity and I can guarantee you that they have not done the paperwork in 200 countries to meet the legal requirements to have their program legally promoted in a particular country and will get hammered if caught for being an illegal program.
Furthermore, countries today are prosecuting individuals as well, with fines and jail time being given to distributors involved. Does SkyBiz ring a bell???
In addition, any program where you can make money for doing absolutely nothing other than just signing up is an ILLEGAL PYRAMID, not just in the U.S., but almost every country in the world which allows network marketing.
Also, since the bulk of the program's revenue is generated through the purchases of distributors (regulators don't consider the purchases of distributors to be a retail sale), and since almost all of the sales being made are to business participants, and since almost all of the commissions being earned are based on purchases of business participants, and since nothing other than recruiting someone triggers the release of the commissions, this program is highly ILLEGAL and is another SKYBIZ just waiting to happen.
Regulators want to see that you have sponsored a few people, acquired a few customers, and are performing some type of superivisory role, i.e., conducting trainings, etc. as a justification for you to receive commissions and bonuses.
Any program that pays on more than one level that claims you can make money without having to do anything, i.e., not sponsor a single person, not sell a single thing, etc., and you can still get paid, etc., is ILLEGAL! (Making claims of this nature now means your income was based on luck, so in addition to having problems with network marketing and business opportunity statutes, you now fall under lottery statutes as well!) This is not just true of Wowzza, but many of the Internet related "deals" that are being promoted these days.
Additonally, regulators like to see a minimum of a 3 to 1 customer to distributor ratio, and there's no way that is going to happen with this program...
Finally, it's a start up! 99 out of 100 programs will not be here 2 years from now! Do you honestly think this is going to be the 1 that makes it? (If you answered yes, you need MLM detox and rehab-fast!)
It is amazing the number of people who are intoxicated with hype, either due to ignorance or stupidity. (Ignorance is not knowing something and doing it anyway-stupidity is knowing better and still doing it anyway.)
Many of the red flags that pertain to Wowzza are true of many programs being promoted today, especially the Internet related programs, i.e, the funnels, the edc’s and the xyz’s, etc.
Despite the overwhelming "red flags" of this and other internet related deals, many choose to try to justify it's legality by saying, "Well we haven't been shut down yet." What kind of logic is that? It merely means that you haven't popped up on the radar screen of a regulator yet! SkyBiz operated for two years and did over $250 million before they came under scrutinty and were eventually shut down, with distributors being prosecuted in numerous countries for being involved in an illegal pyramid, including fines and jail time!
Find a real business.. in the case of Wowzza,.this is nothing more than a glorified money game for network marketers...and an ILLEGAL one at that...It's a $33 a month lottery ticket. pure and simple.
It's not surprising to us why most people fail in our industry...they keep riding the MLM merry go round with programs like these..
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