At the heart of the MLM penny auction niche is the idea that retail customers buying bids and participating in auctions provides the bulk of revenue.
Take away this core concept and ultimately, regardless of what specific compensation plan a company deploys, all you’re left with is affiliate money being used to pay affiliates.
Unfortunately after mounting regulatory shutdowns, business closures and outright collapses, if the industry has learnt anything since Zeek Rewards emerged it’s that retail sales are virtually non-existent in an MLM penny auction business.
Revenue-sharing, profit-sharing, retail volume orientated compensation plans, sales, sample bid models, luxury auctions, bargain auctions… it doesn’t seem to matter what MLM penny auction companies throw at the niche, there just isn’t any retail in it.
No stranger to a lack of retail is MyCenterBid, formerly Bidify. After abandoning their (virtual) US operations Bidify fled to Europe where it has relaunched as MyCenterBid.
On the affiliate side of things back offices and what not went live last week, with the CenterBid penny auction projected to go live on Friday, July 19th.
Aware that acknowledging the majority of their revenue comes from affiliates, typically an MLM penny auction company goes to great lengths to perpetuate the retail bid sales myth.
Not MyCenterBid though, in a rather curious update sent out to affiliates the company is demanding to know why its affiliates are ‘waiting to take action when the auctions are live‘, practically ordering them to pump money into the company and “take action” now.
In the MyCenterBid update, sent out July 10th, the “MyCenterBid Team” wrote
DO NOT FALL IN THE WAITING TRAP
We hear people say that they will be waiting to take action when the auctions are live.
Why? We’ve said before – why not use this time to learn how everything works and start creating momentum? It’s almost like being in prelaunch where everybody has a huge advantage..
There is also over 400,000 FSC/Loyalty Credits in people’s accounts. The same rule applies here. Buy your monthly maintenance and PV immediately, and teach everybody else to do the same.
We recommend everyone to have a minimum of 100PV at all times. That will generate Sales Points and possible commission cycles in the Dual Team system. Remember all un-cycled Sale Points are banked for 6 months.
You can also purchase marketing bids which you can share with your customers.
Make sure you take action NOW regardless of fully understanding the compensation plan or not.
It all starts with your Dual Team; generate your momentum there and all other parts of the plan falls into place like a gigantic monetary puzzle. Focus on this part only, that’s what’s going to generate your payouts throughout the whole system.
There is a lot of new information to read and digest, DO IT NOW! Don’t wait.
NOW is the time you should take action.
With no auctions, any revenue MyCenterBid generate now is going to originate from its affiliates. Thus it’s not surprising that the company urges affiliates to “focus only” on the “Dual Team” (binary).
As noted in the MyCenterBid review,
The general idea seems to be sign up as an affiliate, self-qualify for commissions via a bid purchase, create a customer and bid on an auction and then earn on the bid pack purchases of affiliates you recruit.
MyCenterBid pay out a commission every time 300 volume points are generated by a down line in an affiliate’s binary.
One of the ways these volume points are generated is when an affiliate purchases a Center Bid bid pack, which is currently what the company is strongly encouraging affiliates to do.
If CenterBid were pioneering the penny auction niche and nobody in the industry had ever seen anything like it before, they might have reason to ponder why their affiliates are evidently hesitant to throw their money at them.
Given MyCenterBid’s long drawn out history as Bidify however, including no less than five compensation plan revisions and the complete flop that the Bidsson penny auctions were, do they really need to ask?
Even if you’re just taking money from affiliates and ultimately shuffling around to pay commissions, you still need to keep up the appearance of penny auction activity. Well, you do if you expect to have a hope in hell today of convincing people to put up their money.
Between the collapses, shutdowns and voluntary abandoning of companies altogether, the MLM penny auction niche landscape is vastly different to the investor honeypot Bidify pre-launched into back in early 2012.
A point that seems entirely lost on the MyCenterBid management team.
If I might be so bold as to make a prediction, given the tone of the notice MyCenterBid have put out and the inability for the MLM penny auction niche to produce any viable retail activity, all they’re gearing up for is yet another affiliate-funded outing that is going to end in tears.