Empower Network parade 12yo child around on stage
When it comes to children as a marketing tool in MLM, thankfully the practice is generally frowned upon. By and large it leaves people with a bad taste in their mouth as it’s difficult to distinguish the technique from out and out shameless exploitation.
One of the more recent examples would be pairing of children’s charities and penny auctions. Using the affiliate funded Ponzi points scheme we’re all familiar with by now, Bids That Give sought to add a layer of obfuscation to the business model by heavily marketing that the company was donating to and “working with” children’s charities.
With children plastered all over the Bids That Give website today and knowing full well the mechanics of the “revenue sharing” Ponzi points MLM business model, I personally can’t help but find Bids That Give’s marketing efforts coming off as anything other than unapologetically sleazy.
MLM is a highly competitive environment and is often plagued with manipulation and cut-throat marketing practices. Everyone is searching for that edge over their competitors and adding children to the income opportunity equation is like throwing quadraplegics to the sharks.
Thankfully companies like Bids That Give have restricted the use of children as marketing tools to the non-affiliate side of the business. You participate in Bids That Give and children’s charities receive money, to the best of my knowledge children themselves aren’t participating in the opportunity itself (at least not publicly).
All too keen to take things one step further however and introduce child affiliates to the industry comes Empower Network. In true “badass” form, yesterday saw Empower Network parade a 12 year old “earner” on stage to the rabid applause of its affiliates.
Evidently children aren’t just MLM marketing tools anymore, they’re active income-generating affiliate marketers themselves.
Described as an “event-based” company, Empower Network hold regular staged events designed to pump up their affiliate memberbase and continue the recruiting momentum that feeds their compensation plan and commissions structure.
At an event currently being held in Chicago over the weekend, Empower Network CEO and co-founder David Wood welcomed Jesse Monsma, a 12 year old child from Holland, onto the stage:
Wood introduced Jesse to the audience and then gets him to tell the audience that he made $12,000 in 4 months with Empower Network.
The audience of Empower Network affiliates eat it up and break out into applause, with Wood egging them into a standing ovation:
As Empower Network affiliates continue to cheer him on, Wood then positions himself a short distance from Jesse before getting down on one knee and waving his arms up and down in symbolic worship:
Wood then continued to ask Jesse questions about his involvement in Empower Network, revealing that he ‘works about 10 hours a week‘ and primarily generates revenue by “sending messages” to people on Facebook and blogging, all geared towards the goal of getting those he contacts to “watch a video”.
On the surface this would appear to be nothing more than the celebration of some kid from Holland making money. Being MLM however and more importantly an MLM event designed to pump up an affiliate-base, this is nothing more than a marketing campaign rooted firmly in the idea that “anyone can earn” in Empower Network.
That alone isn’t a bad sales pitch but when you use children to get the message across you’re crossing some serious ethical boundaries.
Here’s how one Empower Network affiliate is already marketing the event:
If a 12 year old from Holland can earn 12K in 4 months, what is holding you back?
Time? – Nope. This kid works on his Empower business 1-2 hours per day after he does his homework (lol).
Money? – Nope. He is 12 years old……obviously has limited funds.
Vision? – Nope. You can dream just as big as a 12 year old.
Too hard? – NOPE. Anyone can learn this, yes you ARE as smart as a 6th grader!!
We can pretend that this is just a naive celebration but David Wood and the rest of the management team over at Empower Network are not idiots. They know Empower Network needs a constant influx of new affiliates at the base of the compensation structure who will go out and get new affiliates into the scheme.
Empower Network do not publicly state what percentage of their blog customers are retail (non-affiliates), so we can assume it’s wholly insignificant.
The marketing subtext in introducing Jesse to the world is simple: “Why haven’t you joined Empower Network yet? It’s so simple even children can earn thousands of dollars”.
There’s a reason every MLM company out there has a clause in their affiliate agreement prohibiting minors from joining as an affiliate. And Empower Network is no different, their own affiliate agreement clause 2.1 clearly states that
To become an Empower Network Affiliate, each applicant must be at least 18 years of age.
Further research reveals that allegedly Jesse is generating income using his father’s Empower Network account. That however is quite clearly not how he was introduced on stage.
Nor is it what Empower Network’s affiliates are going to take home from the event and spread through their marketing campaigns.
This isn’t about celebrating Jesse’s personal success, it’s about providing Empower Network affiliates with something to market to the world until the next Empower Network event.
Don’t believe me?
Here’s what happened within hours of David Wood parading Jesse up on stage:
Aside from the direct ethical boundaries crossed in using children as a marketing technique there’s also the greater implications that arise.
One of the first thoughts that crossed my mind after viewing the Jesse and Wood video was “how soon before we see other Empower Network affiliates dragging their kids into marketing campaigns?”
Again, literally hours after Wood posted the event footage on his Facebook page we had Empower Network with kids considering this very issue:
This was the whole point of getting Jesse on stage and getting him to share his story and I for one am appalled at the idea of the Empower Network affiliate base whoring out their kids in the hope of recruiting new affiliates.
And where does it stop? “A 12 year old kid making $12,000 in four months is great and all… but surely my kids can do better than that!”
A ten year old making twenty grand in three months? An eight year old making forty grand in thirty days?
How long before we hear about a pregnant Empower Network affiliate shoving a cell phone where the sun don’t shine, going to bed and then waking up to find she earnt eleventy billion dollars overnight thanks to the purported blogging efforts of her fetus?
Alright so that last one might be entirely improbable (too badass?), but you can see where this is going…
Empower Network, as little as I think of the reverse 2-up you guys are using and its blatant similarities with cash gifting schemes, this introduction of children as affiliates has taken my opinion of the company to an abhorrent new low.
Your affiliates might eat it right up, rise to their feet and rabidly cheer eachother on but meanwhile you’ve got the rest of the industry looking on in horror.
And I know I might be taking liberties in claiming to speak for “the rest of the industry” but seriously, surely I’m not the only person connected to the MLM industry who sees a problem with this kind of exploitative marketing?
Clean up your act guys, this is just not on.
The most hilarious part is of course, the “badass” bowing to the kid in submission while the screen behind him flashes 8-ft tall words “badass”. 😀
Though the part about how Empowered require members to be 18-yr old to join, then parades a 12-yr old as a “badass” moneymaker, is also quite ridiculous.
Well, i do have a 6th grade education, so this one is okay to join??? besides the kid around, everything else is A okay??? thanks for the info…
If you’re into compensation plans the resemble cash gifting schemes and believe in infinity recruitment, sure knock yourself out son.
inexcusable!
SaltyDroid! Wow! Love your work on the Syndicate expose (and of course, Herbalife!).
Go look on “The Verge” mag… there’s a full expose on a bunch of Internet scamsters collectively called “The Syndicate”, using every trick over the phone to squeeze more money out of people who can’t afford it. And SaltyDroid started the investigation.
http://www.theverge.com/2012/5/10/2984893/scamworld-get-rich-quick-schemes-mutate-into-an-online-monster
Seems like EN is using every low trick in (and not in) the book to fleece money!
Sad to read that parents are getting blinded and planning to push their children into a company with such ‘polished’ language
I did.Good investigative journaling!
Salty Droid,
Nice work. I had never heard the phrase “social proof” before reading your articles. I knew it was going on, but had no name for it.
Great article!!! I agree. 100%
They have a group of scammers on the top of their food chain too. Their corporate headquarters knows about it and allows it to happen.
If you say anything to them about the scammers on the top of their pyramid, you get shunned in the community.
Yeah, Yeah, and your network affiliate program is great and you don’t have any grimmie activities going on right.
Every body hates on Empower Network because they seem to have it on lock right now and you would like to be there. Trust me!!
The BehindMLM network affiliate program? Oh, do tell!
Where can I sign up???
(Dear Empower Network affiliates: if you’re going to participate in the discussion here please don’t waste my time using the “Dave and Dave Badass tincan reponses” booklet. It makes you look silly.)Strawman fallacy: making up something to insult, usually because there’s nothing to insult.
Another strawman fallacy: insult others because you *think* they don’t believe in something you like.
Probability of cult behavior: high and rising
Recommended course of action: none, any intervention would likely to be ignored as “negativity”, even by friends and family
I think there is so much hype with this. REALLY look at the networks income disclosure.
Never mind the fact that whatever content you produce attached with a domain name, they have control of ownership. You have to be a fool to allow them to control you this way!
I suppose none of you have ever watched …
–Home Alone
–A Christmas Story
–Bad News Bears
–Different Strokes
Seriously …
There is nothing wrong with a 12-year-oldhaving a home business as long as there’s parental consent.
And if you think “Bad Ass’ is language toostrong for a 12-year-old, just drop in tomorrow on any school cafeteria with a microphone and hear for yourself.
@Miley
Really…? You’re going to try and introduce movies and television shows based on fictional characters into the discussion?
I know you often have to detach yourself from reality to be in something like Empower Network but cmon…
Isn’t this one of those repeated Bad Arguments? I hereby submit this one to the -Bad Argument Generator: Not Guilty By Ambiguous Association.
Well what about the ’18 year old and above can join the business’ clause that Empower Network has?
Damn and their go the Company Policy down the drain!
Well what about the ’18 year old and above can join the business’ clause that Empower Network has?
Damn and there goes the Company Policy down the drain!
Anyone under the age of 18 can join any business with the expressed written consent of his parents.
And, yes, it’s a very valid argument to notice kids in Hollywood.
Or what about a 14-year-old in a PGA tournament?
Empower Network is playing by the rules. There are just too many wussbags on here who just want to bitch and moan all day in their cubicles instead of encouraging a young entrepreneur.
That kid is making you all look bad.
And that’s just a little too personal for whiners and complainers to handle.
Not Empower Network. Their affiliate agreement clearly states ‘To become an Empower Network Affiliate, each applicant must be at least 18 years of age‘.
Cuz acting in a movie and playing golf is the same as participating in an MLM business that strongly resembles a cash gifting scheme right? Right.
And it’s also the same as being used as a blatant marketing tool to recruit new gifters into the scheme. Totally the same.
Oh dear, you didn’t just… no but you did. How unfortunate.
I thought I made it clear the embarrassment that is the book of Dave and Dave wasn’t welcome here. You lot really are nothing but trained parrots aren’t you.
Yes. Parents everywhere must be wondering what they’re doing wrong.
I do believe in the video that it is states that the father is helping the 12 year old boy……just a FACT. No extra, extensive research was needed to find that out. lol
If it was amidst the unintelligible mumbling it still doesn’t change the fact that this is not how Jesse is being marketed.
Front and centre is “12yo kid earns blahblahblah”, as evidenced in the screenshots. This isn’t a coincidence, it’s by design. “Join my scheme, even a 12yo can do it!”
Respect your opinion on how it is being marketed, however the way you put it “further research reveals” like it was some big undercover secret lol.
When you use the expression that something was staged, that implies that it was not real or was not true. That’s all!
Time will tell if your “cash gifting claims” are true. It will be interesting to see if you are accurate on this one but I can tell that you enjoy following this companies story which is cool.
@ray
In researching articles I often have 30-40 windows open at any given time. It wasn’t meant to imply a secret, not withstanding that it obviously wasn’t secret if I stumbled across it.
I only found out about the father on a third-party website, I didn’t catch it in the video and it certainly wasn’t mentioned on David Wood’s Facebook update.
And you don’t need to wait and see if the cash gifting claims are true. You join EN, gift 100% of your supposed product purchase fee to your upline. They gift to their uplines and a large chunk of everyone’s money filters up to Dave and Dave.
The product is irrelevant, used primarily to market the income opportunity itself.
Point taken on the research…….however in the United States I believe that people are innocent until proven guilty and last i checked EN has not been proven to be a cash gifting scheme.
While I see your perspective obviously the US authorities have either not seen EN or do not agree with your claim. So that is why I say we will see. For as much spam, videos, etc. that are all over the net one would think that it would have caught someones attention by now.
But if not, again we will see….unless you have the authority to shut them down lol, j/k I know you dont.
@ray
The “if it hasn’t been shut down, therefore it’s legal” argument is a common fallback of scam defenders.
Here we analyse on a practical level (sometimes I also refer to it as mechanical). If in a practical sense a company’s compensation plan runs like a gifting scheme then it is one, irrespective of whether or not a court of law rules so. Purely in the practical sense of course.
You’re welcome to ask Zeek Rewards affiliates how the “why haven’t the US authorities shut them down?” argument worked for them.
At this point we’ve moved the goalposts from discussion on the business model to acceptance of its gifting nature and the legal argument. Worrying in itself but sadly generally reflective of the industry’s reaction as a whole when dodgy companies surface.
This is not a “if it hasnt been shut down, therefore it is legal” arguement. I due understand your perspective on evaluations based on you practical analysis. However It seems as if you are pulling from any strand possible ex. youtube, 12 year old, and bad marketing practices from many affiliates, to justify your gift scheme analysis.
If your conclusion about EN’s compensation plan is a gift scheme then why do you feel the need to continue to pull from various headlines that have nothing to do with your gifting claim.
It cannot be argued that EN like does bring a uniqueness to the industry that we have not seen before and whether it stands the test of time or not remains to be seen.
Yeah, yeah it is.
And I quote:
Come on son at least own your arguments, as ineffective as they might be.
This blog is about MLM. You appear to have mistaken it for the “Empower Network compensation plan blog”. Back up and retrace your steps.
Perhaps if you just joined EN yesterday. Those of us who have been observing the industry for years most definitely have seen the gifting model come and go.
Gifting isn’t unique, holding events isn’t unique and neither is rebranding WordPress.
And, in the meantime no one should comment ????
Is that what you’re implying ??
So what do we do in the meantime? 🙂
We act on the information available, of course.
Or perhaps you’re the kind that prefers analysis paralysis, i.e. kept waiting until “all the facts are in”?
Or is it more like “I’m waiting for some facts that may be more favorable to my viewpoint”?
@ K. Chang
LOL, yea and there is a lot of people acting on it
@littleroundman & @ Oz
No there is nothing wrong with commenting as everyone is entitled to their own opinion. I was mistaken about what this blog actually covers.
There’s plenty of blind cheerleading sites out there marketing EN offering little in the way of unbiased, critical analysis and review. I’m sure you’ll find plenty with little effort.
Don’t let the door slam on you on your way out. Cheers.
How strange.
I would have thought the blogs’ title of “Behind MLM” was fairly self explanatory.
Hi All,
I believe Mr. Wood did preface his 12 year old “bad ass” comments with, “Your Dad helps you right?”
With that said, using a child to illustrate how “easy” something can be is offensive to a great many. However most adults can’t get out of their own way to make any type of progress toward success.
Many things in life aren’t as hard as people make them out to be … planning, focus and the dedication to work ones plan are steps simply lost on the “easy button” mentality of the masses. Internet marketing in and of itself is all about the story and what emotions it evokes in the target audience.
While I believe, no one should exploit children ever.(Period) We all seem to be missing the fact that his parents brought him to the event. My question is where was his father … you know the guy who is helping him?
While this story isn’t one I would use to market my business … Empower network marketing is sound in it’s marketing methodology. They know their demographic, know how to communicate, motivate and get them to buy. Their sales funnel capitalizes on every opportunity to capture the sales.
While their methods are not something we can admire, their skill at marketing is evident in the growth of the organization. They flat out know how to market on the internet.
The story draws folks in, establishes a connection and allows them to say, “I should buy this from you today.” Empower Network’s sales funnel places prospects into this state of mind. Creating that “cult” mentality someone mentioned earlier…
Every business owner desires that skill set and every make money online opportunity seeker desires that skill set. If their products provide that information…then they have a solid business.
Ethics in business, especially on the internet is definitely a grey area for most organizations. We as a society have to hold those in power accountable. Hence the reason for this post by Behind MLM regarding EN’s use of a child to market their company.
While their personal integrity at EN is in question their knowledge of what moves their target demographic is brilliant and making them a ton of money. That’s the sad truth.
Their knowledge is what’s known as a “neg”, basically a kindergarten “dare”, as in “are you yellow/chicken/wussy?” coupled with a promise “I’ll fix you.”
Only people who seriously lack self-confidence would fall for that sort of thing. 🙂
That idea wouldn’t have worked in the real world. It will work ONLY if you combine it with other “Burden of Proof” doctrines. Some examples:
Your idea is only useable if all people truly are innocent, but that’s not the reality, is it?
People will typically use ideas like that to paralyse themselves, e.g. “Since it hasn’t been proven beyond reasonable doubt, it probably isn’t illegal”.
Like I said, they know there demographic and they’ve tested what works. If we’re honest about it the personal development industry wouldn’t be such a money maker if the masses were completely satisfied and secure in themselves.
It’s sad to say but if their methods didn’t work they would be forced to do business another way. However they are making money and they will continue to use this method until it is no longer profitable.
Leaving all the new starters high and dry with no way of getting their money back.
Actually, Empowered has a very liberal refund policy, according to Rod Cook the MLMWatchdog. If you request a refund, and really really want it, corporate will give it to you (even if your money already passed up to your uplines).
That’s why their BBB rating is a C+ instead of F. Not good, but not in the toilet either.
http://www.mlmwatchdog.com/Empower_Network.html
I really dont care about the language they’re always using.. There’s no need for it, there’s enough pollution on the net without adding to it.. for a while they were glorifying the gangsta lifestyle as if that was something to look up to..
They also had very poor customer service and bugs that would take forever to fix. Some things they knew about and did not fix on purpose, calling people wussies if they complained about it.. Very juvenile..
I’d join if they cleaned up their act but their focus is on recruiting beer drinkers and the like.. Oh well..