Daily Deals MLM companies were popping up all over the place in 2011 but with the market relatively saturated (both MLM and non-MLM), today I don’t think there’s one I’d count as having taken off with any real traction.

2012 has been a bit quieter on the Daily Deal front however there still appears to be some interest in the niche. Today we take a look at new Daily Deals MLM upstart Royalty Texts, read on for a full review.

The Company

There is no information on the Royalty Text website indicating who runs or owns the company.

The domain ‘royaltytexts.com’ was registered on the 24th March 2012 however the registration information is set to private.

As always, if a MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

The Royalty Texts Product Line

Royalty Text offer an advertising network for its members to market to potential advertisers. The basic idea is that the members of Royalty Texts make up the advertising network and attempt to attract third-party advertisers to advertise on the network.

These advertisements cost the advertisers money and a portion of that revenue is then shared with each member who receives a text advertisement.

The Royalty Texts Compensation Plan

Royalty Texts offer members referral commissions as well as commissions for attracting advertisers to the network.

Referral Commissions

Royalty Text offer referral commissions on the texts received by members you’ve recruited into the company. Each time someone you’ve recruited (down 7 levels) received a paid advertising text message, you earn a percentage commission of the cost to the advertiser to send that message.

Referral commissions are paid out at a flat rate of 5% of the message cost to the advertiser, paid down 7 levels. Members you recruit personally are your level 1, members your level 1 recruit are your level 2 and so on and so forth.

Advertising Commissions

The key to ongoing success of Royalty Text will be attracting advertisers and on top of their own marketing efforts, the company pays out commissions to members to attract advertisers to the network.

Royalty Text pay out 10% of the total advertiser spend for advertisers you personally bring into the network and 2% any of your downline does (paid out down 7 levels).

Joining Royalty Texts

Membership to Royalty Texts is free.

Conclusion

Making for a nice change, the Royalty Texts compensation plan is squarely dependent on the company and it’s members’ ability to attract advertisers to the network.

With no membership fees being paid by members 100% of the revenue will be from advertisers and thus even if members treat this as a recruitment opportunity and work on building huge downlines, they still don’t earn anything unless there are advertisers who believe there’s value in the network.

Personally as far as advertising goes, I don’t think too highly of financially incentivized programs. As an advertiser at the end of the day if you’re paying people to view your ads then there’s a fine line to be drawn between genuine end-user interest and just wanting to be paid for viewing whatever it is you’re selling.

That said if the network grows large enough no-doubt there will be advertisers who figure it’ll be worth a punt to try out the network, especially if the company’s own members are pro-active in trying to attract advertisers themselves (they should be, seeing as the entire viability of the opportunity depends on it).

Unfortunately Royalty Text don’t have any information up on what they are or planning to charge advertisers so at this point establishing whether they’re competitive or not is a blind guess.

Looking at the track record of Daily Deals and MLM I can’t help but feel that Royalty Texts might have missed the boat so to speak by entering the niche at this stage. Had they of entered the market a year ago (or earlier) they might stand a chance but as it stands now they’re competing with well-established non-MLM Daily Deals sites and a fair few MLM Daily Deal companies who, in my opinion, so far haven’t really taken off.

Unless you’re bringing something new to the niche (which Royalty Text don’t appear to), then I honestly think you’re going to struggle entering the established Daily Deal niche at this point.

Still, apart from a lack of transparency about who is running Royalty Texts the company does appear to have a solid compensation plan dependent on the attraction of advertisers so best of luck to them.

Royalty Texts have certainly chosen to enter into a highly competitive and arguably already saturated niche, so it’ll be interesting to see whether or not they take off or flounder like most of the Daily Deal MLM companies have to date.