Text Cash Network Review: Daily Deals with limits
One of the seemingly hot properties of the internet marketing world right now is the Daily Deals coupon niche.
Whereas the traditional business model for the Daily Deals companies relies on attracting businesses to utilise the network with professional marketing teams, those in the MLM industry have taken note and attempted to pair the Daily Deals niche with MLM network marketing.
Most of these companies tend to focus on Groupon like online networks, choosing to deliver their Daily Deals in much the same manner. This model is proven and easily accessible.
Today however we’re going to take a look at ‘Text Cash Network’ who seek to pair the Daily Deal niche with an online backend, but instead of the internet will deliver their deals and coupons via SMS.
Read on for a full review of the Text Cash Network MLM opportunity.
The domain information for the Text Cash Network is currently set to private and was registered just days ago on the 23rd October, 2011.
Text Cash Network’s website makes no mention of who owns the company nor who is running it.
It is noted that Text Cash Network is currently in pre-launch but to be honest, that’s hardly an excuse. Be extremely wary of doing business or joining any MLM opportunity that is not upfront and transparent about who is behind the company.
Update 9th December, 2011 – Since writing this review Text Cash Network have announced that their President is a one Mr. Brett Hudson.
The Product Line
Text Cash Network doesn’t have a tangible product, but instead members are encouraged to sell exposure to the company’s network of members to potential advertisers.
In addition to this Text Cash Networks are also encouraged to sell membership to the network itself with the idea being that the larger the network is, the easier it will be to attract potential advertisers.
The Text Cash Network Compensation Plan
The Text Cash Network compensation plan can be broken down into two basic components;
The Text Cash Network will pay out $1.50 for each new member an existing member brings into the company and any members they bring in, up to 10 levels deep.
This commission is structured around a unilevel organisation that, with you at the top, is infinity levels wide and ten levels deep. Basically you recruit someone, they recruit someone and so on and so forth, and Text Cash Network will pay you $1.50 for each of these members a month.
Due to the unlimited width nature of a unilevel organisation, there is no limit to the amount of members you can recruit.
As of yet, Text Cash Network haven’t released any specifics or commission figures for their advertising commissions.
The general idea however is that members refer businesses to use the Text Cash Network to advertise their Daily Deals and/or coupons, and the referring member then makes a cut of these advertising sales.
Along with this there is also a matching bonus paid out to the upline of members who earn an advertising commission. Unfortunately the percentage of this matching bonus has not yet been released so I can’t say whether it’s a 100% matching bonus or not.
Joining Text Cash Network
Joining Text Cash Network is free as a member but in order to maintain your membership you do need to agree to receive up to 5 SMS text advertisements a day.
One of the main reasons online based Daily Deal and coupon type sites work is due to the relatively large exposure the internet offers businesses.
These days everyone has an internet connection so the potential membership to Daily Deals sites is huge. Thus, putting aside the question of actual value offered to businesses by such sites, it’s no surprise that the Daily Deal coupon niche has been booming for a while.
The problem with taking this idea offline and delivering deals via SMS is that you eliminate the key element of success these online networks have, exposure.
SMS isn’t an open platform and as far as attracting advertisers to Text Cash Network goes, you’re pretty much limited exposure wise to members.
Text Cash Networks members are only in the network as a result of the business opportunity itself.
Does this provide any real value to advertisers?
Not really. Sure there might be a few members who are genuinely interested in some of the ads they receive, but with 5 of them coming in every day chances are most of them are just going to get deleted without a second chance.
Add to that the fact that Text Cash Network is a global opportunity, and well… I don’t see really see the benefit from a potential advertiser’s perspective in using a SMS network to blast out a Daily Deal or coupon.
You’ve got nowhere near the exposure an online site has and are sending out your deal to a memberbase who by and large probably aren’t interested in purchasing anything from you anyway – they’re just there to earn commissions on recruiting new members and signing on new advertisers.
Of course there is the safeguard of only having to pay out on deals that are actually used (similar to a ‘per sale’ commission) but Text Cash Network haven’t specified whether or not this is what they are using.
And if they are, with no geographical restrictions and the limitations of SMS, it’s a pretty steep assumption that the money generated by advertisers will pay out the recruitment referral fees month after month as the Text Cash Network grows.
Seeing how there’s no connection between growing referral payouts on new members each month and the amount of advertising business brought in to cover costs (Text Cash Network’s only revenue stream mind you), how Text Cash Network plans to stay afloat is beyond me.
Simply put, without some sort of connection in place there’s too much of a probability Text Cash Network is going to struggle to cover its costs. And ultimately, that means you’re not going to get paid.
Probably best to stay clear of this one folks.