I have got many questions after I wrote my previous Review about Webtalk. The most frequent question I get is. Is Webtalk an MLM company or an affiliate marketing company? So today I thought I would dig into this matter and address this question once and for all to find the answer for you.
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Why do some people think Webtalk is an MLM company?
It seems some think Webtalk is an MLM company from the feedback. If you read this article you are either just curious on the answer or you have been wondering about the same question yourself. Am I right?
What is it that made you think that?
Here is the 3 main reasons people think it is an MLM company
1. They are not sure about what product Webtalk is selling
2. You earn money on referring new members.
3. The 5 level Early Pro Webtalker bonus.
I can understand your concern if you are only presented with the 5 level early adopter bonus and nothing else from the person who presented it to you. I even thought so myself at first because of that reason. It is always wise to do your own research if you are in doubt about anything.
What is Webtalk really selling?
Before I joined Webtalk, I asked this question too. You know, in many countries companies that do not offer any products or services but only earn money for recruiting new members are considered pyramid schemes.
At least 50% of the yearly sale have to come from sale of products or services if they do not want to be regarded as a pyramid scheme or a ponzi scheme. For a company to be legit it must sell products and services primarily to consumers.
Wikipedia explain it this way.
Investopedia explain it like this.
Getting questions from my readers made me want to adress this question – what is it Webtalk is selling.?
I have asked several people – Webtalk members and non-members the question and the answers I got differed :
1. Opportunity: Webtalk is an opportunity to earn money on being social.
2. A next generation platform. A network utility platform
3. Business and affiliate possibilities: Pro Upgrades are giving you a business and affiliate membership with multiple earning possibilities.
4. A Social CRM Contact management solution
5. Pro features – App with a website, Swagshop, Ads, Travels, Games, video platform, business cards with integrated referral link.
6. Success for everyone – Everyone can earn by being social on Webtalk. And it is free.
According to the tech tribune Webtalk is number two “Global big data software company focused on relationship based data mining, storage and search technologies to power the next generation communication and commerce utility. Using a patent-pending data labeling process, Webtalk has been able to reinvent online relationship management through a user experience unparalleled in the industry; creating an entirely new class of product to manage contacts, communication and content seamlessly.”
What does Webtalk say?
According to Webtalk their vision is to create success for everyone, but how?
According to the Webtalk Presentation slides for affiliates it says:
The worlds 1st All in one Networking Platform.
Webtalks platform explained in 2 minutes
Webtalk was built for everyone who is already using multiple social networks personally and professionally to consolidate and syndicate all networking in one place seamlessly to maximum the value of your relationships and your time online
Webtalk CEO: RJ Garbowicz Interview
According to Webtalk newsroom: A universal contact management (social CRM) or end to end management
Invitation to Join Webtalk
Webtalk is still in Beta mode and you need an invitation from a member to join.
Want to join webtalk? Here is my invitation for you to join. Click on Join webtalk now, create your free profile and start earning today. Being social pays off on Webtalk.
Join webtalk now!
Do you only earn on getting new referrals to Webtalk?
NO, far from it – You get points for different kinds of actions on Webtalk. Webtalk shares 50% of all ad revenues with you as a user. Engagement points, Influencer points, referring points.
When Webtalk goes out of Beta soon you will get many new types of points. And the 5 level bonus will not be available for new members. People will have free access to join Webtalk, use and buy their products.
Only the first million pro users, or people who invite early adopters who become pro users, get the opportunity to get the 5 level bonus by being invited by a Webtalk member.
When Webtalk launches officially it is a normal Affiliate system where you get paid commissions from your affiliates purchases. In addition, you will get matching points from people who join your referral links.
You can read more details about the points, reward system and the point system in my latest reviews:
Webtalk affiliate reward program Review
Social success platform Review
Is Webtalk a Ponzi scheme?
A ponzi scheme generates revenue for early investors paid by later investors. When the investors dry up there will be not enough money to make it go around and is therefore A pyramid scheme. This is not the case for Webtalk because it is free to join and not based on new investors but many products and services on the platform.
What is the 5 level Early adopter bonus?
The first million or more precisely the first 1,11 million qualified affiliate webtalkers (someone who is Pro or have referred a Pro) with a 10% bonus and matching points for life (same amount of points as all referrals) on 5 levels.
When many sees this bonus they immediately think of MLM because it is a significant feature of an MLM company that you can earn on multiple levels. But does this means Webtalk is an MLM just because they have this bonus for life for early webtalkers? I will get back to this.
You do not get the 5 level bonus only for referring someone. You can read the 5 level bonus plan and about how the Affiliate program works here and see for yourself:
5-level Bonus Compensation Plan
How the Affiliate program works
Is MLM illegal?
NO – multilevel marketing is a fully legal business model. Many traditional companies use features from MLM in their marketing strategy too. Examples: Ambassador programs, coupons, refer a friend and get a discount or a free product is a widely used method. Different challenges and campaigns also contain elements of multilevel marketing.
But having elements of multilevel marketing incorporated does not mean it is necessarily a multilevel marketing company. And being a Multi level marketing company does not mean they are Illegal.
I think that is actually an unfair judgement to all of the multilevel companies that actually have been in the industry for more than 10 years and have happy customers and distributors who loves networking.
However, given a bad reputation over years many are skeptic for a good reason in general to MLM companies because some companies have used MLM as a disguise for Pyramid schemes. It is the classic example of how some rotten Apples can destroy the reputation of a whole industry.
And some use quite aggressive forms of marketing, focusing more on referring than the products. Others find it difficult to follow these business systems and make lists over friends, family members, that you often have to do, to ask them to join your network.
And often these companies are not so transparent with their overall yearly income reports: Yearly income, how many distributors and customers they have, product sales,and paid out commissions and bonuses to distributors.
Buzzword or MLM?
The Beta version clearly have some Multi level marketing features like the 5 level bonus, but once out of beta it will be only 1 level. It is only invitation based in Beta. You need an invitation link to sign up.
This means that multilevel marketing and word of mouth method is used in Beta to a certain extent. But does that make Webtalk an MLM company?
NO! After Beta You do not have to be invited to sign up to Webtalk. But you will only be able to earn on one level.
New Pro members will not be able to get an early adopter bonus once the first 1,11 million is awarded.
A single level is not an MLM. That is Affiliate marketing where you earn a commission for selling other peoples products via your website and marketing channels to a customer.
It is the same as when someone sign up on my affiliate referral links on one of my websites. My website is my online shop they visit. I will get a small commission at no extra cost to you should you join webtalk and become a pro member through any links on my website. All members have the possibility to refer members through their referral links. This is how it will work.
So if people ask you or tell you that Webtalk is an MLM company – you know how it works now and what to answer.
Webtalk is an affiliate marketing company and not a multi level marketing company
The founder Garbowicz stated in several interviews and on his own blog posts that Webtalk is not an MLM company and have no intention of being one. He state that Webtalk is a next generation Social Media Platform based on affiliate marketing, they have an affiliate marketing program and an All in one networking platform.
What Product is the core Webtalk Product?
The core product itself is the Webtalk platform and it is free to use for everyone.
They sell a pro program that contains multiple earning possibilities on the platform, Pro networking tools and a contact management solution that will make you more visible and give you a marketing edge. This will in no way affect you as a free member using Webtalk for regular social media activities.
A short comparison with other social media platforms
Just look at Facebook, Linkedin, You Tube and Instagram and Pinterest
You can set up your account for free.
None of these platforms shares from their profits with their users.
You can create business pages and set up a Free shop to your business account. Read my review
However drop shipping systems and services connected to it are not free to use.
You need to buy advertising to become more visible and get a better reach.
Invite friends and join buttons are on all pages and groups recommending you to invite people to the platform or share your page to others.
They promote products and services of third party partners.
You Tube is free to use and let you earn on putting ads to your videos if you qualify for a certain amount of traffic a year.
You do not earn anything for being active on these platforms from day one. They do not offer any affiliate program.
Setting up your profile is free and free to use the platform.
Webtalk pays its users 50% of the advertising profits (ad pool).
All users can earn money on being social active from day one once they completed their profile.
You earn for being socially active every day.
Webtalk have business pages coming soon as well, only you will get a landing page to promote and not a shop.
Webtalk use Spotlight posts for pro and pro platinum members to help you get more visible. In the Affiliate program Pro members have 5 spotlight posts and as an Affiliate Pro platinum member you have 20 spotlight posts a month.
You can invite users to Webtalk via your referral link.
Still in Beta mode and do not have as much users as the others yet. You need to be invited in Beta mode.
I hope this articles served you well and that you got a good answer to your questions or some new perspectives on the matter. After looking closer into it I came to the conclusion that Webtalk is not an MLM company.
It is a next generation All in one Social Media and networking platform based on Affiliate marketing principles. Webtalk is unique, one of a kind and innovative platform where you earn money on doing the same activities as on other social media platforms.
You can start and earn from day one as a free member and become an Affiliate member to earn commissions on multiple products and services Webtalk offers if you want to. I think that is quite amazing.
Comparing to other Social media platforms Webtalk have a clear advantage for users and affiliates who wants to earn some extra money every month.
So what are you waiting for? I invite you to Create your free account now!
Thanks for clearing that up Hilde,
I have a number of people asking me about the exact same thing on whether or not WebTalk is MLM and I get that, it’s because the program gathers so many people through their platform for free and an eventual payment but it’s difficult to explain to them, I guess I’ll just show your article instead.
Hi Riaz! Yes, just use my article if you get another question. I think it is quite normal that people want to know what they are getting into, because there are so many platforms on the market. I also think People are afraid of making any mistakes of choosing a platform that will not benefit them. The strange thing is that all platforms get these questions from the start. I am actually glad people ask questions about new platforms, programs etc.