Seth says “Neal is correct. This isn’t MLM, not by any definition (not that there’s anything wrong with that.) You are entitled to your opinion, whether I like it or not, but your facts are wrong.”Squidoo’s email offers:
“2. Refer a friend, get $5. When someone you’ve referred earns her first $15, you and she BOTH get an extra $5. Find out more here: http://www.squidoo.com/lensmaster/refer“
Wikipedia defines MLM as:“In a typical multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on their sales of products or service (as well as the sales achieved by those they bring into the business).
I rest my case.
Squidoo and MLM
May 24, 2006 by Ty | 2 Comments
In Network Marketing Trends
Aaron Cook on May 24th, 2006 at 6:24 pm
Actually, by the very definition of MLM that they used as their example, calacanis.com is incorrect on this.
It states, “…compensated based on their sales of products or service (as well as the sales achieved by those they bring into the business).”
The key word here is, “sales.” There are no sales going on when someone is referred to Squidoo, nor are their any products involved.
It’s a basic referral program. Google even uses this type of referral approach/structure for their Adsense Referral Program. MLM? Nope, not at all.
~Aaron
Sarah on May 25th, 2006 at 9:40 am
I like squidoo. Never considered it to be an MLM either.