Company Name: VidCommX
Costs: $100 and up
What Is It
A MLM that sells packages for sending video emails.
There are multiple parts of VidCommX that I am uncomfortable with, but the biggest one is the product itself. There aren’t a whole lot of people out there who are going to want to pay $100 (or more) for the ability to send video emails, especially not videos that contain ads. That makes it hard for most distributors to even find an audience, much less make sales.
VidCommX is a bit unusual. The company isn’t really selling a product per se, but rather a service. Basically, it offers the ability to send video emails to whoever you like. The company offers four packs that you can buy, each having a certain number of videos you can send and a certain number of templates.
It’s an odd concept and at face value, it really isn’t that appealing.
Granted, the ability to send videos to friends and family members is appealing, but there are a lot of other ways of doing this that are less expensive and that don’t get you involved in a MLM.
The videos also contain ads. Potentially, you can earn money if enough people see the ad. However, the estimates that the company places on the rates that you can earn at are pretty dismal.
Getting 1,000 people to view any video is a challenge, especially when it is one you are sending via email. You basically have to hope that your video gets forwarded a lot. The odds of that happening are pretty slim, even if you had a really great video.
So, you probably don’t earn much at all from the ads on the videos. At the same time, those ads are likely to annoy anyone who sees the video.
The Potential Of The Product
There aren’t many MLMs out there offering the same type of service that VidCommX does, which is both a good thing and a bad thing (Note: There are some doing the exact same thing, namely Talk Fusion, but others like Ingreso Cybernetico and Pure Leverage include something comparable n their membership). On the positive side, fewer companies means less competition. In theory this makes it much easier for you to make sales.
However, it is also hard to know whether the approach will work at all. In the site’s corporate presentation, they justify their business by looking at trends. Specifically, they talk about how popular email is:
And how popular video streaming is:
Those claims are fairly accurate (although the specific percentages mightn’t be). Both email and video streaming are popular – but, that doesn’t mean that a combination of the two is going to be successful.
I mean, come on now. I use email frequently and I watch streaming videos online. But, I’m not doing those things for the same reasons. I might be watching videos to relax, while email tends to be largely about my business. So, for me there really is no overlap and that’s the same for most people.
I like email because it is a fast and efficient form of communication. Video emails sound like the exact opposite – especially when the company is talking about video email advertisements. That’s just another form of spam mail. I imagine that most people would be very frustrated with a video-based email if it was any form of advertisement.
The compensation plan for the opportunity is a bit simpler than most MLMs, at least at first. Instead of having to qualify for different ranks in the company, you pay for them. That means how much you pay limits how much you can earn.
It’s a clever approach on the part of the company, because it manipulates people into paying for the bigger packs. However, it makes the process expensive for people who get involved with the company.
Despite that simple start, the compensation plan for the company does make use of a binary approach. This method means that you spite the people you recruit into a left team and a right team. How much you earn is based not only on how well the people you recruit do, but also on how well each side does.
To make a decent amount of money, you really have to have two sides that both do really well. Of course, you are putting people in sides before you know how they are likely to perform, so doing this can be hard to achieve.
The whole structure is one of the biggest challenges of a MLM. You have to recruit other people into the company and help them to be successful. Doing this tends to take a lot of time and energy.
Affiliate Or MLM?
MLMs have faced a lot of criticism for their business model and because of this, you often see companies avoiding that word altogether. In this particular case, the company uses the word affiliate to describe their approach. The word is technically correct, but very misleading.
Affiliate marketing is where you are promoting the products from another company (or companies) and earning a commission based on how much the product sells for. Sometimes this commission might be small, like 2%, while other times it might be larger, like 50%. In itself, affiliate marketing can be an effective way of earning money.
With a MLM, you are basically doing affiliate marketing, because you earn commissions from the products of the company. But, that’s about it for the similarities. What makes a MLM different is its model.
Specifically, with a MLM you earn money from multiple levels. This means that you earn money from sales you make, as well as from the sales that people you recruit make, and so on.
This approach means that there is a much greater emphasis on recruiting others into the company, rather than actually selling the product. Often, MLM companies also focus most of their support on recruitment and the business opportunity, rather than on the product – which can lead to a substandard product.
With any MLM, you have to strongly rely on the company. You want it to be reliable and to have a reputation. If the company you are promoting isn’t that good, it can make it much harder to sell and to recruit. In VidCommX’s case, the company is relatively new (launched in the second half of 2014), which means that it doesn’t have a whole lot of reputation.
There were also a few things about the site and the company that concerned me. One was this:
For one, that number is hyped up. Some people might earn that much, but most wouldn’t. However, my major issue is that the sentence contradicts itself. ‘Earn up to’ $5,000 per day means that $5,000 is an upper limit, while ‘or more’ means the exact opposite.
Apparently the quality control for the website wasn’t good enough to catch that, which is frankly quite concerning.
The video emails that the company makes (you know, its product), are also a bit concerning. I mean, they don’t even look that good.
It just looks like a cheap and cheesy eCard – and it doesn’t even look like they’ve managed to get the proportions on the videos right.
The company has an unusual product. That does make it stand out, but honestly, I’m not sure who would want to buy it. Some of the more customizable videos might be relevant to marketers, but most marketers probably wouldn’t be interested.
Unlike a health and wellness MLM, you would have a lot of difficulty finding people to even buy the product, let alone become a distributor. I can see individuals being interested in video emails to send to friends and family, but I doubt any of them would be willing to pay $100 for the cheapest pack.
Additionally, the videos have ads on them. That does let users earn a little bit of money, but for anyone using the video emails casually, the ads would probably be frustrating, not beneficial.
VidCommX has an unusual product and strategy. If you could find the right audience, you might have a fair chance of making money with the company. Honestly though, the product really isn’t that appealing, which makes the company a challenging choice as a way to make money.
MLM VS Affiliate Marketing
MLMs always look good at first glance. There is so much potential for bonuses that it seems like you can earn a lot of money. Yet, actually getting those bonuses isn’t as easy as it seems. With this particular company, to have a decent chance of making money, you have to buy an expensive starter pack – which is hardly the best way to start a business.
As I said before, MLMs are essentially affiliate marketing with this whole extra commission structure kind of tacked on. Their focus is on recruitment much more than on the product. Yet, you don’t have to follow that approach.
Instead, you can choose to do affiliate marketing outright. This actually has much more money-making potential and it means that you are the one in control off your business, not someone else. Additionally, affiliate marketing is actually something you can learn, even if you have never heard the term before today.
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