Shop to Earn Scam
Image by Chandra Marsono via Flickr
Tracy Coenen has a long post about Shop to Earn, in which she questions the basic business model.
"There are still plenty of people searching for "Shop to Earn scam," ShopToEarn fraud, "is Shop to Earn legitimate," Shop To Earth scam, and the like.
The company has, for the most part, avoided negative commentary on the internet.
It seems important, therefore, to go over some of the finer points of this newer multi-level marketing (MLM) company that is being promoted as the next big thing. Let's review..."
Tracy makes a number of good points, but omits one of the most important ones. Shop to Earn is essentially an affiliate program - you purchase a web page, and try to sell or direct customers to various consumer websites. If someone goes from your web page to the consumer website and buys something, you will make a small commission.
There are a number of affiliate programs out there, Commission Junction, for example. Google "affiliate programs" or go to www.shoemoney.com to read about how to make money from these programs.
These programs are free - no need to spend any money with Shop to Earn.
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Comments
I am looking at STE to bring our Krill Oil to the public. Is Shop to Earn a viable outlet for this? I need some feedback on other sites that I might look at.
Posted by: Mickey | November 13, 2008 11:03 AM
Jeff, if you look at the STE websites they are the same. No consumer has any reason to pick one or the other to do their shopping from.
STE is very clever because it is simply running the standard affiliate programs across all their members "websites". Aggregating demand and charging people for it!
STE is not a serious affiliate business opportunity, there is no commercial reason for it to exist - except their pitch to "just recruit 2 more".
Silly.
Posted by: michael webster
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November 3, 2008 9:23 PM
CJ is good. You could make real money there if you invest in a web page, advertising and constant upgrades to keep up with changes in your own business with the need to redirect everyone to YOUR site. Seems like a big hassle to me. I would rather pay the $448 for the turn-key site, support, updates, and everything else that goes into a running a business to make some extra cash each month with STE. Is it about recruiting more people. Sure it is. The more EVERYONE recruits, and purchases are made, the more commission you make. But it is also about everyone in the business working together to shop online to make EVERYONE that money. You do nothing you get nothing. I know investors in STE that only have six people under them and they are making a considerable amount. Not enough to make a living, but... you could if you work hard enough at it. If you just want the extra money it is a great place to invest. STE is a rapidly growing business and it is becoming more known by the positive AND negative posts out there. So, keep up the good work on both sides. I'll be rich in no time. PEACE!
Posted by: Jeff Peters | November 3, 2008 4:17 PM
Mimi;
For $500, you would do well to learn about adwords and how to drive relevant traffic to your website.
Look into CJ Commission or other affiliate programs, and join a forum like the Warrior's Forum.
Posted by: michael webster
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October 16, 2008 7:49 PM
I'm really confused about all the talk about STE...Ok, so let's say set up my own website and TRY to drive traffic to it and market it and sign up for affiliates. With the momentum that is happening with STE don't I already have that with the $448 I would be investing??
Please help me understand, I do most of my shopping online!
Posted by: mimi | October 12, 2008 11:43 AM
People,
Almost everyone is making money in this business; you only need to bring 4 people in the business to get the $448.00. Some people are making the money back in one week; a lot of people are making over $50,000.00 every month. Some people are thinking that this business is a pyramids, who cares if the business is a pyramids or not, what really matters is the you can make a lot of legal money very soon. I know this business works and I have seen the money people are getting. This business is not a scam because you can get your investment.
Please join my business a change your life financially.
http://www.shoptoearn.net/cepeda
This is a real business and this is the way pleople will shop in the future
Mario
Posted by: Mario | October 10, 2008 12:00 PM
Peggy, join cj and look at the opportunities in their virtual mall. You certainly can run an excellent affiliate business promoting these brand names. And if you cannot, you have no business trying to use Shop to Earn.
This MLM nonsense about referring just two people and living off the downline suckers is just silly - they are thinking the same thing as you when they signed up.
You are wasting your money, and you know that it is more that $448, as detailed by Tracy Coenen
Posted by: michael webster
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October 8, 2008 4:17 PM
Peggy, there are a number of questions I have for you. First, I don't see that these affiliate deals are any different from what you can get from CJ, for example. Second, what is the evidence that Shop to Earn is negotiating for higher cash backs? Finally, for $448 you could buy several domain names, install wordpress, get adsense, hosting, and get the affiliate programs to do your accounting.
Posted by: michael webster
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October 7, 2008 9:54 PM
Thanks, Tracy for pointing that out. I missed it the first time.
Posted by: michael webster
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October 7, 2008 9:51 PM
Peggy - Thank you for pointing out that STE is a pyramid scheme which depends on ever greater numbers of new recruits in order to get the people above them paid. You also fail to realize that someone who sets up their own affiliates can certainly "make a residual income" from shopping... having people who shop on their own website and referring others to do the same. For free. Without STE.
Posted by: Tracy Coenen | October 7, 2008 6:41 PM
I also wanted to mention that, yes, you could join an affiliate company for free but they do not offer the opportunity to earn residual income on everyone shopping in their business. You can't make a business out of joining Commission Junction or others like it. At ShopToEarn, you don't have to be a "referring machine" to earn residual income. Two referrals are all that is required to earn commissions on ALL shopping and referring below you. Where else in America right now can you spend $448.00 to save on shopping everyday items PLUS have the opportunity to earn good income from others doing the same? Everyone knows at least two people who shop online, shop for discount and need to earn extra cash. Call me crazy but I'm not being offered that by my prior employer!
Posted by: Peggy Hornick | October 7, 2008 11:32 AM
I challenge anyone to try and set up their own affiliate program and receive the same cash back discounts that ShopToEarn offers. ShopToEarn has individual agreements with each retailer to get the most aggressive cash back percentage. The highest of any online shopping club. There is strength in numbers and ShopToEarn is using those numbers to negotiate the highest cash backs to it's members. The $448.00 to own your own website handles all accounting, website maintenance and marketing. Try and find a website manager who will do all that for less.
Posted by: Peggy Hornick | October 7, 2008 10:28 AM
I didn't miss it! :)
You could do the same thing on your own for free - Want to make money from people shopping online? You can get access to the exact same stores STE had by signing up for Commission Junction and LinkShare. (That’s all STE has done, after all.) You could host your own web page (one you own!) and set up the actual page for a very minimal cost, and all you’d have to do is create links to each of the stores you sign up with through CJ or LS. If it’s really all about the shopping, then this is the way to go because there’s no $448 signup fee, no annual fee of $119, and no monthly minimum purchase of $100.
Posted by: Tracy Coenen | October 7, 2008 12:06 AM