Is MLM the right business model for CoolTraderPro?

In the last week or so I’ve been introduced to CoolTraderPro software. This is an automated piece of software that is claimed to be completely set and forget once installed. It has been many years in development and is said to have some 14,000 users worldwide. The developer is an ex Microsoft executive who was sick of losing money on the stock market as brokers manipulated trades.

From now until the 12 December the MLM business model for CoolTraderPro is in soft launch. What this means is that those who join before the 12th will have an opportunity to both position themselves well in the organisation and to also receive discounts on the products and services on offer. Whilst this seems to be a tempting offer I would just like to caution people a little.

The MLM business model certainly has validity is done correctly as it allows anyone with drive and ambition to prosper. However, one of the key things to make sure of is that the product on offer is valuable to those who get involved. Now I’m not saying that CoolTraderPro is not valuable as in fact when you watch the video demonstrations it does seem to have potential. And yet I still have some doubts.

I attended a webinar recently and whilst the software was mentioned most of the presentation was about the rewards you could get from building an organisation. This is my biggest gripe with MLM as it always seems to focus on the building part and not really worrying too much about the product.

If you join now and buy the software it will cost $3,500. This is not a small sum of money and anyone would need to think seriously about such an outlay. Also, when you begin trading I’d suggest that the minimum bank would be in the $5,000 region to make any sense in terms of potential returns. So is this something that the masses will be clammering at the doors for. Personally I’m not so sure.

When you think about it there is no chance of a refund if it doesn’t work for you as your money doesn’t go to the company but to the people who are higher in the organisation than you are. Now I’m sure people might say that once you start to use it you wouldn’t want a refund and in many cases that might be right but there will always be someone who for whatever reason finds they need the money they spent for something else.

I should mention that it is not mandatory to buy the software as you can join as a free associate whilst you build your organisation. Again a reasonable thing to offer but if you are trying to persuade others to get involved and buy the software it will be doubly hard to convince them if you don’t actually run the software yourself.

For me MLM is not the best way to bring CoolTraderPro to the market. Or at least if that’s what they want to do then why not offer an alternative of direct purchase without any MLM involvement.

If you are contacted to take a look at CoolTraderPro by all means do so as I do think it has potential but unless you have experience in building MLM teams don’t think you will make a lot of money out of promoting it.

The software can be used on several online platforms so there are companies out there that see the benefits this could bring to clients so please don’t think that I have any problem with the software itself. Just take time to research what buying into it will mean.

You are reading copy originally published by John Murphy at Online Investing Guru . I hope you enjoy the content and visit my site, Online Investing Guru, for more information. December 2, 2012 4:34 pm

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