Reverse Funnel System: Hype? Scam? Big Internet Money Maker?

Before addressing in the Reverse Funnel System Review what happens after you join, I wanted to address the skeptics who might still believe that the Reverse Funnel System is a scam. Below are some thoughts from one such skeptic on why the RFS might be a scam, and my answers follow in bold.

It's a funnel affiliate system with a pyramid style business model. The top tier of The Reverse Funnel System rakes it in and the bottom tiers are a ways downstream and their cuts are smaller. You move up by recruiting and getting others to buy into the business model.

The RFS is a form of network marketing, or multi-level marketing. While it is true that the people with larger downlines will make more money than those with no people in their downline, the "cuts" do not get smaller.

Your income is dependent on your efforts and the efforts of your team; here's a very good explanation of the compensation plan. There is no such thing as "moving up" and if you need convincing of the power (or legality) of network marketing, then the RFS probably isn't for you.

You set up a web site, get people to use your web site as a portal for signing up for a membership at Global Resorts Network, a travel-based membership club. Does it provide a great travel service? I'm not sure because so far I can only locate the key phrases stamped and repeated from different mouthpieces within the system who are trying to get sign ups and therefore make money. But it's may very well be legit and offer great value. But I do have to wonder how it could be a great deal with people getting a cut five tiers down (although it's small at that lower level).

This last comment betrays a lack of knowledge about the compensation plan, for the "cuts" are equal at every single tier, and leaves more than enough money for Global Resorts Network to provide a great travel service.

But travel is all about cutting deals. There's actually a lot I don't know about the site but trust me, there will be comments posted. But it does remind me of pyramid systems of the past where people stop you in a store to sell you on they system and not the products. In this case the advertising, that you pay for of course, does that selling part for you and they have proven ads and marketing streams that you get as a member.

The key to succeeding in "selling" anything is to know what appeals to your audience. In the case of network marketing, very few people actually join ANY multi-level marketing business for the product; rather, they join for the lucrative opportunity to make a lot of money.

Thus, focusing on the product rather than the opportunity would be a fatal marketing flaw. Many giant corporations discovered this the hard way when they tried to push the features, rather than the benefits, of their product or service.

They claim it's completely automated but there is still someone behind you encouraging you to take the first step, then the next, then the next. The money is in the sign ups. I'm sure there are group heads that are more attentive and still others who won't even talk to the lower tiers as they are out to get new sign ups since that's where the big bucks lie. Some will coach you and others will abandon you in an effort to chase down new recruits although some will tell you that their recruits getting new recruits moves them up the chain which is true. It all depends on how long that person wants to be in it and what his/her goals are.

It might be an exaggeration to say that the Reverse Funnel System is completely automated. I'd say "98% automated" would be more accurate.

The only work required is to advertise (bring people to the website), answer any questions that the system hasn't already answered, and to duplicate (help your team mimic your results).

Yes, the money is in the sign ups, and like anything else in life, the quality of your "group head" may vary. Although few will abandon you to chase down new recruits, because the perpetual leverage in the compensation plan encourages building both deep and wide. Again, the assertion of "moving up the chain" shows a lack of understanding about the network marketing industry.

How come a millionaire has a web site that looks like it was developed by a kindergartner?

I don't have an answer to that.

First of all, The Reverse Funnel System was developed by an entrepreneur named Ty Coughlin. He's apparently a millionaire which he no doubt is since he invented the system and he is the top tier of the "inner circle". His web site at present shows him in Hawaii with a lap top on a lounge chair. To be honest, the sensationalist style of the prose and the site turns me off but I was curious. But it's meant to hook those looking to make money on the internet and pull down the storied $10,000 per month and doesn't require education or any background other than being a go getter/recruiter.

That's the beauty of the network marketing industry. You don't need any education or background in order to be successful - you only have to be a go-getter or recruiter, or in the case of the Reverse Funnel System, be willing to learn how to drive traffic to your website.

Why would someone so rich have a web site done by himself that looks put together in a day?. If you hire great copywriters and top level programmers why put up a site that has not one lick of design sense or navigation know how? What happened to the web designers? Were they surfing? Not important you say? I can tell you it is an important element although pretty web site is not THE DEFINING one but the look of the site doesn't say to me that he is a credible "entrepreneur". But then it was designed to hook a certain type person.

Although not pretty, the website does have many of the hallmarks of marketing genius - a captivating squeeze page, long compelling copy, etc. These are some of the things espoused and practiced by many of the "gurus" of Internet marketing, like Mark Joyner, et al.

The branding of the Reverse Funnel System

They've gotten good placement on the internet because they are using some of the same key phrases to dispel misgivings and promote The Reverse Funnel System. I have these listed in my blog. It's always been true when copy writing radio spots to repeat certain phrases a certain number of times so the consumer leaves with one with a consistent message about your business. In today's language, "branding".

As a copywriter, I noticed this right off the bat just like I noticed President Bush's rah rah speech to get all Americans on board to go to Iraq. We were sold a war in the same way someone would sell Coca Cola--by repeating key branding tag line phrases like "weapons of mass destruction" after so many beats. That much has stayed the same the entire time I've been in the advertising copy writing business. Present a consistent message over and over to develop a brand, get your foothold in the market, develop loyalty and name recognition.

There is almost a stepford wife consistency that knocks nonconformists like myself right off this kind of track. It may work for you and you are bathing in money, but I've never been a fan of pyramid setups and the aggressive recruiting style. There are new elements, though, from the old style ones where strangers came up and shook your hand so they could get your phone number and call you later.

If you despite network marketing for your own personal reasons, then you should stay away from the Reverse Funnel System and anything else that allows you to make money from the efforts of others.

Many in the system have finessed their approach to be less aggressive and more
informational but always hitting that key visceral emotional response of "I want this to be true and I want to make $10,000 per month."Ironically, the new hard sell is a more subtle approach.

So what are the costs?

In my blog and others, the costs are clearly explained.

* Naturally, they don't tell you about the initial up front costs up front. You pay a $50 fee to send in an application. You are promised to get that fee back threefold. After you've invested the rest? Do you get that travel membership investment back? I doubt that. You bought a membership in a great travel club and you get benefits, right?

* There is a $200-$300 per month for a web site. I can do my own web site and hosting for $100 a year but apparently you have to be in the "system" since there are advantages for trafficking. I think the advantage is the trickle down effect and commission cuts on that per month charge to be quite frank. The money is in getting members to join the Inner Circle. It's incentive to keep recruiting.

The $50 is to separate the serious from the curious, and it helps us minimize the time we spend on people are only looking to waste our time.

The $299 per month fee is actually for the automation, and it covers a lot more than just the website: it covers technical support, twice daily training calls, autoresponders, the copywriting, credit card processing, etc.

I highly doubt that for "$100 a year" you could host a website that has enough traffic to get an Alexa ranking of around 10,000.

And you can actually promote Global Resorts Network without using the Reverse Funnel System, although you'd end up spending a lot more time (and probably money, too) creating your own system of websites, e-mails, etc.

* There is a price tag of $2995 for a Platinum membership to the Travel Club . There are other levels of membership that are less costly including a free affiliate membership that ends up costing about $100 from what I can surmise. The big sell is for the Platinum membership but in order to not lose a recruit they have the other options.

The lifetime Platinum membership is $2,995. There is also a Gold membership that costs $1,495 for three years, after which you must renew or forfeit all benefits and income. As a Gold member, you only get $500 per sale, instead of the usual $1,000 commission.

The "free" affiliate program costs $100 per year to join, but with this option, you have to give up (1) your first customer and commission (2) your second commission (but not customer).

* There are advertising expenses around $200-$300 per month. At least that's what I can see at this point. It's already produced, tested and I'm sure that is the case. But at some point, you'd have to change it up to get the new biz buzz and web traffic happening since the market is getting saturated daily. If you do procter and gamble style for years you end up having to run media like crazy (very costly) when in fact a change in creative approach would work and you'd have to pay less in media costs because it's not the same tired message.

You can spend money on advertising, you can spend time on free advertising, or you can do both. I am constantly testing so there will always be time- and money-efficient ways for my team to drive traffic to their Reverse Funnel System websites. And after you've built up a team, you can just sit back and relax as their efforts will produce income for you.

In the beginning, 100% of your income will come from your personal efforts.

As time goes on, it's not uncommon for 80% or more of your income to derive from the efforts of the people on your team.

* So in order to recoup, you have to get others to sign up for the system. And most people will do that aggressively to get their investment back and make money. The initial recruiter who wants his recruits to get others to sign up so he can move up will be more attentive.

Again - there is NO SUCH THING as "moving up."

* Sure you have to invest to make money. But are you investing in something really tangible? I guess it is if what you want is great deals on travel maybe.

The Reverse Funnel System does not focus on the product, because its target market is those who want to make money.

But there is a tangible product, and it can be found here.

What registered on my bullsh*t meter?

* They hired $20,000 a page copywriters. Really? I am a copywriter and I can tell you that we don't make $20k per page on anything. And there isn't some special copywriter in the Cayman Islands cranking out $20k pages between his coral reef diving sessions either. I do well enough and have had some lucrative years but it's from hard work and creativity. Internet advertising pays the least. And I've done this 20+ years across all media including the internet.

I have no physical proof of how much the copywriters cost, but based on the conversion ratios, they were worth every penny. Just because this particular copywriter doesn't make $20k per page, doesn't mean anything.

Dan Kennedy charges the following:

Typical range for a multi-step direct-mail campaign: $23,400.00 to $54,600.00, more complex multi-media campaigns up to $78,000.00. Full-page print ad: $15,600.00 to $23,400.00. Royalties range from 2% to 5% of gross revenues resulting from use of materials, in perpetuity. Clients who do very large volume mailings may negotiate a royalty buy-out. Fee reduced by as much as 25% on “beat-the-controls” for established, large volume mailers.

Here are some others' fees:

Gary Bencivenga
bencivengabullets.com
$25,000.00 as advance against royalties.

Bob Bly
Bly.com
$7,500.00 - $12,500.00 plus 2 – 3 cent per piece mailed

Carline Anglade-Cole
$20,000.00

Craig Huey
Cdmginc.com
$9,000.00 - $19,000.00

Mal Decker
Maldecker.com
$12,000.00 - $15,000.00

Dean Rieck
Directcreative.com
$10,000.00 - $15,000.00

Rene Gnam
Renegnam.com
$15,000.00

Don Hauptman
$15,000.00 - $20,000.00

Jack Kuhnemund
$12,500.00 plus $20 per 1,000 mailed

And now, back to the comments from our copywriter that does not charge that much.

* They claim "it's all automated" and they've removed the human element. Well, they have people on forums talking it up that resemble shills in their key phrase approach and consistent mantra. Sell, sell, sell, recruit, recruit, recruit. They do sort of let it sneak up on you and they offer enough to pique curiosity for sure--the new "subtle hard-sell approach". So there is a recruiting warpath that you have to keep up to drive traffic to your web site so you can get sign ups and you can make money. The advertising and the new member of the inner circle clicking the button is your goal. A human has to be the tide pushing you.

The people advertising on the forums either have the extra time, or don't have the extra money, to advertise in other fashions that really do remove the human element. After all, before joining, you're warned that this is a real business, and you should have $3-5k to start.

A human does not have "to be the tide pushing you." As I previously said, the Reverse Funnel System is 98% automated. You are not constantly pushing prospects to join, the system takes care of all of that.

* The fact that they rarely mention the product and the one goal they have is to get you to sign up. This just bugs me. The product is so very secondary.

This is a tactical marketing decision. Market the opportunity, not the product. If you don't like it - that's your prerogative.

* It's boring. Promote, promote, promote, recruit, recruit, recruit, advertise, advertise, advertise. It may work, it may make money and eventually big bucks before the system peters out. Now people have gotten creative and developed products within the system but you'd better think and produce QUICK because there are people joining and trying to develop marketing systems for sale so fast your head will spin. You may gain insightful marketing knowledge but spending even two hours on social networks is beyond boring for this writer and anything formula gets old quick with me. But that's my personality.

If the idea of making money through brainless advertising turns you off, that, also, is your prerogative. Many people, however, enjoy having an additional income stream that requires little to no extra thinking.

The Reverse Funnel System is the only marketing system for sale, and if you hate the formula of "advertise = profit" and anything formulaic at all - then the Reverse Funnel System definitely isn't for you, and that's OK.

* With people joining in droves you have to get them to sign up THROUGH YOUR WEBSITE which means eventually the market will be saturated and some poor slob who joined at the wrong time will lose when the top tiers have decided this idea has run its course and find greener pastures. So maybe the time to join is now? Or maybe it's already saturated? You're not going to find out those numbers.

While it is theoretically possible for the market to be saturated, in reality it will not happen. People are still joining Amway every single day - and how long has it been around?

This pyramid style internet marketing system may be for you but it's good to know everything up front if you're going to make an investment.

The only problem with the "unbiased" opinion in this instance is that the writer does not have all the facts.

If you equate "pyramid style" with "network marketing" then the Reverse Funnel System most likely isn't for you.

I do agree, however, that you should know everything up front if you're going to make an investment.

So if you haven't done so already, put in your name and e-mail into the form on this page and click the "Read the RFS Report Now" button.