Is Zamzuu A Scam? - A 3rd Party Look Into Their Business Model

ZamZuu is an emerging company that appears to be a major player in the e-commerce

arena with it's continual profits as a "discount online store" of sorts. Some questions have been risen regarding ZamZuu's success though. Many people unfamiliar with network marketing think ZamZuu could be a scam. Is it?

NETWORK MARKETING

It attracts some negative attention because ZamZuu is a network marketing company (also known as MultiLevelMarketing). Some people refer to network marketing as a "pyramid scheme" because some profits are given to members who recruit others into the business. There's a big difference between the two though. A multi-level marketing business, such as ZamZuu, has a service or product for sale, whereas an unlawful pyramid scheme doesn't.

ZamZuu is not the only company to operate using this business model (some big names include Amway, Avon, and Tupperware). They choose to market this way because they see the value in referral marketing.

What is referral marketing? There was a recent survey done that inquired about the consumer's motive on why they chose to buy (or didn't' buy) a particular product. The results revealed the importance of word-of-mouth endorsements and recommendations. It was the #1 contributor in the consumers' decision on why those chose to purchase a particular good or service. There are many companies that try to take advantage of this powerful and free tool.

Companies like ZamZuu spend very little, if any, on traditional advertising. Because of this, they can keep their prices lower than the competition and be able to pay distributors to market for them. Members are paid to recruit because it offers them incentive to add to their team and marketing base. If there was no incentive the company would eventually go out of business.

An interesting fact is that Donald Trump, Warren Buffet, and Robert Kiyosaki (writer of the "Rich Dad, Poor Dad" series) have all endorsed the MLM model.

Calling ZamZuu a scam because it's based on the MLM model is unaccurate and has no merit. Let's take a look at the actual company.

ZAMZUU

The Zamzuu platform is based on the popularity of online shopping from well-known stores. Customers can shop at over 700 stores through Zamzuu. Some big name retailers in their system include Curcuit City, Target, and Wal-Mart. Shoppers benefit by receiving commissions and cash-back for shopping through the ZamZuu website. This creates incentive for the customer to login to the merchant's ZamZuu page and shop there instead of target.com, for instance, which doesn't offer additional perks.

If you are trying to make some money from home then you could become a merchant for this company. An initial fee of $249 is required to set up your customized retail store followed by a $49.95 monthly cost for maintaining your website. Once you start to grow your business you can receive up to 50- 60% commissions and gain health and life insurance!

HOW TO GROW YOUR ZAMZUU BUSINESS

If you are interested in this opportunity, it would be smart to research ways to market on the internet effectively. Implementing some of these strategies will enable you to blow past 95% of the competition and explode your ZamZuu business to a new level. You may have some friends and family that may want to shop at your site, which is great, but until you market to a wider audience you will see limited results. Take advantage of the power of online marketing with ZamZuu!

by: Keegan Luinstra

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