Lemonade Stand: Killer of MLM and Affiliate Marketing?
By dwhite on Oct 29, 2007 in Affiliate Marketing, Social Networking
A company known simply as Lemonade inc. has turned some heads recently with the launch of it’s ecommerce platform that absolutely anyone can sell from. Here is how this works: One can set up a “lemonade stand” on social sites such as facebook that sell numerous popular products by well known companies like Apple and Wal-mart.
My initial thought on this subject is that this is not a very good idea. I know that we already have to deal with offline business trying to sell us on overpriced MLM products and attempting to get us to come to their “parties” where it is expected of us to buy something. Now that concept is about to be online and in your face.
So I have a question- if I want to purchase a iPhone am I really going to buy from someone else, or am I going to try and get the best price? That is a simple answer and with that simple answer the most cost effective way for me to get that iPhone is to open my own “lemonade” stand and buy it from myself.
As ridiculous as this whole concept seems to me it very well may take off. This has all been revolutionized by the introduction of facebook and it’s many amenities.
The Lemonade Stand concept is just a part of a small but fast growing trend of retail in the Web 2.0 environment. I eventually expect that someone will figure how to sell in Web 2.0 and when they do that will be the end of MLM and affiliate marketing in their current forms. I will be baffled if the lemonade stand concept is the answer, it is just to primitive of a concept.
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1 Comment(s)
By Michael on Oct 29, 2007 | Reply
Desmond,
I like where you are going with this, but I think that the ‘Lemonade Stand’ method has some benefits that can be best leveraged using the social networking made available by Web 2.
The thing about social networks is that we have something in common with the people in our network. Maybe it’s that we are all avid NFL fans, or we are all geeks… There is something that ties us to each other. These traits that we have in common creates an environment where when I see that one of my friends liked a product, perhaps I will like it too. After all, I am like him in _x_ number of ways.
If you are an avid football fan, and you are recommending DirectTV because you have tried it and love the Sunday Ticket feature, I may be more likely to purchase this too. Your ‘Lemonade Stand’ widget just made it easy for me to do so.
Yes, it’s in your face. But these associations we develop online are at-will. If we don’t like the way one of network behaves, we just out them. We don’t have to look at their profile if we choose not to.
It’s a great example of the free market in action (albeit a small market equal to the size of our network).
Anyways, thanks for letting me know that this is happening. While I hadn’t thought of it on my own, it’s no surprise that companies are finding new ways to leverage online social networking.