Frank Kern
Frank
Kern devised the "Instant Internet Business" where he sold a lot of
e-books and other material about internet marketing. He claimed that he
made more than $100,000 from the website where he did his business.
The
idea was very simple. You make a purchase of $47.77 and start a chain
of marketing where you would progressively go from the lower end to
higher end. By the time you reached the highest end of the chain you
would start earning an income of more than $115,00 each year.
Frank claimed that he earned an income of $100,000 in first year and everyone could do it.
The Federal Trade Commission did not think so and came down heavily on
Frank Kern and barred him from doing business with his Instant Internet
Empires.
FTC argued that the first level of this MLM would require 2400 persons
for Frank Kern to receive an income of $100,000 in first year.
The
second level of chain would involve 2400 X 2400 persons as customers.
That makes it 5,760,000 buyers for making an income of 115,000.
Scale this to a third level and you will find that it would require
5760,000 X 2400 persons so that second level persons get $115,000.
That means you would need 13,000,000,000 persons, which is more than world's population twice over, so it looks doubtful.
So,
the FTC rightly came down heavily on Frank Kern and barred him from
doing any further business and return the money collected earlier.
Frank collected $634,222 from selling IIE
and he will have to pay back ALL of it.
He has subsequently returned to marketing his internet business
materials with his "Under Acheivers Mastery Course which sell for
around $1500. Most of this information is not new and can be gained for
a lot less.
I do believe that anyone who has done their homework
on Frank Kern, and with his past track record would not
want to get involved with him in any way.
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