Fanista: Multi-Level Marketing Goes Online And Is Funded
â€œWeâ€™re like those great old indie record or video stores where you could talk to a real person with a depth of knowledge and an ability to share their passion in very personal terms.â€
â€œWe all crave someone to help us navigate an information-overloaded world.â€
-Fanista founder, Dan Adler.
Amway, a company known for ‘pyramid schemes’ (also known as multi-level marketing) funded a company called Fanista. Amway is the parent company of Quixstar, a business model that I think is extremely shady.
Personally I have had experiences where a few random Quixstar people have approached me and asked me if I “wanted to become rich.” And it would happen at random times like when I was buying a monitor at Best Buy a month ago. A lady kept asking me for my phone number at the checkout line and wouldn’t let me go until she saw her number show up on my cellphone as a missed call. It was an annoying experience and so I’m skeptical about Amway’s philosophy being applied to a web company.
Fanista launched in Beta last week and will start selling DVDs, CDs, video games, music downloads and books. Users can register for free, but for referring other members, the original user earns 10% commission on every purchase made from the new member.
It’ll be interesting to see what happens when the Quixstar business model applies itself to a social network. I think that the products that will be placed on Fanista will certainly be more appealing than those sold through Quixstar itself.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry