Business - Written Friday, October 16, 2009 by Laura M. Carrillo - 2 Comments

Marketing Hierarchies Inside Social Networks – An Old Model with a New Twist

As the social networking world expands, not only are people finding new, different and many times more efficient ways to connect and stay connected, but new business models are appearing every day. Who would have thought just one year ago that a site like Twitter would have taken off and evolved into the ecosystem that it is today?

Last month I learned about a hierarchical marketing model that sits inside of a social network. The company doing this work is called 6dgr. The basic premise is that you get paid for getting your friends to join a social network. The structure is similar to Facebook: individuals can create profiles, post pictures, blogs, use an inbox, connect with others, everything you’d expect plus you are automatically connected into a hierarchy when you pick your sponsor (the person who recommended you to join). What further differentiates this model is that you attach a bank or credit card account to your profile when you join. That account is used for direct deposit of your funds when your friends join, sign up for a bank or credit card account, and name you as their sponsor.

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