Dubli is a unique breed of company that was founded by Michael Hansen in 2006, and is currently headquartered out of Cyprus, presumably due to their favorable tax laws. It started in Europe, developed a very strong presence in Germany, and recently has been making in roads into the US market.

The company offers two unique websites. For marketing their product to consumers there is dubli.com and for marketing the business side and building an organization there is dublinetwork.com. Both sites have decent and growing traffic; dubli.com boasts an alexa rank of 20,505 world wide, while dublinetwork.com comes in slightly higher with 47,654.

As you can see from the chart, they are doing well… I assume that the serious dip in the rankings for dublinetwork.com in later January is just an Alexa glitch, as I’ve not found any significant press to justify such a drop, and the fact that dubli.com continues strong.

PRODUCT

Dubli operates a reverse auction site that allows prices for very nice commercial products to go down based on bidding. The way it works is they put up for auction quality in demand items at a starting discount and guarantee that it’s the lowest price you can get online (and pay you back the difference plus 10% if you find otherwise within two weeks).

The unique twist is that the current “bid” price is hidden, and only the starting price is revealed. To see the current bid price, you must spend a “credit”. Once a credit is bid (which cost the customer $0.80), the bid price is reduce by $0.25, and the bid is revealed. If you like the price at that time, you can then buy the item, and it’s taken off the auction and the process starts over again.

In theory, if enough people bid on a product, it’s possible to get a good deal. The challenge is that if only 10 people want to see the price, only a $2.50 discount will be available. In order to really save money, hundreds or thousands need to bid. One down side is that there is only one winner, and everyone else funded the game, and compensation plan.

COMPENSATION

So where does the money come from, and how is it distributed in the dubli opportunity?

It technically doesn’t come from the actual deliverable products at all, but rather from the “credits” discussed earlier. People need to buy credits at $0.80 each to reduce the bid on an item by $0.25. The difference of $0.55 is used to fund the compensation plan and provide the company with operating income and profit.

There are two ways this money is distributed to those building a network marketing organization with Dubli. First, between 5% and 25% commission is available from sales of credits to your retail customers; the exact rate depends on your personal volume of credits in the past 12 months. These are people that are in the game just to save money, and bid on items available at dubli.com. Dubli boasts a customer to distributor ratio of 72:1 which is staggering, and much higher than any other network marketing company I’ve personally reviewed.

The second, and more profitable part of the dubli compensation plan are over rides available from your organization. To qualify as a business associate (or BA) you will need to purchase an e-biz kit for $175, and then accumulate at least $499 annual credit volume. Based on how many other business associates you personally sponsor, and how many customers you bring in, you can earn somewhere between 5% and %35 on your organizations credit purchases.

Like many other comp plans, the organizational volumes are based on leadership levels… what disturbs me here, is that if a spot is vacated that money disappears into the company coffers. I would much rather it just continue to roll up.

ANALYSIS

There are only 15 people who are listed as making over $10,000 per month promoting Dubli on the businessforhome.org site. The top distributors listed being Dean & Angie Mannheimer reporting $90,000 per month income, followed by Bettina Rasmussen & Villads Vest and Walter Richter at $25,000 per month. While these incomes are certainly nothing to sneeze at, the numbers aren’t very strong yet here in the US. The concept of reverse auction websites seems to be a bit foreign in the US, and might explain for the sluggish start here.

Dubli has done very well in Europe, however, and continues to do so.

Will Dubli take off in the states remains to be seen. It is a unique business opportunity, that offers a consumer the potential to save money, which should fare well in a recession… Can they train enough consumers to see the fun of bidding on a reverse auction to attract enough entrepreneurs to decide to become business associates?

It seems to be a simple marketing challenge. It’s unique, but that’s good. What’s needed is some effort to apply a good attraction marketing system and build a compelling presentation highlighting this unique selling proposition. Of course while you’re building up your residual income with Dubli, it might be a good idea to add a high converting cash flow producing component to your business portfolio so you can get to full time quickly.

Just remember… massive action creates massive results!

Make it a great day.

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