Is The New Social Network Tsu An MLM?

Social media’s shiniest new thing is relatively new. If you were to conduct a Google or Bing search, you might have to wade through results for a telecom company’s stock ticker (TSU) or Texas Southern University, before you surface Tsu.co. But that will change if this social network’s monetization scheme takes hold and starts attracting those social networkers who are tired of the current cast of big players taking home all those ad revenues generated by your content.

That’s because Tsu, which launched on October 21 with $7 million in funding from Sancus Capital Prive, is divvying up its advertising proceeds with its users. Yes, you heard it right. Their model is predicated on paying YOU for actively posting on their platform and inviting your friends to do so as well.

Pyramid Scheme?

To understand the payouts a user is supposed to receive on Tsu, it’s kind of analogous to a multi-level-marketing model, sometimes derogatorily referred to as a “pyramid scheme” a la Bernie Madoff.

The simplest form of a pyramid scheme is kind of like Feudalism from the Middle Ages, only with money as the bargaining chip, versus land. The guy at the "top" of the pyramid convinces a number of people to give him money for an investment (the investment opportunity may or may not even exist; that's fodder for another post). Then he tells those people that if they can get more people to contribute money, they will receive a certain percentage of the return on the investment for each person they bring on board. Those people, in turn, will then go out and convince others to contribute money to them... and so on, and so forth.

That guy at the top of the pyramid now has a constant stream of people below him sending him money, and the subsequent people immediately under him are acquiring a percentage of what the people under them are contributing, etc. The fallacy is that the scheme could eventually break down for the people at the "bottom" of the pyramid - if they choose not to attract followers of their own, or because the prospects they seek bought in above them.

The Tsu MLM Modification

Now, not to be overly critical of the new kid on the block, while’s Tsu’s MLM has some similarities to what was mapped out above, it has one major differential. There is no up front out-of-pocket money required to engage in the Tsu-asphere -- and it will pay YOU to play!

For starters, according to BizJournal.com, Tsu keeps 10 percent of all revenue it makes from advertisements, third-party applications and sponsorships. The other 90 percent is shared back to users via two separate pools of money, one for content creators and another for the network that recruited the content creator.

One pool, or 45 percent of the total revenue, is distributed based on page views generated by your own content. If you post an amazing viral photo and 25 percent of all of Tsu's traffic that day goes to your page, then you get a quarter of the user-money pool for the day.

The other 45 percent pool gets a bit more complicated, by going out to the social network that helped bring the content poster into the site to start with, creating a recruitment incentive. For instance, if I don't ever post anything myself, but I recruit Aston Kuthcer and he starts posting photos, I receive one-third of the proceeds generated by his pictures (and the person that recruited me gets one-third of what I get, and the person that I recruited gets one-third of what I get, etc.)

Who Wins?

Luol DengLuol DengWhile there is an opportunity here to make some money experimenting with this site, those who are really going to make a killing are those with built-in large followings, such as celebrities. In the beta testing period, pro basketball players such as Luol Deng, Carmelo Anthony and retired NBA star Penny Hardaway have already signed up.

So who wins? The jury’s out, but my guess is that charities are going to benefit when these celebrity-early-adopters start donating their proceeds to their favorite causes. In my case, I’ve chosen not to give up my day job- but certainly would like you join me and become one of my “trusty lords or ladies,” under the “Ron Callari” banner. Hey since joining is by “invite -only,” I might as well put out the welcome mat to all my loyal and favorite readers, don’t you think?
Comments
Oct 22, 2014
by Anonymous

It's sure is great to be

It's sure is great to be getting paid for posting the same stuff you'd post on FB and Twitter anyway.

Oct 23, 2014
by Anonymous

it seems like an effective

it seems like an effective business model. remember you can only sign up via referral link: http://tsu.co/roncallari

Oct 24, 2014
by Anonymous

This is a pretty fair

This is a pretty fair depiction and a good article. I agree with you that in the end, it'll be mainly high value content providers that benefit from the MLM aspect. I think people don't fully understand how powerful the MLM component is and how much it is goig to spur growth, however. It's going to set Tsu apart from all the other "wanna be" next gen social media platforms.

Oct 24, 2014
by Anonymous

http://tsu.co/schernyc It's

http://tsu.co/schernyc

It's free and 0 risk. Worth a try and it's a great opportunity!

Oct 24, 2014
by Anonymous

Agree!

Agree!

Oct 24, 2014
by Anonymous

Solid concept and no risk...

Solid concept and no risk... kind of a no-brainer

Oct 24, 2014
by Anonymous

Definitely a fair

Definitely a fair article....I've been on a week and so far have had only a positive experience. Clearly the larger one's following the more they stand to gain, but that really is just a reflection of the market's value of those people's content.
I've been on a week and so far , so good. Along the way I've also managed to collect some change in my "tsu bank."

Oct 24, 2014
by Anonymous

I've been having a great

I've been having a great time with it so far...it's quite a bit of fun actually :P ...oh, and it's free...so yeah, I'm down to give it a try :)

Oct 24, 2014
by Anonymous

So far I think it's great

So far I think it's great and it's super easy to use. If your like me and create alot of creative content (music, videos etc..) then I think it's worth a try!

Oct 24, 2014
by Anonymous

I agree 100% if you haven't

I agree 100% if you haven't joined already then click the link here: http://tsu.co/YO_MINUS

Oct 25, 2014
by Anonymous

I earned my first cents...

I earned my first cents... let's see if it's sustainable.
If you need an invite, feel free to use: http://www.tsu.co/jsanto

Oct 26, 2014
by Anonymous

So the network has

So the network has definitely potential but I think that the pay will be very very minimal, as the number of users but greatly increase the revenue through advertising can not even begin to keep up.

The first impressions were very good, it is nice designed simply and clearly. For this, just not quite as many features. You can not create groups or other but perhaps Tsu has also not at all before.

We certainly have a page on Tsu created where we post extraordinary art and designs. Since we have many followers, you will receive automatically by us money if you do register on our Tsulink. Conversely, of course, just as :)

Get the link: http://www.tsu.co/WorldsBestDesign

Oct 26, 2014
by Anonymous

I dumped it after a day

I dumped it after a day being flooded from streams of early adopters shilling the network everywhere.

Oct 26, 2014
by Anonymous

Yes, the shills are in here

Yes, the shills are in here too hoping to gain 'monies' from new network opportunity. Spend the dough you make on English lessons.... and keep your invite.

Oct 26, 2014
by Anonymous

nooo i signed up today

nooo i signed up today without anyone being my sponsor..

Oct 26, 2014
by Anonymous

I'm pretty much there to do

I'm pretty much there to do the same thing here that I do on Facebook and get a thank you once in awhile,,, Facebook ain't bad for what it is, was,, but like MySpace,, people are getting bored there,,, For all the hours I spend on the internet,,, tsu is just thanking me with enough to take my wife out,, yes out of the house once in awhile. Any money is just a thanks from tsu in my mind,, Of course that's just me,, I could be wrong,, (AKA Dennis Miller)

http://masscentral.com/tsu.htm

Oct 28, 2014
by Ron Callari

Nooo I signed  up

Nooo I signed  up today...

Check your 'family tree' - it is highly unlikely you were able to register without using some previous member's link to initially get in. 

Nov 3, 2014
by Anonymous

I found the new social

I found the new social network named Tsū. You are doing the same things on facebook, instagram, but you got paid. For what? For what you share, how popular are you, how many followers you got. Join and follow me right now!I will follow back,
I promise ♡ https://www.tsu.co/dhelia

Nov 4, 2014
by Anonymous

it's a good concept and

it's a good concept and opportunity. It's free and 0 risk.

http://tsu.co/scherNYC

Nov 12, 2014
by Anonymous

Hi Ron, Nice to be here at

Hi Ron,
Nice to be here at your place via Tsu,
I just joined few weeks back but was not active for sometime and recently in did some home work and
am here, and yesterday I posted a note on this in my
webpage, Yes, money is a vital part in any thing and it is required by everyone, though Tsu is in its beta stage I am sure this will be an encouraging thing to many to join in and continue the link
May you have a great time ahead with Tsu
Keep writing
Best regards
~ Philip Ariel, India. https://www.tsu.co/pvariel#sthash.GPJCfPvp.dpuf

Nov 12, 2014
by Anonymous

I'm one of the first to

I'm one of the first to reach the $100 mark. Did so in a few weeks. It's as legit as it gets folks and I'm having a blast. Way more fun than the others and tons of engagement and views and analytics to watch when you post the same stuff. Highly endorse it. Pays for my yearly Starbucks bill lol Hoping I'll earn enough to pay my lease monthly next :)

Nov 23, 2014
by Anonymous

I'm using tsu. It's great.

I'm using tsu. It's great. If you want to try, here is my invitation: http://www.tsu.co/tsusi
Click the link or copy and paste to the browser. If you follow me, I will follow you. We will earn money