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What exactly happens in the modern business world and more specifically, in the revenue-sharing, HYIP (High Yield Investment Programs), and the MLM industries? In other words, in the investing space.

The vast majority of companies in that industry’s segment are advertising platforms/agencies, at least this is how they are presented to the market. Participants become members, usually by purchasing ad packs and agencies share revenue from their profits with the members.

They attract investors by announcing high-standard ROI, but in reality, the ROI can not be predicted or secured, however, the masses seem to buy packages with ease.

Then, investors, in order to make even more money, advertise their affiliate links like maniacs on the web to recruit new affiliates into the system they use. But at that time they don’t know if they will get paid.

Modern Pyramid/Business World

There is Solution

Revenue Sharing

Almost every company use an ad credit system that is bundled with every advertising package purchase. These credits can be consumed by investors in order to advertise their products, websites, landing pages or any other affiliate offer they want.

At the same time, every ad pack returns ROI, as long as it is active. At some point, every ad pack matures and expires. Then investors might choose to re-invest or withdraw their earnings.

Of course, there are commissions calculated based on the affiliate downline of a member. The more active your referrals are (deposited into the system) the higher the commissions.

It seems to be a legitimate system in place with value, but every investor is interested in making money from the ad packs primarily and nobody is interested in watching ads. That results in poor untargeted traffic for every advertisement within the ad platforms.

With what seems to be the easiest way of making money online only a few investors will make real profits at the end. Because all the money coming from those companies is money from affiliates. There are no retail products for healthy organisations.

But the revenue-sharing companies claim to offer valuable products, and these are the Text/Banner/Directory or other forms of Ads….. “Traffic” in general.

And this is a BIG problem… because all these companies are…

Ponzi Schemes

Back in 1920, Charles Ponzi, an Italian businessman and con artist in the US and Canada, attracted thousands of investors by promising a return of 50%, the minute when banks were offering 5% or less. He planned to accomplish that by buying discounted postal reply coupons in other countries and redeeming them at face value in the USA as a form of arbitrage, according to Wikipedia.

But what did Ponzi do? He was paying early investors with the deposits of late investors. And this is the definition of a Ponzi scheme.

The same exact formula is now used by over 99% of modern advertising sites.

Securities and Exchange Commissions Department – SEC

According to the SEC, a Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.

Ponzi scheme operators solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. At the beginning of such a scheme early investors think that the system is legitimate because they are getting paid, the problem is that the money is solely new affiliates investments.

Ponzi schemes collapse because there are little or no legitimate earnings. These systems need a consistent flow of money/cash in order to operate normally. But recruiting at some point dries out, meaning no new money coming in, resulting in an inevitable collapse. Sometimes a collapse can be triggered by the simultaneous cashout requests of many investors.

Additionally, SEC finalised that ad credits attached to ad packs do not result in a legitimate system. A recent example is Traffic Monsoon, another revenue-sharing ad credit company that has been taken down, leaving over 200,000 late investors losing money.

The key thing is that a company should not use new investments to pay off existing affiliates, whether an ad credit system is in place is totally irrelevant.

High Yield Investment Programs – HYIP

HYIP companies are very similar to the revenue-sharing modern stream agencies.

The main slogans here might include…

• High returns in investments with little on even no risk
• Annual, monthly, weekly or even daily returns of 30% or more. (daily 1%+)
• An innovative technology system might be used as a showcase to make believe that the company has external resources of funds.
• Secure your future, wealth is predictable, and the rest…

Other companies claim to be featured by financial or trading experts, marketing giants etc.. Others are Bitcoin or Forex trading corporations but in no way we can verify the “Expertise”.

They build a website, 4-5 pages long, have an income & investment plan in place, and an affiliate program and that is where their contribution to the investing world ends. No blog departments, no reports, no statistics and results, the absolute Zero…

Over 90% of those HYIP company owners remain anonymous using domain privacy protection, and fake local or rented addresses, and they operate under no regulation. Some of them might hold a company’s house certificate that does not mean much but most of them are not listed in the FCA (Financial Conduct Authority) records.

In reality, as the SEC affirmed the majority of these programs are unregistered/unlicensed individuals/off-shore companies and fraudulent like hell.

If we follow the Wikipedia-related article, HYIPs are Ponzi illegal schemes – investment scams that promise high returns that pay existing investors with funds of new affiliates.

Proceed with extreme caution and DO NOT invest more than you can easily afford to lose. You won’t get your money back.

MLM (Multi-Level Marketing)

Multi-Level Marketing (MLM), also known as network marketing or pyramid selling, is a business model in which individuals earn income not only from their direct sales of products or services but also from the sales made by the people they recruit into the business, as well as the recruits of their recruits, and so on, forming a hierarchical structure resembling a pyramid.

Here’s how MLM typically works:

1. Recruitment: An MLM company recruits individuals as independent distributors or representatives. These individuals are often called “downlines.”
2. Product or Service Sales: Distributors are encouraged to sell the company’s products or services directly to consumers. They can earn commissions on their sales, which is a standard aspect of most sales positions.
3. Recruitment Commissions: Distributors are also encouraged to recruit new individuals into the MLM program. When they successfully recruit someone, they earn a commission based on that person’s sales and the sales of their recruits.
4. Hierarchical Structure: The recruits and their sales teams form a hierarchical structure, with the original distributor at the top (referred to as the “upline”) and subsequent recruits forming layers beneath (referred to as “downlines”).
5. Earning Potential: Distributors can potentially earn money not only from their own sales but also from the sales generated by their downlines, often down several levels. The idea is that as you recruit more people and your downline grows, your potential earnings increase.

MLM companies often emphasize the idea of passive income and financial independence, suggesting that individuals can build a lucrative business by recruiting others and building a large network of distributors. However, MLM structures have been controversial and criticized for several reasons:

1. Pyramid-Like Structure: MLMs can resemble pyramid schemes, which are illegal in many countries. In pyramid schemes, the primary focus is on recruitment rather than the sale of legitimate products or services.
2. High Failure Rates: The vast majority of participants in MLMs do not make substantial profits, and many end up losing money. Success in MLMs often requires significant recruitment and sales efforts, making it difficult for most people to achieve financial success.
3. Emphasis on Recruitment: Critics argue that the emphasis on recruitment can lead to exploitative practices, with some distributors feeling pressured to recruit others and potentially alienating friends and family in the process.
4. Product Quality and Pricing: MLM products are sometimes criticized for being overpriced or of lower quality compared to similar products available in the market. The need to support the compensation structure can lead to inflated product prices.

It’s essential for individuals considering involvement in an MLM to research the company thoroughly, understand the compensation plan, and be cautious of any promises of quick wealth. MLMs vary widely in terms of their legitimacy and ethical practices, so due diligence is crucial to avoid potential scams or financial losses.

Most of the MLM companies that I came across, participated in, or just reviewed were not great opportunities. Instead, these companies were focused on recruiting. And this makes this industry fraudulent.

Determining the legitimacy of an MLM (Multi-Level Marketing) company can be challenging, but there are some key factors and warning signs to consider when evaluating whether an MLM is legitimate or potentially a pyramid scheme. One critical factor is the emphasis on retail sales, which is a common requirement for legitimacy. Here are some guidelines to help you assess an MLM company:

1. Focus on Retail Sales: A legitimate MLM should primarily derive its revenue from the sale of products or services to retail customers who are not part of the MLM network. In many countries, there may be legal requirements specifying that a certain percentage of a company’s revenue must come from retail sales to distinguish it from a pyramid scheme. Check your local regulations for specifics.
2. Product Quality and Value: Evaluate the quality and value of the products or services being offered. Are they genuinely competitive and desirable in the marketplace, or are they overpriced or of low quality? Be wary if the products seem designed primarily to support the compensation plan rather than for their inherent value.
3. Compensation Structure: Review the compensation plan carefully. Be cautious of MLMs that emphasize recruitment over product sales. Legitimate MLMs should reward distributors primarily for selling products to customers, not for recruiting new distributors.
4. Buyback Policy: A reputable MLM company should have a buyback policy that allows distributors to return unsold products for a refund. This policy helps prevent distributors from being stuck with excess inventory.
5. Product Sales Documentation: Ask for documentation or evidence of actual retail sales, such as receipts, invoices, or customer testimonials. Legitimate MLMs should be able to provide proof of significant retail activity.
6. Transparency: A legitimate MLM should be transparent about its business operations, compensation plan, and financial health. Be cautious of companies that are secretive or evasive when asked for information.
7. Longevity and Reputation: Consider the company’s history and reputation. MLMs that have been operating successfully for many years and have a positive track record are more likely to be legitimate. Research online reviews and customer feedback.
8. Training and Support vs. Recruitment Pressure: Evaluate the company’s emphasis on training and support for distributors. Legitimate MLMs should focus on helping distributors succeed through effective sales and marketing strategies rather than pressuring them to recruit others.
9. Consult Legal Resources: Seek advice from legal experts or consumer protection agencies in your jurisdiction. They may be able to provide information about the MLM company’s compliance with local laws and regulations.
10. Trust Your Instincts: If something about the MLM company or its practices feels off or too good to be true, trust your instincts. Be cautious and take your time before getting involved.

Remember that MLMs can vary widely, and not all of them are scams or pyramid schemes. However, due to the potential for exploitation and financial losses, it’s crucial to approach MLM opportunities with scepticism and conduct thorough research before making any commitments.

My Experience

For me participating in revenue sharing sites is like gambling. For that reason, I only invest small chunks that I can easily afford to lose. If you ask me, I prefer to gamble with bets on sports/games and not waste my time with these sites.

Whenever I deposit it is a result of deep research. The general rules that I follow are these:

• I deposit only in companies that DO pay at that time. I ask partners, bloggers, friends and people that I know. If they can answer with confidence I may participate in investing my 2 cents.
• I prefer new schemes that have the potential to attract new affiliates. Older companies should be excluded from your list, the risk is getting bigger.
• In the 1st week, I only watch closely the ads. If only the same ads are displayed I do not invest. If there are new ads replacing old that means new money coming in.
• Under no circumstance, you will see me promoting these sites with my affiliate links. Even if I make money I won’t recruit anyone to these sites. Because in the end all of them collapse. And I do not want disappointed referrals. I promote ONLY companies with Real/Valuable Products.

Call me afraid or whatever you want, but I prefer to earn money doing other things….and investing in such schemes is only helping the owners who at the end of the day will disappear with our money.

It is the easiest way to make money online, that even a kid with no experience can do, but you are solely dependent on unknown owners that hide their identities, and provide fake/false information regarding their financial entities (location, names, laws…), have an exit plan in place for the final moment, and you participate in companies that do not provide any value to the market. Not to mention the high risks…

We Let it Grow

Unfortunately, I clearly watch our world collapsing and it is our responsibility from now on. Besides, it is OUR fault in the first place.

Over 90% of online biz opps (business opportunities) today are crap, or even worst, are scams that try to steal money from people. What a wonderful place…

New MLM schemes

I am deeply disappointed as the vast majority of the new pseudo-MLMs are simply one-night creation websites, that offer a Matrix or Cycler or other similar system that serves as a compensation plan and that’s all.

But does a matrix payment structure characterize true MLM companies?

Dark entrepreneurs take advantage of the always-increasing demand for online money-making opportunities and develop schemes that turn out to be funnels for one-sided wealth.

The masses are in a hurry and this is the main weapon in the hands of shady business people that in the end disappear with their money.

Where are the real products, where is the retail market, is it dying?

Donations, cash gifting exchanges and illegal pyramids sacrifice marketing resources to play with the minds of newcomers. Get 6, get them to recruit 4 and let the late investors lose all their deposits.

On the other hand, a handful of superb MLM examples produce real/valuable solutions that people enjoy and you feel proud promoting them….But it is not enough, far from it.

Let’s move on to the next sub-category…

Revenue Sharing / HYIP

Poor quality advertising services from a new model of agencies that only act as magnets for people’s wallets. Pure Ponzi schemes are masked under the ad credit convenient strategy that serves as a curtain.

What happens here?

Deceiving overnight or 5-day ROI promises for automated success manipulates new unsuspected wannabe entrepreneurs that not only invest huge bucks for themselves but also promote these companies like maniacs, recruiting even more into a labyrinth of financial chaos.

Proud owners that want to see people succeed hold mass percentages of companies positions sucking money from every human wallet. At the end of the day, an exit plan is in place while an inevitable collapse is triggered within their organisations.

All the latest participants donate money to the fake companies – owners/friends and a few earlier experienced players.

HYIP companies that can not be controlled or verified, are buying domains in bulk, hiding their identities, and creating a web of online destinations that serve as facilities, warehouses or offices.

Every new company has an innovative system as a showcase (thin air designs that probably do not even exist) attracting money through the web.

Binary Options Trading

A sea of frauds… luxury video presentations, paid actors, fake tech companies – all of them holding a secret software/algorithm that produces millions of dollars 24/7, even when the markets are closed.

Filthy unregistered brokers connect with them to serve as platforms for modern traders/victims.

Affiliate Marketing Arena

This is the only department that has to offer unlimited resources/opportunities for everyone but still, you have to do extended research before you decide to invest any money.

There are many scammers/spammers but online reviewers do their best to take them down. Still, shady affiliate marketers promote products with no value as they care only for their own progress.

But, but, but… there are so many decent companies and entrepreneurs that help people succeed and give to the market products of superb quality. Real valuable B2C/B2B products for companies, agencies, marketers, intermediates, individuals…

Eventually, I feel so lucky that I got involved in this online journey 2 years ago….

Let Us Make this World a Better Place

No matter how much I rant from time to time, I always end up positive looking ahead for a bright future. I believe in humans, I believe in real true cooperation. It is in our hands to promote only the GOOD ones.

If you’re interested in investing and want to make the world a better place, it’s important to approach investment opportunities with a combination of idealism and a critical, informed perspective. Here’s a message for individuals interested in investing in various schemes, including MLM (Multi-Level Marketing), HYIP (High-Yield Investment Programs), and revenue-sharing initiatives:

1. Prioritize Due Diligence: Before investing your time and money in any opportunity, whether it’s an MLM, HYIP, or revenue-sharing program, conduct thorough due diligence. Research the company, its products or services, and its financial stability. Investigate its reputation and compliance with relevant regulations.
2. Beware of “Get Rich Quick” Promises: Be cautious of any investment opportunity that promises quick and guaranteed returns. High-yield investments often carry a higher risk of loss, and schemes that promise guaranteed returns are frequently fraudulent.
3. Seek Sustainable and Ethical Investments: Look for investment opportunities that align with your values and contribute positively to society. Consider ethical and sustainable investment options, such as socially responsible investing (SRI) or impact investing, which aim to generate financial returns while making a positive impact on the world.
4. Understand Risk and Diversify: All investments carry some level of risk. Diversify your investments across different asset classes and opportunities to spread risk. Avoid putting all your resources into a single scheme or investment.
5. Avoid Pyramid Schemes and Scams: Be vigilant and stay away from pyramid schemes, Ponzi schemes, and any investments that rely primarily on recruitment rather than genuine product sales or legitimate investment activities. Pyramid schemes can lead to financial losses and harm to others.
6. Seek Professional Advice: Consider consulting with financial advisors or experts who can provide guidance based on your financial goals and risk tolerance. They can help you make informed investment decisions. (ASK ME).
7. Think Long-Term: Sustainable and ethical investments often yield returns over the long term. Avoid the temptation of chasing short-term gains and focus on building a diversified, long-term investment portfolio.
8. Stay Informed About Regulations: Be aware of the regulatory environment in your region. Investment schemes that promise unrealistic returns or operate without proper licenses are often subject to regulatory actions. Protect yourself by investing within the bounds of the law.
9. Educate Yourself Continuously: Investment markets are complex and ever-evolving. Invest time in learning about investment strategies, market dynamics, and financial literacy to make informed decisions.
10. Consider Philanthropy and Volunteering: If your goal is to make a positive impact on the world, consider philanthropic activities and volunteering as ways to contribute directly to causes you care about. Investing in your community and supporting charitable organizations can be a meaningful way to make a difference.

Remember that while investments can be a tool for financial growth and positive change, they also come with risks. Balance your idealism with a healthy dose of scepticism and research to make informed decisions that align with your goals for a better world.

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