Adsactly Review: Ads + membership commissions
The Adsactly website doesn’t mention who is running or owns the company, but it does give the following address under the company’s logo on website:
18912 West Hickory Street, Mundelein, Illinois 60060.
The domain ‘adsactly.com’ was registered on the 4th August 2011 using the same address,
WMT Hosting ([email protected])
18912 W Hickory St
only it lists another company as being at the same address, WMT Hosting.
The address ‘18912 West Hickory Street, Mundelein, Illinois 60060’ appears to be a residential address:
This is a Single-Family Home located at 18912 West Hickory Street, Mundelein IL. 18912 W Hickory St has 1 bath and approximately 1,248 square feet. The property was built in 1930.
But it’s unclear whether this is where WMT Hosting operate out of.
WMT Hosting now appear to be a stock standard web hosting company but back in 2010 they offered an affiliate program that utilised a matrix compensation structure, paying out commissions primarily upon the recruitment of new members ($21 monthly membership fee and commissions paid each month for having members in the matrix).
Again there is no information on the WMT Hosting website as to who actually owns or operates the business.
The WMT Hosting Facebook page however identifies the owners of Adsactly as Randy Howard (click to enlarge).
Cathy Howard appears to be Randy’s wife and both are listed as the CEO of Adsactly and WMT Hosting.
Apart from WMT Hosting’s matrix opportunity from 2010, this appears to be the Howards only other MLM venture. With WMT Hosting being recruitment based opportunity, I’m assuming the lack of new recruits is what prompted the launch of Adsactly.
The Adsactly Product Line
Adsactly claim to be ‘a global advertising and marketing company offering a full suite of digital solutions‘.
This translates into the company offering members various forms of advertising through company hosted classifieds and an advertising network.
The links on the company website which are supposed to provide more information on both of these advertising products redirects back to the main website, so it appears neither are functional yet.
Additionally the company also offers members access to an autoresponder, ‘trendy website builder’, conference facilities, marketing system and web hosting.
I don’t believe it’s possible to purchase any of these products or services at a true retail level though through Adsactly, the only way to access them appears to be via company membership.
The Adsactly Compensation Plan
Adsactly offer their members a number of commissions revolving around advertising and the recruitment of new members.
Depending on membership rank, Adsactly pay out a monthly commission on the recruitment of new members.
- Free members earn 2c for every free, 50c for every Marketer, 75c for every Go Getter and $1 for every Entrepreneur members they recruit each month
- Marketer members earn 5c for every free, $1 for every Marketer, $1.25 for every Go Getter and $1.50 for every Entrepreneur members they recruit each month
- Go Getter members earn 10c for every free, $1.50 for every Marketer, $2.50 for every Go Getter and $3.50 for every Entrepreneur members they recruit each month
- Entrepreneur members earn 15c for every free, $2 for every Marketer, $3 for every Go Getter and $5 for every Entrepreneur members they recruit each month
Adsactly pay members referral commissions when the members they have recruited purchase advertising from the company. The commissions are paid down five levels (members you recruit are your level 1, members they recruit are your level 2 and so on and so forth).
- Free members earn 5% on level 1
- Marketer members earn 10% on level 1 and 5% on level 2
- Go Getter members earn 25% on level 1, 20% on level 2, 15% on level 3, 10% on level 4 and 5% on level 5
- Entrepreneur members earn 35% on level 1, 30% on level 2, 25% on level 3, 20% on level 4 and 15% on level 5
Adsactly also pay out commissions when ads are viewed by members. PTC are ‘pay to click’ ads and SOLO ads I believe are ads sent via email.
- Free members earn 0.005 cents for each PTC and SOLO ad they view
- Marketer members earn 0.01 cents for each PTC and SOLO ad they view
- Go Getter members earn 0.03 cents for each PTC and 0.02 cents for each SOLO ad they view
- Entrepreneur members earn 0.35 cents for each PTC and 0.03 cents for each SOLO ad they view
Adsactly also offer members points for performing various tasks related to the advertising such as clicking links, reading ads, logging in and surfing websites.
Adsactly don’t however clarify what these points can be used for on their website and more importantly, whether or not they can be exchanged for cash commissions (the company has no FAQ at the time of publication).
Membership to Adsactly comes in four different options:
- Free membership costs nothing
- Marketer membership costs $5 a month
- Go Getter membership costs $7 a month
- Entrepreneur membership costs $15 a month
Other than the amount of commissions earnt, various services offered to Adsactly members are restricted depending on the level of membership purchased.
- web hosting is only offered to Go Getter and Entrepreneur members
- the auto responder is only available to Entrepreneur members
- the conference service is only available to Go Getter and Entrepreneur members
- the ‘trendy website builder’ is only available to Go Getter and Entrepreneur members
On the surface, Adsactly have some viable products and advertising available for purchase. Of course you have to pay a membership fee to access the services and purchase advertising, but that in itself isn’t a negative.
When you combine it with a compensation plan that pays out members comparatively large commissions on the recruitment of others and peanuts for everything else, then you’ve got a problem.
Looking at the Adsactly compensation plan it’s quite obvious that the most money to be made is on the recruitment of others and with sliding commissions depending on the membership level purchased, the incentive is obviously to join at the Entrepreneur level and sign up as many Entrepreneurs as you can.
Then as long as they keep paying membership fees, you earn your monthly commissions.
You could make the argument that advertising purchases will generate the bulk of revenue for Adsactly as opposed to membership fees, but if you look at the advertising services being offered, it’s clear this is not the case.
For starters the ads published on the network are only going to be seen by other Adsactly members. The company does mention something about sending ‘super surge sols ads to 40 sites with 12,561 members’, but fails to clarify just what these sites are or who the members are.
Regardless, it’s clear they’re pushing quantity over quality and as far as advertising goes, you might as well be handing business cards out to randoms on the street.
Advertising is always going to be about reaching a targeted market and random members on 40 unknown websites and Adsactly members who are only viewing and clicking ads because they’ll get paid, makes for a poor advertising offer.
As such, when evaluating the advertising and marketing side of Adsactly and looking at how the commissions are structured towards recruitment, it’s clear that the operational intention of the company is to focus on recruitment.
This of course means the sale and marketing of membership to the company, which fits hand in hand with the fact that you can’t actually purchase anything from Adsactly until you join the company.
Nevermind the fact that neither the classified section or adsactly advertising network’ even appear to be operational, despite Adsactly launching in January three months ago.
Free members can of course earn commissions but for the amount of money they receive in comparison to paying a monthly fee to significantly boost the commissions paid out, again there’s not much point being a free member.
Furthermore you’re probably going to have a hard time convincing other people to pay for membership you yourself don’t feel is worth paying for so that pretty much guarantees the majority of Adsactly members aren’t going to bother with the free member option.
All in all when we break down the Adsactly business opportunity we get this:
- existing members sign up new members and earn commissions off their membership fees
- these new members then have to go out and recruit new members to earn their commissions
- these new members then need to do the same
Eventually new members stop signing up and those who signed up before them stop paying their membership fees because they can’t recruit anyone.
This halts the commissions of those members who signed them up, so they in turn stop paying their membership fees with a chain reaction all the way up to the top.
When your entire business relies on recruitment and pays out commissions for said recruitment, you’ve pretty much got yourself a pyramid scheme.