Usually when I review a less than legitimate looking opportunity they tend to focus on one particular business model.
Some require you to recruit like crazy to earn anything, some require you to invest money and pay you out a ROI over time, some want you to purchase bucketloads of product each month on the expectation your purchases will fund other member’s commissions and some try to hide the fact that they use any one of these models by adding fluff to the business model (posting ads, removing signup fees, getting you to rub your tummy once a day etc.).
Rare is it though that I run across a company that tries to incorporate every dodgy MLM business model out there into one neat little package.
Enter Global Ads Biz.
Infact, if I wasn’t none the wiser I’d even go so far as to suggest that when coming up with the business model, the owners literally just copy and pasted together as many dodgy business models as they could get their hands on.
Read on for a full review of the Global Ads Biz MLM business opportunity.
Apart from stating that Global Ads Biz is ‘headed by young and capable professionals’, there is no information on the company website indicating who runs or owns the business.
The company website domain (‘globaladsbiz.com’) was registered on the 5th of July 2012, however the domain registration is set to private.
A ‘certificate of incorporation’ is published on the company website, which provides the searchable company number ’8192656′.
If you punch that number into the ‘Companies House’ website, you get an incorporation date of the 28th August, 2012 and the following business address listing:
GLOBAL ADVERTISING BUSINESS LTD
145-157 ST JOHN STREET
A Google search reveals multiple businesses operating out of this address, strongly indicating it’s just a virtual mailbox.
As always, if a MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Global Ads Biz Product Line
There are no retailable products or services within the Global Ads Biz business. Instead, members are only able to market “positions” (referred to by the company as “cycler spots”) to new and existing members.
Each position costs $25 and is bundled with a series of advertising credits. These advertising credits can then be used to advertise a website on an inhouse advertising system featured on the Global Ads Biz company website.
The Global Ads Biz Compensation Plan
Advertised as a “hybrid compensation plan” that is based on “fully automated passive & quick earning”, that is “100% passive and quick” and at the same time “100% legal & authentic”, the Global Ads Biz compensation plan offers members recruitment based and passive investment commissions.
Global Ads Biz affiliates earn $1 for every new member they recruit into the scheme.
Binary Paired Commissions
Using a binary compensation structure, Global Ads Biz pay out a daily commission based on the number of new affiliates added to your binary organisation.
Affiliates can be added via direct referral or via the recruitment efforts of an affiliate’s up or downline.
A binary compensation structure places an affiliate at the top with two legs branching out from under them. These two legs provide the basis for two binary teams, left and right.
Global Ads Biz pay out a $5 commission each time a new pairing of 2 new affiliates on the left side and 2 new affiliates on the right are matched together.
Affiliates can only be counted once per matching and pairs and commissions are calculated daily. Pairs are capped at 10 a day (40 new affiliates split 20/20), meaning the max daily payout for binary commissions per affiliate is $50.
Matching binary paired commissions are also offered using a unilevel compensation structure. A unilevel compensation structure places an affiliate at the top with every directly recruited new affiliate placed under them (level1).
In turn, if any level 1 affiliates recruit new affiliates they form level 2 and so on and so forth. Using this unilevel compensation structure Global Ads Biz pay out a matching bonus on the paired binary earnings, paid out down 3 levels:
- Level 1 – 5%
- Level 2 – 3%
- Level 3 – 2%
Straight Line Cycler
The Straight Line Cycler allows members to invest $5 and over a series of levels get paid out a 300% ROI on each level.
They do this by offering ten levels of ROI and forcing members to re-invest their earnings at each level. Starting with $5, Global Ads Biz state that ‘when a position reach 300% it’s full and cycles out‘.
How does a position get “full”?
Every time a new position is bought in a line a percentage of the cost of that position is added to the top position.
Or in simpler terms, you put in $5 and everytime somebody else puts in $5 you receive a share of their contribution (ie. a Ponzi scheme).
Once 300% of what you put in accumulates, Global Ads Biz pay you out 33.3% of the 300% ROI and force you to re-invest the remaining 66.6%.
There are ten levels within the Global Ads Biz Straight Line Cycler and they are as follows:
- Level 1 ($5) – pays out $15 with a forced reinvestment of $10
- Level 2 ($10) – pays out $30 with a forced reinvestment of $20
- Level 3 ($20) – pays out $60 with a forced reinvestment of $40
- Level 4 ($40) – pays out $120 with a forced reinvestment of $80
- Level 5 ($80) – pays out $240 with a forced reinvestment of $160
- Level 6 ($160) – pays out $480 with a forced reinvestment of $320
- Level 7 ($320) – pays out $960 with a forced reinvestment of $640
- Level 8 ($640) – pays out $1920 with a forced reinvestment of $1280
- Level 9 ($1280) – pays out $3840 with a forced reinvestment of $2500
- Level 10 ($2500) – pays out $7500
Note that the $5 required to enter the Straight Line Cycler is an additional cost to a $20 membership position.
There are five matrices within Global Ads Biz’s compensation plan. One position is included with each $20 membership purchased and starts an affiliate off in the Basic Matrix.
This matrix is a 2×3 and requires fourteen new membership positions to be bought before the initial affiliate can cycle out and earn a commission.
Following this cycle out, they are then entered into the next level matrix and provided with free re-entry into an existing matrix on the level they just cycle out of.
- Basic Matrix (2×3) – $10
- Bronze Matrix (2×3) – $50
- Silver Matrix (2×3) – $200
- Gold Matrix (2×3) – $500
- Platinum Matrix (2×2) – $5000
Note that the Platinum Matrix is a 2×2, which only requires six member positions to be filled before it’s full and the top member cycles out.
Matching Bonuses are also offered on the matrix earnings of an affiliate’s downline, paid out three levels deep in the same manner as the matching commissions offered under the Paired Binary Commissions:
- Level 1 – 25%
- Level 2 – 15%
- Level 3 – 10%
Global Revenue Sharing Pool
The Global Ads Biz Global Revenue Sharing Pool is made up of 5% of all matrix position sales and is ‘distributed equally among all qualified affiliates on monthly basis‘.
In order to qualify for the Global Revenue Sharing Pool, Global Ads Biz members must have 100 counted pairs (200/200) in the Binary Paired Commissions component of the compensation plan.
Paid to Click (PTC)
The Global Ads Biz compensation plan material does make reference to a PTC scheme, however no specifics on this are provided.
Joining Global Ads Biz
Membership to Global Ads Biz is free, however in order to earn anything members must purchase $20 matrix positions or make $5 investments into the Straight Line Cycler.
Free members are able to earn by signing up and recruiting new members under the binary paired commissions component of the compensation plan.
In combining what are blatant pyramid and Ponzi schemes together, Global Ads Biz claim they have a
junction of 3 most popular systems Binary(Pairing System), Straight line & Follow me Matrix (Hybrid) first time in the world.
The company attempts to pass this off as a positive however the reality is that in combining such plans all they really do is mesh together the sustainability problems they all have into one big giant mess.
The binary commissions require constant recruitment of new members, the matrix positions require new positions to be continuously bought by existing members and the Straight Line Cycler requires new $5 investments.
And do I really need to explain the problem of taking 5% of everybody’s “position purchases” and redistributing them amongst existing members based on a recruitment qualification?
With three core scam business models in play at once, it’s most likely only a relatively short matter of time before one fails, at which point like a chain reaction the other two will go under and those who joined/invested last will be left holding the bag.