GlobalAdShare Review: $10 ad pack Ponzi scheme
There is no information on the GlobalAdShare website indicating who owns or runs the business.
The GlobalAdShare website domain however was registered on the 21st of July and lists an “Asher Winata” as the domain owner. An address is also provided in the US state of California, however GlobalAdShare appears to be actually based out Texas.
As per the GlobalAdShare Terms and Conditions:
All arbitration must occur in The State of Texas, in The USA.
Winata also lists his location as Houston, Texas in various social media profiles.
In one such profile, Winata describes himself as having
always been an entrepreneur and own(er of) several online/offline businesses. I jumped into online ventures a few years ago because of the challenge to help the 98% who never make any money online.
I started a computer software company in 1982 and was a consultant for several Oil & Gas companies, which includes Shell Oil, Conoco, Exxon Mobil, Fluor Daniel, and Global Marine.
I developed a well-mapping software, an inventory control software, and a mooring stability software which is still in use today.
In addition to his non-MLM ventures, Winata has also launched at least two MLM business opportunities in the last year.
The first was a Facebook clone called “Affiliate Community”. Launched in late 2012, Affiliate Community was your typical MLM social network that led with free membership but offered “premium (gold) membership” to affiliates who ‘want to earn more income‘.
Free members have the same access and privileges as premium members, the only difference is premium members can earn more income from the community.
Up to 75% of our profit will be donated to charities and distributed among members (10% to homeless charities, 10% to animal charities, 20% to free members, and 35% to upgraded members).
Our revenue comes from advertisements, product sales and membership fees.
With Affiliate Community failing to gain any traction Winata then launched Oodle Ads in July of 2013.
Oodle Ads charged $25 for affiliate membership, with affiliates then able to make $25 investments with the company on the promise of a 150% ROI.
We share 100% of the sale profits that is generated from members who purchased our advertising packages back to our members.
As per the above, which is taken from the Oodle Ads FAQ, the company simply takes new money from affiliates and pays it back out to existing investors.
Read on for a full review of the GlobalAdShare MLM business opportunity.
The GlobalAdShare Product Line
GlobalAdShare has no retailable products or services. Instead, GlobalAdShare affiliates buy “ad packs” for $10, with the company guaranteeing an eventual 150% ROI ($15).
Bundled with each ad pack deposit are a series of advertising credits, which affiliates can use to display advertising on the GlobalAdShare website.
The GlobalAdShare Compensation Plan
GlobalAdShare accept $10 deposits from affiliates, which are made on the promise that the company will eventually pay out a 150% ROI ($15) on each deposit.
Your Ad Pack will mature/expire once you have earned 150% of its cost (during its life) from profit sharing, commissions, and bonuses.
25% of all ROIs paid out to affiliates must be re-invested back into the scheme, via the purchase of more ad packs.
A 10% referral commission are also paid out on ad pack investments made by personally recruited affiliates.
When a GlobalAdShare affiliate joins the company, they are placed at the top of a 2×4 company-forced matrix.
A 2×4 matrix has 30 positions under the affiliate at the top (note that the above example omits the fourth level). These positions are filled via the recruitment of new affiliates, with each 2×4 matrix in the system filled company-wide (as more matrices are generated they take longer to fill).
When an affiliate’s 2×4 matrix is full of newly recruited affiliates, the company pays out a $15 commission.
Each GlobalAdShare affiliate receives their own 2×8 matrix. This functions the same as the 2×4 matrix, however it extends down eight levels instead of four.
The other difference is that an affiliates 2×8 matrix is only filled via their own recruiting efforts and that of their up and downlines.
Commissions are paid out of affiliate membership fees, with total matrix commissions capped at $255 a month.
GlobalAdShare do not clarify the specifics of how much of a commission is paid out per position filled in an affiliate’s 2×8 matrix.
P-Cycler and U-Cycler Matrix Commissions
GlobalAdShare’s U-Cycler and P-Cycler matrices are a series of three matrices (one 2×1 matrix and two 3×1 matrices).
Each time an affiliate deposits money with the company for an ad pack, a position in both the U-Cycler and P-Cycler matrices are created.
Once these matrices fill, GlobalAdShare pay out a commission as follows:
- U-Cycler – $1 (2×1), $2 (3×1) and $3 (3×1)
- P-Cycler – $2 (2×1), $3 (3×1) and $5 (3×1)
Note that cycling out of the third 3×1 matrix creates a new position in a new 2×1 matrix, with the cycle process repeating again.
Referral commissions are paid out when a GlobalAdShare’s personally recruited affiliates cycle out of both cycler levels, paying $1 when a recruited affiliate cycles out of either of the two 3×1 matrices.
Cash Pool Bonus
GlobalAdShare take $1 from every ad pack deposit and put it into a Cash Pool. When the Cash Pool reaches $50,
$2 will be awarded randomly to 25 members (20 members with $0 balance and 5 members with less than $15 in their account balance).
Affiliate membership to GlobalAdShare is $15 a month.
We have designed and created the next generation software that combines a revenue sharing, a matrix, and a cycler system all in one place.
If you like revenue sharing programs but disappointed because none of them last very long and if you like matrices and cyclers but not cycling and earning fast enough, then you have come to the right place.
With no retailable products or services (and thus no retail revenue), and affiliates paid a 150% ROI from newly invested affiliate money, GlobalAdShare fits the definition of a Ponzi scheme.
Affiliates make $10 investments with the company on the implication that they will in return eventually pay out $15 on each investment. The advertising credit service is unrelated to the commissions structure, serving only as a front to GlobalAdShare’s core Ponzi commission mechanic.
Despite this however, in their FAQ GlobalAdShare insists that it’s legal and not a Ponzi scheme.
13. Is GlobalAdShare legal?
Yes, we are. We are paying commissions from actual purchases of advertising within our system.
We are not paying a percentage… we are paying you commissions from other members who paid already. So the money is real. It is coming from the actual money received by the system.
It is a traditional business model where you get paid from profits and not from money that will be received from future payments which is what a ponzi really is.
Your commissions and the money in your account is real money, you can cash out anytime and get paid within 24 hours!
For starters, the percentage ROI is indeed implied, however that is neither here nor there when one considers that implied or not, a specific 150% ROI is the only reason GloblAdShare affiliates invest in the first place.
With GlobalAdShare’s “profits” being sourced 100% from affiliates and paid out to existing affiliates on positions that have not yet reached a 150% ROI, GlobalAdShare demonstrate a thorough misunderstanding of what a Ponzi scheme is.
A Ponzi scheme cannot pay out on money it hasn’t yet received, and as such every Ponzi scheme pays out with “real money” (excluding virtual currency Ponzi points MLM revenue-sharing models).
It is the shuffling of new affiliate money to existing affiliate investors that defines a Ponzi scheme, not whether the money is real or not.
In summary, GlobalAdShare is your typical advertising based Ponzi scheme with an attached feeder matrix system, designed to retain new investors and keep recruitment of new investors up.
If new affiliate invested money dries up, so too will the daily ROI and matrix commissions paid out. Monthly affiliate fees will prolong the inevitable collapse, however they also act as a double-edged sword in that it is additional money affiliates are pumping into the scheme.
Regardless, despite the claims of infinite sustainability on the GlobalAdShare website, sooner or later the scheme will run out of real money and collapse.