Grocery Rewards Network Review: $150 recruitment scheme
Grocery Rewards Network launched in December 2014 and provide a contact address in the US state of New York on their website.
Further research reveals this address to be virtual office space rented from Regus:
Grocery Rewards Network would appear to exist in New York in name only.
Identified as the President of the company on the Grocery Rewards website is “Stephen G. Barr”.
Stephen G. Barr has a Harvard education background and is well experienced in the start up world.
He has sat on nearly 50 company boards and is one of the top 3% angel list investors.
This matches the information provided on Barr’s Facebook profile, where he identifies himself as being from New York but currently residing in California.
Given this, it’s likely that Grocery Rewards Network itself is in actuality being run out of California too.
Despite an extensive social media presence, I was unable to put together an MLM history for Barr.
Read on for a full review of the Grocery Rewards Network MLM business opportunity.
The Grocery Rewards Network Product Line
Grocery Rewards Network has no retailable products or services, with affiliates only able to market affiliate membership to the company itself ($150).
Bundled with Grocery Rewards Network affiliate membership is access to some sort of cashback program, the details of which are scarce.
In their FAQ, Grocery Rewards Network claim their affiliates
can continue to go to the favorite grocery store of your choice (and so long as you) enter your receipt in our exclusive online membership portal … you can redeem your affiliate grocery reward account once a month when it reaches $600.
This seems to contradict what is written elsewhere on the site (“membership” section):
You can purchase $250 a month in groceries from your favorite store and through our EXCLUSIVE membership receive back 10% in Grocery Rewards up to $300 per year!
Whether affiliates can generate $600 a month or $300 a year through grocery shopping is unclear.
Unfortunately no further specifics are provided as to how Grocery Rewards Network source this cashback money (the “terms” link on the website was disabled at the time of publication).
The Grocery Rewards Network Compensation Plan
Grocery Rewards Network pay affiliates to recruit new affiliates using a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, broken down into two sides (left and right):
From the top affiliate position, two positions emerge to make up the first level of the binary. Positions are then generated in multiples of two each level, down a theoretical infinite number of levels.
Positions in the binary represent recruited affiliates, either via direct recruitment or the recruiting efforts of an affiliate’s upline and downline.
Commissions are paid whenever a new pair of recruited affiliates are matched on either side of the binary (one on each side).
When this happens, Grocery Rewards Network pays out a $20 commission, with affiliates able to earn up to $3000 a day (150 new affiliates on both sides of the binary).
Binary commissions are calculated daily, with positions in the binary only able to be matched once.
Joining The Grocery Rewards Network
Affiliate membership with the Grocery Rewards Network is $150.
Conclusion
With nothing being marketed to retail customers and all commissions paid on the recruitment of new affiliates, Grocery Rewards Network fits the definition of a recruitment-driven pyramid scheme.
Affiliates buy in for $150 and are then paid to recruit new affiliates who do the same.
The grocery side of the business is superficial, with use of the cashback network having nothing to do with the MLM side of the business (through which commissions are only paid on recruitment of new affiliates).
That aside, I don’t really understand where Grocery Rewards Network are getting the funds to pay their cashback from.
The only money flowing into the business is from affiliate fees, which when you discount recruitment commissions (remember a newly recruited affiliate can appear in multiple affiliate’s binary’s to generate a pair), doesn’t leave much left. Certainly not enough to cover hundreds of dollars in cashback.
Infact with their seemingly being no restrictions on where affiliates can shop, and only the recording of the receipt mattering, I’m pretty sure there’s something suss going on here.
Due to the lack of information provided by Grocery Rewards Network however, there’s not enough information provided to put together an accurate picture of their cashback.
Regardless, it’s a moot point in light of the MLM opportunity itself having nothing to do with it.
As with all pyramid schemes, once affiliate recruitment slows down so too will the recruitment commissions paid out.
At $150 to sign up, an affiliate will need to fill 16 positions in their binary just to break even.
Anyone who doesn’t achieve that once the post-launch recruitment frenzy dies down will of course be left holding the bag.
Or you can read it as “you can make $300 a year, but we only let you take out money when you reach $600”
Which basically means NOBODY will be accumulating saving through shopping… EVERYBODY is going recruiting.
This is bogus when Costco membership is under $100 (a year) and if you order $250 delivery’s FREE (if you’re a business member, non-perishable items only)
barr’s “MIT connection” is explained here:
i could do open online courses too, and add MIT to my profile.
i bet barr’s ‘Harvard education’ has a similar explanation.
and that part, about being on the board of ’50 companies’, is such a Long Reach!, you can disbelieve it immediately, without bothering to investigate it .
Typical pay to play deal which would have no retail only users, after all, who would spend $150. up front to save 10% and only if the company stays in business will it be that significant savings. The same old same old as I see it, and in no case has any such rebate deal ever lasted.
To many red flags and BS, especially the board member of 50 companies, absolutely impossible for most legitimate companies do not want someone who has been on boards of dozens of companies, never mind 50.
So does that mean most of these companies are no longer in business? LOL!
Success to all.
it’s just like that one that was out of Fla.
Wonder why he doesn’t mention his alleged Harvard education on the facebook page.
Barrington Investment Group Ltd appears to be scabbing the name of another group or two (and he only started there in the last 8 days according to his facebook. lol).
This one list it’s headquarters in Spain:
linkedin.com/company/barrington-investment-group-ltd
While the Barr version states they are located, well, they don’t:
linkedin.com/company/barrington-investment-group-ltd (again missing the coveted Harvard education claim)
And then there appears to be a group under the same name in Bermuda:
barringtoninvestments.com/contact.html
He seems to like to pump himself up.
I have seen scammers from fraudulent bill collectors to Ponzi / Pyramid scams do the “add our company logo to the pic” Photoshop Fail.
Anytime you see “clip-art staff” or “clip art office”, sure sign of a fraud.
But then again, perhaps I am being too negative- just like I was about zeek, Race Cycler, MLM Penny Auctions….etc….
XORLY
Fake Social Proof is a part of “fake it till you make it” strategem employed by less than scrupulous people.
Barr’s not listed as a lecturer or staff. I call bo——-gus!
NOLINK://www.edx.org/course/u-lab-transforming-business-society-self-mitx-15-s23x
Coach Van is pimping this one hard!!!
150 a year and you can claim 150 dollars in cash back which means after 6 straight months of maximizing the 250 or more from the same store . you can then request a check for 150.
Of course you must pay for the registered mail part of this. so you are still in the hole until month 12 when you then again can submit your 150 for a second time (and pay the mail fee).
So if the company stays in business for 12 months, and IF YOU SPEND 3000 minimum at the same store over 12 months with 250 minimum per month, then you will get a total of 300 MINUS THE COST OF THE mail.
so yes. paying 150 upfront to get lets say 280 back at the end of the year if you NEVER RECRUIT would be great.
But how are they affording this??? and their not.
$300 a year sounds like they’re counting on skimming it off affiliate fees.
That’s of course running on the assumption enough affiliates join.
Either way clearly the cashback has nothing to do with the MLM side of the business which is all recruitment.
I hear from a reliable source that Eric Dalius is the mastermind behind this.
His name is not mentioned, so what does that tell you??
The way I see it; Stephen G. Barr could very well be a scam artist. But in reality, Mr. Barr shows his ingenuity by coming up with an usable commodity to fund his charitable investments to outweigh his non-charitable investment.
Just because he knows how to make and keep money. Does that mean he’s a scam artist.
The answer is No! The whole program is totally legal or else he would be in prison by now. Stephen G. Barr is a shy geek and a financial genius and a philanthropist. He doesn’t need anyone’s money. After all, he is at the top 3% Angel List Investor.
That means he knows how to handle money and you’re right about the cash back. It doesn’t come from the MLM itself but actually comes out his pocket rewarding those who invests their $150 dollars.
He has found a way to help people save money on groceries and allows them to make money as a network marketing program, hence the name Grocery Reward Network.
What kind of dumbass logic is that?
I go steal something from a mall and what, it’s totally legal unless I wind up in jail?
Yet here we are…
Riiiiiiiight… and what about those recruitment commissions then?
You and I both know where the funds for them come from…
Mr. Weaver, are you making money from this then? Do you think this will last?
So I’m assuming the company is out of business and all money paid in is lost?
I got in at the $100 prelaunch price and then purchased 2 e-coins (?) for $100 each. Do we have any recourse?
I sent a question to “customer service” (which was always a joke) on May 27 and still no answer. My “upline” won’t return my calls.
And what happened to all those top leaders who were on the opportunity calls talking about all the money that was flooding in to them?
If they’ve gone quiet then it might be over.
Looking at the comp plan again, those who heavily recruited have your money and everyone else loses out.
They are still in business, someone posted an ad on next door in my area.
Thanks for info,
Duder