AddWallet: “We get paid by advertising companies”
Following a series of ongoing problems plaguing the AddWallet business opportunity, the company has struggled to keep up with the expectations of affiliates who invested with them.
The daily ROI percentage paid out continues to leave most affiliates unable to break even and widespread reports from affiliates indicate that revenue-sharing points continue to disappear without an identifiable explanation or regularity.
A day or so a new wave of reports began to hit social media with AddWallet affiliates claiming they were unable to log into their accounts. Those affected were being redirected to the Google homepage after entering in their affiliate ID and password.
Seeking to address these concerns, AddWallet sent out an email to affiliates yesterday advising
Due to the ongoing fraudulent activity, we have been forced to implement some harsh security features this weekend.
For the safety of all our members accounts we have added new layers of security within the system. Due to that many of you might not be able to log into your accounts right now.
This is the reason: if you are logging into more than 2 accounts from your IP address, you have been logged out of the system.
This feature will be turned back off this afternoon. After 6pm today you should be able to access your account again.
We had to take this step for two reasons: stacking and hacking!
Stating that ‘stacking and hacking have become a real issues‘ within the opportunity, AddWallet advised informed its affiliates that their
security firm has advised us to put in deeper security measures.
The number one item you as a member need to do immediately is change your AddWallet password and make sure your STP or Payza information is correct in your back office.
We have also found out that hundreds of members have had their emails hacked. You need to clean this up as soon as possible.
Meanwhile “stacking” is the commonly practiced Ponzi strategy investors use to “stack” multiple positions under themselves. Typically using family member’s names or simply fake accounts, affiliates do this to make the most of referral commissions offered on investments made with the company.
Only deciding now to tackle what they see as a problem, AddWallet appear to have affected quite a large portion of their affiliate base with the new security measures. As above they will be turning them off for now but whether or not they will return at a later was not made clear.
In any case, the company seems determined to combat the issue, writing
Per our Terms and Conditions it is against company policy to run someone else‚s business and watch their ads for them. If you continue to do this, your membership will be at risk.
This activity is harmful to the company and it’s revenues and we have to make sure we protect your and our earnings.
What will happen to affiliates found to be running multiple accounts in order to game the system was not clarified.
One additional interesting tidbit of information revealed in the email was AddWallet’s claim that
We get paid by large advertising companies depending on traffic. These advertising companies do not pay companies like ours when the traffic for multiple accounts is coming from the same location.
Previously AddWallet have been tight-lipped about any additional sources of revenue they generate other than accepting direct investment from affiliates.
The existence of additional streams of revenue would go far to somewhat legitimise the revenue being paid out by the company as commissions, but still leaves the problem of the company paying out a daily ROI using affiliate funds.
Furthermore, which companies AddWallet are allegedly paid by is still a mystery. Typically traffic is only paid for if it is of some value to the advertisers paying for it, with the more targeted the traffic being resulting in a higher price for it.
AddWallet forces affiliates to view ads in order to receive their daily ROI so advertiser value would appear virtually non-existent.
Personally the only way I see AddWallet paying out the daily ROI (even the diminished rate currently being paid out) is via shuffling new investment from affiliates around to existing investors.
The purchase price of even the most targeted of web traffic still falls well short of the 0.25-1%+ daily ROI AddWallet have been paying out their affiliates.