AdsPeopleNet Review: $10 virtual shares
There is no information on the AdsPeopleNet website indicating who owns or runs the business.
The AdsPeopleNet website domain (“adspeoplenet.com”) was registered on the 1st of June 2013, and lists a “Ronald Hendrik” of “APN Limited” as the domain owner.
A “certificate of incorporation of a private limited company” for APN Limited is also provided on the AdsPeopleNet website (4569867), operating out of London in the UK.
As a measure of legitimacy, such certificates should be taken with a grain of salt as they are available online to anybody for as little as £15.00, with “same day service” available for an additional fee.
Case in point, various UK company databases list APN Limited’s “main activity” as “68100 – Buying and selling of own real estate”. This doesn’t appear to have anything to do with the AdsPeopleNet MLM business opportunity.
As always, if an 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 AdsPeopleNet Product Line
AdsPeopleNet does not have any retailable products or services, with affiliates only able to market affiliate membership to AdsPeopleNet itself.
Once an affiliate has joined the company, they are provided a position in the compensation plan and are able to purchase “shares”.
The AdsPeopleNet Compensation Plan
The AdsPeopleNet compensation plan revolves around the recruitment of new affiliates and the purchasing of profit-sharing shares.
Recruitment Commissions
There are four levels of membership within AdsPeopleNet,
- Bronze – $10 a month
- Silver – $20 a month
- Gold – $30 a month
- Platinum – $50 a month
When a new affiliate is recruited, they are required to select one of the above ongoing monthly membership options. When a new affiliate does this and starts to pay their membership fees, the affiliate who recruited them earns a commission.
How much of a commission is paid out to a AdsPeopleNet affiliate is determined by how much they pay for their own affiliate membership:
Bronze affiliates
- Bronze, Silver, Gold or Platinum affiliate recruited – $10 for the first month and then $5 every month thereafter
Silver affiliates
- Bronze affiliate recruited – $10 for the first month and then $5 every month thereafter
- Silver, Gold or Platinum affiliate recruited – $20 for the first month and then $10 every month thereafter
Gold affiliates
- Bronze affiliate recruited – $10 for the first month and then $5 every month therafter
- Silver affiliate recruited – $20 for the first month and then $10 every month thereafter
- Gold or Platinum affiliate recruited – $30 for the first month and then $15 every month thereafter
Platinum affiliates
- Bronze affiliate recruited – $10 for the first month and then $5 every month thereafter
- Silver affiliate recruited – $20 for the first month and then $10 every month thereafter
- Gold affiliate recruited – $30 for the first month and then $15 every month thereafter
- Platinum affiliate recruited – $50 for the first month and ten $25 every month thereafter
A bonus is mentioned at some of the affiliate fee levels, however no further information (such as any qualification criteria) is provided, so I’ve omitted those commission amounts above.
Note that there’s a pass-up mechanic built into these commissions, with the first affiliate recruited (and all subsequent commissions) passed up to an affiliate’s direct upline (the affiliate who recruited them).
Profit-sharing Shares
AdsPeopleNet’s profit-sharing shares cost $10, with the company promising a ROI over a set period of time. How much of a ROI is paid out and over how long is determined by an affiliate’s monthly membership fee:
- Bronze affiliates – 200% ROI over 200 days, capped at 100 shares
- Silver affiliates – 200-250% ROI over 200 days, capped at 300 shares
- Gold affiliates – 200-300% ROI over 300 days, capped at 500 shares
- Platinum affiliates – 200-365% ROI over 365 days, capped at 700 shares
AdsPeopleNet advise that the reason for the fluctuation in ROI is because the
demand for advertising Shares may rise and the price for each rental spot may grow up.
Joining AdsPeopleNet
Affiliate membership to AdsPeopleNet is available at four levels:
- Bronze – $10 a month
- Silver – $20 a month
- Gold – $30 a month
- Platinum – $50 a month
Conclusion
As an advertiser you can purchase our “advertising share of unique visits” (Shares), for which you will get a daily income during all the term of spot rental.
Each share is estimated at $10. With the course of time, a demand for advertising Shares may rise and the price for each rental spot may grow up, so at a certain time the company or partners will be able to sell each Share for higher price.
As per the above marketing copy taken directly from the AdsPeopleNet website, the basic idea with the opportunity is that you’ve affiliates investing in $10 shares. After these investments mature, under the guise of selling these virtual shares, the company then pays out a pre-determined >100% ROI.
That money of course is sourced from new investments made during the maturity period of existing investments.
This qualifies AdsPeopleNet as a typical Ponzi scheme. On top of this the company charges affiliates a monthly fee, which is then recycled amongst those who recruit new investors into the scheme – adding an additional pyramid scheme layer to the opportunity. This equates AdsPeopleNet’s business model to a Ponzi / pyramid scheme hybrid.
In the instance of the share based Ponzi scheme, if new affiliates stop investing then AdsPeopleNet has no money to pay everyone out with. Due to the longish term for maturity the company has set, it is unlikely those who invest will have any indication when this inevitably takes place.
On the pyramid side of things you have a “pay to play” mechanic, meaning the more an affiliate contributes financially to the scheme (by way of participation fees) the more they earn.
Commissions are dependent on recruitment and will inevitably stall once new affiliate recruitment dries up.
It is possible that some affiliates will not recruit and focus solely on the Ponzi investment side of the business, however with the monthly membership fee effectively eating into their ROIs, over the course of 200-365 days the continued payment of affiliate membership fees seems unlikely.
