Argent Global Network suspend ROI payouts (no funds)
Over the past few months Argent Global Network have continued to string what’s left of their affiliate-base along.
Restructuring, new business models and compensation plans have all been used to appease those who initially invested in the scheme, and now wonder where their money went.
Now, in an email update sent out to affiliates yesterday, the company is announcing it can no longer meet it’s daily ROI obligations.
A “lack of adequate funding”.
The email update, signed off on by Argent Global Network LTD, begins by explaining how AGN got to its current state.
Issues with their former processor Rapid Pay Global are cited, along with a US court ruling:
As you know, the reason that led to the initial changes to AGN’s business model is a result of the U.S. Circuit Court ruling in June of last year.
That ruling rendered our previous business model, which included the purchase and management of advertising packages, at odds with U.S. regulations.
The Circuit Court ruled that this was no longer an acceptable practice, and we moved to make a change to address this ruling.
I went back and looked my archives, finding that the only Circuit Court decision we covered that month was the Burnlonge appeal denial.
In essence, the appeal was denied because “92.6% of BurnLounge’s revenue in 2006” was sourced from affiliates. Retail sales activity was non-existent, thus making Burnlounge a pyramid scheme.
What this has to do with Argent Global Network running a Ponzi scheme, I have no idea. There are obvious differences between BurnLounge and Argent Global Network’s compensation plans, with the citing of the BurnLounge appeal coming off more as an excuse than reality.
Furthermore it wasn’t until late July (the BurnLounge appeal was denied in the first week of June), that Argent Global Network suspended its US operations.
Cue months of delays and numerous changes within the company, and at some point earlier this year, Argent Global Network emerged as a reboot.
We emerged out of the restructuring period with lots of energy and optimism from our members.
We had great expectations for the work that had been completed, and were looking forward to fewer systemic issues that would reduce the stress on the business.
I myself have been loosely following the developments, but till date there hasn’t really been anything concrete worth reporting on.
Business activity remains in standstill and, after AGN pulled a bait and switch, all that’s left are a bunch of Ponzi investors hoping to recover their initial funds.
In order to uphold the commissions promised these affiliates, AGN appears to have carried over its existing ROI liability into something they call “Profit Credits”, which is paid out via a “Profit Share”.
Yeah I know, doesn’t sound all that different to what they were initially offering. So much for “restructuring” I guess.
Anyway, here’s how that’s worked out:
There are still ongoing challenges for our members all over the world with the ability to fund into AGN.
The payout from the Profit Credits is causing additional financial strain on the company.
The restructuring paradigm is different from an initial launch because members are a bit more apprehensive. Members tend to adopt more of a ‘wait and see’ posture.
Members may pay their first membership in order to qualify for withdrawal, but do not necessarily go out to aggressively sponsor people or produce ad sales.
In the past members were recruiting a lot more aggressively.
Because “in the past” they were looking forward to their Ponzi ROIs. AGN’s affiliates were/are of the Ponzi ilk, they knew how to market a Ponzi scheme and attract new investors.
Now that the rug has been pulled (the ROIs might still be paid out but those who sign up today have a different comp plan to contend with), they aren’t interested in promoting the scheme.
They want their money back, hence the token payment of monthly fees.
Even though a percentage of our membership did resume recruitment and other activities that support the business, the collective support of our members was not sufficient to support the expenses of the Profit Share.
Our reality is that the level of activity that we had, has not been enough to support the withdrawals.
We have been looking at outside funding sources to bridge the gap until ad revenue picks up. Unfortunately, that has not yet come to fruition.
Therefore, due to lack of adequate funding at this time, we must suspend earnings from Profit Credits, and restrict that portion of the weekly withdrawal. We will continue to payout the matrix earnings.
Translation: You idiots aren’t bringing in enough new affiliates, so we can’t pay you your existing Ponzi ROIs.
History shows us that tacking on existing liabilities (legit or otherwise) onto a new MLM compensation rarely, if ever, works out well. This is because MLM compensation plans as it is are usually stretched skin-tight.
And if your new model differs to the model that your previous affiliates signed up to, don’t expect them to be marketing it with the same gusto anytime soon.
So now Argent Global Network’s original investors, who invested thousands of dollars on the promise of weekly ROIs of up to $140, are once again left wondering where their money went.
With the writing on the wall, that being Argent Global Network has all but stalled, the company is now effectively holding what’s left of everyone’s funds hostage.
The conditions of release?
Please note that we are suspending the profit credits only temporarily.
The suspension is an opportunity to create revenue streams to support the profit share, with the intention of building the business to the point where the traffic that we have can support the Profit Credit part of the business.
We want to work toward building more traffic, in order to have the funding sources that support profit share to become sufficient.
We will be releasing an aggressive plan where members can engage and help us build the revenue so that we can rebuild the profit share system adequately.
Recruit new affiliates, or else you’ll never see your money again.
Nevermind the fact that legitimate advertisers are simply not interested in advertising on websites built on Ponzi scheme foundations.
You can help us reach this goal by continuing to place and view ads daily.
These activities will help to sustain our Alexa ranking while we prepare the advertising platform to create an additional income stream for members through the selling of ad space.
The revenue from the selling of ad space will be used as a supplement, to help the company return to paying the profit credits faster.
Not only will your participation help us to come back sooner, but members will also receive a 30% commission for all ad sales.
…but try telling that to Argent Global Network.
With a good dose of amateurish enthusiasm, surely willpower alone will conjure up the funds required to pay off what remains of the original investor pool who lost money?
Argent Global Network’s net-winners have of course long-since departed.
My prediction is that AGN will continue to flounder, as their current offering in no way resembles anything remotely interesting to the crowd they signed up last year.
Refunds are off the table due to funds being paid out to the aforementioned departed net-winners, leaving Victor Rivel and friends in a rather delectable pickle.
How long before those who invested last year wake up and realize the lights are out, the music has stopped and there’s nobody left on the dancefloor?