Gas Club of America Review: Gas & penny auctions?
Gas Club of America was launched in late 2012 and is owned by parent company “Dream Starters LLC”.
Dream Starters LLC and Gas Club of America are based in the US state of Texas and are headed up by CEO and President, Troy Mason.
This appears to be Mason’s first MLM venture, although he has launched several non-MLM companies since the conception of Dream Starters LLC back in 1997. A marketing video on the Gas Club of America website goes into more detail:
Read on for a full review of the Gas Club of America MLM business opportunity.
The Gas Club of America Product Line
Gas Club of America has no retailable products or services. Affiliates are only able to market membership to the company.
A “members only” penny auction is attached to Gas Club of America affiliate membership, with affiliates able to participate in one penny auction a day on the company website.
Typically these daily penny auction is for gift and gas cards. I couldn’t see anywhere on the Gas Club of America website that stipulated how much penny auction bids cost, however the site does mention they are only available in packs.
Roadside assistance is also bundled with Gas Club of America affiliate membership, with affiliates receiving towing, emergency road service, essential fluids or supplies delivery, flat tire changes, emergency battery service and lockout service.
The Gas Club of America Compensation Plan
The Gas Club of America compensation plan pays affiliates commissions on the recruitment of new affiliates and purchase of penny auction bid packs.
For every Gold affiliate recruited, the recruiting affiliate is given a $25 VISA giftcard.
Using a 2-up style compensation plan, affiliates must pass up half of their first two membership sale commissions to their uplines.
$5 is paid out each month on the first two Gold affiliate membership subscriptions sold (with $5 passed up on each sale to the affiliate’s upline), with the third and every affiliate membership thereafter generating a $10 commission.
In turn, recruited affiliates must then pass up half of their first two membership sales commissions too. This requirement exists for the third, fourth and fifth personally recruited affiliates only.
The first two affiliates recruited by these third, fourth and fifth affiliates is then passed up to the original affiliate. At this point the commissions process repeats itself (2nd, 4th, and 5th and then first two pass-ups etc.).
The Gas Club of America compensation plan video indicates that this monthly commission is only paid out on the sale of Gold affiliate memberships, whether it is paid out on Silver or Bronze memberships is unclear.
Gas Club of America use a 3×10 matrix to pay out monthly residual commissions on the recruitment of Silver and Gold affiliates.
A 3×10 matrix places an affiliate at the top of the matrix with three legs branching out directly under them (level 1).
In turn, these three legs branch out into another three legs (level 2) and so on and so forth down 10 levels of recruitment.
Each leg position represents a recruited Gold or Silver affiliate, with positions filled either via direct recruitment or the recruiting efforts of an affiliate’s up and downlines.
For each Gold and Silver affiliate in their matrix, an affiliate is paid $1 a month.
Penny Auction Bid Commissions
Gas Club of America penny auction bid packs generate a 20% commission for an affiliate’s upline.
This commission increases to 40% once an affiliate has recruited at least three new affiliates.
Joining Gas Club of America
Gas Club of America has four affiliate membership options:
- Free – commission on penny auction bid purchases
- Bronze ($14.95 a month) – 30 auction bids each month
- Silver ($25 a month) – 50 auction bids each month
- Gold ($99 a month) – 200 auction bids upon joining and 50 auction bids a month thereafter
With no retailable products or services and commissions paid out on the recruitment of new affiliates (fees), Gas Club of America wanders into clear pyramid scheme territory.
The roadside assistance is marketed as being “FREE” on the Gas Club of America website, leaving the attached penny auction bids the only “product” being sold.
With bids bundled in with monthly membership and only one auction occurring daily, there seems to be little no incentive for affiliates to purchase bids. And even if they did, there’s still the issue of no retail customers existing within the company.
Looking at the bigger picture, what we have with Gas Club of America appears to be a recruitment driven membership fee opportunity, with an attached penny auction and roadside assistance bundled in.
Aside from only hosting one auction a day, the penny auction itself appears to only be a half-hearted attempt in that giftcards are all that are offered. Furthermore affiliates are also prohibited from winning more than one auction a week:
VERY IMPORTANT! Win limit is 1 per week per household, USER ID or IP address. Any attempt to bypass this will result in termination of account/accounts and forfeiture of all bids and winnings.
The focus of the Gas Club of America business is clearly the commissions generated via recruiting new affiliates (matrix and VISA cards), with the idea being that they sign up at the Gold affiliate membership level.
Sitting at the top of the pyramid is none other than Gas Club of America CEO and President Troy Mason, with no less than 5 positions in the company:
“Troy1 Mason” appears to be the first affiliate account entered into the system on December 3rd, 2012.
As with all pyramid schemes, once those at the bottom fail to recruit new members they’ll stop paying their membership fees. Those above them stop earning their commissions and also stop paying and before you know it the entire scheme has collapsed.
Meanwhile what any of this has to do with “gas” I have no idea. Gas Club of America do state that membership to their company does grant affiliates the right to ‘market our program through retail locations‘, which I suppose encompasses gas stations. Other than that the only other link is that the VISA cards paid out can be used to purchase gas.
Neither link however is central to the compensation plan or the Gas Club of America business model itself.
Update 2nd June 2013 – Yesterday Gas Club of America’s owner, Troy Mason, added a retail option to the company.
Retail customers can now sign up for free and purchase auction bids. They are of course also unable to earn any commissions from the Gas Club of America compensation Plan.
Hopefully over time this will now become the core of the business. As a prospective Gas Club of America affiliate, I’d naturally encourage you to check with your upline as to how many retail customers they have, as well as how much revenue they bring into the company vs. that of any recruited affiliates.
Anything less than around 50% of revenues from retail customers would indicate that, despite its introduction, the retail customer option has had little effect on Gas Club of America’s revenue generation.