JubiRev ditch auto reinvestment, add Quality Score
After taking in who knows how many hundreds of thousands (millions?) of dollars from affiliates who were urged to “purchase as many JubiBucks as (their) resources allow(ed)“, recruit as many “low-hanging fruit” affiliates from rival revenue-sharing companies and months and months of reassurance that their revenue-sharing compensation plan was “100% compliant”, JubiRev announced today two major changes to the plan.
In a webinar that went live just a few hours ago, JubiRev announced that they would be abolishing the automatic (and mandatory) re-investment component of the daily ROI paid out to affiliates, as well as the introduction of a “Customer Quality” score.
100% eCash Daily Payouts
Prior to today’s changes, JubiRev affiliates were paid a daily ROI in JubiBucks with a mandatory 40% re-investment in JubiBucks.
Sometime over the next fortnight, JubiRev are changing it to a 100% daily eCash payout.
What does this mean?
Affiliates now have complete control over how much of the daily ROI paid out is re-invested and withdrawn as commissions. Whether or not this will still be an automated process able to be set by affiliates is not clear.
Customer Quality Score
The Customer Quality Score is a metric JubiRev are going to introduce to measure how many of the JubiPoints affiliates dump on customer accounts are actually used to purchase products.
Despite reassurances that JubiRev customers will be lining up in droves to purchase JubiRev products with their own money, it’s no secret that by and large this has not occurred as planned.
Like Zeek Rewards, by and large JubiBucks given away to JubiRev customers thus far has not resulted in customers using their own money to purchase JubiRev products. In a large number of cases, these JubiPoints haven’t even been used.
Well aware that one of the focal points of the SEC in taking down the $600M Ponzi scheme Zeek Rewards was the revelation that only 0.25% of the bids dumped on customer accounts were actually used, JubiRev are going to try and address this with a Customer Quality Score.
Going forward, JubiRev affiliates will be required to maintain a 10% Customer Quality Score if they wish to receive a daily ROI calculated using all of their accumulated JubiPoints balance.
A 10% Customer Quality Score means that 10% of the JubiBucks an affiliate has dumped on customers, have actually been used towards purchasing JubiMax products.
Affiliates who don’t have a 10% Customer Quality Score, affiliates who have just been dumping JubiPoints on fake customer accounts to generate JubiPoints for the daily ROI, are only going to earn on the point difference that would qualify them at 10%.
Eg. If you had 1000 JubiBucks dumped on customer accounts to generate JubiPoints, however less than 10% of these JubiPoints had been used, you would only earn on 10% of your JubiPoint balance (100 JubiPoints).
This is an ongoing requirement that is calculated daily. Effectively, if an affiliate does not manage to meet this 10% Customer Quality Score requirement, their JubiPoint balance will slowly drop until the requirement is met (once point retirement kicks in).
Once the amount of dumped JubiBucks reaches 10% of the total JubiPoint score, then an affiliate will earn on 100% of their JubiPoints. Note however that this is a rolling requirement and as points retire and new JubiBucks are dumped each day, 10% of these new JubiBucks still need to be used.
New Customer Volume Requirements
In order to qualify for their daily ROI payout, JubiRev affiliates must now also qualify with Customer Volume points. These points are generated when a JubiMax customer spends their own money on JubiMax products (Jubibucks dumped on them do not count).
If an affiliate has 25,000 JubiPoints or less, they need to maintain a monthly 30 CV point requirement.
If an affiliate has a JubiPoint balance of 25,001 or more, they need to maintain a monthly 60 CV point requirement.
New JubiRev affiliates are given 60 days to achieve the CV requirement.
In tonight’s JubiRev webinar J. Joshua Beistle announced that the above changes were being introduced after “leaders” expressed concerns over “abuse” occurring in the MLM revenue-sharing niche. Beistle specifically blamed Zeek Rewards (revealed by the SEC to be a $600M Ponzi scheme) and GoFunPlaces (a revenue-sharing MLM company who abandoned the US market due to legal advice that the business model was “not legal”).
As a result these leaders were hesitant to join JubiRev with their teams, despite Beistle assuring these leaders to “quit worrying about” their concerns.
Beistle reveals that after consulting with “80% of the world’s most renowned MLM attorneys” (no names were provided), that the above changes were needed to “solidify the JubiRev stance on compliance”.
Where these MLM attorneys were before thousands of affiliates handed their money over to JubiRev or why Beistle had been running around assuring everyone JubiRev was compliant under their previous business model was not explained.
The problems the SEC had with Zeek Rewards were made public in August of 2012. Despite this however, JubiRev went ahead and launched with a near-identical affiliate-funded daily ROI compensation plan.
Looking at metrics such as JubiRev’s Alexa ranking and promotion of JubiRev within the industry, it’s clear that the company has slowly come to realise that, in encouraging their affiliates to mass-recruit affiliates hooked on the passive investment nature of Zeek Rewards and the various reload companies that have come after it, they aren’t going to change their behaviour on their own.
These affiliates flocked to JubiRev and other companies on the promise that they could invest their own money, buy fake generated customers from third-party merchants (or set them up using fake emails) and after dumping whatever qualifier the company used (sample bids, JubiBucks, GoFunDollars etc.), generate points that would then be used to calculate a daily ROI.
Zeek Rewards introduced this re-imagining of a Ponzi scheme and every MLM revenue-sharing company since has tried to run with it.
What has happened thus far is that either the opportunity has collapsed shortly before or after the initial honeymoon 100% re-investment period before affiliate’s points begin to expire, or after seeking legal advice they’ve abandoned the business model altogether.
JubiRev, guilty of raising funds on the post Zeek Rewards passive investment gravy train, have taken a slightly different approach and are now seeking to force their affiliates to generate customer purchases. I say force in that if it doesn’t happen, affiliates don’t get their daily ROI – which, let’s face it, is the only reason affiliates joined the company to begin with.
Naturally this is going to upset what is probably a large portion of their affiliate-base who will simply not accept that an affiliate-funded scheme that pays out a daily ROI subject to how much an affiliate puts into the scheme is nothing more than a Ponzi.
Due in part to the encouragement and repeated endorsement by JubiRev management for affiliates to purchase fake customers from third-party merchants who don’t ever use the JubiBucks dumped on them, many affiliates will no doubt now be in the precarious position of not being able to contact these customers and urge them to use the JubiBucks they dumped on them.
As such once the Customer Quality Score metric kicks in, these affiliates are going to be left with no choice but to try and build their JubiPoint balances again, working with only the 10% JubiRev are paying them on each day.
And of course that’s on the assumption that they can then find actual customers to use at least 10% of the JubiBucks they continue to give away.
As the news of the Customer Quality Score and change to 100% eCash payouts were made, here’s how one affiliate took the announcements:
That is not what people were told when they signed up. They were told to giveaway JubiBucks and eventually customers may or may not use them but your job is to giveaway JubiBucks.
So now you are being forced to have someone make a purchase with their credit card even though you have no control over this.
Now that they have everyone’s money locked up they realize that customers aren’t using the JubiBucks.
Hell all you had to do was look at Zeek to figure that out.
Well aware of this expected backlash from affiliates who are going to feel like they’ve been bait and switched on, JubiRev President J. Joshua Beistle took the time to adress these affiliates directly during tonight’s webinar:
There are those of you out there that come from other rev-share companies, and I’m happy that you’re here.
What in part you have carried over a culture which we need to abandon, the culture of revenue-sharing needs to go away. It’s is over.
This is not an investment, it never has been.
For those of you who might have been in another company, they’re not here are they? Leave it at the door, the old rev-sharing mentality is not the Jubi way.
If the investment side of the revenue-sharing culture is your thing, go somewhere else.
Again, why affiliate’s weren’t told this before thousands of them handed over money to JubiRev on the promise of the continuation of revenue-sharing profits past, was not clarified or explained.
Some other bonuses were mentioned on the call (car bonus, fast start bonus, rank advancement) however no specifics were provided. Beistle did state that information would be forthcoming within a week though, with information likely to be released sometime next week.
Pending an official revision to the JubiRev compensation plan documentation we’ll of course have a full review up.
Until then, it’s going to be interesting to see what happens going forward. Passive investors who were directly responsible for the “success” of every revenue-sharing company in the industry have just been given the boot.
Meanwhile there’s also the question of whether a 10% use of JubiBucks will change the revenue flow in JubiRev which, quite obviously has thus far been overwhelmingly affiliate funded.
To date, JubiRev has not made public the percentage of JubiBucks that have actually been used vs. given away by affiliates. JubiRev’s Video Manager T. LeMont Silver did however mention on a webinar after the official JubiRev one that the company “wasn’t happy” with the amount of JubiBucks being used by customers.
Will forcing affiliates, who have convinced themselves that the passive revenue-sharing MLM business model is legit, find actual customers and convince them to purchase products work in the long-term?