LibertaGia Review: Cloud storage & recruitment
There is no information on the LibertaGia website indicating who owns or runs the business, with the company only providing the following vague marketing spiel:
LibertàGià is a technology company working internationally which main goal is to develop apps that will solve common problems in people’s lives.
The LibertaGia website domain was registered on the 19th of July, however the domain registration is set to private.
A corporate address in the Portuguese city of Lisbon (Lisboa) is provided on the LibertaGia website, possibly indicating that the company is being run out of Portugal.
Despite the lack of disclosure on the LibertaGia website, further research into the company revealed affiliates naming a “Rui Salvador” as the company’s CEO and founder.
This information appears to be confirmed by visiting Salvador’s Facebook profile, which is full of LibertaGia marketing material:
Possibly attributable to language barriers, I was unable to find any information on Salvadaor’s past MLM ventures.
Read on for a full review of the LibertaGia MLM business opportunity.
The LibertaGia Product Line
LibertaGia has no retailable products or services, with affiliates only able to market company membership to the site itself.
Each LibertaGia membership level (Bronze, Silver and Gold) comes bundled with online cloud storage, a service the company calls “Live in Box”.
- Bronze (free) – 3 GB storage
- Silver ($899) – 500 GB storage
- Gold ($1499) – 1 TB storage
The LibertaGia Compensation Plan
The LibertaGia compensation plan revolves around the recruitment of new paid affiliates, either at the Silver ($899) or Gold ($1499) affiliate levels.
Recruitment commissions are offered at all three LibertaGia affiliate membership levels, with how much an affiliate earns dependant on how much they themselves paid for affiliate membership:
- Bronze – $30 for recruiting a Silver affiliate, $50 for a Gold
- Silver – $40 for recruiting a Silver affiliate, $70 for a Gold
- Gold – $60 for recruiting a Silver affiliate, $100 for a Gold
Direct Sale Bonus
Promised to be offered through the Live in Box platform but as I understand not yet in existence, LibertaGia offer a Direct Sale Bonus if an affiliate sells one of the proposed services.
- network chat
- friend’s list
- email access
When one of the proposed services is sold by a LibertaGia affiliate, how much of a commission they earn depends on their affiliate membership rank:
- Bronze – 5%
- Silver – 7%
- Gold – 10%
Residual commissions in LibertaGia revolve around points, generated via the sale of Silver and Gold affiliate memberships:
- Silver – 300 points
- Gold – 500 points
Any services sold through the LibertaGia network also generate points at a rate of $3 spent per point generated.
Points are tracked through a binary compensation structure, with each purchased affiliate membership creating a new position in the structure.
A binary compensation structure places an affiliate at the top of two binary teams (left and right):
As these two teams grow point values are tracked between the two sides, with an affiliate earning a percentage of the points generated in their weaker binary side.
How much of a percentage is paid out in commissions depends on how much an affiliate has spent on their membership:
- Bronze – 15%
- Silver – 20%
- Gold – 30%
Point Generation Bonus
As affiliates generate points cumulatively via affiliate recruitment, the company keeps track of their point totals and rewards them at certain milestones. Note that only points generated on an affiliate’s weaker binary side are tallied.
- Ruby (70,000 points) – Ruby pin and access to a “leader’s school”
- Emerald (150,000 points) – Emerald pin, access to “leader’s school” and an “entrepreneur’s kit”
- Diamond (600,000 points) – Diamond pin, a gold ring and access to a “millionaire’s retreat” (financial and investment advice)
- Diamond Executive Double (3,500,000 points) – Diamond Double pin plus a “gorgeous international cruise”
- Diamond Executive Triple (10,000,000 points) – Diamond Executive Triple pin and a “super luxury car”
- Global Ambassador (50,000,000 points) – Global Ambassador pin, an Ambassador’s ring and either a Ferrari or mansion
- Partner (100,000,000 points) – Partner pin
- Partner Director (500,000,000 points) – Partner Director pin, a “regional office”
- Partner President (950,000,000 points) – Partner President pin, a “lifetime retirement” bonus
At the Partner and above affiliate ranks, the company provides access to a “profit-sharing” scheme. No specific details are provided in the LibertaGia compensation plan material.
Membership Fee Commissions
All LibertaGia affiliates must pay a “monthly activation fee”, which the company pays a commission out on. This commission is paid out down six levels of recruitment, with how much of a percentage paid out determined by an affiliate’s membership rank:
- Bronze – 2%
- Silver – 4%
- Gold – 6%
“Variable Earnings” Commission
A “Variable Earnings commission is mentioned in the LibertaGia compensation plan material, however the company does not explain what this commission is actually paid out on.
A percentage is quoted for the commission, determined by an affiliate’s membership rank:
- Bronze – 1%
- Silver and Gold – 2%
Affiliate Rank Bonus
There are four affiliate rank bonuses that reward affiliates for achieving set sales quotas. They are as follows:
- Seller ($350 in a week) – “android powered phone”
- Junior ($2000 in a 4 week period) – replicated storefront and “”ultrabook”
- Senior ($800,000 in a 12 month period) – International Cruise and a “luxury car”
- Master ($2,000,000 in a 12 month period) – a mansion
Commission Withdrawal Fees
Whenever a LibertaGia affiliates wishes to withdraw earnt commissions, the company charges a separate fee as follows:
- Bronze – $50
- Silver – $75
- Gold – $100
The above amounts are charged irrespective of the amount being withdrawn in commissions, qualifying an affiliate to withdraw for 30 days from the time of payment.
Affiliate membership to LibertaGia requires either a Bronze, Silver or Gold membership:
- Bronze – free
- Silver – $899
- Gold – $1499
The LibertaGia compensation plan material makes several references to a “monthly activation fee”, however no specific dollar amount is provided (either in the compensation plan material or on the LibertaGia website).
As with most social network orientated MLM companies, the idea behind LibertaGia appears to be pay out commissions on affiliate fees now on the promise of generating enough retail activity later.
With no specific information currently provided, it is unclear whether any proposed services will be actual LibertaGia offerings or simply third-party affiliate offers.
As it stands now though whatever is promised through the Live in Box platform is irrelevant. LibertaGia charge affiliates money to earn money directly off the recruitment of new affiliates.
There is a distinct “pay to play” nature to the LibertaGia compensation plan, with how much an affiliate contributes financially to the scheme directly affecting what they can earn in commissions (Bronze, Silver and Gold membership).
Furthermore at the price being charged for what is essentially nothing more than cloud storage, it’s clear to see that the overwhelming majority of affiliate fees being charged is simply pumped back into the compensation plan.
For comparison sake I had a look at Rapid Share, who offer 700 GB of storage for 16.43 EUR a month ($22.47 USD). Annually this equates to $269, revealing a great deal of inflation being charged by LibertaGia.
Would LibertaGia’s affiliates be paying the amounts they do for online storage without the attached income opportunity?
I doubt it, and therein lies the problem.
Strip away the cloud storage front and all you’re left with is your typical recruitment driven pyramid scheme, with those who recruit the most earning the lion’s share of commissions – and little to no retail activity within the company.
Once the recruitment of new affiliates and payment of affiliate fees stops, so too do LibertaGia’s commission payments.