Money For Causes Review: Weekly fee pyramid scheme
Money For Causes went into prelaunch a few weeks ago and is headed up by owner Amy Jacobellis.
Money For Causes does not provide their location on their website, however the company’s website domain (“moneyforcauses.com”) was registered on the 18th of December 2012 and provides an address in the US state of Texas.
Somewhat curiously, Jacobellis lists the name of the MLM company Scentsy in the Money for Causes domain registration (image right), indicating a possible relationship between the two companies.
Scentsy is an MLM company founded in mid 2004 who market “scented wickless candles and decorative ceramic warmers”. The company is also a member of the Direct Selling Association (DSA).
Jacobellis isn’t listed as an executive on the Scentsy website, however in 2009 she credited herself as “working at” the company:
In addition to “working” for Scentsy, Jacobellis is also an affiliate of the company, maintaining a downline under the “The Young and the Wickless” team name.
On her personal website, Jacobellis (photo right) openly focuses on the recruitment of Scentsy affiliates, asking readers to contact her to get around Craiglist’s rules on recruitment advertising for any opportunity that cost money:
We should all be advertising and finding people who could easily sell Scentsy to their friends. I am looking for what I call “repeat hosts and hostesses.”
Some of those repeat hosts and hostesses will turn into consultants, and you can start building your team.
I found all my recruits from advertising, and I personally have signed up only 13 consultants. Now my team consists of 192 consultants.
If you can just find a few recruits and get them into the habit of advertising daily, your team will grow, I promise!
If you go to RESOURCES on your workstation, and click on “Consultant Spotlight,” and go to the very last page, you will see a map of where the Scentsy Consultants are.
Small towns are a great place to advertise, consultants in small towns do great. Think about advertising where we don’t yet have enough consultants.
Scentsy lets us advertise for recruits, but not advertise our products for sale. And on Craig’s LIst, we can’t advertise for anything that costs money to join, so this is kind of in-between.
Small towns are free, larger towns cost $25. I personally don’t want to pay, because the ad will need to be reposted daily, and there are so many towns that are free.
I posted the ad under “retail/wholesale.” You can put it under any category you think is best. You should try to re-post the ad daily.
You can’t post on Craigslist for actual recruiting, because it costs money to join, and craigslit (sic) doesn’t allow those ads. I had to make it into a job that doesn’t require any investment to make it follow Craig’s list rules.
Change the wording for each ad you post. I just add a word at the beginning or change the orders of the sentences. Otherwise, Craig’s list will flag you and take your ad down for posting the same ad.
They may also say you are posting too fast. Ask me how to get around this.
Although I am just advertising for them to be my host, I am hoping that as we form a relationship and they start selling, they will want to become a consultant.
Money For Causes appears to be Jacobellis’ first MLM venture on the admin side of things and on the company’s website she explains why she started it:
Before I developed this program, I was already making money passively from a couple of network marketing programs.
In late 2012 I decided to break down some of the compensation plans out there and see how many people it would take to earn $5,000 to $10,000 a month.
I NEEDED to make that much, to keep my kids in college and graduate school. In the spring of 2012, my husband was forced to take a job that paid 1/3 less than his previous job.
Causes was started as a way to raise money for college. And the next stage, graduate school, and the next stage, paying for student loans.
Read on for a full review of the Money For Causes MLM business opportunity.
The Money For Causes Product Line
The Money For Causes website is heavy on the income potential claims and commissions available to affiliates but unfortunately contains little to no information about any retailable products or services.
As far as I can tell subscription (membership) to the company itself appears to be the only product Money For Causes are offering:
When you become a subscriber, you can earn commissions on four levels, or tiers.
You will pay for your $10 or $40 weekly subscription, but you will also be paid on every subscriber who is in your affiliate organization, 4 levels deep.
Bundled with Money For Causes membership appears to be some sort of marketing resource, which the company claims will teach new affiliates ‘exactly how to find and enroll subscribers‘.
The Money For Causes Compensation Plan
The Money For Causes compensation plan revolves around members paying either $10, $40 or both a week in membership fees, with these fees being split amongst the existing members who recruited them.
Both membership fee commission structures pay out on four levels of recruitment using a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of the structure, with every personally recruited affiliate placed directly under them (level 1).
If any of these level 1 affiliates recruit members of their own, these members are placed on level 2 of the original affiliates structure. If any level 2 members recruit new affiliates, they are placed on level 3 and so on and so forth.
Using the above compensation structure, Money For Causes pay out down four levels of recruitment as follows:
$10 a week membership fee
- $5 weekly from level 1 recruits
- $1 a week from levels 2 to 4 recruits
$40 a week membership fee
- $20 a week from level 1 recruits
- $5 a week from levels 2 to 4 recruits
Joining Money For Causes
Membership to Money For Causes is either free or paid.
Paid members must pay a weekly membership fee of either $10 or $40, enabling them to earn commissions as set out above.
Free members are also able to sell membership to the company, however they only earn on one level of recruitment (members they personally bring into the scheme).
Note that paid members free members recruit are not retail subscribers, they count as paid members with full access to the Money For Causes income opportunity.
Conclusion
Referring to Money For Causes as the ‘best money making program in existence‘, Jacobellis tells prospective Money For Causes members that, apart from understanding a company’s compensation plan, the only other thing they need to learn is ‘how to get as many subscribers as you need to make the money you want‘.
Unfortunately in MLM this equates to recruitment commissions which equates to Money For Causes being nothing more than a two level pyramid scheme.
You pay your $10, $40 or both a week, recruit others who do the same and get paid. No products or services are sold to retail customers.
The free membership option is no better, despite only paying out one level. The free membership option could be considered as a legitimate non-MLM single level affiliate program, however when you factor in that every recruited paid member can earn via the recruitment of additional paid members, it becomes evident we’re in clear pyramid scheme territory here.
For someone who’s been involved in network marketing since at least 2009 and is an “employee” and affiliate of an MLM company with DSA membership, it’s sad to see Amy Jacobellis professing her participation in “passive” MLM schemes and trying to start her own membership based pyramid scheme.
Clearly Jacobellis is hoping that by starting her own scheme, she can build on her past “passive income” experiences:
If you follow all our lessons, you will reach the point where you are paid every week without even working any more.
Simply put, she should know better. Despite the company name, the only “cause” here appears to be Jacobellis’ own hip pocket and those first few members that get in at the top.
It sounds like a “gifting circle”, which is just another name for pyramid scheme.
Ms. Jacobellis apparently was in a LOT of these oddball schemes before, including “Copy Paste Cash”, and IBO TeamBuild (primarily a recruiting tool). But her dayjob seem to be a realty agent at “Keller Williams” of Beaumont TX.
She seems to be the one that blew the whistle on High Def Nation back around 09/2012 by penning a couple articles on IBOSocial, but IBOSocial revamped the website and those only exist in Google archives now.
As well as her many get-rich-quick schemes, Ms Jacobellis is well known for her cash gifting activities as well
No, I am not well known for my cash gifting activities, but I appreciate you thinking about me.
Sounds like a griefer, as Ms. Jacobelli’s stuff all points to her IBOSocial profile. 🙂 (Which doesn’t use that rainbow thing)
If anyone would like information about myself or my businesses, please feel free to email me or call me. I live in Beaumont, TX.
Causes is not a gifting circle or a pyramid scheme, a get rich quick scheme, etc.
What is a griefer? Maybe K. Chang means gifter. No, Causes is legitimate and legal.
K.C., Mrs. Jacobellis uses the “rainbow thingie” on her empower network blog. And I’m willing to give her the benefit of doubt on her cash gifting involvement.
She was, briefly it appears involved in 2010 Blessings but doesn’t seem to be any longer and I don’t find evidence of her playing in any of the similar programs.
However
I believe Mr. Chang was concerned that someone was impersonating you.
What product or service does Causes sell? It looks very much like all it is “selling” is an income opportunity. Am I wrong? Because if I’m not I don’t see how you can claim that Causes is anything but a pyramid scheme and I don’t see why you say it is legal or legitimate.
Mrs. Jacobellis I believe your husband (Mike) is an attorney, perhaps he could refer you to someone familiar with this area of legislation to render a more “qualified” opinion.
@Amy
“Because I said so” won’t cut it here.
There’s no retail and 100% of the commissions paid out is derived from membership fees, with new members relying on recruitment to generate a commission.
That’s pretty pyramid schemeyish.
Hey Oz, my product is a subscription to a weekly lesson, it’s original, unique and very valuable. But I understand “education” might be considered worthless to the lo-info’s.
It is no different from subscribing to a magazine, newspaper or HBO, only you will get a lot more out of my weekly lessons, I guar-on-tee it.
And I guess you didn’t see the part about how we have plain ole sales people, who don’t pay anything and just sell the subscription for a commission.
No it isn’t. I cannot purcahse your subscription without access to the comp plan. Money for Causes affiliates are selling membership to the company itself, which provides access to the compensation plan. Just because you throw in some e-lessons doesn’t mean that’s what you’re selling.
Except that they don’t pay out commissions upon the recruitment of others, paid out on multiple levels using a MLM compensation structure. Thus they are entirely irrelevant and vastly different.
Paying to play doesn’t define a pyramid scheme, what members have to do to get paid does. So what are these free members doing to get paid?
They’re recruiting paid affiliates who also must recruit in order to get paid.
Yeah that’s not a pyramid scheme at all.
No it isn’t, at least not on a retail level. Product based pyramids routinely attach products to membership claiming this makes them legit, it doesn’t because the system still relies on recruitment of affiliates to survive, rather than the sale of products or services to retail customers.
I cannot purcahse your subscription without access to the comp plan. Money for Causes affiliates are selling membership to the company itself, which provides access to the compensation plan. Just because you throw in some e-lessons doesn’t mean that’s what you’re selling.
Except that they don’t pay out commissions upon the recruitment of others, paid out on multiple levels using a MLM compensation structure. Thus they are entirely irrelevant and vastly different.
Paying to play doesn’t define a pyramid scheme, what members have to do to get paid does. So what are these free members doing to get paid?
They’re recruiting paid affiliates who also must recruit in order to get paid.
Yeah that’s not a pyramid scheme at all.
GlimDropper: “What product or service does Causes sell? It looks very much like all it is “selling” is an income opportunity.”
We sell a subscription to a weekly lesson – and don’t assume the lesson is worthless crap.
I produce a new, original lesson every week, and they are excellent and worth ten times the price.
Yes, it’s nice to have a lawyer “on retainer,” to tell me it’s legal to sell a subscription to my lessons.
Actually, I stole the idea from those – what do you call them? – oh yes, universities. They also charge for lessons and stuff like that.
And my personal attorney confirms that it’s perfectly legal in Texas and the US of A and to offer an optional affiliate program for those who would like to help me get subscribers.
Keep the comments comin’ boys. I am enjoying all the attention, and I look forward to receiving more comments, criticisms, suggestions, etc.
You don’t like my “rainbow thingie?” Give me a call on the phone, I would love to discuss this Man to Man. 🙂
Mr Oz, you are not paying attention.
No, it only looks like that through your eyes, and you need glasses. We sell education.
Pay attention Mr. Oz. The free members sell subscriptions, and make dang good money. You know those poor kids who sell newspapers on the median of busy streets on Sunday? It’s like that. Except I don’t hire kids to stand in the middle of a busy street.
You are in no way required to participate in the affiliate program. Anyone can simply sell the subscription outright, and get paid every week that their subscriber keeps subscribing, which they will, because my lessons are fantastic.
Oz, you may definitely purchase the subscription without being anywhere near the affiliate program.
And you should, too, because one of the things I teach is how to be open minded and learn things, and not be blinded by belief bias.
Can I buy this “education” without the attached income opportunity (retail)?
If not then I’m simply purchasing the income opportunity, or in other words membership (and we both know the answer to the above question).
It’s not a “subscription” when I can earn money via the recruitment of other paid affiliates now is it. A subscription would imply no income opportunity was attached, when it is.
Free members are selling affiliate membership and nothing more. What you bundle with this is irrelevant.
Enough with the non-MLM examples. They are entirely irrelevant.
Choice is not a valid distinction between retail customers and affiliates. Do your “subscribers” have access to the income opportunity? If yes then they aren’t (retail) “subscribers”, they’re affiliates participating in an income opportunity.
Whether they actually recruit or not is irrelevant, because it doesn’t change the fact that recruitment is still the only way they can make any money.
Like I said, choice is not a valid distinction between your retail customers and affiliates. If your customers have access to the income opportunity they are affiliates.
You and I both know you’re selling diddly squat subscriptions without an attached income opportunity.
The sign up process for affiliates and “just salespeople” is different. The salespeople are not paid through the same system, because the accounting is totally different.
And I assure you, my lessons are anything but diddly squat. They are worth much more than the price, and put a great deal of research into each lesson.
I understand you are used to seeing all the re-sale ebooks and crap, but that is definitely not what I am offering.
And I’m pretty sure that “you and I” don’t know any of the same things. But I have honestly enjoyed our conversation.
I’m sure neither of us are here to “win” the discussion, just to bring light to the subject.
Who cares?
Both must sell paid affiliate memberships to Money For Causes to earn money (recruitment).
On its own there’s nothing wrong with the single level “free member” option as an affilate program. What makes Money for Causes a pyramid scheme is your whole paid member multi-level commissions structure that revolves around the selling of paid membership (access to the income opportunity) to the company.
Great, because I never said they were.
Except that you are. Those “resale ebooks and crap” opportunities rely on recruitment of new affiliates with “resale ebooks and crap” attached to company membership. More often than not they also have no retail offering.
Replace “resale ebooks and crap” with “Amy Jacobellis’ e-learning lessons” and the business model is the same: recruit new members to earn money.
Look trying to be charming isn’t going to get you far here. At the end of the day Money For Causes is a recruitment driven MLM income opportunity with an entirely irrelevant product (compensation wise).
Let’s just stick to the facts please.
Put it this way, Ms. Jacobellis…
Please explain what makes YOUR opportunity NOT fit the Koscot test (and the Omnitrition and Burnlounge clarifications)?
Ms. Jacobellis, a few quick questions:
Do the free members who can earn a commission by selling your weekly educational product have access to the product for their own use?
Is the educational product you sell to your $10/week members the same product you sell to your $40/week members?
Your comp plan states that it pays affiliates on four levels. How many subscribers does it take to fill out those respective levels or is it more like a unilevel?
Thanks in advance.
@GlimDropper
It’s not LIKE a Unilevel, it IS a Unilevel.
No, people who are just salespersons do not have access to the product for their own use, because they are not subscribers. It’s like if you sell cars, that doesn’t mean you get a free car. You still have to pay for your car.
No, the $40 a week subscription is at least 4 times more educational than the $10 a week subscription.
It doesn’t take a certain number of subscribers to fill any level. You can have none or hundreds on each level, depending on how many subscriptions you sell.
OZ: “You and I both know you’re selling diddly squat subscriptions without an attached income opportunity.”
Me: And I assure you, my lessons are anything but diddly squat.
@Amy
At the risk of repeating myself…
That’s great, because I never said they were.
What is the education about? The answer I found in the article was this:
You’re selling education on how to sell the same education?
The education seems to be bundled with the opportunity itself, so people are actually paying for the education AND for the opportunity?
Around 90-95% of the subscription fee goes towards paying recruitment rewards, around 5-10% goes towards paying for the education and administration. Note: I have only estimated the amounts here, but they should probably be close enough.
The most significant part of this business is the income opportunity, not the education. The education is only attached to the income opportunity as an “additional service”, not as a “main service”.
Correction:
This should be more correct:
87.5% to pay for recruitment ($35 / $40)
12.5% to the owner ($5 / $40)
Feeder program:
80.0% to pay for recruitment
20.0% to the owner
Both programs together:
86.0% to pay for recruitment
14.0% to the owner / administration
Since I’m not analysing the laws in Texas or anywhere else, this clearly looks like a 100% pyramid scheme.
I see there’s no answer to my question…
You can’t expect any answers from her, either. The question was far too specialised.
“I have called all the professionals I know about. None of them understood your question, neither the plumber, the electrician, my dentist (etc.)”. 🙂
Hell Mr. Chang,
Here is what I will be teaching:
Our weekly lessons start out by teaching you how to find the right people online who will want to subscribe. I teach a simple technique that anyone can follow.
I have to teach that first so you can get as many affiliates as you want or need to reach your goals and to cover your own subscription costs.
I do not teach the same techniques that others teach, these are my own original systems, designed to be simple and easy for anyone to follow.
Other lessons will cover over 200 original ways for you to make money outside of the this affiliate program, from a book I wrote outlining 200 original businesses people can start at home, and how to run them. Some of the ideas are very original!
The second section of lessons will be on how to read people, categorize them, and how to deal with get along with different kinds of people.
This will include different types of narcissists, people with borderline personality disorder, manipulators, liars, low information people, givers, takers, etc. It is a fascinating subject, and when you learn to recognize different types of people, it makes it much easier to deal with them.
Next we will go into how to make things happen the way you want, and not to let the world control you. I’ll teach you how to relax, stop worrying, and have everything go your way.
We will also delve into other subjects such as science, art, music, humor, and anything else that is enlightening, informative, and interesting.
As I continue to create weekly lessons, I will simply teach anything I think is important, interesting, or amusing.
I have to add that throwing around the term “Pyramid Scheme” is not very useful. It is much too general of a term, and can have many meanings.
Yes, my subscription has a four level affiliate program in which members can choose to participate. Or, anyone can sign up as a salesperson and simply sell subscriptions without paying or joining anything.
But there is nothing illegal or unethical in paying a commission to people to bring you more customers.
For most people, my lessons will be the most valuable, enlightening, and useful lessons they have ever had in their lives. And I mean that with all my heart.
Sure there is… if it’s a pyramid scheme. And there’s a very specific legal definition of pyramid scheme, established in FTC vs. Koscot. Nothing “too general” about it.
I didn’t ask what you were teaching.
The content was interesting enough, but you’re only charging $2 and $5 per week for that, a total of $7. The rest of the weekly fees are used to pay people for recruiting.
The primary function of your business is not about getting education or selling education, it’s about rewarding people for recruiting other participants into the plan.
We’re not focusing directly onto “legal/illegal” or ethical questions. “The Law” is probably able to find its own path through the system. “What’s ethical?” doesn’t exactly offer any facit answers.
The difference between “customers” and “participants” is that customers are buying products or services (without any income opportunity attached to it), while participants are buying the opportunity itself (with or without products or services attached to it).
You’re NOT offering your participants any retail sale options, i.e. methods for selling the products and services to non-participants. It has to be more than a theoretical option, it has to be about real retailable products or services that actually CAN and WILL BE sold in a market.
If the only option to earn money is to recruit new participants, the business will eventually run out of new participants to recruit. The world’s population isn’t an infinite number, and it doesn’t grow fast enough to support an infinite growth of new participants.
You’re correct, the term “Pyramid scheme” is rather general, and that’s also why I used it. It’s a clear description of some main aspects in a business model, and it tells an audience what the income opportunity is about.
It tells people that they don’t have to sell any products in retail to family, friends or strangers to earn a profit. They will only have to introduce some additional participants, e.g. minimum 2 new participants to cover their own expenses. The more participants they’re able to introduce the higher the income will be.
From my POV, that description is relatively fair and accurate.
I asked about it, and she gave a relatively good answer. The question was mostly about “Do you offer anything MORE than recruitment training for the opportunity itself?”, and the answer was acceptable. She does offer more than that.
I asked about it to find out how “primary” the income opportunity is, e.g. if people join because they’re primarily interested in the income opportunity, or if someone can be interested in the education rather than the opportunity.
The answer was good enough, someone CAN be primarily interested in the education (but they should probably buy the book instead of joining).
Actually it’s quite specific. You only really get the variations when people try to defend whatever scheme they happen to be in at the time.
As it stands right now, what is the affiliate:customer ratio in Money For Causes?