MyRightAd Review: “AdCentral” based Ponzi scheme
No information is provided on the MyRightAd website indicating who owns or runs the business.
A search over at Hong Kong’s “Integrated Companies Registry Information” however indicates that no such company exists:
The MyRightAd website is hosted on what appears to be a public hosting server, along with a number of additional websites seemingly owned by different people. All of the hosted websites target an Indian audience so one would assume this is where the owner(s) of MyRightAd are actually based.
Finally, the MyRightAd website domain (“myrightad.net”) was registered on the 28th of June 2012 but the domain registration information is set to private.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The MyRightAd Product Line
MyRightAd have no retailable products or services. Instead the company requires affiliates to purchase what they call an “AdStation” for $100.
Up to five AdStations in total can be purchased, with each progressively increasing an affiliate’s commissions.
MyRightAd don’t actually go into detail about what an AdStation is, but it appears it is some sort of mobile advertising delivery platform.
In the “Our Advertisers” section of the MyRightAd website, several well-known brand logos are displayed, implying that MyRightAd has advertising agreements with the displayed companies:
No specifics on these advertising agreements are disclosed.
The MyRightAd Compensation Plan
MyRightAd offer affiliates commissions for recruiting new affiliates and for purchasing AdStations.
MyRightAd directly compensates affiliates on the recruitment of new affiliates into the scheme.
This is done via a binary compensation structure. A binary compensation structure places an affiliate at the top of the structure, with two legs branching out from under them:
These two legs represent the start of two teams, with two legs continuing to branch out under every position in the binary (down a theoretical unlimited amount of levels).
For every pair of new affiliates (1 on the left team and one on the right) added to an affiliate’s binary, the company pays out $10.
This commission is calculated daily, with only newly recruited affiliates for the day paired up for commission qualification. MyRightAd’s recruitment commission is capped at $1000 daily (100 pairs).
When an affiliate purchases an AdStation for $100, the company guarantees them a $6 weekly ROI, paid out for 22 weeks (total ROI = $132).
Purchasing additional AdStations (up to a maximum of four) increases an affiliates weekly ROI per AdStation bought as follows:
- 2 AdStations = $7 per AdStation (total ROI = $308)
- 3 AdStations = $8 per AdStation (total ROI = $528)
- 4 AdStations = $9 per AdStation (total ROI = $792)
- 5 AdStations = $10 per AdStation (total ROI = $1100)
Membership to MyRightAd is a minimum of $100 every 22 weeks.
With the idea being that companies pay MyRightAd to display advertising to members, the legitimacy of the opportunity pretty much hinges on advertising value here.
First and foremost is the fact that it makes absolutely no sense for advertisers to pay affiliates multiple times simply because said affiliates have purchased multiple positions in the compensation plan (AdStations).
There’s absolutely no additional value provided to the advertiser.
And even if MyRightAd affiliate’s were limited to one AdStation each, I’m still going to call into question any advertising revenue agreement between MyRighAd and third-parties.
With their business model supposedly relying on advertising revenue, MyRightAd’s “Advertise With Us” button (prominently displayed on every page of the website) doesn’t exist:
Even if an advertiser wanted to advertise on MyRightAd, they can’t.
Then of course there’s the question of “why do affiliates have to pay MyRightAd to watch supposedly already paid for advertisements?”
Far more likely a scenario is that MyRightAd simply takes money affiliates pay the company and uses it to pay out liabilities owed to existing investors (affiliates who have previously purchased AdCentral(s)).
This of course would make MyRightAd a Ponzi scheme.
Supporting this is the fact that MyRightAd do not offer refunds on money affiliates pay to them:
Is my $100 membership payment refundable?
Answer: No your payment is not refundable.
Why is it not refundable? Because the second you pay MyRightAd your $100, they use it to pay off weekly ROIs owed to existing affiliates.
Despite the claim on the MyRightAd website that it’s not an investment scheme,
Your membership fee is NOT an investment. It is important to note here that this is not a get rich quick scheme.
several sections of the MyRightAd website refer to commissions as investment returns:
Not surprisingly, MyRightAd isn’t the first Ponzi scheme to originate out of India using “AdStations” as a cover.
Back in June 2011 “AdMatrix” launched offering affiliates $10 a week for two years if they bought a $240 AdStation.
By September 2011 AdMatrix had collapsed.
In November 2011 “LocalAdClick” guaranteed investors a ROI of $12.50 to $50 a week if they purchased AdStations ranging in price from $150 to $500.
Around June 2012 LocalAdClick affiliates began reporting missed ROI payments.
In February 2012 “UniVideo2U” launched, guaranteeing investors $10 every 10 days if they watched ads through an “AdStation” that cost $100.
I’m not sure when exactly it collapsed, but at the time of publication of this article the UniVideo2U domain is defunct.
At the end of the day it doesn’t matter what you call your Ponzi scheme cover or how you market it. If you’re offering ROIs paid out of new investor money sooner or later that money is going to run out and your scheme will collapse.
MyRightAd is no different.