Ken Russo, a Spinding affiliate who markets the opportunity as a “passive revenue share with immense potential”, recently sent off some questions to owner Paul Nash about the business.

Whilst refreshingly honest in the sea of psuedo-compliance that plagues the MLM revenue-sharing niche, Nash’s reply was still somewhat (unintentionally?) revealing.

Russo doesn’t state when the questions were sent, but with Spinding only going into prelaunch recently, one would assume sometime in January.

Two questions were sent into Nash. The second was about reassigning recruited affiliates to existing downlines and was not all that relevant, it was Russo’s first question that caught my attention:


1. I’m not sure how to describe the way a passive member can benefit. Please provide a clearer explanation on this issue alone that I forward in a team update and post in the forums.

“Passive” of course being MLM code speak for “I just want to invest my funds and then make money doing nothing”.


Anyway, eager to clarify things, Here’s how Nash (right) answered:

Not sure that a totally passive system exists that will pass the legalities and scrutiny of the attorneys.

I am hoping that we have a small percentage of “active” members who actually try to build this thing…

That said, I have talked to a number of people who don’t want to actively recruit anymore. They are just going to buy three positions and call it a day. The first qualified by the other two. That’s it.

Doesn’t get more passive than that….lol.

“Lol” indeed.

For those not familiar with Spinding’s business model, the annotated Spinding compensation plan slide below explains the basics:


In a nutshell, affiliates invest between $30 to $960 (I’ve seen $1890 quoted), in five straight-line queues. When four subsequent paid investments are made after theirs, they earn a $1-$63 ROI.

The investment position is then sent to the back of the queue, with each position being able to generate a ROI up to ten times a day. For a more detailed analysis, see the BehindMLM Spinding review.

In order to qualify for a ROI in each queue invested in, affiliates must bring an additional two positions into each queue. This can either be via recruited affiliates who invest in positions, or additional investment by the initial affiliate themselves.

What Nash means when he tells Russo that he’s

talked to a number of people who don’t want to actively recruit anymore. They are just going to buy three positions and call it a day. The first qualified by the other two.

Is that these affiliates are going to qualify themselves for a daily ROI on their first investment position via self-purchase of two additional positions under it. The idea being that ROIs generated from the first qualified position are then used to buy additional positions, qualifying the second and third position.

In this manner a Spinding affiliate investor can “passively” increase their positions in the company, provided of course other investors continue to dump money into the scheme. This also traps investor money in the scheme for as long as possible, giving Nash plenty of initial funds to pay out early investors with.

It should be noted that the above investment positions are only one component of Spinding’s compensation plan, however it’s pretty much all anyone is marketing.

Last month Nash tried to raise $160,000 to fund a merchant customer platform, driven by merchants giving Spinding app users gifts.

Nash’s crowdsourcing campaign ended on January 16th and raised just $27.

Whether or not the merchant gift app component of Spinding will even go ahead at this point is unclear. What is clear however is that Nash is pegging his hopes on someone “building” Spinding at a later date, with those involved currently gorging themselves on the passive investment side of the business.

SEC, over to you.