PocketChange MLM: $1.33 a month recruitment scam
Radically New & Innovative Commission Plan. Our program is about to revolutionize the online mlm industry.
Pure fun, extremely exciting & much more rewarding than any other program on the Internet.
-PocketChangeMLM
If you took the PocketChange MLM site’s opening sales pitch at face value, you’d be forgiven for getting all excited and thinking you’d just stumbled upon the next big thing in MLM.
Pity it’s nothing more than yet another recruitment driven opportunity attached to travel certificates. Read on for a full review of the PocketChange MLM opportunity.
The Company
PocketChange MLM appears to be run by ‘Daniel Arndt’ (photo right). Arndt also seems to run some kind of cleaning service called ‘Helping Hands Helping’ out of Ohio in the US.
You can see the link between the two companies over at the Helping Hands Helping website, where Arndt offers a discount on his cleaning services if you either signup for PocketChange MLM or spam the internet with fake reviews for his cleaning business.
PocketChange MLM seems to have launched in late October 2011.
The PocketChange MLM product
PocketChange MLM doesn’t actually have a product, instead the company offers members access to vacation certificates (as shown on the right, click to enlarge).
I’m not entirely sure who PocketChange MLM are partnered with, but the certificates seem to cost about ten cents (plus a $50 tax charge) and offer vacations at ‘5-Star Resorts in Mexico and the Caribbean‘.
Specifics aren’t mentioned but the example certificates provided by PocketChange MLM do reveal some interesting caveats;
- All customers must take a one time, no obligation 90 minute introductory tour of one of the resort properties during their stay
- All customers must either be a married or co-habitating couple aged between 30-65 with a combined income of $50,000 USD
- Customers cannot attend a presentation at the same resort more than once during a 12 month period
The above criteria is set by the resort promotion company Pocket Change MLM have partnered with and is non-negotiable.
Interestingly enough, no mention of these criteria is made over at the PocketChange MLM website. Given the obligatory presentation attendance and mention of minimum income required in the packages, I’d guess this is some kind of timeshare marketing exercise where the promoting company tries to coax you into buying a timeshare at the resort you’re staying at or some such.
Regardless, it’s clear that PocketChange MLM are acting as nothing more than an affiliate in the program.
Presumably there’s also a limited number of resorts participating in the program, and with members being unable to stay in the same resort twice within a 12 month period, it’s unclear what happens then.
Finally Pocket Change MLM also mention that members can ‘easily sell (the vouchers) for $20 to $30 each and many certificates of much lesser quality sell for as much as $49‘.
This is most likely reflective of the certificates’ true market value.
The PocketChangeMLM Compensation Plan
As far as recruitment scams go, they don’t get much simpler than the PocketChange MLM compensation plan.
In a nutshell, each member pays $1.33 a month to participate in the program. As a PocketChange MLM member, each time you recruit a new member you get a $1 commission for off their first months membership.
The next month your upline gets the new members $1, and the next month their upline.
This process continues until twelve months of membership is achieved. At this point the twelfth generation upline from yourself permanently earns $1 a month from the member you recruited.
So how do you make money? Well basically you’re relying on each member you recruit to Pocket Change MLM to recruit twelve members, at which point you’re locked in to a $1 residual income from their monthly membership fee for life.
You will of course get month to month commissions as members your downline recruit under twelve levels pass up their $1 to you for one month as they progress towards twelve months of membership, but this isn’t locked in unless they’re twelve generations below you in your downline. And even then it takes a year for you to start earning that $1 every month.
Joining PocketChange MLM
Joining PocketChange MLM is a relatively straight forward affair, you signup for $1.33 a month and as long as you pay this subscription you get to participate in the program.
Conclusion
With the resort certificates completely detached from Pocket Change MLM’s compensation plan, it’s not hard to see how this is just a simple money game. You contribute $1 of your monthly membership fee to other member’s commissions and the Daniel Arndt keeps the additional 33 cents.
Oh, and he doesn’t call it Pocket Change MLM for nothing. To make just $100 a month guaranteed residual income you’d have to have 100 people 12 generations below you in your downline.
This equates to a minimum downline size of 1,200 people.
1,200 recruits to earn just $100 a month, and you have to wait 12 months just to see the income? Even as far as scams go, that’s pretty poor.
Even Daniel Arndt seems to have little faith in the newly launched program as notably he’s built the entire Pocket Change MLM website with free website host provider ‘Weebly’.
Combined with resort certificates that are unlikely to be purchased or redeemed by anyone… Pocket Change MLM is probably an opportunity you’re going to want to stay well clear of.
Thank you for your interest in PocketChangeMLM. I greatly appreciate you promoting my business opportunity!
I created a FREE opportunity for individuals, Earn $5.00-$30.00 per certificate redeemed without ever paying a dime!
We work as a company & team combined, I could never get 400 people a month to redeem vacation certificates to receive $30 per certificate, instead we work as a team, the more we work together the more we earn as individuals. Would you rather earn $5 per certificate redeemed working alone or work as a team & earn $30 per vacation certificate redeemed?
Next…PayPal is the safer, easier, faster way to pay & get paid online, if you weren’t so ignorant you would see that PayPal charges merchant fees 2.9%+$0.30 let’s do some math 2.9% of $1.00 +$0.30= $1.33
We Payout 100% commissions! I created this opportunity for myself & it’s the same opportunity for everyone else. You have the nerve to call this a scam when the owner has the same opportunity as members only with more responsibility.
Last…you are very confused on how the commission is earned, you only need to have 100 people under you to earn $100.00 at MOST it will take 1 yr to earn all commissions, but regardless it only cost 14.99 a year that’s the most you can lose, whooptie-doo! I shit $14.99 a year!
AS I SAID IF EACH PERSON REFERRED 3 PEOPLE, IN 1 YEAR YOU WOULD EARN $800,000.00 that’s 100% legitimate do the math!
It’s sad you don’t have 3 friends that can afford $1.33 monthly to join this awesome opportunity.
The worst thing that could happen is you sign up & expect referrals to magically appear under you, with that said you might lose $1.33 yikes be prepared to claim bankruptcy! J/k
Also as far as cleaning business goes thats the real deal, we only have a few local customers who have saved money on cleaning services by posting reviews.
None of our current cleaning customers have any association with PocketChangeMLM however they do have the opportunity available at any time they are interested!
All of our opportunities are free to try which means there is no obligation what so ever, where do you get off that this is a scam?
@Daniel
Unless you’re the company providing the certificates, you’re just an affiliate. Furthermore you estimate this is what the vouchers will sell for. What if there’s no market for them? You can’t guarantee a sale price on a voucher that has no retail value, what nonsense is that?
So it’s a co-op marketing third party vouchers.
Commissions based on what? Seeing as your vouchers are given away for free, you’re paying out commissions with other people’s membership money right?
This is called a pyramid scheme and is illegal.
(also you failed to mention what your kickback is from the travel company)
Right about….. here:
So you’re not actually selling anything, and just paying out commissions 100% from people’s monthly membership fees.
Like I said, a total scam.
How much risk is involved is irrelevant. Paying out 100% commissions from membership fees and have no retail products? Yep, got yourself a bonafide ponzi scheme there son.
So why advertise it to people who haven’t even used the service yet? You clearly state you’ll give people free cleaning if they post reviews and join your PocketChange MLM scheme. How can someone post a review about your company to get free cleaning before they’ve ever even used the service?
You have to pay $1 to receive UNLIMITED vacation certificates you wouldn’t know that though because you are reviewing something you haven’t tried, & I don’t understand how you can so boldly lie about my cleaning company!
Would you like to contact my customers & ask if I’m scamming them? It states you must receive one hour of service before you can post reviews.
Our vacation certificate program is a team effort, anyone would agree that its easier getting referrals as a team instead of on there own.
Try our opportunity before talking trash, YOU EVEN SAID YOURSELF, HOW CAN SOMETHING NOT RECEIVED BE REVIEWED?
You don’t need to join a MLM company to understand a compensation plan and review it. What, because I hand over some money to join all of a sudden that makes me a compensation plan expert?
Furthermore seeing as your the admin of the site, I can only assume you’re intentionally seeking to mislead people, and/or lie.
You clearly need to pay $1.33 a month to participate in this program, it’s not a once off $1 charge.
And you’re not paying for travel certificates, you’re paying for membership and to earn commissions.
Here’s the company quoted commission structure;
I see recruitment commissions paid out 100% with membership fees and nothing about a retail product or travel certificate tied into the comp plan, do you?
Not receiving something is not the same as not joining it.
You don’t receive a MLM opportunity, you join one. You don’t join cleaning services, you receive them.
Spot the difference?
You haven’t received cleaning service we do an excellent job you can save money or get free cleaning by writing reviews and joining our affiliate program. If you pay $1 monthly to qualify you to earn free services how is that possibly a scam?
I can’t even argue with your ignorance anymore, our members make there own decision to join. Like I said why don’t you present is all with an opportunity all you can do is wrag on other company. Our company provides options, services, savings, jobs, opportunities & more!
You never comment on the things you were proved wrong about. I hope you are getting a better understanding of what we are about.
Its pathetic that people like you think you serve a purpose in this world, so many hobs are across seas, make money online is a great opportunity for individuals.
Best wishes to you earnings income voicing your ignorant opinions,
LIKE I SAID YOU NEVER RESPOND TO BEING PROVED YOU WRONG, I UNDERSTAND YOU HAVE A JOB TALKING SHIT ON COMPANIES,
YOU WILL BE MORE SUCCESSFUL HELPING COMPANIES SUCCEED!
Dan your comprehension skills seem to be lacking.
As far as your cleaning service goes, nobody is saying that’s a scam. So long as you’re not providing a free service to people who review your cleaning company before they’ve even hired you, then there’s no problem there.
Although you might want to fix up your copy on your website as this is what it strongly suggests.
As for PocketChangeMLM, this is where the scam is.
You take in membership fees, pay 100% of this monthly membership fee out in commissions to existing members, have no retail product and only pay recruitment commissions.
That’s a ponzi scheme right there, whether it’s $1.33 a month or $100,333 being paid.
Proved wrong? Is the above an accurate summary of your compensation plan or not?
You seem stuck on defending your cleaning business when the real scam is PocketChange MLM. Do you spend all of your time in an alternate reality or just when you’re on the internet?
Defending one part is a common tactic when you mix a legit business with a pyramid/matrix.
TVI Express scammers always claim “we can get our trips, it’s legal”. Nobody said TVI Express don’t give trips (they give out SOME trips). It’s the 2×3 matrices with no real products (everything’s membership) that’s illegal pyramid scheme. Yet TVI Express scammers somehow think if one part is legal, the rest must be legal.
Come to think of it, this is the SAME THING at SpeakAsia. They say “survey is legal” (don’t look at our recruiting model).
Did you actually consult a MLM attorney? Did you ever BOTHER looking up what constitutes a legal MLM? Fortunately for you, I have. Here:
You fail A3,B, and C. You do NOT qualify to call yourself a legal MLM.
It appears your ignorance is self-inflicted.