RealityProfit Review: Capitalizing on Ponzi greed
There is no information on the RealityProfit website indicating who runs or owns the business.
The domain ‘realityprofit.com’ was registered on the 27th May 2012 however the domain registration information is set to private.
As always, if a 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 RealityProfit Product Line
RealityProfit has no retailable products or services. Instead, with each $10 investment made with the company by members, RealityProfit bundle advertising credits which can then be used to display advertising on an in-house advertising network featured on the RealityProfit website.
The RealityProfit Compensation Plan
RealityProfit accept $10 investments from their members and guarantee an indefinite daily 8% ROI. Members must login to the RealityProfit website daily to be paid out their 8% daily ROI.
$8000 is the maximum amount of money each member is able to invest in the scheme which equates to a $640 ROI a day. 25% of the profits withdrawn must also be re-invested back into the scheme.
In addition to personal investment returns, RealityProfit also offer commissions on investments made by members referred to the scheme.
Reality Profit pay out 8% on all investments made by direct referrals (people you personally recruit) and 7% on investments made by members your direct referrals recruit.
Membership to RealityProfit is free however members are unable to generate commissions without investing money into the scheme.
Free members can generate referral commissions but if they wish to cash out they too must invest their money first.
RealityProfit claims to be an ‘ online advertising program’ however advertising cannot actually be purchased from the company with members instead making investments.
RealityProfit themselves make this distinction in their own marketing material:
Our Members Can earn from our PROFIT SHARING POOL by purchasing Ad packs that cost just $10.00 per unit which gives them 8,000 advertising credits and that also gives them a $10 position in our PROFIT SHARING POOL.
You can’t buy $10 of advertising and a $10 position (investment) in the scheme so it’s either one or the other.
In their explanation of the forced 25% re-investment component of their compensation plan, RealityProfit clarify what it is members are actually purchasing with their $10:
RealityProfit uses a 75/25 split re-invest plan. This eliminates people from just withdrawing their earnings and not re-investing.
Whereas most Ponzi investment schemes set a fixed maturity timeline for investments made with them, RealityProfit leaves this timeline open-ended and dependent entirely on the greed of the investor.
Guaranteeing to pay out a 8% daily ROI as long as money is not withdrawn, it’s easy to see that with no other revenue source than member investments RealityProfit is only going to “work” as long as everybody leaves their money in the scheme trying to reach the $640 a day ROI cap.
Obviously there’s no way known RealityProfit are going to be able to pay out multiple people $640 a day on a $10 investment so long before anyone gets near that cap the scheme is clearly going to collapse.
Or as RealityProfit put it,
RealityProfit has the vision to continue to create wealth to our members for the longer term.
RealityProfit reserves the right to amend/edit these special features/strategies where and when it is warranted for the long-term sustainability of the program.
With Ponzi schemes being mathematically unsustainable in the long-term, no doubt these “special features/strategies” simply involve shutting down the website and running off with investor’s money.