Shopper Club Online Review: $50 recruitment scheme
There is no information on the Shopper Club Online website indicating who owns or runs the business.
The Shopper Club Online website domain (“shopperclubonline.com”) was registered on the 6th of August 2013, however the domain registration is set to private.
It is noted that the Shopper Club Online terms and conditions state that
any claim relating to Shopper CLUB Online’s web site shall be governed by the laws of the European Union without regard to its conflict of law provisions.
This indicates that the person(s) running Shopper Club Online are based out of Europe.
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 Shopper Club Online Product Line
Shopper Club Online has no retailable products or services, with affiliates only able to market affiliate membership to the company itself.
Bundled with Shopper Club Online affiliate membership is access to what the company calls “eshops”:
As a member of our club you will get access to special discounts in our eshops (Amazon affiliated).
As per the company’s own description above, their eshops are just rebadged amazon affiliate replicated storefronts.
The Shopper Club Online Compensation Plan
The Shopper Club Online compensation plan revolves around affiliates paying a monthly $50 fee and the recruitment of new affiliates.
Shopper Club Online uses a unilevel style compensation structure, paying out a total of 68% of affiliate membership fees to affiliates who recruit new affiliates.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any of these level 1 affiliates go on to recruit new affiliates of their own, they are placed on level 2 of the original affiliates unilevel team. If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretically infinite number of levels.
Shopper Club Online cap payable unilevel levels at five, paying out a percentage commission depending on what level a recruited affiliate falls on in a unilevel team:
- Level 1 – 50% ($25 per recruited affiliate)
- Level 2 – 10% ($5 per recruited affiliate)
- Level 3 – 5% ($2.50 per recruited affiliate)
- Level 4 – 2% ($1 per recruited affiliate)
- Level 5 – 1% (50 cents per recruited affiliate)
All affiliates must pay a $50 monthly fee, thus the unilevel commissions above are paid monthly.
Joining Shopper Club Online
Affiliate membership to Shopper Club Online is $50 a month.
Taken from the Shopper Club Online FAQ:
Each member will become affilated (sic) to earn big money just by referring our Club to others.
With no retailable products or services offered by the company itself and 100% of all commissions paid out sourced from affiliates, paid according to how many affiliates are recruited, Shopper Club Online squarely fits the definition of a recruitment-driven pyramid scheme.
Breaking down the business opportunity from a purely analytical standpoint, some random Amazon affiliate has decided to attach a pyramid scheme to their Amazon affiliate account.
They charge participants a monthly fee to access Amazon through their affiliate code (earning commissions if anything is purchased), and pay out Shopper Club Online participants with fees paid by other participants.
Take away the whole Amazon affiliate “estore” front and you’re pretty much just left with a scheme that collapses once those who are newly recruited stop paying their $50 a month to participate.