WaraNetwork Review: Five level investment scheme
There is no specific information on the WaraNetwork website indicating who owns or runs the business, with the company only providing the following vague marketing spiel:
WARANETWORK.COM is an online advertising platform created and backed by financially diversified and financial services company based in the United Arab Emirate.
A group of social networking entrepreneur experts was hired to establish a successful microenterprises online advertising platform in order to help networkers and low income scale individuals/families, private businesses / enterprises, simple network users and experienced administrators and all those who looking for a stable and steady income business.
The WaraNetwork website domain (“waranetwork.com”) was registered on the 27th of May 2013, however the domain registration 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 WaraNetwork Product Line
WaraNetwork has no retailable products or services, with affiliates only able to market membership to the site itself.
Once joined, a WaraNetwork affiliate is then able to purchase “packages” with the expectation that the company will pay them back a daily ROI.
There are five levels of packages, ranging in price from $20 to $1000, with each package being bundled with advertising credits. These advertising credits can be used by affiliates to display advertising on the WaraNetwork website.
The WaraNetwork Compensation Plan
The WaraNetwork compensation plan revolves around affiliates depositing money with the company through one of five available package levels:
- Start – $20 + $5 a month
- Basic – $60 + $15 a month
- Standard – $100 + $30 a month
- Platinum – $200 + $60 a month
- Premium – $500 + $100 a month
- Enterprises – $1000 + $200 a month
Note that affiliates can only invest in 10 packages at any given level, with the fee charged covering all investments made at any particular level.
Referred to as “fixed income”, WaraNetwork guarantee an annual ROI, paid out at a rate of 1.5% daily over 240 days of the year.
This equates to an effective total ROI of
- Start – $7.20 a month ($72 annually)
- Basic – $21.60 ($216 annually)
- Standard – $36 ($360 annually)
- Platinum – $72 ($720 annually)
- Premium – $180 ($1800 annually)
- Enterprises – $360 ($3600 annually)
Referral commissions in WaraNetwork are paid out twofold on both investments and membership fees.
Investment referral commissions are paid out down six levels of recruitment as follows:
- Level 1 – 2%
- Level 2 – 3%
- Level 3 – 3.5%
- Level 4 – 3.75%
- Level 5 – 4.5%
- Level 6 – 7%
Membership fee commissions are paid out down a maximum of twelve levels of recruitment as follows:
- Start – $1.00 on level 1 and 50 cents on level 2
- Basic – $1.50 on level 1, $1 on level 2, 50 cents on level 3 and 25 cents on level 4
- Standard – $2.50 on level 1, $2 on level 2, $1.50 on level 3, $1 on level 4, 75 cents on level 5, 50 cents on level 6, 25 cents on level 7 and 10 cents on level 8
- Platinum – $2.50 on level 1, $2 on level 2, $1.50 on level 3, $1 on level 4, 75 cents on level 5, 50 cents on level 6, 25 cents on level 7 and 10 cents on level 8
- Premier – $3 on level 1, $2.50 on level 2, $2 on level 3, $1.50 on level 4, $1 on level 5, 75 cents on level 6, 50 cents on level 7, 25 cents on level 8, 10 cents on level 9 and 5 cents on level 10
- Enterprises – $4 on level 1, $3.50 on level 2, $3 on level 3, $2.50 on level 4, $2 on level 5, $1.50 on level 6, $1 on level 7, 75 cents on level 8, 50 cents on level 9, 25 cents on level 10, 10 cents on level 11 and 5 cents on level 12
Note that an affiliate is paid out according to the maximum level they have invested in.
There are six affiliate ranks within the WaraNetwork compensation plan and, along with their respective qualification criteria, are as follows:
- Manager – 50 investments made by a recruited downline
- General Manager – 100 investments made by a recruited downline
- Director – 200 investments made by a recruited downline
- Executive – 500 investments made by a recruited downline
- Vice-President – 1000 investments made by a recruited downline
- President – 2000 investments made by a recruited downline
When a WaraNetwork reaches one of the above affiliate ranks, they are rewarded with a one-time payment bonus:
- Manager – $1000
- General Manager – $2000
- Director – $4000
- Executive – $10,000
- Vice-President – $20,000
- President – $40,000
Weekly Prize Draw
WaraNetwork don’t go into specifics of their draw, only stating
WaraNetwork.com is offering our affiliates the opportunity to participate in our weekly promo contest, for each ticket you buy you will automatically be entered into our contest to win a weekly Prize.
Prize draw will be done weekly basis. The winner will be selected at weekly basis.
Affiliate membership to WaraNetwork is free, however affiliates must invest in one of the package levels if they wish to earn commissions. This attracts a monthly membership fee of between $5 and $200 a month, depending on which package level is invested in.
With no retail revenue and a daily ROI paid out of newly invested money, WaraNetwork effectively operates as a five level Ponzi scheme.
Affiliates join the company, choose which level they wish to invest in (or multiple levels if they have the funds) and are then paid an annual ROI from newly invested money.
Somewhat amusingly, the owner(s) of WaraNetwork seem to believe that some simple pseudo compliance will negate their running of a Ponzi scheme:
Correct terminology to use to stay compliant:
-Instead of compound / reinvest use the term “repurchase.”
-Instead of “Profits, or “Income,” use the terms “Ads Credit,” or “Gain”
-Regarding Bonuses and referral commissions use the terms “Purchase and Repurchase” of packages.
-You are not a WaraNetwork.com “Member, you are an “Affiliate.”
-Your monthly WaraNetwork.com fee is not a “Membership” fee; it is a “Subscription.”
-Use the term “Package Purchase” and NOT “Investment.”
-Instead of “Percentage Rate,” use the terms Ratio.
Unfortunately for WaraNetwork and its investors, it’s not so much the terminology you use but the actual business model and compensation plan that determines the legitimacy of your business.
With a reliance on continual new investment and said investment money used to pay existing affiliates, at the end of the day it really doesn’t matter what terminology WaraNetwork’s affiliates use.
No new investment money means no commissions will be paid out.
It is also haram.
1) It’s against sharia law of usury and unequal “interest” earning.
a. Ribā al-fadl: the interest resulting from an exchange of like for like in an unequal manner
b. Ribā al-nasī’ah: the interest that is paid in lieu of credit.
2) It’s against “certainty” (gharah) in that what you earn depends on whether other people put in more money (or not).
The Prophet (peace be upon him) forbade transactional uncertainty, as related by Abū Hurayrah who said: “Allah’s Messenger (peace be upon him) forbade business transactions determined by the throw of a stone and business transactions involving uncertainty.” [Sahīh Muslim (1513)]
3) It involves fraud through false promises
Allah says: “O you who believe! Do not devour your wealth among yourselves falsely.” [Sūrah al-Nisā’: 29]
4) Such behavior is haram
The Prophet (peace be upon him) said: “He who cheats us is not one of us.” [Sahīh Muslim (101)]