world-rewards-network-logoThere is no information on the World Rewards Network website about who owns or runs the company.

The domain ‘worldrewardsnetwork.com’ was registered on the 3rd October 2011 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 World Rewards Network Product Line

Word Rewards Network have no retailable product or service. Instead, members of the company are required to market membership to the company itself.

World Rewards Network membership provides access to a series of discounts including shopping deals, dining, theme park admission, movie tickets, car rental, hotel and resort bookings and cash rebates.

World Rewards Network are also is promising members anti-virus software and the ability to create their own hosted website with the company, but these offers are not available until June 2012.

The World Rewards Network Compensation Plan

World Rewards Network offer members matrix commissions and First Enrollment and Matching Bonuses.

First Enrollment Bonus

Effectively a recruitment commission, World Rewards Network pay out 67% of the initial membership fee they collect from a new member to the recruiting member.

This ranges from $10 to $40, depending on the level of membership purchased.

Matrix Commissions

World Rewards Network utilise a 3×8 matrix to pay out a residual commission to members.

A 3×8 matrix starts with you at the top and branches out into three legs under you. These three legs then branch out into an additional three legs and so on and so forth with the first few levels of a 3×8 matrix looking something like this:

A 3×8 matrix has 9,840 member positions to fill and for each member in your matrix, World Rewards Network will pay out a monthly a commission.

This commissions depends on which level of the matrix a recruited member is positioned:

  • Level 1 – 28c a member (3 positions, total 84c)
  • Level 2 –  90c a member (9 positions, total $6.30)
  • Level 3 – 70c a member (27 positions, total $17.90)
  • Level 4 – 98c a member  (81 positions, total $79.38)
  • Level 5 – 84c a member (243 positions, total $204.12)
  • Level 6 – 98c a member (729 positions, total $714.42)
  • Level 7 – 56c a member (2187 positions, total $1224.72)
  • Level 8 – 42c a member (6561 positions, total $2755.62)

Members can be added to a matrix via direct recruitment, or the recruitment efforts of your upline and downline.

The total possible payout for a completed matrix is $5,004.30.

Matching Bonus

World Rewards Network’s Matching Bonus pays up to 50% of the matrix commissions earned by members you have personally recruited. The matching percentage is determined by a member’s membership rank:

  • Silver Distributor – 25% matching bonus
  • Gold Distributor – 40% matching bonus
  • Platinum Distributor – 50% matching b0nus

Joining World Rewards Network

Currently it’s possible to purchase any of the four membership ranks available within the World Rewards Network opportunity:

  • Basic Membership – costs $15 with an ongoing $13.95 monthly fee. Basic members earn 6 levels of matrix commissions and the First Enrollment Bonus but no Matching Bonuses.
  • Silver Membership – costs $30 with an ongoing $13.95 monthly fee. Silver members earn on 7 levels of the matrix, a 25% matching bonus and the First Enrollment Bonus.
  • Gold Membership – costs $45 with an ongoing $13.95 monthly fee. Gold members earn on all 8 levels of the matrix, a 40% matching bonus and the First Enrollment Bonus.
  • Platinum Membership – costs $60 with an ongoing $13.95 monthly fee. Platinum members earn on all 8 levels of the matrix, a 50% matching bonus and the First Enrollment Bonus.

As mentioned earlier, currently new members are able to purchase any of the World Rewards Network membership levels, however after June 2012 only basic membership will be available. In order to advance in membership rank, recruitment requirements will instead be put in place:

  • Silver membership – recruit 3 new members
  • Gold membership – recruit 10 new members
  • Platinum membership – recruit 20 new members

Conclusion

As it stands, the more money you pay World Rewards Network for membership the more money you can earn. There are no commissions paid out on actual use of the services membership with the company provides, with the company instead paying out flat rate commissions on the amount of members signed up.

100% of World Rewards Network’s commissions are tied into the sale of membership and payment of ongoing membership fees, and this is a huge red flag.

Currently World Rewards Network is in pre-launch with the company claiming to be preparing for a full launch in June 2012. Once this happens members won’t be able to buy into membership levels and instead will have to recruit if they wish to earn more. This only strengthens the commissions being tied into the recruitment of new members.

All in all with nothing to be marketed by members except membership to the company and 100% of the commissions tied into the sale of memberships and payment of monthly membership fees, World Rewards Network is pretty much a textbook pyramid scheme.

Regardless of who is signing up new members, the World Rewards Network is reliant on this as matrix positions of new members have to be filled if they wish to earn. With the ongoing membership fees making up the commissions being paid out, this is simply the shuffling of membership fees between members in the form of recruitment commissions.

Finally with 67% of the initial membership fee being directly paid out the recruiter, it’s clear to see the emphasis is solely on recruitment. With nothing to sell in the World Rewards Network opportunity other than membership though, that’s not really surprising.