Zubaduba ditch pyramid scheme, relaunch as a Ponzi
Back in July I reviewed the newly launched MLM company, Zubaduba.
Launching with your typical “you get access to our e-book library” pyramid scheme business model, Zubaduba charged $8 for membership and using a 1-up style compensation plan and paid out $5 from monthly membership fees.
Just two months after launch, the Zubaduba pyramid scheme has collapsed with the company announcing a new business model on September 9th.
Whereas running a pyramid scheme failed for them, Zubaduba seem to now be pinning their hopes of success on an “ad pack” Ponzi scheme model.
As per the new Zubaduba FAQ:
How do I earn with Zubaduba?
There is two ways to earn:
1: Buy ad packs and get revenues from other shares (ad packs).
2: Get commissions from deposits made by your referrals, %5 from levels 1 and 2.
Option one involves the investment in “shares” (50 cents each) which then pay out a 150% guaranteed ROI over time. Zubaduba also mention that to qualify for withdrawals, members must have viewed ‘at least 25 PTC ads within the last 7 days‘.
Bundled with each investment are a series of advertising credits. Also if members invest $10 or more, the company also throws in a year of “unlimited” web hosting (who this is with is not disclosed).
Zubaduba investments are made in lots costing $1, $2, $5, $10 or $50, with Zubaduba stating that ‘80% of all purchases will be shared between all active ad packs in the same share plan‘.
Breaking it down you’ve got 5 investment pools here which all pay out ROIs funded by up to 80% of new member investments made into each specific pool.
Some of the 20% Zubaduba don’t pump into the ROI pools is used to pay out a 5% referral commission on the investments made by members personally recruited into the scheme (level 1), and any investments made by new members recruited by them (level 2).
Just as Zubaduba v1.0 failed when new members stopped joining and paying monthly membership fees, so too will Zubaduba v2.0 when new investments dry up.
Not surprisingly, in jumping from a pyramid scheme business model to a Ponzi, Zubaduba still don’t disclose who owns the company.
where do they come up with these stupid names?
LOL. I think it appeals to the people who tend to put money into schemes like this. The people who start up these schemes don’t want your intelligent Wall Street types who would rather invest in businesses that sound legit and solid, like say, “Mutual of New York.”
They want the yokels who want to invest in something that sounds fun and won’t be smart enough to realize that it’s a pyramid or ponzi scheme.
Maybe I should start one YA-BID-ABBADOO!
It’s like how someone explained the Nigerian scam emails. Some of them are so poorly written that there’s absolutely no way any thinking individual could take them seriously. It was suggested that they were written that way on purpose, so that the only people replying to them would the the lesser intelligent people who would fall for them in the first place.
Why bother with someone who’s going to eventually see through your scam, when you can just target someone who’s going to go all in and not suspect a thing?