Zubaduba Review: $8 1-up pyramid scheme
Foreword: On September 9th 2012, Zubaduba got rid of the compensation plan reviewed here and relaunched with a new business model that strongly resembles a Ponzi scheme.
This review is kept intact in the interest of preserving the company’s history. /end foreword
There is no information on the Zubaduba website indicating who owns or operates the business.
The domain ‘zubaduba.com’ was registered on the 26th June 2012, however the domain registration 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 Zubaduba Product Line
Zubaduba don’t have any retailable products or services. Instead members are only able to market membership to the company itself.
Bundled with each Zubaduba membership is access to a ‘growing digital product collection‘ with Zubaduba claiming the company will ‘use 20% of total income for buying new digital products for (their) members‘.
Zubaduba itself does sell advertising space on its webpage directly to the public, but this is external to the MLM opportunity offered in that members are unable to market this service and earn a commission themselves.
The Zubaduba Compensation Plan
Zubaduba use a 1-up style compensation plan which means that every new member to join Zubaduba passes up their first membership sale to their direct upline.
Thereafter they get to keep every membership sale and likewise the first sale of any of their direct downline is passed up to them (this cascades down each time someone passed up recruits a new member).
Zubaduba pay out a flat $5 monthly commission on each monthly membership fee paid by members.
Membership to Zubaduba is $8 a month.
With no retailable products or services, a compensation plan that pays out 100% of commissions from membership fees with new members only able to earn commissions by recruiting new members, Zubaduba is your most basic of pyramid schemes.
Once members at the bottom are unable to recruit new members they’ll stop paying their membership fees which means their uplines will stop earning commissions and the entire opportunity collapses.
Going by the small commissions offered ($5 with the Zubaduba admin keeping $3), this will most likely happen sooner rather than later.