ABA Marketing Review: Weird Russian crypto pyramid scheme
ABA Marketing’s website domain (“aba.marketing”) was first registered in November 2014.
The private registration was last updated on June 23rd, 2021.
The country code provided on ABA Marketing’s domain registration is Saint Kitts and Nevis.
This corresponds with a corporate address provided in Saint Kitts and Nevis on ABA Marketing’s website.
ABA Marketing also provide a Saint Kitts and Nevis incorporation certificate for ABA Marketing Group Inc.
Saint Kitts and Nevis is a scam-friendly jurisdiction with no active MLM regulation.
Scammers typically set up shell companies in dodgy jurisdictions like Saint Kitts and Nevis, to launder money through and avoid regulation.
For the purpose of due-diligence, basic incorporation anywhere is meaningless.
Oddly enough of the four social media platform links provided on ABA Marketing’s website, only vKontakte is active.
vKontakte is a Russian social media platform, which brings us to where ABA Marketing is actually being operated from.
ABA Marketing’s website source-code contains Bulgarian:
Marketing documents cited in researching this review were also written in Bulgarian.
The two offered languages on ABA Marketing’s website are English and Russian.
Finally, Alexa pegs Russia as providing 95% of traffic to ABA Marketing’s website.
This suggests whoever is running ABA Marketing has ties to Russia and/or Bulgaria.
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.
ABA Marketing’s Products
ABA Marketing has no retailable products or services.
ABA Marketing affiliates are only able to market ABA Marketing affiliate membership itself.
ABA Marketing’s Compensation Plan
ABA Marketing do not provide compensation details on their website.
I was able to obtain a copy of ABA Marketing’s compensation plan in Bulgarian.
Language issues aside, the plan is poorly presented and lacking explanations.
Nonetheless I’ve done my best to present below what I’ve been able to make of it.
Note that for some reason ABA Marketing’s compensation plan switches between USD and EUR.
EUR is predominant so I’m assuming USD amounts are mistakes.
I’ve kept USD where cited in the compensation plan to remain faithful as it’s presented.
ABA Marketing Affiliate Ranks
There are ten affiliate ranks within ABA Marketing’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Consultant 1 – sign up as an ABA Marketing affiliate
- Consultant 2 – generate 100 E in downline investment volume
- Consultant 3 – personally invest 100 E and generate 700 E in downline investment volume
- Advisor 1 – personally invest 300 E and generate 3000 E in downline investment volume
- Advisor 2 – personally invest 800 E and generate 10,000 E in downline investment volume
- Structural Director – personally invest 1200 E and generate 25,000 E in downline investment volume
- Regional Director – personally invest 1700 E and generate 60,000 E in downline investment volume
- International Director – personally invest 2000 E and generate 100,000 E in downline investment volume
- Executive Director – generate 250,000 E in downline investment volume
- Supervisor – generate 500,000 E in downline investment volume
The value “E” is determined by dividing invested funds by 300.
Conversely, required invested fund amounts can be calculated by multiplying by 300.
E.g. International Directors are required to invest 2000 E and generate 100,000 E.
This comes to a personal investment of €600,000 EUR and €30 million EUR in downline investment volume.
The reason I haven’t done these calculations above is because the rest of ABA Marketing’s compensation plan is based on E amounts, as opposed to straight EUR invested.
ABA Marketing affiliates earn a commission on funds invested by personally recruited affiliates.
ABA Marketing calculates referral commissions by converting funds invested into E units (dividing them by 300).
The E unit amount is then multiplied by a factor determined by rank:
- Consultant 1 affiliates earn E * 3.5
- Consultant 2 affiliates earn E * 4.5
- Consultant 3 affiliates earn E * 6.5
- Advisor 1 affiliates earn E * 8.5
- Advisor 2 affiliates earn E * 10.5
- Structural International Directors earn E * 12
- Regional Directors earn E * 13.5
- International Directors earn E * 13.7
- Executive Directors earn E * 13.9
- Supervisors earn E * 14
Note that referral commissions appears to be coded, meaning a 14 multiplier is paid out on all new investment.
Higher ranked ABA Marketing affiliates thus are paid the difference between their rank multiplier and lower ranked downline affiliates.
E.g. an Advisor 2 recruits an affiliate who invests €100 EUR.
The Advisor 2 earns their E * 10.5 referral commission rate.
Upline affiliates ranked International Director and higher receive the remaining amount, up to an Executive Director being paid what’s left of E*14.
ROI Referral Commissions (?)
ABA Marketing appear to pay a percentage of returns paid to personally recruited affiliates.
I’m not 100% sure what’s going on here so I’m providing the compensation slide in question:
The Bulgarian text reads:
PASSIVE INCOME% OF PERSONAL PROFIT ATTRACTING CAPITAL
As you can see the percentages are tied to ABA Marketing ranks.
In the example provided though, €150,000 EUR is somehow shrunk to €3000 EUR and then multiplied by the corresponding percentage (I’m assuming “3 yp” corresponds with rank 3 to get 3%).
The shrunken amounts are both 2% of the figure the ROI referral commission is being calculated on (e.g. 150,000 –> 3000 and 700,000 –> 14,000).
No explanation for this reduction is provided so I’m not sure where it’s coming from.
Like referral commissions, ROI referral commissions are also coded.
This means that 10% is paid out on all ROI payments, allowing higher ranked affiliates to collect the difference from lower ranked downline affiliates.
ABA Marketing rewards Structural Directors and higher with the following monthly bonuses:
- qualify at Structural Director and receive $300 a month
- qualify at Regional Director and receive $600 a month
- qualify at International Director and receive $900 a month
- qualify at Executive Director and receive $1200 a month
- qualify at Supervisor and receive $1500 a month
Rank Achievement Bonuses
ABA Marketing rewards affiliates for reaching “unit” milestones as follows:
- generate 500 units within your first month or 700 units in any other month, and receive a personalized watch with one diamond diamond on it
- generate 700 units within your first month or 1200 units in any other month, and receive another personalized watch with twelve diamonds on it
- qualify at Advisor 1 and receive tickets to a two-day Leadership Program
- qualify at Advisor 2 and receive tickets to a three-day Leadership Program and a Parker pen
- qualify at Structural director and receive tickets to another three-day Leadership Program, and a personalized gold watch with twelve diamonds on it
- qualify at Regional Director and receive €4000 EUR
- qualify at International Director and receive what appears to be a golden bracelet set with a diamond
- qualify at Executive Director and receive €10,000 EUR
- qualify at Supervisor and receive €20,000 EUR
Note that bonus “units” are not the same as “e units”. It’s a new metric for which no explanation is provided.
ABA Marketing rewards its “top 20” affiliates with “leader holidays”.
No further specific information is provided.
Joining ABA Marketing
ABA Marketing affiliate membership appears to be free.
ABA Marketing Conclusion
Your first red flag with ABA Marketing is working out what the company actually does.
There’s no specific information provided on ABA Marketing’s website.
ABA Marketing’s compensation plan details returns:
So it appears investments are made on the promise of a passive return. Beyond that things are cloudy.
Looking at ABA Marketing’s website roadmap, the company started off with travel services. Circa 2017 ABA Marketing transitioned to cryptocurrency.
This takes place through iQeon and plans to launch a cryptocurrency exchange.
There’s also Zplex, a website that’s nothing more than a login form.
What isn’t cloudy is ABA Marketing’s pyramid scheme compensation plan.
Nothing is marketed or sold to retail customers. Instead ABA Marketing pays on funds invested by recruited affiliates, rewarding those who build the biggest recruited downlines.
Regardless of what’s happening on the backend, if you want to get anywhere in ABA Marketing you have to recruit.
That inevitably collapses when recruitment inevitably collapses.
Add to that whatever crypto shenanigans are going on in secret, and there’s probably a reason ABA Marketing aren’t transparent about their business operations.
On the regulatory front Russian authorities do appear to be aware of ABA Marketing.
Back in January the Bank of Russia warned ABA Marketing exhibited “signs of a pyramid scheme”.
Unless you want to dive headfirst into yet another dodgy Russian MLM crypto scheme, avoid.
Update 1st February 2022 – ABA Marketing has collapsed.
As at the time of this update, ABA Marketing’s website has been pulled and the company’s socials either deleted or made private.
Update 2nd February 2022 – ABA Marketing has rebooted as 7 Flags Club.