AdReverts Review: $5-$30 advertising-based Ponzi scheme
There is no information on the AdReverts website indicating who owns or runs the business.
The AdReverts website domain was registered on December 6th 2014, however the domain registration is set to private.
Further research reveals AdReverts affiliates naming an “Enrico Villanueva” as the owner of the company. Note that I wasn’t able to verify this information independently though.
It’s worth noting that the same name was used to promote Ads Davao, a $2 micro Ponzi scheme launched back in 2013.
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 AdReverts Product Line
AdRevers has no retailable products or services, with affiliates only able to market affiliate membership to the company itself.
The AdReverts Compensation Plan
The AdReverts compensation plan revolves around affiliates investing in various plans, purchasing matrix positions and recruiting others who do the same.
Note that 50% of all commissions paid out to AdReverts affiliates must be re-invested back into the scheme.
Positions in Phase 1 cost $5 and come with one matrix position and one revenue-sharing position.
The matrix used in Phase 1 is a 3×1, which means there are three positions to fill.
Once filled (via the purchase of new matrix positions), the affiliate cycles out of the matrix and is paid $10.
The revenue-sharing positions matures at $5, meaning the total payout for a single Phase 1 position is $15 on an initial $5 investment.
Positions in Phase 2 cost $15 and come with one matrix position and four revenue-sharing positions.
The matrix used in Phase 2 is a 3×1, once again having three positions to fill.
Once these positions are filled, Phase 2’s cycle bonus pays out $30.
Each of the revenue-sharing positions cap out at $5, for a total of $20 (4 positions).
The total payout for a single Phase 2 position is therefore $50 on an initial $15 investment.
Positions in Phase 3 cost $30 and come with one matrix position and seven revenue-sharing positions.
The matrix used in Phase 3 is a 7×5. This places an affiliate at the top of a 7×5 matrix, with seven positions directly under them (level 1).
In turn, these initial seven positions branch out into another seven positions each and so on and so forth down a total of five levels.
Commissions payouts in the Phase 3 matrix are sketchy, with the company’s compensation plan only stating that payouts of over $30,000 are possible.
The revenue-sharing positions pay out as normal, totaling a potential $35 once matured (7 positions).
The Sub-Phase is a monthly subscription fee of $7. How it ties into the compensation plan (or whether it’s just a participation fee) is not explained on the AdReverts website.
Referral commissions are paid out on investments made in Phase 3, payable down a total of five levels of recruitment.
- level 1 (personally recruited affiliates) – 7% ($2.10)
- levels 2 to 5 – 1.3% ($0.39)
Affiliate membership with AdReverts is free, however ‘you have to buy atleast (sic) 1 package in order to start earning in this program.‘
This pegs the defacto cost of AdReverts affiliate membership at between $5 and $30.
Note that any additional investment in Phase positions will add to this cost.
Can I realy (sic) earn doing nothing in this program?
A: Absolutely Yes! Just purchase any of our advertising packages. 1 Package is equivalent to 1 share.
The revenue generated in our site are shared to all members who has active shares position.
As above, taken from their FAQ, AdReverts simply shuffle new affiliate funds to pay off existing investors.
Nothing is marketed or sold to retail customers, with affiliates investing only on the promise of advertised ROIs.
Advertising credits are bundled with AdReverts phase investments but serve only as pseudo-compliance.
Bundling a product or service with investments doesn’t change the fact that investments are being made in AdReverts on the expectation of an advertised ROI.
As with all Ponzi schemes, once new affiliate investment dries up AdReverts will be unable to meet it’s ROI liabilities.
This will likely first manifest itself by way of decreased revenue-sharing position earnings. The matrices rely on recruitment and re-investment, so won’t collapse so much as stall.
Either way, when AdReverts collapses expect the anonymous admin to do a runner with whatever’s left.