AirBit Club Review: Bitcoin ROIs and recruitment
There is no information on the AirBit Club website indicating who owns or runs the business.
The AirBit Club website domain (“bitbackoffice.com”) was registered on the 27th of September 2015, however the domain registration is set to private.
I have read claims that Renato Rodriguez (of ViziNova Ponzi fame) is involved in AirBit Club, but I was unable to independently verify this information.
One anomaly worth pointing out is that Alexa currently estimate that 45% of all traffic to the AirBit Club website originates out of South Korea.
Traffic itself seems to have picked up around mid February, however given the majority of AirBit Club marketing material is in Portuguese and Spanish, South Korea being the largest source of traffic is certainly strange.
Update 17th May 2015 – An AirBit Club Philippines Facebook post dated 31st March, 2016 identifies Gutemberg dos Santos as a co-founder of the company:
Dos Santos co-founded Vizinova with Renato Rodriguez.
Rodriguez is presumed to be the other co-founder of AirBit Club, however I’ve been able to directly link him to the company. /end update
Update 19th May 2016 – An undated photo has surfaced which shows both Gutemberg dos Santos and Renato Rodriguez at what appears to be an Airbit Club recruitment event:
Rodriguez is manning the computers, which suggests an executive role within the company. /end update
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.
The AirBit Club Product Line
AirBit Club has no retailable products or services, with affiliates only able to market AirBit Club affiliate membership itself.
The AirBit Club Compensation Plan
The basic gist of the AirBit Club compensation plan is that affiliates sign up and pay a fee.
Of this fee, AirBit Club claim half is put towards bitcoin mining and the other half they pay affiliates with.
In total, there are three AirBit Club affiliate packages:
- Executive – $250
- Corporate – $500
- Pro – $1000
AirBit Club affiliates are paid to recruit new affiliates.
Once a newly recruited affiliate pays their AirBit Club affiliate membership fee, the recruiting affiliate receives a 20% commission.
Purportedly based on bitcoin mining, AirBit Club pay a ROI on investment packages up to 300 times.
The packages will pay affiliates base(d) on the amount of bitcoins mined everyday.
The total bitcoins earned will be split among all members and paid out.
How long a ROI is paid out is determined by how much an AirBit Club affiliate invests:
- Executive ($250) – 150 days
- Corporate ($500) – 225 days
- Pro ($1000) – 300 days
The AirBit Club compensation plan states that between 0.2% to 1.2% of funds invested is paid out daily. There is also a renewal fee charged every 75 ROI payouts.
Renewal fees are charged at a rate of 35% of the ROI paid out across each 75 day ROI period.
Residual Recruitment Commissions (matrix)
Matrix-based residual recruitment commissions in AirBit Club are paid out via a 3×18 matrix.
A 3×18 matrix places an affiliate at the top of a matrix, with three positions directly under them:
These initial three positions form the first level of the matrix, with the second level generated by splitting each of the first three positions into another three positions each (9 positions).
The third level of the matrix is generated in the same manner (27 positions), with each level housing three times as many positions as the previous level.
A 3×18 matrix extends down eighteen levels, with a complete matrix housing over 581 million positions.
Commissions are paid out as positions in the matrix are filled, with positions filled via the direct and indirect recruitment of new affiliates.
For each affiliate recruited who fills a matrix position, AirBit Club pay a once-off $10 commission.
Note that Executive ($250) affiliates are capped at earning on three matrix levels. Corporate ($500) affiliates are capped at seven levels and only Pro ($1000) can earn on all eighteen matrix levels.
Residual Recruitment Commissions (binary)
A binary compensation structure places an affiliate at the top of a binary team, with two positions directly under them:
These two positions form the beginnings of the binary team, split into two sides (left and right).
A binary team structure sees each level of the binary team house twice the amount of positions as the previous level.
When a level of the binary team is filled, another is generated down a theoretical infinite depth.
Commissions are paid out based on recruitment volume, with each AirBit Club affiliate membership generating the following points:
- Executive ($250) – 200 points
- Corporate ($500) – 400 points
- Pro ($1000) – 900 points
For every 200 points matched on both sides of the binary, AirBit Club pay out a $20 commission.
Note that Executive affiliates are capped at $500 a day in binary earnings. Corporate affiliates are capped at $1000 a day and Pro affiliates $10,000.
Retirement Plan Matrix
Participation in the Retirement Plan matrix is optional and costs between $150 and $350 a month.
The matrix size used to pay Retirement Plan commissions is a 3×32. This is the same as a 3×18 matrix, only extended down a total of thirty-two positions (billions of positions).
As with recruitment commissions, Retirement Plan commissions are paid out monthly from charged fees.
- positions filled on level 1 of the matrix pay out $20 per position filled
- positions filled on levels 2 and 3 of the matrix pay out $10 per position filled
- positions filled on levels 4 to 8 of the matrix pay out $20 per position filled
- positions filled on level 9 pay out $10 per position filled
- positions filled on level 10 to 32 pay out $3 per position filled
Note that affiliates who pay $150 a month can only earn on levels 1 to 3 of the matrix.
Affiliates who pay $250 a month can earn on levels 1 to 7 and affiliates who pay the full $350 a month can earn on all eighteen levels.
Joining AirBit Club
Affiliate membership with AirBit Club is $50 a month plus the purchase of one of the following three packages:
- Executive – $250
- Corporate – $500
- Pro – $1000
The primary difference between the affiliate membership is income potential through the AirBit Club compensation plan.
Participation in the optional Retirement Plan matrix requires an additional payment of between $150 and $350 a month.
Both core components of the AirBit Club MLM opportunity present glaring compliance issues.
On the ROI side of things, AirBit Club offer affiliates a passive ROI purportedly sourced from bitcoin investment.
This first and foremost requires registration with a securities regulator. There is no indication on the AirBit Club website suggesting the company has registered with any such regulator.
Secondly there’s a very real possibility that, while a token amount of bitcoin mining may take place, that AirBit Club simply re-use newly invested funds to pay off existing investors.
This would make it a Ponzi scheme.
The rest of the AirBit Club compensation plan is a combination of “pay to play” and pyramid scheme territory.
The pay to play element is evident in commissions paid out to affiliates determined by how much they invest. This is evident in all components of the AirBit Club compensation plan.
In MLM, commissions should always be based on individual sales performance of products and services – not how much an affiliate spends on membership fees.
The pyramid scheme component is evident in the recruitment commissions AirBit Club pay out. This includes both the direct and indirect residual recruitment commissions paid out via the 3×18 matrix.
In summary, once an affiliate has paid a membership fee, AirBit Club then pays them to recruit other affiliates who do the same.
The Retirement Plan matrix is a pyramid scheme within a pyramid scheme, with monthly affiliate fees shuffled around to pay off those with the largest matrices under them.
All components of the AirBit Club compensation plan require constant recruitment of new affiliates. If this slows down, funds entering the system also slow down and commissions will roll to a stand-still.
At this point AirBit Club will have collapsed, with the anonymous admin(s) doing a runner.
If Renato Rodriguez is indeed involved, one only need look at the collapse of ViziNova to see how the future of AirBit Club will play out.