CashAdStream Review: Turn $1.50 into $2.5 million?
There is no information on the CashAdStream website indicating who owns or runs the business.
The CashAdStream website domain (“cashadstream.com”) was registered on the 29th of January 2015, however the domain registration is set to private.
A YouTube video appears on the CashAdStream website, uploaded on February 11th on an account named “Adam Sikorsky”.
The account was created itself on February 9th, appearing to exist solely to promote CashAdStream.
I was unable to find any further information on this individual, leaving a question mark as to whether Adam Sikorsky, within the context of owning CashAdStream, actually exists.
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 CashAdStream Product Line
CashAdStream has no retailable products or services, with affiliates only able to market affiliate membership to the company itself.
Once an affiliate has signed up with CashAdStream, the are then able to purchase matrix positions.
Bundled with each matrix position is a series of advertising credits, which can be used to display advertising on the CashAdStream website.
The CashAdStream Compensation Plan
The CashAdStream compensation plan sees affiliates purchase $1.50 matrix positions.
The matrix system used by CashAdStream is a 3×8 structure, which has three positions on the first level:
These first three positions branch out into another three positions each to make up the second level. These second level positions branch out into another three positions each to make up the third level, and so on and so forth down a total of eight levels.
Each $1.50 position purchase sees a new position created at the top of a 3×8 matrix, with commissions paid as positions in the matrix are filled.
Positions in the matrix are filled via the subsequent purchase of positions by other CashAdStream affiliates. These can be newly recruited or existing affiliates.
How much of a commission is paid out depends on what level of the matrix a position is filled, with commissions paid out as follows:
- level 1 (3 positions) – $1.50
- level 2 (9 positions) – $5
- level 3 (27 positions) – $10
- level 4 (81 positions) – $20
- level 5 (243 positions) – $40
- level 6 (729 positions) – $80
- level 7 (2187 positions) – $160
- level 8 (6561 positions) – $320
Note that this is a sequential matrix, with each CashAdStream affiliate required to “buy into” each level. This buy-in fee is the same as the commission paid out per position filled at any given level.
Ie. It costs $1.50 to buy into the first level of the matrix, which qualifies a CashAdStream affiliate to receive $1.50 from three other affiliates.
It then costs $5 to buy into the second level of the matrix, which qualifies a CashAdStream affiliate to receive $5 payments from nine other affiliates etc.
Affiliate membership with CashAdStream is free, however affiliates must pay to unlock matrix levels in order to participate in the CashAdStream compensation plan.
As such the defacto cost of CashAdStream affiliate membership ranges in cost from $1.50 (unlock the first matrix level) to $636.50 (unlock all eight levels).
CashAdStream offer affiliates participation in an eight-tier cash gifting scheme.
Affiliates must pay a fee at each level of the scheme, which qualifies them to receive gifting payments from participants placed under them.
In turn, the fees paid at each level by the CashAdStream affiliate are gifted to the affiliate who recruited them.
Through this gifting compensation structure, a promotional video on the CashAdStream website claims affiliates are able to turn $1.50 into $2.5 million dollars:
This is the amount receivable (sans level unlock fees) affiliates can receive from other affiliates in a filled 3×8 matrix.
The numbers required to reach this goal however are staggering. Without getting too much into the mathematics, each CashAdStream affiliate puts in $1.50 and then relies on three other participants to pay them $4.50.
They make up the remaining 50 cents to get into level 3 and from there they’re simply shuffling around other people’s money and withdrawing amounts off the top.
Dollar for dollar, $2.5 million would require 1.25 million people paying $2 ($1.50 plus 50 cents) to pay out. And that’s per one position.
Needless to say that’s not going to happen.
But in any event, even if the numbers were achievable, the issue of CashAdStream being nothing more than a cash gifting scheme remain.
Affiliates sign up and then gift funds to affiliates who joined before them, in turn receiving cash gifts from participants who join after them.
Once the recruitment of new members into the scheme slows down, gifting payments across all matrix levels will stall and CashAdStream will collapse.
At that point anyone with funds still trapped in the system (likely to be most affiliates due to the size of the matrix), loses out.
On one hand the cost per affiliates ($2) isn’t much (assuming affiliates don’t purchase too many individual positions each), however due to the numbers required to get anywhere, there’s a dangerous potential for a large number of people to be sucked into the scheme.
$2 a pop per person isn’t much, but multiple by that by thousands and things start to add up quickly.
Somebody meanwhile has to recruit those thousands, and with CashAdStream being a cash gifting scheme bound to inevitably collapse – what price do you put on your reputation as a marketer?