Crowdfunders United Review: 5000% ROI Ponzi scheme
There is no information on the Crowdfunders United website indicating who owns or runs the business.
The Crowdfunders United website domain (“crowdfundersunited.com”) was registered on the 30th of May 2016, however the registration is set to private.
The Crowdfunders United Terms and Conditions suggests the company might be based out of the Netherlands:
(Crowdfunders United) is owned by Crowdfunders United b.v., Koppelingsweg 5 d, 6673 DT, Andelst, The Netherlands, chamber of commerce number: 66171601.
At the time of publication, Alexa also estimates that 95.8% of all traffic to the Crowdfunders United website originates out of the Netherlands.
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 Crowdfunders United Product Line
Crowdfunders United has no retailable products or services, with affiliates only able to market Crowdfunders United affiliate membership itself.
The Crowdfunders United Compensation Plan
The Crowdfunders United compensation plan sees affiliates invest between €250 to €5000 EUR on the promise of a ROI of up to €250,000 EUR
- Starter – invest €250 EUR and receive €12,500 EUR
- Premium – invest €500 EUR and receive €25,000 EUR
- Business – invest €750 EUR and receive €37,500 EUR
- Professional – invest €1000 EUR and receive €50,000 EUR
- Enterprise – invest €1250 EUR and receive €62,500 EUR
- VIP – invest €2500 EUR and receive €125,000 EUR
- Founder – invest €5000 EUR and receive €250,000 EUR
Newly invested funds are distributed to existing Crowdfunders United affiliates. An investment made by a newly recruited affiliate qualifies them to receive ROI payments from subsequently recruited affiliates.
Payments within Crowdfunders United are tracked via a 2×6 matrix.
A 2×6 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These initial two positions form the first level of the matrix, with the second level generated by spitting each of the two positions into another two positions each (4 positions).
Subsequent levels of the matrix are generated in the same manner (up to six levels), with a full 2×6 matrix housing 126 positions.
Each Crowdfunders United investment level operates as a separate matrix tier, with funds passed up until the advertised ROI amount is received.
Note that in order to qualify for ROI payments, each Crowdfunders United affiliate must recruit at least two affiliates.
World Pool Share
Crowdfunders United affiliates can earn shares in the World Pool Share, which is made up of a percentage of invested funds.
Crowdfunders United don’t disclose what percentage of invested funds they deposit into the World Pool Share.
Affiliates obtain shares via recruitment of new affiliates, capped based on how much they have invested:
- Starter – recruit 22 affiliates and receive 1 share, recruit 24 affiliates and receive two shares or recruit 26 affiliates and receive 3 shares
- Premium – recruit 20 affiliates and receive 1 share, recruit 22 affiliates and receive two shares or recruit 24 affiliates and receive 3 shares
- Business – recruit 18 affiliates and receive 1 share, recruit 20 affiliates and receive two shares or recruit 22 affiliates and receive 3 shares
- Professional – recruit 16 affiliates and receive 1 share, recruit 18 affiliates and receive two shares or recruit 20 affiliates and receive 3 shares
- Enterprise – recruit 14 affiliates and receive 1 share, recruit 16 affiliates and receive two shares or recruit 18 affiliates and receive 3 shares
- VIP – recruit 12 affiliates and receive 1 share, recruit 14 affiliates and receive two shares or recruit 16 affiliates and receive 3 shares
- Founder – recruit 10 affiliates and receive 1 share, recruit 12 affiliates and receive two shares or recruit 14 affiliates and receive 3 shares
Joining Crowdfunders United
Crowdfunders United affiliate membership is €25 EUR a year (first year is free).
On top of that affiliates must invest at least €250 EUR to participate in the attached MLM opportunity.
Under the guise of crowdfunding, Crowdfunders United run a simple enough Ponzi scheme.
Aside from the business model betraying the true nature of the company, Crowdfunders United themselves refer to the company as a “closed membership club”.
You, as anew affiliate, sign up and invest funds into the system. These funds are used to pay off existing investors, making Crowdfunders United a Ponzi scheme.
As with all Ponzi schemes, once affiliate recruitment dries up so too will newly invested funds. This will see Crowdfunders United unable to meet its advertised ROI obligations.
Being a matrix-based scheme, Crowdfunders United affiliates will be able to spot a collapse as matrices take longer and longer to fill.
One final note, in researching Crowdfunders United I came across the claims of a partnership between the company and LikesXL.
Specifically, LikesXL affiliates are able to use 50% of their ROI payouts to directly fund investment in Crowdfunders United.
This strongly suggests that, on some level, the owners of LikesXL and Crowdfunders United are linked (or even the same individual(s)).
For those unfamiliar with the scheme, LikesXL is a Ponzi scheme launched about a year ago. Many affiliates promoting Crowdfunders United are also promoting LikesXL.