Crowdfunding International: 215 EUR a pop cash gifting
There is no information on the Crowdfunding International website indicating who owns or runs the business.
The Crowdfunding International website domain (“crowdfundinginternational.eu”) was registered on September 25th, 2015. “Crowdfunding International Exploitatie BV” is listed as the owner, with an address in Obbicht, Netherlands also provided.
The same residential address is provided on the Crowdfunding International website, suggesting the company is run from within the Netherlands itself.
Several Crowdfunding International website lists several Facebook groups belonging to the company, spanning the languages English, French, Croatian, Turkish, Portuguese, Hungarian and Dutch.
Each group has various admins, with Eliza Leclerc an admin in all seven Crowdfunding International Facebook groups.
On her Facebook profile, Eliza Leclerc (right) lists her location as Rotterdam, Netherlands. This ties into Crowdfunding International’s corporate address, with Leclerc likely involved in the running of the scheme.
Update 3rd May 2016 – A “Team CFI” page on the Crowdfunding International website (not linked off the website homepage), lists several additional Netherlands-based admins (credited as “General Managers”):
- Ivo Coenen
- Twan van der Kort
- Pascal Nieling
- Mick Baggen and
- Koen Lienaerts (IT Department)
Generic bios are provided for each, however nothing specific to MLM. /end update
Read on for a full review of the Crowdfunding International MLM opportunity.
The Crowdfunding International Product Line
Crowdfunding International has no retailable products or services, with affiliates only able to market Crowdfunding International affiliate membership itself.
The Crowdfunding International Compensation Plan
The only pre-requisite to earn commissions in Crowdfunding International is the recruitment of two affiliates, who each pay €215 EUR into the scheme.
Commissions in Crowdfunding International are paid out via a 2×7 matrix.
A 2×7 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 splitting each of the first two positions into another two positions each (four positions).
The third level of the matrix is generated in the same manner (eight positions), and so on and so forth down a total of seven matrix levels.
In total there are 254 positions in a 2×7 matrix.
Commissions are paid out as new affiliates are recruited, with their €200 EUR payment used to pay off existing affiliates as follows:
- level 1 (positions cost 200 EUR) – receive €200 EUR from two affiliates, keep €80 EUR and cycle into level 2
- level 2 – receive €640 EUR from four affiliates, all funds are passed up and cycle into level 3
- level 3 – receive €3200 EUR from eight affiliates, keep €1920 EUR and cycle into level 4
- level 4 – receive €14,000 EUR from sixteen affiliates, keep €11,440 EUR and cycle into level 5
- level 5 – receive €56,320 EUR from thirty-two affiliates, keep €51,200 EUR and cycle into level 6
- level 6 – receive €225,280 EUR from sixty-four affiliates, keep €215,040 EUR and cycle into level 7
The Crowdfunding International compensation plan documentation this review is based on does not disclose payment amounts beyond level 6.
Although billed as a 2×7 matrix, the documentation suggested payments beyond level 7 (running into millions of EUR) were possible.
As per screenshots of Crowdfunding International affiliate backoffices, two positions at each matrix level must be filled before the next level is unlocked.
I’ve provided the total payouts on each level above, however the unlock fees are paid out of the first two gifted payments at each matrix level.
Joining Crowdfunding International
Affiliate membership with Crowdfunding International is €15 EUR.
At least one €200 EUR gifting payment must also be made in order to qualify to receive payments from other Crowdfunding International affiliates.
As per a marketing video on the Crowdfunding International website;
[0:15] A new Dutch company uses a unique way to crowdfund any project you’d like. Even if you just want to fund a new car for yourself.
[0:28] The principle is simple, yet strong. Give a donation, get a donation.
Legitimate crowdfunding sees participants donate funds with no financial incentive to do so.
Under the ruse of pretending to be a legitimate crowdfunding scheme, what Crowdfunding International offer is the complete opposite.
You gift 200 EUR into the scheme, which is shared between the affiliate who recruited you and their upline.
This qualifies you to receive payments from affiliates you recruit, with enough payments pushing you into the upper tiers of the gifting matrix.
This isn’t crowdfunding, it’s cash gifting.
In a somewhat depressing trend, modern MLM cash gifting schemes have increasingly fronted themselves with a crowdfunding ruse.
The mechanics of these schemes sees Eliza Leclerc and early adopters placed at the top of the company-wide matrix. This ensures they receive the majority of funds gifted into the scheme, by virtue of their individual matrices having the most filled positions.
Everbody else (that includes you) gets whatever funds are left over.
If you examine the math behind Crowdfunding International, it becomes readily apparent that in order for thousands of EUR to be generated at the upper gifting tiers, a large portion of 200 EUR payments at the bottom of the company-wide matrix will be mostly passed up.
Thus, in order for the Crowdfunding International admin(s) and early adopters to be paid out, the majority of participants must lose money.