Digital Income System Review: $25,000 traffic rotator pyramid scheme
Digital Income System provides no information on their website about who owns or runs the company.
As I write this, the Digital Income System website is nothing more than an affiliate login page.
If you visit through a Digital Income System affiliate referral link, you’re presented with recruitment marketing.
The Digital Income System website domain (“digitalincomesystem.com”) was first registered in April 2018.
The private registration was last updated on December 6th, 2018.
In my research into Digital Income System I came across affiliates naming Derek Jones and Bill Foley as owners of the company, but I wasn’t able to conclusively verify this.
The closest I got was inconclusive social media profile mentions and this Florida incorporation for Digital Income System Inc.
Either that’s a typo or Derek Jones’ real name is Derek Foley (???).
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.
Digital Income System Products
Digital Income System has no retailable products or services, with affiliates only able to market Digital Income System affiliate membership itself.
Digital Income System affiliate membership provides access to a traffic rotator.
The Digital Income System Compensation Plan
Digital Income System affiliates buy in for $1000 to $25,000.
Commissions are paid when they recruit others who do the same.
The Digital Income System compensation plan pays a 50% commission on recruitment of a new affiliate.
This is 50% of the fees paid by the newly recruited affiliate:
- recruit an Entrepreneur ($1000) and receive $500
- recruit a Director ($3000) and receive $1500
- recruit a Professional ($5000) and receive $2500
- recruit an Ambassador ($12,000) and receive $6000
- recruit an Executive ($25,000) and receive $12,500
The MLM component kicks in when an affiliate of lower buy-in recruits an affiliate at a higher buy-in.
E.g. An affiliate who bought in at Director recruits an Ambassador.
In the above example a $6000 commission is generated. the Director would still receive their $1500 recruitment commissions.
The balance ($4500) is paid to the first Professional and/or higher upline affiliate.
That is the affiliate who recruited the Director, or the affiliate who recruited that affiliate and so on.
If a Professional is found ($2500 commission rate), they receive $1000 ($2500 minus the $1500 already paid out).
The system then continues to search upline for either an Ambassador or Executive.
Once found, they receive the remaining $2000.
Note that if an Executive is found in an upline search, they always receive the full balance of any outstanding commissions.
Joining Digital Income System
Digital Income System affiliate membership costs $1000 to $25,000.
- Entrepreneur – $1000
- Director – $3000
- Professional – $5000
- Ambassador – $12,000
- Executive – $25,000
The more an affiliate spends, the higher their income potential through Digital Income System’s compensation plan.
Note that an affiliate can upgrade their membership to increase their income potential.
Conclusion
Digital Income System exists in a closed-loop vacuum, wherein the attached traffic rotator is used to promote the income opportunity itself.
Thus Digital Income System affiliates pay a fee, gain access to a marketing tool, use said tool to market to potential recruits, and are paid if any sign up.
They then do the same, and on and on it goes.
And it doesn’t take a genius to figure out the real winner in this model is Digital Income System’s anonymous admin, who banks 50% of fees paid in company-wide.
The business model is a straight-forward pyramid scheme, owing to Digital Income System neither marketing or selling anything to retail customers.
100% of Digital Income System’s revenue is generated on recruitment of new affiliates, meaning 100% of commissions are too.
Once Digital Income System affiliate recruitment dies down, so do commissions.
At any given time the majority of Digital Income System affiliates will not have recouped their initial spend.
The math behind pyramid schemes guarantees that this majority will lose money when Digital Income System inevitably collapses.
Update 11th December 2020 – The FTC has sued Digital Income System, its owners and top promoters.
In their lawsuit, the FTC alleges DIS is a ‘fraudulent money-making opportunity scheme’.
By this standard all businesses are illegitimate. “McDonalds (Ozedit: McDonalds isn’t a cash gifting scheme. Derails removed.)
If you can’t see the difference between buying into Digital Income System and getting paid to recruit others who buy in, versus walking into McDonalds and buying a hamburger, you might be a lost cause.
When you say there is no product (Ozedit: snip, nobody said Digital Income System didn’t have a product. See below.)
Not having a product != not having retailable products or services.
Attaching a product or service to a pyramid scheme, as Digital Income System has done, doesn’t make it any less of a pyramid scheme.
I joined this program with great expectations aprox 9 weeks ago and paid $5k and put another $2500 into paid traffic.
I now have 750 optins but have not made a single sale. I feel like I’ve been taken advantage and seek to get my $5k back but can’t even put in a support ticket. I keep getting an error message and there is no other option on the page.
Any suggestions?
Sure. Stop chasing easy riches through promotion of scams.
Your money is gone. Sorry for your loss.
Would you remove the post i did Jun 4th, 2019 at 12:47 am?
Thank you.
Reason?
It’s a good warning to prospective Digital Income System affiliates. That and I responded to the comment so it’s part of the conversation.
in response to OZ.
What happened? Did their lawyer send you a threatening ‘cease and desist’ letter? If so, ignore.
They are as illegal as MOBE and Digital Altitude, both shut down by the Federal Trade Commission last year.
I think you meant in response to Thaddious?
He never replied to my comment so it’s likely someone in Digital Income System told him to STFU about their problems.
Have you actually tried this system, and what makes it a pyramid scheme?
The levels are not pyramid structured. Direct sales is legal and taught in business schools everywhere.
I think it would classify more as a Ponzie scheme if in fact it is illegal at all.
Sure they are. There’s no retail in Digital Income System and you get paid to recruit.
The coded nature of recruitment commissions pays out across multiple levels and is also pay to play.
Nope. Straight pyramid.
If you don’t know the difference between a pyramid “SCHEME” and a “pyramid based business structure” there’s not much point continuing the discussion, is there ?
Okay I’m here. I asked you to remove the comment that I made the mistake of hastily posting.
Yes I did have a conversation with my upline and a member of the digital income system management team. No Jon, No one threatens me 🙂
Oz, Although I was impervious to annunciation there’s no reason to be pugnacious.
I acted in haste with premature unrealistic expectations based on the comparison of others. I realized and admitted my mistake.
The fact that you refuse to remove the comment could cause harm to my ability to effectively promote this program.
5000.00 + 2500.00 = 0 in 3 months? NOPE I will not let these cash videos temp me bro. THANK YOU Thaddious for the REAL pudding post.
My question is HOW is it that others have not come forth on Facebook or YT Instagram about there REAL turn outs? I know there are way more people just hoping and waiting for their payouts.
NOW DIS is running a special. Come in at the 3k level and get bumped up to the next level free. (RED FLAG FLYING)
@Thaddious
Holding your funds hostage hey? It happens.
The conversation I was referring to was on here. I’ve replied to your comment and now it’s part of the conversation.
I’m not removing comments from multiple readers just because you’ve had a spat with scammers. If it was just the one comment, fair enough.
Considering Digital Income System is a pyramid scheme, I don’t have a problem with that.
Thaddius… did you end up making money or what??
I have been with this system for 2 weeks and made 0. Tammy Montgomery is my coach. She has made over 60K, BUT, she is also the leader of The Fearless Mamma.
Have I been scammed?
The person who recruited you made money because they recruited you.
Sounds like you haven’t recruited anyone, which is why you haven’t made any money in a pyramid scheme.
Unless you were told upfront Digital Income System is a pyramid scheme, of course you’ve been scammed.
Hello victims. Yes you have been scammed. I too, once believed and gave my hard earned money to one of these types of programs.
My sister came across this one and I warned her not to join until I could do some digging. Boy, am I glad I did my research.
You guys need to know that The father and son team running DIS, Bill and Derek Foely (Derek likes to go by Derek Jones) have felony arrest records in Miami-Dade county Florida.
Derek’s wife Yelien Cabrera was booked on Petty Theft. Christopher Brandon Frye, former Starbucks barista, has arrest records in North Carolina.
Jeff Ruiz has an beauty of a mugshot from his arrest in Orange County Florida from a couple of years ago. This is all a matter of public record.
In this day of the internet, you are just a few clicks away from discovering the truth about people.
The reason theses scammers are online playing their sick game is because of their criminal records, they can’t get hired in the real world.
What better way to rake in the cash then the playground of the internet, where victims are boundless.
These criminals like to swim in the same circle. It’s always the same group of scammers who are all gifted top positions in these scams and prey on the innocent to take out loans to join at the highest level, so they won’t miss out. Yeah, right.
These programs have a short shelf life and then you’re left with a huge loan you can’t pay off while their off plotting their next scheme.
Do you honestly think players like Justin Verengia, Mack Mills, Alex Zubarev, Tammy Montgomery, and Michael Mansell actually pay upwards of $25,000 for top positions in these money scams like 30 Day Success Formuala, Digital Altitude, Fearless Momma, 8 Figure Dream Lifestyle, etc., etc. Hell NO!
It’s all a sick money game to them while they always leave a trail of victims.
Please report these scumbags to http://www.ftc.gov/complaint or call 1-877-FTC-HELP. If you make enough noise the Feds will shut them down. Digital Altitude, MOBE, 8 Figure all got shutdown.
Don’t be quiet! Digital Income System is a SCAM. Hell, the egregious, blatantly illegal and false income claims are enough of a red flag for the Feds to step in.
Lodge a formal complaint with the FTC. ENOUGH is ENOUGH!
I think many people come into a business (especially MLM’s) which BTW I have done very well in this industry. They do absoultely nothing and than when they don’t make money it is classified as a Pyramid Scheme.
Big corporations (Ozedit: derails removed)
DIS does have a good system that captures leads. Its called email list building which marketers use to promote there product and services.
DIS is NOT an MLM. You make money on your personal sales and NOT of your organization. If your going to post at least get your facts right.
Pyramid schemes like Digital Income System are pyramid schemes because they sell nothing to retail customers.
The majority of participants losing money is a symptom of a pyramid scheme (mathematically guaranteed).
When you’re running a pyramid scheme what you attach to it is irrelevant.
Sales passed up across multiple levels = MLM compensation plan = MLM company.
If you’re going to post at least get your facts right kthx.
Digital income system does have a product which is a valuable service for those in business. Auto responders, SMS texting, capture pages ect…which are excellent resources for business owners.
I know full well what a pyramid scheme is being in the industry for over 25 years.
Scams are companies that have no product or service exchanged for money.
Retail sales have nothing to do with a company that is a pyramid schemes. The shape of every corporation (Ozedit derails removed)
Nobody said it didn’t. As noted in the review however, there’s a difference between having a product and having a retailable product.
False. Every modern day scam has some token product/service attached to it.
Is it too late to get a refund on your supposed 25 years experience?
False again. Every recent FTC pyramid scheme action against an MLM company has centered on a lack of retail sales.
MLM companies like Digital Income System that don’t have retail sales are pyramid schemes.
you read it wrong. 🙂 he has 25 years experience of being in pyramid schemes.
She is known for promoting scams. When she made a post about cloud token on FB trying to recruit people, I put in the comments of her FB post the behindmlm article about Cloud Token and she immediately blocked me on FB.
I see the same marketers promoting these scams and I have learned who to stay clear of and she is one of them.
VICI. Who is SHE ? I see a lot of people saying they are making money on DIS. I was going to join but now I’m worried it’s a scam
Oh and I also wanted to mention Jessica Hedrick is promoting this. People say she is legit. Any thoughts?
People who “are legit” in a business sense don’t promote pyramid schemes.
Obvious is obvious.
Kaitlyn Scott is promoting this on face book showing all kinds of videos of making money envelopes full of money her newly decorated condo says shes making six figures bought her a Cadillac..
Almost joined till I did a little digging and found all these coments.
The more people she gets to join the more money she makes!
Stephanie, I saw her FB too and she’s not the only one. But I also have talked to some people who said they are making money but aren’t posting it on FB they are just going through “the company” or purchasing leads.
I also read a big string of comments from Thaddeus (above) and Derek Jones which has now been deleted. He was very upset bc he said he paid 9,000 and didn’t get one sale.
Serial scammer Justin Verrengia just joined .
Here is the email:
Do not trust Jessica Hedrick biggest scammer.
I put 3k my last savings supposed to get a bonus to 5k its all BS.
and Derck foley jones is a scammer bid to prison for fraud!
Jennifer is on FB printing she makes money with fake FB accounts using women faces creating women FB accounts!
Reporting her to the FBI she will served big time prison! Contact other authorities biggest scam artist!
Pinky, did you join DIS at the 3k level and they said they would bump you up to 5k? Is that what happened?
Stephanie Jones, You are WRONG about Kaitlyn. she is legit, sweet, kind, and very honest. She is doing amazing at digital marketing and I asked her to sign me up.
I also know more individuals who are doing great with this programs. So don’t call down others who are trying to make a go at financial freedom.
Sweet and kind maybe, but honest people don’t promote pyramid schemes.
Stealing other people’s money through scams isn’t “financial freedom”, it’s theft.
I know serveral people who are christians (Ozedit: offtopic derails removed)
And? Being Christian isn’t a get out of jail free card for pyramid scamming.
Omg! Aly Duket is promoting it and I was just looking at it! Wow!
I also was in the 30-day success, granted I did make my money back, only my own efforts, but no word about any letters sent.
I’m really glad I came across this as I’m already involved in LMK and quite happy, Whenever there is no product it raises a question! Thanks for leaving up post as well.
I joined DIS 4 months ago. Have made no money. They say its automated system generates leads and they close all the deals. 8 potential deals have come through for me but no one closed them or people decided not to buy in.
So no sales in 4 months. If these are even real sales that were generated!
If you do not recruit yourself and get people to sign up then you will not make money.
These up lines like Kaitlin Scott, Victoria Scott, Leslie Bailey, Jessica Hedrick, Tammy Montgomery and I am sure many others are making money because they have followers.
Its easier for them to convince their followers how lucrative this is and how easy it is because their followers trust them and they buy in so they are getting paid.
How many of their followers have followers to do the same? How many sales are they getting from the actual automated system part? I am assuming none, like myself big fat 0!
There are no real products. You pay to get in 50% goes to the company and 50% goes to the person from the website your joining from. The cycle continues you need people to spend money to make it.
This has been a slap in the face sadly.
I reached out to some people who are under the people you mentioned above and they all said they are making money and letting the “company” do the work for them, which I’m not sure I believe.
Then I also reached out to Jeff Ruiz who said you have to purchase traffic and leads to make money. I believe he has postcards sent out and other things.
I really don’t think you can make any money with this unless you have followers or pay for traffic which I’m sure is pricey and you have to convince someone to basically just send you money because there really isn’t a product.
Nothing like getting a postcard in the mail, filling out the form on the capture page, learning the name of the company, Google search “digital income system” and finding your page while listening to their video in the background.
Soon as I saw the levels, I’m like “Screw that, just like Automation Riches” (which I lost $2000).
Thanks for the page Oz.
Beware of Coach Mike and his son Big Mike. Were part of Turbo Wealth System and Fearless Mammmma.
I reported his company to FTC..Michael Diamond LTD. Same story as above just a different twist.
I’ve out $3500 plus expenses to drive traffic and website. Lasted 30 days and all of a sudden number was disconnected.
Mack Mills, Jeff Ruiz, Michael Mansell and the other top pump and dump promoters are pushing PIN “Prosperity Income Network” which is identical to DIS except for payout percentages.
Digital Income System appears to have run it’s course, and is at the end of the road after nearly 7 months of doing business.
All the big players appear to have up and split to the next big thing, which appears to be a clone of DIS called Prosperity Income Network.
Christopher aka “Brandon” Frye is Digital Income System’s top earner and has earned over $600,000 in commissions.
He scammed me out of $5,000 back in June. This was my entire savings.
I have reported him to my local Secretary of State and the Federal Trade Commission. I encourage anyone who has been scammed by Digital Income System to do the same.
ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc
This is the arrogance that we’re dealing with here…a recent post from Brandon Frye’s FB page. facebook.com/Fryebrandon
Digital Income System’s website traffic has flatlined.
For a pyramid scheme that = #RIP
Jennifer Hedrick on FB asking for a grand to join in! Feeling the pressure now that I finally have saved up some funds.
Now I’m reading all this? Am I about to sign up for a scam?
If you’ve read the review you know DIS is a pyramid scheme. Do you really need to ask if it’s a scam?
Caveat Emptor – Jennifer Hedrick. She is infamous for creating fake facebook accounts with fake testimonials to try to use to her advantage for her facebook advertising to promote DIS which is her main way she markets DIS.
Buyer beware, please do not fall for the false hype. It could turn out to be a costly mistake.
So do you join fiddle? Or did you decide not to.
Jessica Hedrick & Jennifer Hedrick both same videos on FB trying to get peoples money! Almost paid 6000$!
So, I joined up with this about a week ago. I got in at the lowest level – I have had my concerns that this is a pyramid scheme but I also thought if I could make a few thousand from it just to help my family financially then I’d be golden.
I hope it’s not a scheme. It doesn’t feel right to be apart of something like that.
I have purchased traffic, the lowest you can, and I’ve gotten quite a few opt-ins but no sales yet. It does seem like my traffic is coming from the traffic I purchased and not the automated traffic they promise you when you sign up.
Luckily, it wasn’t my last dollar or anything – it was from my tax return but still hurts nonetheless if I have lost that money and won’t be making anything back from it. But you live and learn.
Brandon Frye gets most of his sales with his YouTube videos. He had over 40 videos promoting DIS, but they’ve been removed.
Through enough complaints maybe someone’s putting the pressure on these thieves to shut this down. Hopefully the FTC.
It happened to 8 Figure Dream Lifestyle. Alex, Brian and Jerry are being sued for making false income statements. Hopefully, DIS is on the FTC’s list.
Brandon Frye and Jennifer Hedrick have removed all of their You Tube videos. I would appear as though DIS is history.
Federal Trade Commission v. Digital Income System, Inc.
courtlistener.com/docket/18680427/federal-trade-commission-v-digital-income-system-inc/
Thanks for the heads up!
Was wondering how this one slipped through the cracks. Turns out the case was filed under seal.
It was unsealed in late November but the FTC doesn’t appear to have publicized it.