Earning Junction Review: $1 advertising-based micro Ponzi
There is no information on the Earning Junction website indicating who owns or runs the business.
The Earning Junction website domain (“earningjunction.net”) was registered on the 13th of March 2015, with a “Mark Thomas” listed as the owner. An incomplete address in the US state of New York is also provided (income street address, made up postcode and bogus phone number).
Given the dubious nature of the contact details provided and generic coupling of two Anglo-Saxon first names, I’m flagging Mark Thomas as likely not existing. At least not in the capacity represented in the Earning Junction domain registration.
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 Earning Junction Product Line
Earning Junction has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.
Once signed up, Earning Junction affiliates can then purchase $1 “advertising packages”.
Bundled with each advertising package are a series of advertising credits, which can be used to display advertising on the Earning Junction website itself.
The Earning Junction Compensation Plan
The Earning Junction compensation plan sees affiliates invest $1 through advertising packages, with Earning Junction advertising a $1.25 ROI on each pack.
Note that 60% of all ROIs Earning Junction pay out must be reinvested back into the company.
Referral commissions are paid out on deposited funds by recruited affiliates, paid out down two levels of recruitment (unilevel)
Deposits made by personally recruited affiliates pay out a 5% commission. Deposits made by their referrals (level 2) pay out 3%.
Joining Earning Junction
Affiliate membership with Earning Junction is free, however affiliates must invest in at least one advertising package to participate in the Earning Junction income opportunity.
As such the defacto minimum cost of Earning Junction affiliate membership is $1 (the cost of one advertising package).
Earning Junction profess to sell advertising, with the ruse falling apart upon closer inspection.
For starters, there’s no escaping the fact that purchases do not pay out ROIs, yet that’s exactly what the Earning Junction FAQ promises:
All sales made are shared every hour and you will continue to earn until your AdPack matures at $1.25.
Purchases don’t “mature”, investments do.
Next we analyze the source of ROI revenue, which is revealed to be invested affiliate funds:
We share the revenue from sales of AdPackages & Advertising Services with all members, so we cannot afford to offer refunds.
You invest funds with Earning Junction, they use those funds to pay off existing investors and then you hope new suckers jump on board for you to steal from.
Despite the obvious fraudulent nature of Earning Junction’s business model, the company professes it is not an illegal scam:
Is Earning Juntion Legal?
YES, it is legal! In order for any program to be legal, it is required to supply a service and/or product to you, the member!
Is Earning Juntion an investment opportunity?
No, we are not an investment or HYIP that tells you how much you will make daily or fixed plan.
Note that neither answer makes much sense, considering it’s perfectly possible for a Ponzi scheme to be attached to a product and that an advertised daily ROI is not a required pre-requisite in a Ponzi scheme.
The only mechanic of relevance here is that Earning Junction pay out ROIs to existing investors using newly invested funds.
As with all Ponzi schemes once the recruitment of new investors dries up, Earning Junction will find itself unable to meet it’s daily ROI liabilities.
How long does it take for an Ad packs to cap out at $1.25?
This depends on many variables, in short, there’s no way to put a time frame on it.
Given new investment is the only variable determining how much Earning Junction affiliates are paid each day, any reduction in the daily ROI payout is likely signaling a pending collapse.
The 60% mandatory reinvestment rule will prolong the scheme somewhat longer, but inevitably the mathematics of paying out more than is invested will see Earning Junction collapse.
At that point anyone who hasn’t stolen more from subsequent investors than they initially invested, loses out.