GivBux fails to provide ownership or executive information on its websites.

GivBux operates from two website domains:

  1. givbux.com – first registered in October 2017, private registration last updated on March 3rd, 2024
  2. givebuxglobal.com – privately registered on July 16th, 2024

Further research reveals Kenyatto Jones, aka Ken Jones, citing himself as founder and CEO of GivBux on social media:

On its website, GiveBux provides a corporate address in California. This tracks with a 2019 Washington Department of Financial Institutions consent order, citing Jones as a resident of California.

As per DFI’s consent order, which names GiveBux Global Partners and Jones (right) as Respondents;

Between January and March 2019, the Respondents raised a total of $106,000 from the sale of common stock in Givbux to approximately six investors, including an accredited investor residing in Aberdeen, Washington who purchased 82,000 shares for $41,000.

In addition to the Private Offering Memorandum, Givbux also disseminated an Executive Summary, which contained misleading financial projections. Givbux stated that it had a goal of 1.8 million users within 12 months.

Givbux represented that the value of its purchase transactions would grow from over $130 million in the first year of operations, to over $3.4 billion in the second year, and to over $13.9 billion in the third year.

Givbux’s revenue was projected to grow from approximately $3.2 million in the first year of operations to over $480 million in the third year.

The Executive Summary indicated that Givbux would earn a net profit of $423,151 in the first year of operations, which would grow to over $64 million in the third year.

These projections lacked any reasonable basis in fact. Givbux failed to disclose that these projections were not supported by the company’s historical performance, that the company was still testing and developing its app, and that it had not yet earned any revenue.

The Executive Summary misleading stated that Givbux had “No direct competition in this space at [the] present time (none could be found with an affiliate program).”

In fact, the mobile wallet and mobile payment industry is highly competitive.

In its Private Offering Memorandum, Givbux disclosed that it competes with other well-established global mobile wallet businesses including Apple Pay, Samsung Pay, and Square, which are “much larger than the Company” and have “superior financial resources.”

The Respondents failed to disclose material information regarding the use of investor proceeds, the financial condition of Givbux, and the compensation that would be paid to Jones and other persons.

The offer and/or sale of the common stock described above constitute the offer and/or sale of a security as defined in RCW 21.20.005(14) and (17).

Givbux Global Partners, Inc. and Kenyatto M. Jones each violated RCW 21.20.010, because, as set forth in the Tentative Findings of Fact, they made untrue statements of material fact or omitted to state material facts necessary to make the statements made, in light of the circumstances in which they were made, not misleading.

IT IS FURTHER AGREED AND ORDERED that Respondents Givbux Global Partners, Inc. and Kenyatto M. Jones, their agents and employees each shall cease and desist from violating RCW 21.20.010.

IT IS FURTHER AGREED AND ORDERED that Givbux Global Partners, Inc. shall be liable for and shall pay a fine of $1,000 on or before the entry of this Consent Order.

IT IS FURTHER AGREED AND ORDERED that Givbux Global Partners, Inc. shall be liable for and shall pay investigative costs of $500 on or before entry of this Consent Order.

Jones signed the Consent Order on July 17th, 2019.

Pursuant to GiveBux setting a goal of 1.8 million users by the end of 2020, as of October 2024:

  • GivBux on the Apple Store has 38 ratings (downloads unknown)
  • GivBux on the Google Play store has between 5000 to 9,999 downloads

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.

GivBux’s Products

GivBux markets what it calls an ecommerce “super app”.

GivBux aims to become the worlds largest community of givers by becoming the most used purchasing app of choice. The mobile application has been designed to store, send, receive, donate and spend rewards.

GivBux users can now use their mobile device to make real-time purchases at the point of sale at many top retail brands, restaurants, entertainment venues and more.

By making purchases at any of our participating merchants, users receive rewards; the only requirement is to give a percentage of those rewards to a worthy cause.

Access to GiveBux’s app is free.

GivBux’s Compensation Plan

GivBux pays commissions and bonuses tied to affiliate recruitment.

GivBux Affiliate Ranks

There are eight affiliate ranks within GivBux’s compensation plan.

Along with their qualification criteria, they are as follows:

  1. Affiliate – refer and maintain five active retail customers
  2. Manager – maintain five active retail customers, recruit four affiliates and generate $250 in monthly GivBux app transaction volume
  3. Director – refer and maintain ten retail customers, have four Managers or higher in four recruitment legs and generate $500 in monthly GivBux app transaction volume
  4. Area Director –  refer and maintain fifteen retail customers, have four Directors or higher in four recruitment legs and maintain $500 in monthly GivBux app transaction volume
  5. Regional Director – maintain fifteen retail customers, maintain four Directors or higher in four recruitment legs, $500 in monthly GivBux app transaction volume and generate $300,000 a month in total downline app transaction volume (includes personally referred retail customers)
  6. Senior Director – maintain fifteen retail customers, maintain four Directors or higher in four recruitment legs, $500 in monthly GivBux app transaction volume and generate $750,000 a month in total downline app transaction volume (includes personally referred retail customers)
  7. Vice Presidential Director – maintain fifteen retail customers, maintain four Directors or higher in four recruitment legs, $500 in monthly GivBux app transaction volume and generate $2,000,000 a month in total downline app transaction volume (includes personally referred retail customers)
  8. Presidential Director – maintain fifteen retail customers, maintain four Directors or higher in four recruitment legs, $500 in monthly GivBux app transaction volume and generate $5,000,000 a month in total downline app transaction volume (includes personally referred retail customers)

GivBux defines a retail customer as anyone who uses their app. Note that affiliates are explicitly not counted as retail customers.

A Customer is anyone that has registered the GivBux App, that is not also an Affiliate.

An active customer is a GiveBux app user who has made at least one transaction in the past month.

From Director, required customers must have $25 loaded into their app (one-time requirement). At least five customers must also be active.

Note that required monthly GiveBux app volume is only counted from an affiliate’s spend and that of their personally referred and recruited customers and affiliates.

Also note that no more than 50% of required total downline app transaction volume can come from any one recruitment leg.

Recruitment Commissions

GivBux pays recruitment commissions via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

GivBux caps payable unilevel team levels at seven.

Recruitment commissions are paid as a percentage of affiliate sign up fees paid by recruited affiliates across these seven levels based on rank:

  • Affiliates and Managers earn $25 per affiliate recruited on level 1 (personally recruited affiliates), and $20 on level 2
  • Directors earn $25 per affiliate recruited on level 1, $20 on level 2 and $15 on level 3
  • Area Directors earn $25 per affiliate recruited on level 1, $20 on level 2, $15 on level 3 and $10 on level 4
  • Regional Directors earn $25 per affiliate recruited on level 1, $20 on level 2, $15 on level 3 and $10 on levels 4 and 5
  • Senior Directors earn $25 per affiliate recruited on level 1, $20 on level 2, $15 on level 3 and $10 on levels 4 to 6
  • Vice Presidential Directors and Presidential Directors earn $25 per affiliate recruited on level 1, $20 on level 2, $15 on level 3 and $10 on levels 4 to 7

Residual Recruitment Commissions

GivBux pays residual recruitment commissions via the same unilevel team used to pay recruitment commissions (see “recruitment commissions” above).

Residual recruitment commissions are paid on the monthly $24.95 affiliate membership fee.

  • Affiliates and Managers earn $2 on levels 1 and 2
  • Directors earn $2 on levels 1 to 3
  • Area Directors earn $2 on levels 1 to 3 and $1 on level 4
  • Regional Directors earn $2 on levels 1 to 3 and $1 on levels 4 and 5
  • Senior Directors earn $2 on levels 1 to 3 and $1 on levels 4 to 6
  • Vice Presidential Directors and Presidential Directors earn $2 on levels 1 to 3 and $1 on levels 4 to 7

Leadership Infinity Bonus

The Leadership Bonus is a recruitment bonus that pays on each unilevel team leg until a Regional Director or higher ranked affiliates is found in that leg.

  • Regional Directors earn 50 cents per Affiliate, Manager, Director and Area Director in each unilevel team leg
  • Senior Directors earn $1 per Affiliate, Manager, Director and Area Director, and 50 cents per Regional Director in each unilevel team leg
  • Vice Presidential Directors earn $1.50 per Affiliate, Manager, Director and Area Director, $1 per Regional Director and 50 cents per Senior Director in each unilevel team leg
  • Presidential Directors earn $2 per Affiliate, Manager, Director and Area Director, $1.50 per Regional Director and 50 cents per Vice Presidential Director in each unilevel team leg

The Leadership Bonus is paid monthly from the monthly GivBux affiliate fee.

Matching Bonus

GivBux pays a 50% Matching Bonus on the Leadership Bonus paid to two same-rank or higher-rank affiliates in each unilevel team leg.

Note that if a third same-rank or higher-rank affiliate exists in a unilevel team leg, no Matching Bonus is paid out on that leg.

Bonus Pool

GivBux takes 2% of company-wide app transaction volume and places it into the Bonus Pool.

The Bonus Pool is split and paid across four rank-specific bonus pools:

  • Regional Directors earn an equal share of 20% of the Bonus Pool
  • Senior Directors earn in the Regional Director pool and an equal share in 30% of the Bonus Pool
  • Vice Presidential Directors earn in the Regional Director and Senior Director pools, as well as an equal share in 40% of the Bonus Pool
  • Presidential Directors earn in the Regional Director, Senior Director and Vice Presidential Director pools, as well as an equal share in 10% of the Bonus Pool

Note the Bonus Pool is paid out quarterly.

Joining GivBux

GivBux affiliate membership is $149.95 and then $29.95 a month.

GivBux Conclusion

While GivBux’s formation as a company is rooted in securities fraud and false representations, the company has steered clear of securities related violations since 2019.

Unfortunately GivBux as an MLM company though operates as a pyramid scheme.

Initially I was confused as I went through GivBux’s compensation plan. GivBux explicitly excludes affiliates as being customers, but then represents commissions are tied to customer activity.

This initially made no sense as becoming a GivBux customer is free. So how was the company paying out all these commissions?

In reality GivBux’s MLM commissions are tied to fees paid by recruited affiliates. By definition GivBux’s “customer acquisition bonus” has nothing to do with customers.

In fact other than requiring acquisition of customers who load $25 into their account, GivBux’s MLM opportunity has nothing to do with retail customer activity.

GivBux requiring acquisition of retail customers who load $25 doesn’t negate the compensation plan paying out on recruitment activity.

From a regulatory compliance perspective, an app user signing up and loading $25 into their account isn’t a purchase. And even if there was a requirement that the $25 loaded be spent, that still doesn’t justify GivBux’s commissions and bonuses being tied to recruitment activity.

The FTC has been clear on MLM companies not paying out on retail customer activity being illegal pyramid schemes.

As with all MLM pyramid schemes, once affiliate recruitment dries up so too will commissions.

This will see those at the bottom of GivBux’s pyramid scheme stop paying monthly affiliate fees. When that happens the affiliates above them stop getting paid – eventually resulting in them also ceasing to pay monthly fees.

Once enough GivBux affiliates stop paying monthly fees, an irreversible collapse is triggered.

Math guarantees the majority of participants in an MLM pyramid scheme lose money.