Happy Donation Review: Matrix gifting with bad math
Happy Donation provides no information on their website about who owns or runs the business.
Happy Donation’s website domain (“happy-donation.net”) was first registered in 2016.
The anonymous registration was last updated in October 2018.
Despite natively appearing in German, Alexa estimates 63% of visitors to Happy Donation’s website originate from Russia.
The Ukraine is the second largest source of traffic at 21%.
Though not definitively conclusive, this data points to whoever is running Happy Donation being based out of Europe.
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.
Happy Donation’s Products
Happy Donation has no retailable products or services, with affiliates only able to market Happy Donation affiliate membership itself.
Happy Donation’s Compensation Plan
Newly recruited Happy Donation affiliates gift $20 to existing Happy Donation affiliates.
This payment in turn qualifies them to receive gifting payments from Happy Donation affiliates they recruit.
The first gifting payment received by a recruited affiliate is split with the recruiting affiliate’s upline.
$5 is paid to the recruiting affiliate and $15 to the affiliate who recruited them (first upline).
It appears another three affiliates need to be personally recruited in order to unlock the rest of Happy Donation’s compensation plan.
The recruitment of four affiliates triggers a $20 “upgrade”.
This upgrade unlocks the rest of Happy Donation’s compensation plan, which is based on a 2×15 matrix.
A 2×15 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix.
The second level of the matrix is generated by splitting each level 1 position into another two positions each (4 positions).
Levels three to fifteen of the matrix are generated in the same manner, with each new level housing twice as many positions as the previous level.
Positions within the matrix are filled via direct and indirect recruitment of new Happy Donation affiliates.
Gifting payments are generated as positions in the matrix are filled as follows:
- level 1 (2 positions) – $15 per position filled, all of which is used to unlock level 2
- level 2 (4 positions) – $15 per position filled, all of which is used to unlock level 3
- level 3 (8 positions) – $25 per position filled, of which $125 is used to unlock level 4
- level 4 (16 positions) – $35 per position filled, of which $200 is used to unlock level 5
- level 5 (32 positions) – $50 per position filled, of which $300 is used to unlock level 6
- level 6 (64 positions) – skipped (see note 1 below)
- level 7 (128 positions) – receive $125 per position filled, of which $500 is used to unlock level 7
- level 8 (256 positions) – undisclosed sum received per position filled (see note 2 below), of which $1000 is used to unlock level 9
- level 9 (512 positions) – undisclosed sum received per position filled, of which $2000 is used to unlock level 10
- level 10 (1024 positions) – undisclosed sum received per position filled, of which $4000 is used to unlock level 11
- level 11 (2048 positions) – undisclosed sum received per position filled, of which $6000 is used to unlock level 12
- level 12 (4096 positions) – undisclosed sum received per position filled, of which $8000 is used to unlock level 13
- level 13 (8192 positions) – undisclosed sum received per position filled, of which $8000 is used to unlock level 14
- level 14 (16,384 positions) – undisclosed sum received per position filled, of which $8000 is used to unlock level 15
- level 15 (32,768 positions) – undisclosed sum received per position filled
Note 1: Level 6 appears to be skipped entirely as per Happy Donation’s marketing material:
Note 2: Happy Donation give up trying to explain their compensation plan from level 8.
Each time a new 2×15 matrix level is unlocked, two equal commissions are generated.
One is paid out to the affiliate who unlocked a new matrix level, the other is paid to an upline affiliate.
- unlock level 1 = $15 payment (2nd upline)
- unlock level 2 = $25 payment (3rd upline)
- unlock level 3 = $35 payment (4th upline)
- unlock level 4 = $50 payment (5th upline)
- unlock level 5 = $75 payment (6th upline)
- unlock level 6 = skipped
- unlock level 7 = $125 payment (7th upline)
- unlock level 8 = $250 payment (8th upline)
- unlock level 9 = $375 payment (9th upline)
- unlock level 10 = $500 payment (10th upline)
- unlock level 11 = $750 payment (11th upline)
- unlock level 12 = $1000 payment (12th upline)
- unlock level 13 = $1500 payment (13th upline)
- unlock level 14 = $2000 payment (14th upline)
- unlock level 15 = $2500 payment (15th upline)
Consequently, the amounts provided in their “final summary” make no sense.
Note that with respect to uplines, a second upline is the affiliate who recruited the affiliate who recruited you.
A third upline is the affiliate who recruited the second upline and so on and so forth.
E.g. When a Happy Donation affiliate unlocks level 7, they receive $125. Their 7th upline also receives a $125 match.
Joining Happy Donation
Happy Donation affiliate membership is $20.
Despite the company’s name, Happy Donation has nothing to do with donations.
Happy Donation is a poorly presented gifting matrix cycler hybrid.
Payments are made between affiliates, which Happy Donation tracks using a cycler (generate enough gifting payments on one matrix level to unlock the next).
As documented in the compensation section of this review, Happy Donation’s business model is so complicated (or poorly understood by its owners) that the company fails to provide accurate information in its own marketing material.
Despite the challenges of putting this review together, one thing is certain: All Happy Donation does is funnel money up to the company’s owners and early adopters.
This is true of any gifting cycler.
Constant recruitment is required to feed Happy Donation’s matrix cycler, without which the scheme collapses.
As with all cycler gifting schemes, once recruitment dies down the company-wide matrix will begin to stall.
Once enough smaller matrices within the company-wide matrix have stalled, an irreversible collapse is triggered.
This appears to have happened multiple times already, owing to Happy Donation continuously rebooting with modified compensation plans.
With each collapse and reboot, mathematics guarantees that that the majority of Happy Donation affiliates will lose money.