Inovatyon Review: Bank of Brazil backs pyramid scheme?
There is no information on the Inovatyon website indicating who owns or runs the business.
The Inovatyon website domain (“inovatyon.com”) was registered on the 8th of September 2014, however the domain registration is set to private.
The company’s compensation plan claims Inovatyon is headquartered in São Paulo, Brazil.
As always, if a 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 Inovatyon Product Line
There are no products or services listed on the Inovatyon website.
From what I’ve been able to piece together, the compensation plan suggests that banking and investment services are to be offered to affiliates.
At the time of publication, no further specifics are provided.
The Inovatyon Compensation Plan
Referring to itself as an “investment consortium”, and revolves around affiliates purchasing one of four affiliate packages and then recruiting others who do the same.
There are four Inovatyon affiliates packages on offer:
- Basic – R$1250 ($500 USD)
- Executive – R$3750 ($1502 USD)
- Premium – R$7450 ($2984 USD)
- VIP – R$15,000 ($6008 USD)
Inovatyon affiliates are paid a commission for each new affiliate they recruit.
How much of a commission is paid out depends on how much the recruited affiliate spends on their membership:
- Basic (R$1250) – R$56 ($22 USD)
- Executive (R$3750) – R$158 ($63 USD)
- Premium (R$7450) – R$335 ($134 USD)
- VIP (R$15,000) – R$675 ($270 USD)
A monthly R$3.75 ($1.50 USD) residual recruitment commission is also paid per personally recruited affiliate.
Residual recruitment commissions in Inovatyon are paid out using a binary compensation structure.
A binary compensation structure places an affiliate at the top of two binary teams, left and right:
Positions in the binary are filled via the recruitment of new affiliates (direct or indirect) and their purchasing of an affiliate package.
Each affiliate package has the following point value assigned to it:
- Basic – 500
- Executive – 1500
- Premium – 3000
- VIP – 6000
Points are tallied up on both sides of the binary daily, with an affiliate paid 30% of the points generated by their weaker binary team.
How much an Inovatyon affiliate can earn each day through the binary is determined by how much they spent on their own affiliate membership:
- Basic – R$25,000 ($10,014 USD)
- Executive – R$50,000 ($20,028 USD)
- Premium – R$75,000 ($30,042 USD)
- VIP – $125,000 ($50,070 USD)
Inovatyon take 15% of the affiliate funds they receive each month and split it into three 5% revenue-sharing pools.
Affiliates qualify for a share in one of the three pools, based on how many binary points they generated in that particular month:
- Pool 1 – 17,000 to 169,999 points
- Pool 2 – 170,000 – 469,999 points
- Pool 3 – over 470,000 points
It is unclear whether only one side of the binary is counted towards this point total or both.
Affiliate membership with Inovatyon is tied to the purchase of an affiliate package:
- Basic – R$1250
- Executive – R$3750
- Premium – R$7450
- VIP – R$15,000
With no retailable products or services, affiliates paid to recruit new affiliates and all revenues sourced from new affiliates joining the company, Inovatyon fits the definition of a recruitment-driven pyramid scheme.
Affiliates buy in for between $500 to $6008 and are then paid for doing nothing more than recruiting new participants into the scheme. How much they are paid is determined by how much they themselves spend when they joined the company, and how much they convince their recruits to spend.
The only observable advantage to spending more on Inovatyon affiliate membership is income potential (binary commissions) through the compensation plan (paid on recruitment).
The revenue-sharing aspect of the company acts as a recruitment incentive, rewarding those and their downlines who recruit the most.
Of particular concern is that top TelexFree investor Sanderly Rodrigues de Vasconcelos (alias Sann Rodrigues) is currently flogging Inovatyon on Facebook.
With the corpse of iFreeX barely cooled, Rodrigues appears to have moved onto this newly announced venture.
Note that I was unable to independently verify Rodrigues’ claims that Inovatyon was “guaranteed” by Porto Seguro and “approved” by the Central Bank of Brazil.
I suspect however that in the coming weeks we’ll likely see statements from both Porto Seguro (” the third largest insurance company in Brazil”) and the Central Bank, denying any and all involvement with the scheme.
Currently being sued by the SEC for his part in stealing at least $3 million USD from TelexFree investors, Rodrigues is believed to be hiding out in Brazil.
The anonymous ownership nature of Inovatyon echoes that of iFreeX, which Rodrigues was heavily promoting until Massachusetts Secretary of State William F. Galvin issued a “pyramid scheme” warning about it.
Subsequent interest in iFreeX tanked and Rodrigues deleted the bulk of his online iFreeX promotional activity.
Whether or not the Securities Division get involved with Inovatyon remains to be seen. But what is known is that a preliminary injunction was granted against Rodrigues back in May.
The injunction orders Rodrigues to ‘cease conducting any further fraud involving securities or otherwise’.
With the promotion of iFreeX and now Inovatyon, it would appear Rodrigues has breached the injunction at least twice.
As with all pyramid schemes, once recruitment dries up and new affiliate package purchases slow down, Inovatyon will collapse.
Every commission pay out in the company is tied to the recruitment of new affiliates (more specifically the funds they inject into the scheme), so there is absolutely nothing else to sustain the business.
When that happens though Rodrigues and the admin(s) he in obvious cahoots with will be long gone, along with your money.
Hello, my name is Ivanilce and I have pre-registered to Inovatyon and downloaded the available information (that is Portuguese) regarding the company.
I believe there are several misunderstandings, I would actually say lost in translation due to the fact that the product they sell is not known in the American market.
The company offers one type of investment called “consortium”: very common in Brazil, and in a nutshell it’s nothing more than a group of people that get together to buy an asset (generally an automobile or a house), during a certain period of time.
When joining this group, each person has to contribute with a “down payment”, and monthly payments, and every month at least one person is raffled and entitled to receive a letter of credit to buy the asset he/ahe has chosen.
This product is legalized, authorized and audited by the Central Bank of Brazil (similar to the US Fed).
What I have also found in the information available is only when you sell a consortium you are entitled to get comissions out of your personal sale: for every sale you make you will earn.
Additionally, the company states that they are a franchising company: they sell consortiums, and their provider is authorized by the Central Bank of Brazil.
I hope this brief explanation helps us better understand and distinguish a real opportunity (what I believe this one to be) from scams.
This doesn’t explain recruitment commissions or weekly fixed ROIs.
Pretending to invest in assets and simply shuffling new affiliate money to pay off existing investors does.
“Sell consortium” = recruit a new Inovatyon investor.
And then of course you get paid because you recruiting someone who pumped new funds into the scheme.
That’s all very well, but this has about as much to do with consortiums as TelexFree had to do with VOIP.
Again, consortiums in no way explain fixed weekly ROIs or recruitment commissions. What’s happening here is obvious.
INOVATYON = FRANCHISING COMPANY THAT SELLS CONSORTIUMS – nothing to do TelexFree or Voip.
And there are two companies involved here: Inovatyon and the consortium provider. I have registered, and the options I ‘ve been given are just to buy a consortium, buy a consortium and sell them, or just sell them without buying one for myself.
There are no fixed ROIs or recruiting a new Inovatyon investor, you invest on the asset you want to buy.
I believe you should look into undertanding a little more about consortiums…
Just like TelexFree had nothing to do with VOIP, so too does Inovatyon have nothing to do with consortiums.
Consortiums don’t pay fixed binary and recruitment commissions. Nor do they pay fixed revenue-sharing positions.
All Inovatyon are doing is recycling new affiliate funds to to pay off existing investors, with an added pyramid scheme layer making it a hybrid. Just like TelexFree.
I believe Oz has not understood what the product is: I am Brazilian and have purchased consortiums all my life as an investment to upgrade my car and buy a new and bigger house.
It has nothing to do with VOIP – I, myself, have been raffled and gotten a letter of credit to buy a new car. You invest on yourself, not on the company!
I understand that it’s entirely irrelevant.
You invest you money and receive a profit-share, paid out of affiliate funds paid in after you. Recruit other investors and you get paid recruitment commissions.
Whatever smoke and mirrors bullshit they attach to that doesn’t matter.
And I used to believe in unicorns.
Turns out we were both wrong
As children believe in Santa? We should comment on what we know – it’s clear to any brazilian, who are used to buy and invest in consortiums that the only return on this investment is to get the asset you chose not paying for interest in any bank.
Just like it was clear to Brazilians that TelexFree was “selling VOIP”?
This is a Ponzi scheme hiding behind consortium smoke and mirrors.
Legitimate consortiums don’t pay recruitment fees down multiple levels. Throw in the profit-share and obvious Ponzi scheme is obvious.
Recruitment fee? As far as I understood, they made it very clear that the franchising fee you pay is to have access to the franchising managerial software… And all fees related to havinf a franchise.
I’ll have the details later on this month and will let you all know if it is a franchising network or a scheme – so far, I didnt have to pay for anything, and am actually anxious to start selling consortiums!!
Your paid to recruit new investors. Calling it franchising doens’t change that.
Franchises don’t use an MLM compensation structure, MLM companies do and those that pay directly on recruitment employ pyramid scheme characteristics.
Sounds like you’ve swallowed the bait. They’ll pay you initially, but then….
And Andy “Ad Surf Daily Bowdoin” told everybody that his scheme is “internet ads” and not “investment”. That didn’t stop the Feds from closing him down as a Ponzi scheme.
Don’t believe what a company says at face value. It could be part of the facade / fraud.