JuanDaan Review: Ad unit package Ponzi investment
There is no information on the JuanDaan website indicating who owns or runs the business.
The JuanDaan website domain (“juandaan.com”) was registered on the 14th of September 2015, however the domain registration is set to private.
As per the JuanDaan website:
What does “JuanDaan” stands for?
Daan – Way
Juan Daan – One Way or Your Way, which represent the Internet Super Highway and JuanDaan is the way to promote Advertisements.
Much of the marketing material for JuanDaan is in Filipino, with the owner(s) of the company also likely based there. Why this information is not provided on the JuanDaan website however is a mystery.
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 JuanDaan Product Line
JuanDaan has no retailable products or services, with affiliates only able to market JuanDaan affiliate membership itself.
Once signed up, JuanDaan affiliates can invest in ad unit packages and participate in the JuanDaan MLM opportunity.
Bundled with each ad unit package investment are a series of advertising credits, which can be used to display advertising on the JuanDaan website.
The JuanDaan Compensation Plan
The JuanDaan compensation plan sees affiliates invest in positions, with advertised ROIs paid out of subsequently invested funds.
Bonuses via JuanCoins are also available.
P100 Investment Positions
Positions in this component of JuanDaan’s compensation plan cost P100 ($2.11 USD), with an advertised ROI of P1300 ($27.54 USD).
As per the JuanDaan website, affiliates buy a position and then “wait until (the) Reward Button is available” to “claim” their ROI.
JuanDaan offer affiliates investment in four tiers of ad unit packages, each with an advertised ROI as follows:
- Silver (P100 or $2.11 USD) = 110% ROI
- Gold (P200 or $4.24 USD) = 115% ROI
- Platinum (P500 or $10.59 USD) = 120% ROI
- Diamond (P1000 or $21.18 USD) = 125% ROI
Note that JuanDaan affiliates can only invest in up to 1000 positions at the Silver to Platinum tiers (1000 positions each tier). Up to 10,000 positions can be invested in at the Diamond level.
Residual commissions on JuanDaan ad unit packages are paid out 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 of their own, 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.
JuanDaan cap payabale unilevel levels at three, with commissions paid out as a percentage of positions purchases as follows:
- level 1 – 5%
- level 2 – 3%
- level 3 – 2%
JuanCoins are tokens awarded to JuanDaan affiliates when they and affiliates in their unilevel team invest in ad unit packages:
- personal investment = 1 JuanCoin
- investment by a level 1 affiliate (personally recruited) = 0.5 JuanCoin
- investment by a level 2 affiliate = 0.3 JuanCoin
- investment by a level 3 affiliate = 0.2 JuanCoin
Once specific amounts of JuanCoins are accumulated, they can be traded in for the following rewards:
- 2000 JuanCoins = Apple cell phone (model not specified)
- 4000 JuanCoins = laptop (model not specified)
- 6000 JuanCoins = another Apple cell phone (model not specified)
- 8000 JuanCoins = “trip to Borocay for 2”
- 10,000 JuanCoins = scooter (model not specified)
- 16,000 JuanCoins = Honda TMX Supremeo motorcycle with sidecar
- 20,000 JuanCoins = trip to Korea
- 60,000 JuanCoins = hatchback car (model not specified)
- 100,000 JuanCoins = 5-speed sedan car (model not specified)
- 200,000 JuanCoins = diesel SVU (model not specified)
Affiliate membership with JuanDaan is free, however affiliates must invest between P100 ($2.11 USD) to P1000 ($21.18 USD) in order to participate in the MLM income opportunity.
Any additional investment will increase the initial cost of JuanDaan affiliate membership.
A repacking of the ad credit model, JuanDaan is pretty much a Ponzi scheme for the local Filipino market.
Affiliates invest in P100 or ad unit package positions, with ROIs paid out subsequent investment.
The ad unit packages are pretty straight forward, with JuanDaan explaining that ‘the revenue from each category (tier) is distributed to active units of the same category (tier) only‘.
The P100 positions are likely tracked through a matrix or straight-line cycler queue.
In any event, both compensation components shuffle newly invested funds to pay off existing investors, qualifying JuanDaan as a Ponzi scheme.
The JuanCoins and referral commissions are incentives to recruit new investors, which JuanDaan needs to stave off collapse.
Once recruitment inevitably dies down, JuanDaan will find itself starved of funds and unable to meet its advertised ROI obligations.
This will first manifest itself by way of the P100 position’s reward button taking longer and longer to appear. At around the same time there will likely be withdrawal difficulties with the ad unit package ROIs, despite the daily ROIs paid out as usual (to the backoffice).
That’s when the anonymous owners of the scheme do a runner, taking with them the bulk of funds invested.