Mighty Buyer Review: E-commerce & matrix recruitment
There is no information on the Mighty Buyer website indicating who owns or runs the business.
The Mighty Buyer website domains (“mighty-buyer.net” and “mighty-buyer.store”) were registered on the 10th of December, 2014 and 5th of September, 2016 respectively.
The .NET domain is registered privately, however the .STORE domain lists Samuel Gurschler as the owner. An address in Austria is also provided.
The Mighty Buyer terms and conditions meanwhile mention “Mighty Buyer LLC” and claim it is incorporated in the US state of Delaware.
This appears to be a shell registration, with Mighty Buyer actually operated of Austria.
Possibly due to language barriers, I was unable to find any further information on Samuel Gurschler.
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 Mighty Buyer Product Line
Mighty Buyer has no retailable products or services itself, with affiliates only able to market Mighty Buyer affiliate membership.
Mighty Buyer affiliates gain access to a replicated storefront on the Mighty Buyer e-commerce platform.
This platform is populated with third-party products and services, with affiliates able to stock their replicated storefronts from a pre-determined selection of products.
The Mighty Buyer Compensation Plan
The Mighty Buyer compensation plan pays affiliates to generate storefront sales and recruit new Mighty Buyer affiliates.
Each Mighty Buyer affiliate has to pay a €49 EUR affiliate fee every four weeks.
This fee is commissionable, with commissions paid out through a 3×10 matrix.
A 3×10 matrix places an affiliate at the top of the matrix, with three positions directly under them (level 1):
These three positions form the first level of the matrix, with the second level generated by splitting each of the three positions into another three positions each (9 positions).
Subsequent levels of the matrix are generated in the same manner, with a complete 3×10 matrix housing 88,572 positions.
Positions in the matrix are filled via direct and indirect recruitment of new Mighty Buyer affiliates.
Commissions are paid out as a percentage of fees paid by recruited affiliates placed in the matrix as follows:
- level 1 – no commission paid
- level 2 – 11%
- levels 3 to 6 – 3%
- levels 7 and 8 – 4%
- levels 9 and 10 – 3%
When customers (affiliates and retail customers) make purchases through the Mighty Buyer e-commerce platform, third-party merchants pay a commission.
This commission is shared with Mighty Buyer affiliates and 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, 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.
Mighty Buyer cap payable unilevel levels at four, with affiliates paid a 5% commission of shop commissions generated within the first four levels of their unilevel team.
Mighty Buyer reward top recruiters with a car bonus of up to €1500 EUR a month:
- recruit 111 affiliates and receive a €500 EUR monthly car bonus
- recruit 333 affiliates and receive a €1000 EUR monthly car bonus
- recruit 999 affiliates and receive a €1500 EUR monthly car bonus
Note that recruited affiliates must be up to date with their €49 EUR fee.
Mighty Buyer take 1% of €49 affiliate fees paid and place them into Bronze, Silver and Gold bonus pools.
- to earn a share in the Bronze pool a Mighty Buyer affiliate must maintain 111 active affiliates in their downline
- to earn a share in the Silver pool a Mighty Buyer affiliate must maintain 333 active affiliates in their downline
- to earn a share in the Gold pool a Mighty Buyer affiliate must maintain 999 active affiliates in their downline
Joining Mighty Buyer
Mighty Buyer affiliate membership is €49 EUR every four weeks.
Mighty Buyer is essentially a pyramid scheme tacked onto an e-commerce platform.
The €49 EUR affiliate fee is pumped straight into the compensation plan and used to reward affiliates with the largest downlines.
Commission rates generated through the storefront are likely to be negligible, with Mighty Buyer affiliates the only ones purchasing.
Given that the e-commerce platform is populated by third-party merchants, it’s a safe bet that all Mighty Buyer has done is join an affiliate network.
They get paid through that network based on sales and that revenue is shared with affiliates.
On its own there’s no issues but coupled with recruitment commissions and high probability that affiliate fees will dwarf e-commerce revenue, it’s chain-recruitment.
As with all chain-recruitment schemes, once recruitment of new affiliates dies out so too will commissions paid out.
Being a matrix-based scheme, this will manifest itself by way of affiliates at the bottom of the matrix ceasing to pay their €49 four-week fee.
This will see affiliates above them stop getting paid and eventually also stop paying their fee.
As this effect slowly trickles up the company-wide matrix, eventually an irreversible collapse is triggered.
At that point any Mighty Buyer affiliates who haven’t recouped their €49 four-week fee costs lose out. Mathematically this is guaranteed to be the majority of Mighty Buyer affiliates.