Millions Network Review: $25 Ponzi / pyramid hybrid scheme
There is no information on the Millions Network indicating who owns or runs the business.
The Millions Network website domain (“millionsnetwork.com”) was registered on the 27th of January 2015, however the domain registration is set to private.
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 Millions Network Product Line
Millions Network has no retailable products or services, with affiliates only able to market affiliate membership to the opportunity itself.
A “products” link does appear on the Millions Network website, but at the time of publication it was non-functional (none of the links on the website went anywhere).
The Millions Network Compensation Plan
The Millions Network Compensation plan revolves around affiliates signing up, paying a $25 fee and then recruiting others who do the same.
Residual commissions are paid out by taking $15 of the $25 each newly recruited affiliate pays, and distributing it fifteen levels through the upline (reverse-unilevel).
Eg. You sign up as a new Millions Network affiliate and pay your $25. $15 is then distributed to your upline. $1 is paid to the affiliate who recruited you, $1 to the affiliate who recruited them, etc. through a total of fifteen levels of recruitment.
This residual commission is paid out over two months after the fee is paid, paying out $1.50 each month to the same 15 upline affiliate members ($0.10 to each affiliate).
Additional commissions are paid out over three tiers, referred to as Royalty 1, Royalty 2 and Royalty 3.
In order to qualify for Royalty 1 commissions, a Millions Network affiliate must recruit two new affiliates (who pay their $25 fee) within 15 days of paying their $25 fee.
The Royalty 1 commission is $1 collected out of every $25 fee paid by affiliates company-wide.
The pool is collected and paid out to all Royalty 1 qualified affiliates at the end of each month.
Note that Royalty 1 qualification only lasts 3 months.
In order to qualify for Royalty 2 commissions, a Millions Network affiliate must recruit four new affiliates (who each pay their $25 fee) within 30 days of paying their $25 fee.
The Royalty 2 commission is $2 collected out of every $25 fee paid by affiliates company-wide.
The pool is collected and paid out to all Royalty 2 qualified affiliates at the end of each month.
Note that Royalty 2 qualification only lasts 6 months.
In order to qualify for Royalty 3 commissions, a Millions Network affiliate must recruit six new affiliates (who each pay their $25 fee) within 45 days of paying their $25 fee.
The Royalty 3 commission is $3 collected out of every $25 fee paid by affiliates company-wide.
The pool is collected and paid out to all Royalty 3 qualified affiliates at the end of each month.
Unlike Royalty 1 and 2 qualification, qualification for Royalty 3 is for the life of an affiliate’s account.
Company Royalty Pool
An additional bonus pool of 5% of all company-wide affiliate fee is set aside for distribution to Royalty Pool qualified affiliates.
In order to qualify for a share in the Royalty Pool, a Millions Network affiliate must recruit at least 10 affiliates within 20 days of paying their $25 fee.
Joining Millions Network
Signing up as a Millions Network affiliate is free, however participation in the company’s compensation plan costs $25.
As such, the defacto cost of Millions Network affiliate membership is $25.
With nothing being marketed or sold to retail customers and all commissions involving the ongoing recruitment of new affiliates, Millions Network functions as a pyramid scheme.
Affiliates buy in for $25, with these funds used to pay the affiliate who recruited them, the affiliate who recruited that affiliate and so on.
The Royalty commissions introduce a Ponzi investment element to the scheme, provided an affiliate can recruit enough new fee-paying affiliates within the specified timelines.
An affiliate effectively invests $25 and if the recruitment qualification criteria is met, then receives a share of $25 investments made by affiliates who join after them.
Combining both these elements of Millions Network’s compensation plan designates the business opportunity a Ponzi/pyramid hybrid scheme.
The sustainability of Millions Network relies on a constant source of new affiliates signing up and paying their $25 participation fee.
Once recruitment of new affiliates slows down (and it will), the scheme collapses.