Model Farming Review: Agricultural themed Ponzi scheme
Model Farming provides no information on its website about who owns or runs the company.
Model Farming’s website domains (“modelfarming.com” and “modelfarming.life”), were privately registered on November 8th, 2020.
In an attempt to appear legitimate, Model Farming provides a UK incorporation certificate for “Model Farming Limited”.
An MLM company operating or claiming to operate out of the UK is a red flag.
UK incorporation is dirt cheap and effectively unregulated. On top of that the FCA, the UK’s top financial regulator, do not actively regulate MLM related securities fraud.
As a result the UK is a favored jurisdiction for scammers looking to incorporate, operate and promote fraudulent companies.
For the purpose of MLM due-diligence, incorporation in the UK or registration with the FCA is meaningless.
On Facebook Model Farming represents it has incorporated a shell company in Kentucky:
As with the UK shell incorporation, with respect to MLM due-diligence basic incorporation in the US is meaningless.
Update 6th May 2022 – Since publication of this review Model Farming has hired a bunch of actors to play company executives.
BehindMLM first noted this in covering Model Farming’s securities fraud warning from Russia last month.
There are nine executives featured on Model Farming’s website. None of them exist outside of the company’s marketing. /end update
At the time of publication Alexa ranks the US as the top source of traffic to Model Farming’s .COM website (99.5%).
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.
Model Farming’s Products
Model Farming has no retailable products or services.
Affiliates are only able to market Model Farming affiliate membership itself.
Model Farming’s Compensation Plan
Model Farming affiliates invest funds on the promise of advertised returns:
- Seeding – invest $100 to $9999 and receive a 1.5% ROI for 150 days (225%)
- Irrigation – invest $10,000 to $24,999 and receive a 1.75% ROI for 150 days (262.5%)
- Fertilizing – invest $25,000 to $49,999 and receive a 2% ROI for 150 days (300%)
- Harvesting – invest $50,000 to $100,000 and receive a 2.5% ROI for 150 days (375%)
The MLM side of Model Farming pays on recruitment of affiliate investors.
Model Farming affiliates earn a percentage of funds invested by personally recruited affiliates.
Referral commission rates are determined by how much a Model Farming affiliate has invested:
- Seeding and Irrigation tier affiliates earn a 7% referral commission rate
- Fertilizing and Harvesting tier affiliates earn a 10% referral commission rate
Model Farming pays residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day Model Farming tallies up new investment volume on both sides of the binary team.
Affiliates are paid 10% of funds invested on the weaker binary team side.
Note that residual commissions are capped daily based on how much a Model Farming affiliate has invested:
- Seeding tier affiliates can earn up to $1000 a day in residual commissions
- Irrigation tier affiliates can earn up to $2500 a day in residual commissions
- Fertilizing tier affiliates can earn up to $5000 a day in residual commissions
- Harvesting tier affiliates can earn up to $7500 a day in residual commissions
Once paid out on, weaker binary team side volume is matched against the stronger side and flushed.
Any leftover volume on the stronger side carries over.
Joining Model Farming
Model Farming affiliate membership is free.
Full participation in the attached income opportunity requires a minimum $100 investment.
Model Farming solicits investment in USD (through Payeer and Perfect Money), as well as several cryptocurrencies.
Model Farming represent they generate external revenue via “agriculture activities and other farming services”.
No evidence of this activity is provided. Nor is there any evidence of Model Farming generating external revenue via any other means.
In any event, with 99%+ of visitors to Model Farming’s website being from the US, it follows that the vast majority of investors are also from the US.
There is no dispute that Model Farming is offering a passive investment opportunity.
This is a securities offering, requiring Model Farming to be registered with the SEC.
Basic incorporation in Kentucky or anywhere else in the US is not a substitute for this.
The reason this is important, apart from being a legal requirement, is because it will see Model Farming file audited financial reports.
These reports are the only way to confirm Model Farming is doing what it claims to be with respect to external revenue.
As it stands the only verifiable source of revenue entering Model Farming is new investment.
Using new investment to pay affiliates a daily return makes Model Farming a Ponzi scheme.
The MLM side of the business adds a pyramid layer to the scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Model Farming of ROI revenue, eventually prompting a collapse.
Can I lose money?
No, your funds are stored in highly encrypted system and processed with responsibility to produce profit.
Despite Model Farming’s false representation above, the math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.