Okaizo Review: OneCoin scammers launch CBD oil pyramid
Okaizo provides no information on its website about who owns or runs the business.
The only contact details provided is an address in Amsterdam in the Netherlands.
Further research reveals this address actually belongs to Regus, a virtual office provider.
On LinkedIn Bing Voorham (full name: Bernardus Johannes Gijsbertus Voorham), cites himself as Okaizo’s CEO and Founder.
Prior to Okaizo, Voorham was a promoter of the notorious OneCoin Ponzi scheme.
In May 2017 Voorham was cited by BusinessForHome as “one of OneLife’s most prominent leaders at the moment with $300,000 per month earnings”.
Through the UK shell company Okaizo Limited, Okaizo also has ties to Parwiz Daud, Nawid Habib and Abdulmansour Tawafi.
Like Voorham, Daud and Tawafi are also a former OneCoin scammers.
After OneCoin, circa mid 2018, Daud, Habib and Tawafi launched their own OneCoin Ponzi clone, AuLives.
At the time of publication Alexa rank AuLives’ website at over 10 million, which for a Ponzi scheme is as good as dead.
As per the screenshot above, Voorham’s LinkedIn profile places him in Andorra. Daud and Tawafi are from the UK.
According to LinkedIn, Nawid Habib’s failed ICO HeadStart company is/was based out of The Hague.
This suggests Habib (right) is Okaizo’s only link to the Netherlands.
Read on for a full review of Okaizo’s MLM opportunity.
Okaizo has no retailable products or services, with affiliates only able to market Okaizo affiliate membership itself.
Bundled with Okaizo affiliate membership is CBD oil.
Specifics are not provided on Okaizo’s website, however the company does state
Our products are plant based. We only use the highest quality of hemp produced by reputable farmers and tested by labs in Europe.
It is noted that a product range is featured on Okaizo’s Facebook page:
It appears Okaizo affiliates do have purchase options beyond CBD oil, however at the time of publication none of these additional products appear or are mentioned on Okaizo’s website.
Okaizo’s Compensation Plan
Okaizo affiliates sign up and pay a membership fee. Commissions are paid when they recruit others who do the same.
Okaizo affiliates sign up with one of three packages:
- Bronze – €247.11 EUR
- Silver – €619 EUR
- Gold – €1156.20 EUR
To qualify for MLM commissions, Okaizo affiliates must
- maintain a 50 PV monthly order; and
- recruit and maintain four affiliates who each have a standing 50 PV monthly order.
Okaizo define a monthly period as every twenty-eight days.
PV stands for “Personal Volume” and is sales volume generated by payment of Okaizo affiliate membership fees.
Presumably a monthly 50 PV order is a minimum purchase of Okaizo’s CBD oil product (this is not disclosed on Okaizo’s website or in their compensation plan).
Direct Recruitment Commissions
Commissions paid out on the recruitment of Okaizo affiliates is determined by how much recruited affiliates spend on membership:
- recruit a Bronze tier affiliate and receive €20 EUR
- recruit a Silver tier affiliate and receive €60 EUR
- recruit a Gold tier affiliate and receive €100 EUR
Residual Recruitment Commissions
Okaizo pays residual recruitment 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.
As Okaizo affiliates are directly and indirectly recruited into a binary team, their affiliate membership packages generate sales volume:
- the Bronze package generates 200 points of sales volume
- the Silver package generates 600 points of sales volume
- the Gold package generates 1100 points of sales volume
- affiliate monthly autoship generates 50 points of sales volume when paid
At the end of each week Okaizo tallies up new sales volume generated on both sides of the binary team.
Affiliates are paid 15% of sales volume generated on their weaker binary team side.
Note that weekly residual recruitment commissions are capped based on how much an Okaizo affiliate paid in fees:
- Bronze tier affiliates can earn up to €500 EUR a week
- Silver tier affiliates can earn up to €1000 EUR a week
- Gold tier affiliates receive three €1000 EUR capped binary positions, meaning they can earn up to €3000 EUR a week
Okaizo pays a Matching Bonus on residual recruitment commissions earned by downline affiliates.
Okaizo pays the Matching Bonus 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.
Okaizo’s compensation plan details the Matching Bonus paid out on two levels:
- level 1 (personally recruited affiliates – 15% match
- level 2 – 10% match
The minimum amount matched in downline residual recruitment commission earnings is €50 EUR.
Apparently affiliates can qualify to earn the Matching Bonus on more unilevel team levels, however qualification criteria is not provided.
Note that to qualify for the Matching Bonus, an Okaizo affiliate must
- be MLM commission qualified; and
- earn €50 EUR or more in residual recruitment commissions for the week being matched
4 Customer Bonus
Okaizo rewards affiliates who maintain four personally recruited affiliates on autoship with a €20 EUR bonus.
Seeing as autoship is monthly, it is assumed the 4 Customer Bonus is also paid monthly.
Okaizo pays an Active Bonus if an affiliate earns €200 EUR or more in weekly residual recruitment commissions.
- Bronze tier affiliates receive a 7.5% Active Bonus
- Silver and Gold tier affiliates receive a 15% Active Bonus
The Active Bonus is paid on earned residual recruitment commission for the week, capped at €500 EUR.
The catch is the Active Bonus is kept by Okaizo, until the total Active Bonus amount earned is €10,000 EUR.
If an Okaizo affiliate goes inactive at any time (read: stops paying fees), their Active Bonus is reset to zero.
Okaizo affiliate membership is available at three price-points:
- Bronze – €247.11 EUR
- Silver – €619 EUR
- Gold – €1156.20 EUR
The primary difference between the price-points is income potential via Okaizo’s compensation plan.
Okaizo represents that it sells CBD oil, or more accurately, bundles them with affiliate membership and autoship fee payments.
In reality, income positions are what is actually being sold:
As per Okaizo’s compensation plan, retail isn’t part of the business. All commissions and bonuses paid out are tied to the recruitment of affiliates and mandatory autoship orders.
Digging deeper into the compensation plan, we see that in addition to recruitment commissions, Okaizo basically dangle a carrot worth up to €10,000 in order to keep affiliate’s up to date with autoship.
Capped at €500 EUR a week though, the shortest time an Okaizo affiliate can qualify for their €10,000 carrot is 20 weeks, or just shy of five months.
Remember, that’s the shortest time under ideal conditions. In reality the majority of Okaizo’s affiliate’s aren’t going to get anywhere near €10,000 EUR.
By then of course they’ll have spent who knows how much on monthly autoship, and therein lies the scam.
One other thing to take note of is it seems Okaizo are shipping from the Netherlands.
According to Dutch Customs, drugs and medicines may be taken on holiday without worry as long as they are not covered by the Opium Act.
CBD is fortunately not covered by the Dutch Opium Act and therefore you do not have to worry within the Dutch borders.
Unfortunately, this does not always mean that the rules are the same abroad. That is why it is good to send a message to the customs of the country where you are going.
The easiest way is to do this via the website of the airport where you are going.
What this means for global recruitment varies from country to country. Or who knows, maybe Okaizo will come up with some random product to bundle with affiliate fees in countries where CBD oil isn’t able to be shipped.
Okaizo are cagey about who can sign up, requiring interested parties to email them first.
In any event with 100% of commissions paid out tied to recruitment, Okaizo is a pyramid scheme.
Once recruitment dies down the scheme collapses, leaving the majority of participants with a loss.