passive-rebate-logoThere is no information on the Passive Rebate website indicating who owns or runs the business.

The Passive Rebate website domain (“”) was registered on the 5th of December 2014, however the domain registration is currently set to private.

Further research reveals the initial Passive Rebate domain registration listed a “Sham Awan” as the owner, with an address in Somerset, England provided.

I wasn’t able to find any additional information on this individual.

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 Passive Rebate Product Line

Passive Rebate has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.

Once signed up, Passive Rebate affiliates can then purchase “cycler ad packs” and “revshare ad packs” for $10.

Bundled with each ad pack are a series of advertising credits, which can be used to display advertising on the Passive Rebate website itself.

The Passive Rebate Compensation Plan

The Passive Rebate compensation plan sees affiliates invest $10 in either cycler ad packs or revshare ad packs.

Cycler Commissions

Each $10 cycler ad pack purchase generates a position in a straight-line cycler queue.

A straight-line cycler queue sees new positions added to the bottom of the queue, with funds from each position purchase used to generate a ROI on the position at the top of the queue.

Passive Rebate advertise a 150% ROI, meaning once the position at the top of the queue has generated $15, it “cycles” out of the queue and each existing position moves up one place.

At this point the process is repeated, with newly funded positions generating the 150% ROI for the new first place position.

Revenue Sharing

A $10 revshare ad pack purchase functions in much the same manner as the straight-line cycler, offering affiliates an advertised 150% ROI.

Rather than new positions funding the position at the top of a queue however, revenue-sharing sees each newly purchased position funding a ROI across all previously invested in positions.

Once a Passive Rebate revenue-sharing position has paid $15, it expires and new positions must be invested in to continue.

Mandatory Reinvestmnt

Note that 30% of all ROIs paid out to Passive Rebate affiliates must be reinvested back into either cycler ad pack or revshare ad pack positions.

Referral Commissions

Referral commissions are offered on both cycler ad pack and revshare ad pack purchases.

10% is paid on investments made by personally recruited affiliates (level 1), and 5% on level 2 (any affiliates your level 1 affiliates recruit).

Joining Passive Rebate

Affiliate membership with Passive Rebate is free, however affiliates must invest in at least one cycler ad pack or revshare ad pack in order to participate in the income opportunity.

Initially a Passive Rebate affiliate must invest in two positions (referred to as a “combo pack”), meaning the defacto minimum cost of Passive Rebate affiliate membership is $20.


As the name suggests, Passive Rebate is all about investing funds and then passively collecting a ROI from those who invest after you.

This investment fraud business model qualifies Passive Rebate as a Ponzi scheme.

The advertising-credit based Ponzi model is a well-trod path, with the advertising credits serving as little more than a ruse for what is otherwise investment fraud.

If Passive Rebate affiliates were indeed purchasing advertising credits, logic would dictate they’d be eligible for a refund should those credits not be used.

Instead, as per Passive Rebate’s “no refunds” refund policy:

Commissions are paid immediately after payments are made. With that said there will be NO refunds granted.

The reason refunds are not possible is because newly invested funds are used to pay out existing investors.

As with all Ponzi schemes, once newly invested funds dry up Passive Rebate will find itself unable to meet its 150% ROI obligations.

This will first manifest itself by way of the incremental ROIs paid out on revshare ad pack positions reducing towards $0. In turn, the straight-line cycler queue wait times will blow out, with the queue eventually stalling.

At that point anyone with funds still trapped in Passive Rebate loses out, with the anonymous Sham Awan then doing a runner.