Paybit Club Review: Failed crypto ecom platform pyramid
Paybit Club provides no information about who owns or runs the company on its website.
Paybit Club’s website domain (“paybitclub.com”) was registered on February 4th, 2020.
Paybit Marketing is listed as the owner through an Arizona suite address. The same address is provided on Paybit Club’s website.
Multiple businesses appear to use the same address, suggesting it is virtual in nature.
Multiple Paybit Club marketing videos on YouTube feature Jairo Flores. In offsite marketing, Flores (right) is cited as one of Paybit Club’s founders.
Prior to founding Paybit Club, Flores was promoting a skin cream on Facebook called Vit Pura. I wasn’t able to confirm whether there was a business opportunity attached.
Read on for a full review of Paybit Club’s MLM opportunity.
Paybit Club’s Products
Paybit Club markets a cryptocurrency ecommerce platform. The service is supposed to be pitched at merchants, who can also “accept bitcoin” through on location devices.
The only fee disclosed in Paybit Club’s marketing is a 2% transaction fee.
Any merchant costs associated with Paybit Club’s ecommerce platform are unclear.
Paybit Club’s Compensation Plan
Paybit Club’s compensation plan combined ecommerce platform commissions with affiliate recruitment.
Paybit Club affiliates receive a 5% commission on products purchased through their replicated ecommerce platform.
If an affiliate signs up a merchant who whitelabels Paybit Club’s ecommerce platform, they receive a $62.50 commission.
$6.25 a month is paid out as long as the merchant continues to use PayBit Club’s platform.
PayBit Club affiliates earn commissions on cryptocurrency transaction processed for merchants they refer.
Transaction commission rates are determined by how much a Paybit Club spent when they signed up:
- Starters receive 0.1%
- Newbies receive 0.25%
- Amateurs receive 0.37%
- Partners and higher receive 0.5%
Transaction commissions are paid on each merchant account until ‘3x the value of the account that is added to the income of network commissions.’
Paybit Club affiliates earn 50% of sales volume (BV) generated by affiliates they recruit.
- recruitment of a Starter affiliate generates 12.5 BV
- recruitment of a Newbie affiliate generates 25 BV
- recruitment of an Amateur affiliate generates 62.5 BV
- recruitment of a Partner affiliate generates 125 BV
- recruitment of a Manager affiliate generates 250 BV
- recruitment of a Director affiliate generates 500 BV
- recruitment of a Founder affiliate generates 2500 BV
Residual Recruitment Commissions
Paybit Club 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.
Each day Paybit Club tallies up affiliate membership fees paid across both sides of the binary team.
Affiliates are paid 20% of fees paid on their weaker binary team side, capped daily based on paid affiliate membership fees:
- Starters can earn up to $25 a day
- Newbies can earn up to $50 a day
- Amateurs can earn up to $125 a day
- Partners can earn up to $250 a day
- Managers can earn up to $500 a day
- Directors can earn up to $1000 a day
- Founders can earn up to $5000 a day
Paybit Club affiliates earn a 20% Matching Bonus on residual recruitment commissions earned by personally recruited affiliates.
Paybit Club charges merchants a 2% fee on every transaction made through their platform.
50% of that 2% fee is placed into the Pool Bonus.
Paybit Club shares the Pool Bonus with affiliates who sign up with Manager and higher priced membership options.
The Pool Bonus is split into three pools:
- a 25% pool is shared between Managers, Directors and Founders
- a 35% pool is shared between Directors and Founders
- a 40% pool is shared between Founders
In addition to rank qualification, Pool Bonus qualification requires enrollment of one merchant who has processed $100 in bitcoin transactions.
Note that the Pool Bonus is paid until affiliates have recovered 150% of what they paid in membership fees.
Rank Achievement Bonus
Paybit Club rewards affiliates who qualify at Bronze and higher with the following Rank Achievement Bonuses:
- Bronze (generate 5000 GV in accumulated weaker binary team side volume) – receive a pin
- Silver (generate 15,000 GV in accumulated weaker binary team side volume) – receive an “award”
- Platinum (generate 50,000 GV in accumulated weaker binary team side volume) – receive $500 for a “new iPad”
- Gold (generate 100,000 GV in accumulated weaker binary team side volume) – receive $2000 for a “new MacBook Pro”
- Zaffii (generate 250,000 GV in accumulated weaker binary team side volume) – receive $10,000 to purchase on “luxury accessory [sic]
- Ruby (generate 500,000 GV GV in accumulated weaker binary team side volume) – receive $20,000 to fund a “trip to your destination of choice”
- Emerald (generate 1,000,000 GV in accumulated weaker binary team side volume) – receive $35,000 to purchase a “Honda Accord or similar”
- Diamond (generate 2,500,000 GV in accumulated weaker binary team side volume) – receive $70,000 to purchase a “Mercedes or similar”
- Blue Diamond (generate 5,000,000 GV in accumulated weaker binary team side volume) – receive $150,000 to purchase a “Maserati or similar”
- Black Diamond (generate 20,000,000 GV in accumulated weaker binary team side volume) – receive a “fully paid home” worth up to $1,000,000
- Ambassador (generate 50,000,000 GV in accumulated weaker binary team side volume) – receive a share in 10% of Paybit Club’s net profits “for life”
GV stands for “Group Volume” and is sales volume generated by affiliate membership fees.
Joining Paybit Club
Paybit Club affiliate membership costs between $25 and $5000.
- Starter – $25
- Newbie – $50
- Amateur – $125
- Partner – $250
- Manager – $500
- Director – $1000
- Founder – $5000
The more a Paybit Club affiliate pays in membership fees the higher their income potential.
Note that there is also a free affiliate membership option, however this is locked out of the MLM income opportunity.
The basic idea behind Paybit Club is the creation of a merchant and customer funded cryptocurrency ecommerce platform.
Jairo Flores began promoting Paybit Club in late March:
Almost three months later, how’s that working out?
As I write this the “marketing” section of Paybit Club’s website is broken (CSS design problems).
Nonetheless, what we can see it’s populated with
- two beauty and health products
- four craft products and
- four home and garden products
The beauty and health products are Vita Pura, the same brand Jairo Flores was flogging on Facebook this time last year.
Craft products are placeholders complete with latin placeholder text:
The home and garden products are all Emporio Cookware, which can be purchased at the same price from the company’s own website.
By any metric Paybit Club’s ecommerce platform is a flop. If we discount any ecommerce platform related commissions, Paybit Club is operating as a pyramid scheme.
You sign up, pay a fee and get paid to recruit others who do the same.
Limiting income based on membership fees paid is “pay to play”, a common pyramid scheme foundation.
With the ecommerce platform having flopped, Paybit Club will collapse when affiliate recruitment slows down.
The math behind pyramid schemes guarantees that the majority of participants will not recoup fees paid.