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.
MLM schemes I was able to confirm Flores promoted in the past include Brain Abundance, Lucrazon Global and Epic Fuel Tabs.
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.
Ecommerce Commissions
Paybit Club affiliates receive a 5% commission on products purchased through their replicated ecommerce platform.
Merchant Commissions
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.
Transaction Commissions
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.’
Recruitment 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
Matching Bonus
Paybit Club affiliates earn a 20% Matching Bonus on residual recruitment commissions earned by personally recruited affiliates.
Pool Bonus
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.
Conclusion
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.
Wow. Going live with “lorem ipsum” placeholder pseudo-Latin. That’s real professional.
Although I guess pseudo-Latin goes well with a pseudo-compliance product offering.
Because several other MLMs are touting something similar, I thought I’d offer this observation on one part of their offering:
Even though they’re, not surprisingly, light on technical detail, this point of sale bitcoin payment system of theirs clearly shares one characteristic with the other such crypto payment “solutions” I’ve seen promised. They’d be illegal in most of the EU (and all of the EU within the next few years).
In most EU countries, to avoid VAT and other tax fraud, all payments in shops, whether in cash or electronic, have to go through certified, tamper-proof cash registers.
The ones where that isn’t already the case will be following suit in the near future.
Any POS crypto payment system would therefore have to be integrated with the software in these cash registers, and go through certification, just like card payment terminals now.
In practice, this means that only companies which already sell certified POS equipment, of which there aren’t that many, could realistically introduce any such system.
That individual shopkeepers could just adopt one on their own, and one entirely controlled by some obscure MLM company at that, is absurd. (All that’s of course assuming that all the legalities for the underlying transaction are in place.)
There are currently some places that do claim to accept payment in cryptocurrency at POS. They’re faking it. The shop owner basically pays the bill with his own money.
At the same time, the customer makes a legally entirely unrelated crypto transfer to the shop owner’s wallet, for an amount which just happens to correspond to the real payment just made. The cash register never sees any cryptocurrency.
It’s really the same way shops in border areas often accept payment in currency from the neighbouring country as well, a practice which the introduction of the euro has eliminated along many borders. And just like it, it’s skirting with illegality.
Good. afternoon and thank you for your review, we are glad you have taken the time to review our company. We found a few issues in regards of the information that was described in this review.
First, people can JOIN for free with our NEWBIE license and still sell our service to clients, earn unlimited commissions and not pay $1 to do so.
Also, all of our licenses get paid exactly the same. During our first 3 months of launching we had a “temporary” compensation to attract distributors; however, at this time and since several weeks ago, if you visit our site you will notice all memberships earn exactly the same 0.50% residual you can see it here paybitclub.com/index_site.php?p=plans .
When it comes to compliance in different countries; we do not fall under certain regulations as our technology does not ever touches the user’s bitcoin payment; we just monitor the transactions and trigger a programmatically response on the user’s side.
You can read documentation here: paybitclub.com/index_site.php?p=api
In regards of our marketplace, we don’t charge anyone to use it and we are allowing any user anywhere in the world to upload any product they wish; therefore, whatever is featured there does not belong to us.
Please feel free to ask any question you might have and we will be able to answer accordingly.
Once again, thank you for your review.
Which has nothing to do with the MLM opportunity and is therefore irrelevant.
Also irrelevant to PayBit Club operating as a pyramid scheme.
Pyramid schemes are illegal the world over.
If you can’t get people to use your ecom platform when you’re giving it away, it flopped. All that’s left is recruitment commissions.
Nobody said they did. Jairo Flores was promoting Vit Pura prior to founding Paybit Club. It doesn’t seem to exist outside of his marketing.
When coupled with practically zero adoption of Paybit Club’s ecom platform, just a coincidence I’m sure.
We understand your concerns about it; however, Pyramid schemes require people to recruit in order for them to earn commissions.
In our case, we don’t require people to recruit to earn commissions in our sales of our services. Anyone is free to join as free member and still earn commissions from direct sales without any capping attached to their earnings.
The recruitment process starts when someone wants to build a network and need more tools to do so. We charge for such tools.
According to FTC regulators, we must be competitive when it comes to our prices and the Paid price must be met by the delivered product/service.
Thank you for your fast reply.
That’s one type of pyramid scheme. Another is an MLM company paying 100% or the majority of commissions (dollar amount) tied to recruitment.
With the ecom platform having demonstrably flopped, such is the case with Paybit Club.
MLM companies that primarily pay out on recruitment are pyramid schemes. Paybit Club is an illegal pyramid scheme.
There was an actual comment about services having Lorem Ipsum on their content.
I was letting that individual know, we have no control over the content submitted by users on the marketplace.
Genuine platform users aren’t uploading latin placeholder text. Someone in house forgot to clean up.
We appreciate the time you took to reply our comments. I have stayed over my working time; however, as soon as I reach the office tomorrow I will send you the full written compensation plan I believe you have not gotten a chance to read it yet.
No users can earn just from referring other users. There is a 2-1 ratio required to earn such commissions.
I’m not sure I can upload a picture here; however the bonus in written on our presentation says exactly as follows:
“Every time you refer a new brand partner and this person is activated by referring 2 business owners you earn” 50%.
If the new user does not refer 2 clients to the company, such user does not become “Active” therefore sponsor earns $0.00 for the referral…
Thank you.
This review is literally based on Paybit Club’s compensation plan, as presented on the company’s website.
That’s not mentioned anywhere here. You don’t seem to understand an MLM company primarily paying commissions tied to recruitment (recruited affiliate activity) constitutes a pyramid scheme.
If you’re running an MLM company and the majority of commissions you’re paying out isn’t tied to retail sales, you’re running a pyramid scheme.
So given the ecom marketplace flopped, Paybit Club has been paying $0 in commissions company-wide for months?
Market place, Directory are extra services. Our biggest service is our API processing platform. If you go to our API page, and instal it on any software; we charge 2%. 90% of our clients are clients using our API system. The Market place was recently introduced under 2 months ago and launched under a month ago.
We require our members to introduce merchants to our API or POS (pseudo POS at a technical level). Such merchants decide if they want to use or not the marketplace and directory.
However, all transactions passing though our API are where our income comes from.
If you install the API and send queries to such, you can request the json response and view all our API calls to use our platform (over 100,000 so fat) and actual transactions occurred (over 25,000 so far). That is our main product.
Once again thank you very much for letting us know where we have made mistakes so we can move forward and correct them accordingly.
Who’s buying access to your platform when you yourself as a company can’t run it successfully?
Seriously, Paybit Club’s own hosted ecom platform is literally broken. And you want me to believe there’s clients? Puh-lease!
Show me one example of Paybit Club’s ecom platform being externally hosted. Just one.
I pay $5000 to sign up as a PayBit Club Founder. That money goes where?
It’s used to pay recruitment commissions and Paybit Club keeps the rest. Sorry, not buying the pseudo-compliance.
If you visit the API page and run the technology behind it; you can yourself without asking anyone run a full report of everything that has been processed through it since over 2.5 years ago.
Our tech is decentralized and programmatically public to anyone to view transactions, see who they belong to (ID). (Must be ran from command line).
Since we do not collect private information from our clients because we are not Custodial of funds. If you want to have a better understanding if sales are really happening, you can feel free to program our End-to-end encrypted processing service and feel free to run a query for over $90,000,000 which has been processed in our system.
Once again, you can run it yourself and validate the information yourself. On the SDK we have samples of how you can pull the whole ledger to view every single piece of information within the system.
Thank you for your reply, I will continue tomorrow, have a great Day/Afternoon/Evening.
One example of Paybit Club’s platform running on an external host that’s actually being used please. Just one.
I’m not taking on good faith Paybit Club has any external clients when their own hosted platform is literally broken.
I’m glad you are bringing up this company, I have know about Daniel Cruz and myself fell for his trap in the technology he sells.
I flew from Texas to see his business operation in Arizona the mining, his pot and pans business, his millennium token and processing customers (all ponzy schemes).
oh I get it that’s the $90,000,000 million processing that the compliance department is talking about, smh. and now he is behind the scenes of this program.
I personally lost over 5K with his millennium token scam, there is a SEC investigation in process.
The 90MM is the record of all the frauds, all the Ponzi business he operated/partnered before to run his scams.
I am glad theres more evidence now in YouTube. This will help the investigation.