Snap Delivered: MLM gig delivery opp + securities fraud
Snap Delivered provides no information on their website about who owns or runs the company.
Marketing videos on Snap Delivered’s website are hosted by Paul Mikel. Further research reveals Mikel is CEO of Snap Delivered.
Although not explicitly clarified, I believe Mikel also owns the company.
Mikel’s LinkedIn profile places him in Florida. This syncs with the Florida address provided on Snap Delivered’s corporate documents.
MLM Legal credits Mikel (right) with extensive experience as a “top distributor and high-income earner”.
In mid 2013 Mikel launched Our Heart’s Desire, a “female focused” MLM company.
According to Mikel’s LinkedIn profile, Our Heart’s Desire wrapped up in mid 2017.
Read on for a full review of Snap Delivered’s MLM opportunity.
Snap Delivered’s Products
Snap Delivered runs a gig delivery service. This service can be accessed for free or $10 a month.
Anyone who doesn’t pay the $10 monthly fee pays a $5 delivery fee per order placed.
All Snap Delivered customers pay a $3.50 fuel fee for the first five miles, 50 cents per mile after that.
At the time of publication there is no information about the planned infrastructure (app?) on Snap Delivered website.
Snap Delivered’s Compensation Plan
Snap Delivered Affiliate Ranks
there are five affiliate ranks within Snap Delivered’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Customer – sign up as a Snap Delivered affiliate for free (no MLM commissions)
- Manager – sign up and pay the $299.99 annual fee and maintain annual fee payment
- Supervisor – recruit and maintain three Managers, generate 500 monthly orders (max 250 from any one unilevel leg and min 50 from two legs each)
- Director – recruit and maintain four Managers, generate 5000 monthly orders (max 2500 from any one unilevel leg and min 500 orders from three legs each)
- Executive – recruit and maintain five Managers, generate 10,000 monthly orders (max 5000 from any one unilevel leg and min 1000 orders from four legs each
For the purpose of rank qualification, orders are counted across an affiliate’s downline (unilevel team).
Snap Delivered pays direct commissions on restaurant delivery fees, customer delivery fees, affiliate membership fees (Manager) and delivery driver fees.
Direct Commissions are paid at a rate of 20% across all Snap Delivered affiliate ranks.
Snap Delivered pays residual commissions 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.
Snap Delivered caps payable unilevel team levels at five.
Residual commissions are paid out as a percentage of sales volume (see “direct commissions” above) across these five levels based on rank.
- Managers earn 10% on level 1 (personally recruited affiliates)
- Directors earn 10% on level 1 and 5% on levels 2 and 3
- Executives earn 10% on level 1 and 5% on levels 2 to 5
The Generational Bonus pays an additional percentage on unilevel team sales volume.
Supervisors, Directors and Executives earn the Generational Bonus, with each rank paid out slightly differently.
- Supervisors earn a 1% bonus from level 2 of each unilevel leg until another Supervisor is found in the leg
- Directors earn a 1% bonus from level 3 of each unilevel leg until another Director is found in the leg, plus 1% on sales volume generated after that Director
- Executives earn a 2% bonus from level 5 of each unilevel leg until another Executive is found in the leg, plus 2% on sales volume generated after that Director until a second Director is found, and then 1% on sales volume generated after that second Director
Profit Sharing Pool
Snap Delivered takes 2% of company-wide revenue and places it into a Profit Sharing Pool.
Executive ranked affiliates earn one share in the Profit Sharing Pool for every 10,000 orders generated across their unilevel team (max 50% counted from any one unilevel leg).
Joining Snap Delivered
Snap Delivered affiliate membership is $299.99 annually.
There is also a free affiliate option, however free Snap Delivered affiliates can’t earn MLM commissions.
Snap Delivered Conclusion
Snap Delivered are entering a highly competitive niche with plenty of established players.
The best-known of these companies is Uber Eats. Uber Eats launched in 2014, generates billions a year in revenue but, as of 2020, has yet to turn a profit.
DoorDash, another major player, also hasn’t turned a profit.
Profitability is thus the immediate concern with Snap Delivered’s business model.
I noted in Mikel’s LinkedIn profile that since Our Heart’s Desire wrapped up, he’s been CEO of Restapreneurs LLC as CEO.
We have taken on the task of creating a concept that is a win/win for all parties involved in the delivery craze that has taken over America.
We are able to deliver every restaurant without expecting the restaurant to give pay us [sic] or give us a discount.
Sounds like the genesis of Snap Delivered if I’m not mistaken. And Restapreneurs not taking off in over four years might be an ominous sign for Snap Delivered’s future.
Worst case scenario? The delivery side of Snap Delivered isn’t profitable and, due to paying commissions on affiliate membership fees, runs as a pyramid scheme.
Wheres some services have a variable fee structure, Snap Delivered’s seems relatively fixed.
On top of fees detailed in the “product” section of this review;
- $2 is charged to a restaurant per delivery fulfilled
- $1 is charged to a restaurant per takeout order originating through Snap Delivered
In a recent interview, Paul Mikel stated:
I started realizing restaurants were getting charged 15% to 30% on every order.
On a $100 order, they’re paying $15 to $30 before it ever leaves their place.
I didn’t understand how restaurants could do that. I didn’t think it was a long-term viable business, because I didn’t think the restaurants were going to pay that 15 to 30%.
They might do it at the beginning. They might do it for a while. But sooner or later, it was going to be something they didn’t want to do anymore.
He’s not necessarily wrong. The take-away though is even with those relatively high fees, turning a profit in the gig delivery niche isn’t happening.
The $299 annual Manager affiliate fee meanwhile is basically free money for Snap Delivered.
Managers are entered into the same system as everyone else, the only difference being they earn MLM commissions (this functionality cost is minimal over the base platform).
Another area of concern is Snap Delivered’s current “founding member” promotion.
Snap Delivered is charging $99 for a founding member position. This gets you:
- free delivery for life;
- permanent rank promotion to Supervisor;
- one share in the Profit Sharing Pool;
- access to “founding member trips”; and
- stock options
The stock options component of Snap Delivered is problematic.
Snap Delivered are essentially selling 1500 virtual shares for $99. Those stock options, regardless of whether the stock exists or not, are a securities offering.
Snap Delivered isn’t registered with the SEC, potentially making them a target of regulatory action.
All in all Snap Delivered is the first delivery gig MLM company I’ve come across. It’s not the first gig company though.
I’m reminded of Tryp, which also had an illegal stock option offering.
Tryp launched in 2019 but abandoned their MLM operations by January 2020.
Today the company doesn’t exist.
I think Snap Delivered needs to address the combination of gig economy competitiveness, securities fraud and pyramid scheme concerns.
This would ideally prior to Snap Delivered’s launch. That seems unlikely though, seeing as the launch ticker on the website is currently sitting at 16 hours.
Update 1st December 2021 – Paul Mikel’s “recent interview” cited in this review was hosted on MarketWatch.
As at the time of this update the interview has been removed from MarketWatch. As such I’ve disabled the previously accessible link.
From what I could find, it looks like “2019” should be 2009? Or maybe 2008? From MLMLegal:
Elsewhere it says Our Heart’s Desire is a trademark of OHD. But nowhere does it say specifically when they started using the name “Our Heart’s Desire”. Had to be before 2017, though.
Supposed to be 2013, from Mikel’s LinkedIn profile. Dunno where I got 2019 from!
Re. Opportunity Hope Desire (OHD prior to 2013), I didn’t know what “a company based on the sales model of in-home gold companies” was so I left it out.
Yeah, that phrase looked pretty weird to me, too. There are in-home gold companies? They have a sales model? All rightie, then.
2019 and 2013 are the same calendar, but that’s probably a coincidence. 😉
Looking at Paul Mikel’s pic, that’s just the face you want for a female based dating service. No problem.
I’m considering do this, because I drive for UE, DD, and GH so I’m in restaurants and see drivers all the time.
So this could be a great thing for me. But one concern I have is how will they pay for the support, drivers and customers will need?
This could be huge.
Incredible company with a crusade mission. A couple who own two resturants in Florida came up with their own delivery company and brought on Paul and Tony (CEO and CFO) to get it up and running.
Since then more people have been added to support. Paul has years of experience, and Tony does as well including(Tony) already having a successful delivery company running in 300 cities.
They saw the concept and decided to invest time and money into getting it off the ground.
It isn’t registered with the SEC because it’s not a publically traded company but it is a legal company. I’m really not fond of these kind of reviews. They don’t do companies justice.
Also after finding out from Paul that was a photo you took off a page that was in early in the morning. It’s not nice to grab someones photo off somewhere and post it.
He has professional photos and definetly earned the right to have his profession photo posted.
Honestly people need to do real research not go to a site like this one. It doesn’t do anyone or any company justice.
You’re absolutely right. Let’s ignore the facts and listen to Captain “marketing spam and clearly has no idea about securities law”.
1. Mikel and Snap Delivered are committing securities fraud, but this is what you get butthurt about?
2. You can run a search for Mikel and see what photos come up. I think there’s one that appears to be 10+ years old. I had to dig up that recent one.
As for rights, I have the right to publish whatever photo I want to accompany BehindMLM’s reviews. Fair Use.
Paul is a scam artist, all the people that’s affiliated with Him are part of his scam, don’t trust anything this liar tells you.
not one person in this organization that is supposed have a metro up and running can show money they have made. It’s all fake.
Snap Delivered was founded by restaurant owners (Ozedit: marketing spam removed)
Snap Delivered was founded by Paul Mikel. “Restaurant owners” had nothing to do with it.
Coming on here with a marketing script is bad enough. Coming on here with a deceptive marketing script? Oh dear.
Oz and Randy are either totally clueless or have a personal agenda in their ridiculous, unfair and untrue hit job on Paul Mickel and Snap Delivered.
I have been around the MLM and next shiny object industry for many years and had pretty much written it off because of all the bs and lies you have to experience to find a good one.
I came across Snap by chance, joined a year ago, and am blessed to be a part of the Snap family! I have always been paid commissions earned and even bonuses I wasn’t aware I had coming.
CLARIFICATION! Snap Delivered is NOT MLM, it is MULTI LEVEL REFERRING.
There’s nothing required to buy, no auto ship, etc. and the manager fee was dropped a long time ago. A person can work their way from entry level to the top tier without spending a dime if they choose to do it that way. But like every thing else worthwhile it takes time, work and perseverance.
The fact you chose the picture you did speaks volumes to your lack of fairness and credibility. I’ve rarely seen a company work as hard as SNAP to provide a legitimate, solid opportunity to it’s members.
And if you actually new the real quality and caring people in ownership and staff, you should be embarrassed about your false reviews.
You owe Paul and Tony and the SNAP DELIVERED family a real apology! just saying !! Casey R.
MLM compensation plan = MLM company.
Multi-level referring… lol.
Securities fraud is by definition not legitimate.
I stand by my research, none of which you’ve refuted. Just saying.
Just be honest and admit you’re here because Snap Delivered’s website traffic is in decline. Sorry for your loss.
(Ozedit: derail removed) Today I was finishing up a few things and one of our reps decided to send me a message because they were upset with this website spreading.
I am going to answer the facts that you are wrong about and I will give credit where you are right. (Ozedit: derail removed)
You accuse us of committing securities fraud.
– In the beginning, we made a mistake in our policy that you so graciously brought to our attention by using a horrible picture of me and accusing me of trying to mislead people and committing securities fraud.
This was an oversight and to be honest, I am happy you brought it up so that we could change that policy, which we did and gave everyone involved the opportunity to get any money they had paid as a pre-launch member back.
The wording for what we had done was wrong and our attorneys addressed it immediately. I can forward that letter to you if you would like.
I would think if we were doing something wrong along those lines a year and a half in something would have come to light.
– In the beginning, we were more structured as a network marketing company, and yes we did use some of the money that came in to build the company but our goal has always been to create an opportunity that kept the structure of a network marketing company and the opportunity it gives people without people having to spend a dime to join Snap.
I would encourage you to update your research and see that we have accomplished just that.
THERE IS NO SIGN-UP FEE and the only way someone can earn an income is by producing results. An order must be placed by a customer and delivered through our drivers for anyone to get paid.
We have added other things to our company that gives our reps even more opportunity without ever spending a dime. We have created a system that has taken us a while to get it where the things we knew would benefit the masses could be done.
If you are going to leave up incorrect information that is your choice but it diminishes your credibility. I would love to be an example of a company that you feel is doing the right thing and have an open and honest conversation with you if that is what you are looking for but I am not sure it is.
– As for the picture you used I give you credit for finding that because it was me learning how to use and testing YouTube live at 6 am.
I had no clue it was recording but I am sure you are glad it was because it adds to your portrayal of me.
I am not pretty by any stretch of the imagination so I am sure I could give you plenty more that will be equally as bad. I give you credit because I am sure it is hard to drive traffic to your site with positivity so congratulations on creating a place that exposes those out to take advantage of others.
If that is truly your goal then you should also have conversations and post when companies and individuals work to do the right thing and correct problems they may not have expected.
I hope you post my one and only response to this but if you don’t I will understand.
Every MLM company wants to use ANY other term than MLM to describe themselves. Mary Kay (def MLM) calls themselves “Dual Marketing,” whateverthehell that means.
But “Multi-Level Referring”? That’s a pretty weak effort, frankly.
Every BehindMLM review and article is date-stamped. With respect to reviews, we strive to provide consumers with as accurate a breakdown of an MLM company at time of publication.
With that in mind;
Thank you for confirming Snap Delivered was committing securities fraud as pointed out in the review at time of publication.
Thank you for confirming Snap Delivered, as reviewed at time of publication, was operating as an MLM company.
Imagine if you will a movie studio puts out a movie:
Reviewer: This movie is terrible because (insert discussion about plot, structure, character development, themes, pacing etc. etc.).
*movie studio pulls movie, rewrites script (taking into consideration some of the issues raised in aforementioned review), reshoots large parts of the movie and reissues movie to theaters*
Studio: HaHa yOuR rEvIeW iS wRoNg!
This happens more often than you’d think with BehindMLM reviews, despite each being clearly date-stamped.
The correct play here is asking for a review update, which I’m happy to oblige.
What you don’t want to do is come on here and start carrying on about “unfair and untrue hit jobs”, “personal agendas” etc. To anyone not in Snap Delivered reading the review, you just come off as an unhinged nutjob.
I’ve queued Snap Delivered for a review update. Will update when it comes up.
BehindMLM isn’t here to help you run and/or promote your company. BehindMLM is here to provide consumers with timely and accurate information about MLM companies, published from an independent point of view.
Snap Delivered came up for a review update today.
There doesn’t appear to be any compensation documentation provided on Snap Delivered’s website.
There is an “opportunity video” that covers the comp plan. It was uploaded to Vimeo on November 2nd, 2021 – less than two months after this review was published.
The comp plan in the “opportunity video” is the same as reviewed here. The only differences I can see are:
-specific dollar amounts are given in addition to the 20% direct commission rate (review provides the 20% rate)
-residual commissions beyond level 2 aren’t clarified
-rank qualification criteria isn’t provided
-Generational Bonus and Profit Sharing Pool aren’t mentioned
If anything, this review is more detailed than the official Snap Delivered compensation video.
Additionally, failing to provide consumers with complete compensation details is a potential violation of the FTC Act.
In #14 Paul Mikel suggested Snap Delivered’s unregistered securities offering was canned after this review was published.
If Mikel can confirm Snap Delivered has no virtual shares offering, I’ll make a note of that in the review.
Failing which, I’m not seeing what else there is to update.