SpinQast Review: First truly legal MLM streaming opp?
There is no information on the SpinQast website indicating who owns or runs the business.
The SpinQast website domain (“spinqast.com”) was registered on the 7th of March 2015, with Paul Nash cited as the owner. An address in the US state of Connecticut is also provided.
Nash is also identified as “the leader” of the company on conference calls currently linked to from the SpinQast website.
Paul Nash (right) first popped up BehindMLM’s radar as a part-owner in the failed GoFunRewards Ponzi scheme.
Launched in early 2013, GoFunRewards sought to capitalize on the regulatory shut down of Zeek Rewards before it.
The scheme saw affiliates invest in “Lifestyle Dollars” on the promise of a ROI, paid out of newly invested funds.
A few months after launch GoFunRewards pulled the plug on their scheme, with legal advice pertaining to regulatory concerns cited as the reason behind the decision.
Six months or so later Nash went on to launch SpinDing, which saw affiliates invest up to $1890 on the promise of advertised ROIs.
As with GoFunRewards, SpinDing ROIs were funded by subsequent affiliate investment. Despite this, Nash publicly stated he “hoped” SpinDing wasn’t a Ponzi scheme.
Built on a matrix cycler business model, SpinDing flopped shortly after launch in January 2014.
A relaunch was publicized in July of 2014, but doesn’t seem to have gone anywhere. The SpinDing website went offline in October of 2014, but has since been brought back online.
Last month SpingDing popped up as a partner of Tellus Mall, but whether or not Nash is directly involved is unclear.
In any event, Nash seems to have moved on and has just recently announced SpinQast.
Read on for a full review of the SpinQast MLM business opportunity.
The SpinQast Product Line
SpinQast turns any TV into a smart TV, bringing the power of the Internet to your big screen. It streams thousands of channels, has premium services like NetFlix and Hulu, and includes full web browsing capability and games all for a fraction of the cost of cable!
SpinQast market a “streaming TV box” they claim offers ‘tens of thousands of LEGAL shows and episodes over broadband‘.
Each link, episode, show or live stream are provided legally by the content owner so there are no worries!
For those of a technical mind, the specifications of the SpinQast TV box are as follows:
Quad Core PC, KitKat, 4XHD, 4xUSB, SDCard, 2GB Ram, 8GB Rom WiFi, Wired Ethernet, Supports external hard drives, Google Remote TV etc.
SpinQast claim the boxes are
Programmed to receive thousands of channels, shows, episodes, videos and live streams.
Premium channels (Netflix, Hulu etc) are available.
Retail pricing of the SpinQast TV box is $99, with an ongoing $10 a month subscription fee.
The SpinQast Compensation Plan
The SpinQast compensation plan sees affiliates sign up and sell SpinQast TV Boxes to retail customers. Affiliates can also qualify for commissions by purchasing the box themselves.
Each sale of a SpinQast TV Box to a retail customer generates a commission of $37.50.
Monthly subscription fees charges SpinQast TV Box subscribers are commissionable, with commissions paid out via a 3×10 matrix.
An affiliate must first qualify for matrix commissions by personally recruiting and maintaining at least two new affiliates.
A 3×10 matrix places an affiliate at the top of the matrix, with three positions directly under them (level 1):
These first three positions each branch out into another three positions, making up the second level of the matrix. Second level positions branch out into another three positions each again, making up the third level.
This process continues down for a total of ten levels and 88,572 positions.
Filled positions in the matrix represent retail customers and recruited affiliates paying a monthly SpinQast TV box subscription, with commissions paid out as a percentage of monthly subscription fees paid.
How much of a commission is paid out is determined by what level of the matrix a position is filled, with commissions paid out as follows:
- level 1 – $3.13 per subscription fee paid
- level 2 – $3 per subscription fee paid
- level 3 – $1.60 per subscription fee paid
- levels 4 to 10 – 80 cents per subscription fee paid
Note that commissions paid through levels 9 and 10 of the matrix must be separately qualified for as per the following criteria:
- level 9 – personally recruit and maintain at least 3 affiliates
- level 10 – personally recruit and maintain at least 4 affiliates
A 50% matching bonus is also paid on the matrix earnings of every personally recruited affiliate.
SpinQast operate a straight-line cycler, with the company claiming that ‘every sale of the company cycles 10 members!‘
The basic premise of SpinQast’s straight-line queue is that positions are generated whenever an affiliate signs up.
The SpinQast compensation plan advises that this queue will only have 2000 positions (filled by the first 2000 SpinQast affiliates to sign up).
Then, everytime a SpinQast TV Box is sold to a retail customer or affiliate, ten positions in the queue receive a commission.
Note that for each position in the queue to be paid a commission, two hundred SpinQast TV boxes must be sold.
Commissions paid out are $1 per “cycle”, with the queue able to cycle multiple times a day depending on how many SpinQast TV boxes are sold.
For hundred SpinQast TV box sales, for example, would result in each of the 2000 affiliates receiving two cycle commissions ($2).
The Infinity Bonus is made up of “$1 from all recurring revenue in the company”. The only recurring revenue I was able to identify are monthly affiliate fees and SpinQast TV box subscriptions.
The bonus is paid to Manager or higher ranked affiliates, with the first Manager or higher ranked affiliate upline from the position who made a subscription payment receiving a commission.
How much of a commission is paid out depends on an SpinQast affiliate’s rank:
- Manager (make 8 SpinQast TV box retail sales) – 25% commission payout
- Director (make 12 SpinQast TV box retail sales) – 50% commission payout
- Vice-President (make 16 SpinQast TV box retail sales) – 75% commission payout
- President (make 20 SpinQast TV box retail sales) – 100% commission payout
The percentages pertain to each $1 generated. In the event a Manager is the first qualified affiliate found in the upline, they are paid 25 cents.
The system them continues to search the upline for another Director or higher ranked affiliate. Once found, they are paid either 25% as a Directo, 50% as a Vice-President or the remaining 75% as a President.
In this manner 100% of the $1 commission generated is paid out, with President ranked affiliates collecting the full $1 commission if no Director or higher ranked affiliates exist between them and the position the $1 commission was generated from.
Affiliate membership with SpinQast is $59 a year.
An additional $39 a month fee is payable for a replicated sales website and “tools”.
When I saw the ongoing $10 a month subscription fee, my first though was that SpinQast had signed up with some sort of premium streaming service.
Upon going through the compensation plan though, it’s evident that there’s not nearly enough overhead to cover such a subscription, with most of the subscription paid out in commissions.
Between the matrix commissions, matching bonus, cycle commissions and Infinity Bonus, there isn’t much left of the $10 a month paid.
That begs the question, what differentiates SpinQast from other questionable MLM opportunities offering “OMG FREE CABLE TV AND ILLEGAL MOVIE DOWNLOADS!” type stream boxes?
To be perfectly honest, I’m not sure.
Here’s how SpinQast describe their TV box product on their website;
SpinQast offers a truly legal alternative to cable
SpinQast offers programs and streams that are currently being published to the internet at large by broadcast networks and program owners such as NBC, CBS, ABC, TBS, USA etc.
These streams are available RIGHT NOW on their websites for you to watch online.
You just need to watch ads (very much the same as your basic cable service.) But up till now, it’s been almost impossible to watch them on your big screen.
Our competition offers streaming TV boxes that hook-up to all kinds of content, like non-US based broadcasts, illegal copies of movies (torrents, DVD rips etc), illegal (non-licensed) music downloads and other copyright infringed content.
The SpinQast platform serves-up streams that are just like your basic cable, except that there are also many on-demand episodes, live streams and video clips of your favorite shows.
If it’s entertaining and legal, it’s easy to find on SpinQast.
Two stream examples are provided on the SpinQast website, an episode of a TV series called Chicago Fire and CBS News.
The tv show streams from The Platform (“theplatform.com”) and CBS News directly from their own website.
As I’m understanding it, all SpinQast TV boxes do is provide content one can readily access on a computer, and display it on TV.
No different to opening up a website stream on your desktop/laptop and then watching it on your TV through HDMI out.
NetFlix and Hulu premium subscriptions are mentioned, presumably with these costing extra (you’re paying these providers directly for access to their content).
On the surface this all appears to be above-board. If the content is available directly via officially licensed online distribution channels, then all SpinQast TV boxes are doing is accessing that content.
There are literally THOUSANDS of other streams available, all high quality and programs that you watch every day.
It’s LEGAL and FUN and MUCH CHEAPER THAN CABLE! And there are a myriad of premium channels for movies and first run content available too!
Advertising is mentioned, which is presumably what generates revenue for the content copyright holder.
What I want to know then is what is the SpinQast monthly $10 subscription for?
If it’s just to generate commission payments, with nothing being provided to those paying it, then potentially we’ve got a problem.
Fees charged for the sake of generating commissions is a no-no in MLM. You have to be selling something otherwise you’re just ripping people off.
Think about it, why would a retail customer pay $10 a month just to line the pocket of the affiliate who sold them their SpinQast TV box?
As to SpinQast’s compensation plan, if retail sales of the SpinQast TV boxes are being made then it actually looks pretty solid.
Potential red-flags exist if affiliates are the only ones purchasing the boxes, as this also qualifies them for commissions.
A SpinQast affiliate signing up, buying a box and then recruiting others who do the same can very quickly turn into ongoing chain-recruitment.
The 2000 position cycler is also a bit of a worry, effectively paying out early adopters at the expense of those who join later.
Would you want to sign up as a SpinQast affiliate knowing that those who joined before you have access to an additional commission stream you cannot qualify for?
Didn’t think so, and this is why I’m entirely not a fan of exclusive commissions. It creates an unfair playing field within the affiliate-base and should be frowned upon.
All in all, it’s great to finally see someone attempt a legitimate streaming box MLM opportunity. Paul Nash’s Ponzi past aside, SpinQast appears to be a pretty decent effort.
Whether it takes off though remains to be seen…