StateEarn Review: $5 Ponzi scheme targeting Africa
StateEarns’ front-facing website has nothing to do with its MLM opportunity.
This appears to be an attempt to hide investment fraud.
StateEarn fails to provide company ownership and executive information. Instead, only a WhatsApp number is provided.
This is an instant red flag.
StateEarn’s website domain (“stateearn.com”), was privately registered on September 26th, 2022.
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.
StateEarn has no retailable products or services.
Affiliates are only able to market StateEarn affiliate membership itself.
StateEarn’s Compensation Plan
StateEarn affiliates invest $5 on the promise of an advertised return.
The catch is StateEarn affiliates have to jump through various hoops to realize the return (watch social media videos, visit websites, click on ads etc.).
Specific ROI amounts on a $5 investment aren’t provided.
StateEarn pays referral commissions on invested funds down three levels of recruitment:
- level 1 (personally recruited affiliates) – $2.50
- level 2 – $1.50
- level 3 – 50 cents
StateEarn affiliate membership is tied to a $5 initial investment.
StateEarn dresses itself up a $5 platform that provides access to a bunch of things.
Most of these are meaningless fluff, with returns realized through “watch and earn” and trivia.
Trivia aside, StateEarn is the old advertising Ponzi model. Paying for views violates every social media platform’s TOS.
More importantly, it doesn’t generate and revenue (accounts created to specifically manipulate views on don’t last long).
$4.50 of every $5 invested is paid in referral commissions. This leaves us with StateEarn recycling 50 cents from every $5 invested to pay returns.
Possible less depending on how much StateEarn’s owner(s) is/are stealing off the top.
Looking at those figures, StateEarn functions more efficiently as a pyramid scheme than it does a Ponzi scheme.
That’s not to say StateEarn isn’t a Ponzi scheme. Putting aside all Ponzi schemes are scams, StateEarn as a Ponzi scheme is worse than usual (jump through hoops to earn peanuts).
Most of the money earned through StateEarn will be via recruitment of new affiliates.
I can’t say for sure but StateEarn appears to be a scam run by Africans targeting Africans.
In researching StateEarn I came across marketing efforts trying to rope new victims in from Uganda, Rwanda, Zambia and Kenya.
As above, StateEarn solicits investment through the African cell providers MTN and AirTel.
Both providers were also used to solicit investment for the collapsed BLQ Football Ponzi scheme in Uganda.
For their part, both MTN and AirTel appear to have woefully inadequate fraud detection policies in place.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will ROI revenue.
This will starve StateEarn of ROI revenue, eventually leading to a collapse.
The math behind MLM Ponzi schemes guarantees that when they collapse, the majority of participants lose money.