StreamReward Review: Three-tier adcredit Ponzi scheme
StreamReward operates in the advertising MLM niche.
The company provides a corporate address in the UK on its website, however further research reveals this to be shared office space.
None of the executives presented on the StreamReward website have any digital footprints.
Additionally the photos used to represent the executives are poorly cropped and placed on a white background.
They don’t appear to be stock photo quality so I’m going to go with stolen social media profile photos.
The Stream Reward website domain was registered on November 25th, 2018.
Alexa traffic estimates for the domain cite Russia (17.3%), Japan (7.1%) and the US (5.7%) as the top three sources of traffic.
It is highly likely that whoever is actually running StreamReward is based out of one of these three countries.
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.
StreamReward has no retailable products or services, with affiliates only able to market StreamReward affiliate membership itself.
Once signed up, StreamReward affiliates can invest in packages.
Bundled with each package investment are adcredits, which can be used to display advertising on the StreamReward website.
The StreamReward Compensation Plan
StreamReward affiliates invest in $5 to $20 packages, each with an advertised ROI.
StreamReward package returns are paid out via a 2×5 matrix.
A 2×5 matrix places a StreamReward affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting these first two positions into another two positions each (4 positions).
Levels three to five of the matrix are generated in the same manner, with each new level housing twice as many positions as the previous level.
Returns are generated as positions in the matrix are filled.
Positions in the matrix are filled via subsequent position purchases by new and existing StreamReward affiliates.
There are three investment tiers within StreamReward’s compensation plan.
Returns paid across the three tiers are as follows:
- invest $5 and after sixty-two matrix positions are filled receive a $10,615 ROI
- invest $15 and after sixty-two matrix positions are filled receive a $49,270 ROI
- invest $20 and after sixty-two matrix positions are filled receive a “more than $60,000” ROI
StreamReward affiliates are paid a referral commission when personally recruited affiliates invest in packages.
- $5 packages pay a $2.50 referral commission
- $15 packages pay a $5 referral commission
- $20 packages pay a $7.50 referral commission
Note that a StreamReward affiliate is only able to earn referral commissions up to the tier they’ve personally invested in.
E.g. if an affiliate has only invested at the $15 tier, any $20 package investments made by personally recruited affiliates will be passed upline to the first affiliate who has themselves invested into the $20 tier.
StreamReward affiliate membership is free.
In order to participate in the attached MLM opportunity however, a minimum $5 investment is required.
Full participation in the StreamReward MLM opportunity requires a minimum $20 investment.
Here’s how StreamReward markets their MLM opportunity;
5 for financial freedom
Investing $5, you open the opportunity to earn more than $10,000.
To illustrate the improbability of that claim, here’s the raw math behind StreamReward’s three cycler tiers:
- 2123 $5 investments are required for one $10,615 ROI payout
- 3285 $15 investments are required for one $49,270 ROI payout
- at least 3000 $20 investments are required for one $60,000+ ROI payout
Note that these are bare minimums. Once referral commissions and the non-linear manner in which matrices fill are factored in, the actual required investment amounts are much higher.
Beyond that, the use of newly invested funds to pay existing affiliate investor a ROI makes StreamReward a simple adcredit Ponzi scheme.
Owing to the ridiculous amount of new investment required to satisfy a return on just one position, the primary beneficiary of matrix cycler Ponzis are those running them.
This comes down to preloaded admin positions, which are attached to matrices that are the first to fill.
Through these positions the admin(s) of cycler Ponzis receive the majority of invested funds.
A few early adopters receive what’s left, with the majority of investors ultimately losing out.
One additional pitfall of a cycler Ponzi is that unless you’ve withdrawn more than you’ve invested, you have funds attached to uncycled positions.
When the cycler Ponzi inevitably collapses, funds attached to uncycled positions are kept by the admin(s), further increasing the amount they’re able to steal.