VidesVendo Review: $1 adpack micro Ponzi scheme
There is no information on the VidesVendo website indicating who owns or runs the business.
The VidesVendo website domain (“videsvendo.com”) was registered on the 3rd of February 2016, however the domain registration is set to private.
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.
The VidesVendo Product Line
VidesVendo has no retailable products or services, with affiliates only able to market VidesVendo affiliate membership itself.
Once signed up, VidesVendo affiliates are able to purchase “adpacks” and participate in the VidesVendo income opportunity.
Bundled with each adpack purchase are a series of advertising credits, which can be used to display advertising on the VidesVendo website.
The VidesVendo Compensation Plan
VidesVendo sees affiliates invest in $1 adpacks on the promise of an advertised $2 ROI.
Referral commissions are paid out on funds invested by recruited affiliates 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):
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.
VidesVendo cap payable unilevel levels at nine, with commissions paid out as a percentage of funds invested.
How much of a percentage is paid out is determined by what level of the unilevel team the affiliate investing funds is placed:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 4%
- level 3 – 2%
- levels 4 to 9 – 1%
Additionally, VidesVendo affiliates are prohibited from withdrawing more than $800 a day.
Affiliate membership with VidesVendo is free, with free affiliates able to earn referral commissions.
Full participation in the VidesVendo income opportunity requires a minimum $1 investment in adpacks.
With nothing being marketed or sold to retail customers, VidesVendo’s ROI payouts are obviously sourced from newly invested affiliate funds.
Thus VidesVendo simply recycle newly invested funds to pay off existing investors, making it a Ponzi scheme.
The ad credit side of the business is neither here nor there. If ad credits were indeed being purchased, logic would dictate that unused credits would attract a refund.
Instead, VidesVendo has a “no refunds” refund policy:
What is VidesVendo.com REFUND policy?
NO REFUNDS WILL BE GIVEN
The reason VidesVendo can’t offer refunds, is because the second new funds are invested they are used to pay off existing investors. Again, making VidesVendo a Ponzi scheme.
As with all such schemes, once newly invested funds dries up, VidesVendo will find itself unable to meet it’s ROI obligations.
At that point the scheme collapses, mathematically guaranteeing the majority of investors suffer a loss.