Yers Review: Cashback app opp that’s too confusing to bother with
Yers doesn’t provide any information about who owns or runs the company on its website.
The Yers website domain (“yers.app”) was registered on May 23rd, 2018. “Y4YERS” is the registered owner through an address in France.
This corresponds with Alexa traffic rankings, which estimates 64% of traffic to the Yers website originates out of France. Switzerland is the only other notable source of traffic (23%).
Despite seeming to be owned and operated from France, Y4YERS appears to be a shell company incorporated in Luxembourg.
Yers’ general terms and conditions establishes
contractual relations between the simplified joint stock company Y4YERS SAS, having its registered office at 5, Boulevard Royal, L-2449 Luxembourg, registered with the RCS Luxembourg under the number B213932.
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.
Yers markets a free app which provides access to a discount and cashback platform, as well as a concierge booking service.
Further specifics are not provided on Yers’ website.
The Yers Compensation Plan
Yers affiliates pay either a €25 or €60 EUR a month fee.
In order to qualify for MLM commissions, each Yers affiliate must spend at least €50 EUR a month through the Yers app.
Yers pays a commission on cashback generated by personally referred free app users.
The formula used to calculate cashback commissions however makes little sense.
The commission calculation formula of Yers Sponsor on Perimeter A is as follows:
Commission on sale of Bundle or Cashback (€ HT) * of Perimeter A = Basic Matrix Income (€ HT) x TCN (%)
An example provided on the Yers website equates a €1666 EUR spend by referred free app users to a commission of €41.66.
From this we can extrapolate a rough cashback commission rate of 2.5%.
Yers pays recruitment commissions via a 4×5 matrix.
A 4×5 matrix places an affiliate at the top of a matrix, with four positions directly under them:
These four positions form the first level of the matrix. The second level of the matrix is generated by splitting these first four positions into another four positions each (16 positions).
Levels three to five of the matrix are generated in the same manner, with each new level housing four times as many positions as the previous level.
Positions in the 4×5 matrix are filled via direct and indirect recruitment of new Yers affiliates.
Commissions are based on how many positions in the matrix are filled as follows:
- level 1 (4 positions to fill) – €1.5 EUR per position filled
- level 2 (16 positions to fill) – €2.875 EUR per position filled
- level 3 (64 positions to fill) – €3.48 EUR per position filled
- level 4 (256 positions to fill) – €4.75 EUR per position filled
- level 5 (1024 positions to fill) – €5.39 EUR per position filled
Note that commissions are paid out for as long as affiliates recruited into the matrix continue to pay their monthly fees.
Other Bonuses (???)
The Yers website details a number of other bonuses and commissions paid out via the 4×5 matrix.
For the most part these revolve around signing up affiliates and having them continue to pay monthly fees.
I haven’t detailed the bonuses here because to be frank, they make little to no sense.
Here’s an example of the “Organizational Power” bonus;
The Organization Power is unique to each Yers Sponsor. It serves to enhance the level of development of the downline organization affiliated with it.
It is calculated from the filling rate of the total volume of 1364 places forming the Organization down line of Yers Sponsor.
It is likely to evolve permanently, upwards or downwards.
Yers Sponsors affiliated down line switching to a Freemium Bundle offer are not counted in the Organization Power.
Only Preferred Yers are counted individually for a unit value of 1 each regardless of the selected paid Bundle offer.
Non contractual example for illustrative purposes only
A Yers subscribing to a pay-as-you-go formula has developed a downline Business Organization with 522 affiliated Yers.
That is a total of 522 affiliated Yers out of a total number of possible places likely to form its optimal Downline Business Organization of 1364 Yers.
Clear as mud? Yeah, me too.
It’s some sort of auto-filled matrix but what it paid out and on what is unclear.
Anyway, in the interests of transparency you can go over Yers’ confusing bonuses yourself on their website (the bonuses begin about halfway down the page).
Yers affiliate membership is either €25 or €60 EUR a month.
As far as I can tell the only difference between the two memberships is access to a “Y conference” with the €60 EUR a month option.
There might be some compensation restrictions with the €25 a month membership, but I can’t say for sure owing to Yers’ hopeless compensation documentation.
I suspect Yers confusing compensation plan is due to the razor-thin cashback margins they’re working with.
Obviously the Yers app is attached to a cashback network, with Yers sharing a percentage of cashback commission received with affiliates.
That’s on top of the monthly affiliate fee, which seems excessive considering they’re basically getting the same access as free app users.
With respect to the cashback side of the business, it appears legit (cashback commissions are shared out) but restricted due to low margins.
Traditionally cashback MLMs haven’t fared well because expectations from affiliates don’t meet reality. You need a ton of app users to make even a little money and for most affiliates that’s not possible.
This is reflected in the calculated effective 2.5% cashback commission rate.
The recruitment side of the business (including any bonuses tied to monthly affiliate fees) is pyramid scheme territory.
I sign up as a Yers affiliate, pay a monthly fee plus mandatory €50 app spend, and get paid on recruitment of others who do the same.
It’s highly likely that this is how the majority of Yers’ company-wide revenue is generated, irrespective of how many free app users they have versus paid affiliates.
After all, when something is free it’s easy to get installs. App installs however do not equate to generated revenue, with only Yers affiliates incentivized to actually use the app.
Taking a step back and even giving Yers some benefit of the doubt over potential language-barrier issues, here’s what I’d recommend;
Print out this page from the Yers website and ask the Yers affiliate you’ve been approached by to explain the compensation plan in detail.
If they can’t explain everything on that page to your satisfaction, such that you have no followup questions and completely understand how every bonus is generated and what it’s paid out on, there’s a good chance something wonky is going on.
If on the other hand they can, please provide us the same explanation in the comments below!
At a bare minimum, Yers needs to scrap their current compensation plan material and start again.
Fair enough if it’s complicated, but if the presentation is such that someone whose been breaking down MLM comp plans for nearly ten years can’t make heads or tails of it, something’s up.
Providing Yers corporate management and/or ownership information on the website is also a must.
Pending these changes to the Yers MLM opportunity, honestly I wouldn’t bother.
Seems it’ll be too much of a headache trying to explain the business to people beyond the initial cashback layer, which long-term is not enough to build a sustainable MLM business around.