Is Crowd1 A Scam? [Ponzi In Disguise or Legit MLM?]
Welcome to my Crowd1 review. Are you looking to earn a residual income? How would you like to have your very own passive income business? It sounds exciting, doesn't it? Crowd1 is marketed as a company that can help you to become an entrepreneur. Is Crowd1 a Scam or is it a legit way to making money?
Some folks are going as far as calling it a Ponzi. Is Crowd1 a Ponzi scheme?
Let me show you exactly what is going on here so that you can make an informed decision on whether or not to join this company.
And if you would like to learn how I earn a passive income online, then check out the training platform that helped me and can help you too.
Just click on the link that follows.
WHAT IS CROWD1 ALL ABOUT?
According to the official Crowd1 website, the company has headquarters based in the Jumeirah Lake Towers in Dubai.
What is Crowd1 all about? From my experience of having browsed through the site, I found them complicating things a bit too much.
I honestly feel that they could have described things in a much simpler manner. A way that a layman could understand what is going on.
Having said that, allow me to summarize what Crowd1 is. It is a network marketing company that sells other companies' digital products.
And when you eventually get people to join you, you get paid via a network marketing-based compensation plan.
As a Crowd1 affiliate, you have access to some tools to promote products(from which you will be earning commissions).
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WHO IS THE FOUNDER OF CROWD1?
Whilst they have a presence on all the major social media networks, it was still a challenge to find out who the real owner or founder of the company is.
Apparently, the founder of Crowd1 is Jonas Werner. He founded Crowd1 back in 2019. I learned that he has over 20 years of experience in the network sales field.
Not much else is available on his profile.
Interestingly though another individual by the name of Johan Staël von Holstein, is also to be heavily involved in Crowd1. Apparently, he is the CEO of CROWD.1's parent company called ICT.
He was involved in various Crowd1. seminar talks around the world and has offered limited insight as to why members are not receiving their commissions. I will talk about this in the closing parts of my review.
Let's take a look and see how one can join the company.
HOW TO JOIN CROWD1?
You can only join Crowd1 via invitation only. My sponsor's id was "eazycash."
Initially, all that you need to sign-up is a sponsor's id and a legit e-mail address.
However, later on, when it comes to cashing out any commissions or bonuses that you might have earned, you would still need to verify that you are a legitimate user.
And for this, they have a 'KYC' or 'know-your-customer' facility to prevent any financial fraud.
In addition registration to Crowd1 is NOT OPEN to all countries. You can check out more in their terms and conditions.
THE VARIOUS CROWD1 PRODUCTS- WHAT EXACTLY ARE YOU BUYING?
Their flagship products are educational packages. You can purchase them from their 'sister' website called mygrithub.com
They have various packs starting off from the White package all the way up to Titanium pro.
Here is a breakdown of these packages :
- WHITE : 99 Euros
- BLACK : 299 Euros
- GOLD : 799 Euros
- TITANTIUM : 2,499 Euros
- TITANTIUM PRO : 3,999 Euros
What are the Crowd1 educational packages all about? One of the best ways to build yourself a passive income is by investing in real estate.
Of course, the hurdle that is often associated with this sort of investment is that it might not be affordable for everyone.
And that's where mygrithub.com comes into the picture. Apparently, it provides an opportunity for Crowd1 members to "direct access to invest in commercial Real-Estate as institutions and pensions have had for many decades."
Unfortunately, they do not offer further insight into these courses prior to purchase.
Then as a Crowd1 member, you also get access to their exclusive travel booking website called LifeTRNDS.
WHAT IS THE CROWD1 MIGGSTER ALL ABOUT?
Miggster is a mobile gaming initiative created by Crowd1. Keeping on with trends of crowd marketing, with Miggster, you can invite friends to join and play from a range of video games.
You stand a chance of winning prizes too, by competing in Miggster tournaments.
At the time of writing this review, there was a single subscription fee of 5.75 Euros.
In addition to becoming part of the gaming industry, as a Crowd1 Member, you also have the opportunity to join global online gambling networks as well.
How does one actually make money with Crowd1?
Let me show you.
HOW TO MAKE MONEY WITH CROWD1 - THE CROWD1 COMPENSATION PLAN
How does Crowd1 work?
As is common with most networking marketing companies, the compensation plans can be rather complicated or confusing to understand.
Crowd1's comp. plan is no exception.
But I am going to try to make it simple to understand. At the end of this section, there is also a video that puts things into perspective.
There are basically six ways in which you can earn money with Crowd1.
It's all based on the educational packages that I talked about earlier on. In fact, each package has a set number of points. You as an affiliate will be rewarded these points, should you get others to buy packages and join under you.
The six ways in which you can earn with Crowd1 are as follows :
- Start Bonus
- Binary Bonus
- Matching Bonus
- Streamline Bonus
- Residual Income 1
- Residual Income 2
The Start Bonus is earned if you invite 4 members to the company. The bonus is worked out on the lowest package that these 4 members have purchased.
So, if your four members are made up of 2 titanium, 1 gold, and 1 black, you would be awarded points based on the black package.
Then they have a binary bonus where you can earn :
- 10% when a new member joins, or
- when an existing member upgrades to a higher level.
Since they work on a binary tree, to qualify for this sort of bonus, you would need to have one member on your 'right leg' and one member on your 'left leg.'
The matching bonus can be earned 5 levels down.
In order to earn this bonus, you have to personally invite 4 members on each level.
Then there are 20 levels on the streamline bonus. This bonus is paid in Crowd1 rewards. This bonus is worked out on the number of members who joins after you in the entire company.
In the figure above, you can earn 2.50 Euros passively per week if the company grows to 250 members after you joined.
If you were on the Titanium level, and the company grew to 4 million members, you can earn 1.500 Euros passively per week.
The fifth and sixth ways to earn are Residual Income 1 and Residual Income 2 respectively.
50% of Crowd1's income is distributed across 21 pools. If you achieve a specific title within a pool, then you can earn a share of companies profit.
Residual income 2 comes from the revenue generated from the various gaming platforms.
That in a nutshell summarizes how you can make money with Crowd1.
Sounds like recruiting is the name of the game?
Here is a video that outlines the Crowd1 MLM compensation plan.
CROWD1 SCAM- CROWD1 COMPLAINTS OR COMPLIMENTS
Is the Crowd1 business well received around the world?
Why was Crowd1 banned in Namibia?
According to a spokesperson for the Bank Of Namibia, "Crowd1 does not sell tangible products or render any service of essential value, but the primary source of income for Crowd1 is the sale of membership packages to new members,"
The above is an excerpt taken from an article on Business Insider.
He believed that the organization's business model is not sustainable and feels that it will result in members of the public, especially those at the bottom losing their money.
Is Crowd1 a pyramid scheme?
My verdict is coming soon. But let's take a look at another case where folks are unhappy with Crowd1's business practices, especially when it comes to paying out their members.
Crowd1's parent company was subsequently registered in Spain. Johan Staël von Holstein was the CEO.
When news of Namibia banned was official, his response was,
Crowd1 exists in 170 countries and all countries have different laws and regulations. We have not been able to apply for a permit and familiarize ourselves with all the different local regulations. We are a startup that has grown very fast”, the CEO writes, among other things.
Then when several Swedish members have had trouble getting their commissions he claimed that he had very little involvement in the company.
I have nothing or very little to do with Crowd1 and have no real insight into details like this”
In a series of follow-up conversations, Johan stated that the non-payments were due to their banking partners processing payments outside of the SEPA area.
Yet, Sweden was part of the SEPA area, and should not have been affected.
And then when questioned again this was his reply :
I misunderstood your question which I thought was general. As for Sweden, they are now lagging behind with the payments due to half the company being sick in covid-19 for over a month, but they are catching up.”
But according to this article in Trijo news, the payment problem existed before the virus outbreak.
Other countries such as Norway, Burundi, and Paraquay have also made Crowd1 a red alert.
And the biggest crowd that Crowd1 attracted attention to was South Africa. I will show you shortly what members of South Africa have had to say shortly.
WHAT I LIKE ABOUT CROWD1
They have a 14-day cooling-off, 100% money-back, and satisfaction guarantee on gift certificates.
They have a KYC-policy to protect against fraudsters.
WHAT I DO NOT LIKE ABOUT CROWD1
Hard to find info on the owners or founders of the company.
No income disclosure.
You have to recruit to earn higher commissions.
The product packages are expensive.
They are not registered with the DSA(or Direct Selling Association).
IS CROWD1 A SCAM? MY PERSONAL OPINION
One of the first messages that one learns upon visiting the official Crowd1 website is that "it's easy to make money."
And their FaceBook page is filled with folks flashing cash, or
making crazy money claims like this:
and I think that this sort of marketing is misleading. In fact, many folks(within South Africa) got hit really hard and are requesting for their monies to be refunded.
Is Crowd1 a Ponzi scheme?
First, let's define what a Ponzi scheme actually is. According to Wikipedia, a Ponzi scheme
"is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds"
As I was doing my research for this review, I tried to find evidence of members talking about actually using the educational packages.
In other words, are people even using these packages, or is the focus just recruiting others to join the company and making the bonuses?
If the focus is on just recruiting, then Crowd1 can be classified as a Ponzi scheme.
Some members have pointed out that it's just all about recruiting.
As you have seen certain countries even banned Crowd1's operations. And members on third-party sites like Trustpilot shared their unhappiness too.
But what about the craze and boom that are taking place in other countries or their successful launches? Surely, that means that the company is doing well, right?
Are they? There is no income disclosure to show you what the average earnings of existing members are?
If the company is a true MLM business then why is not recognized by reputable and trusted organizations such as DSA?
As for the success stories that you may hear? Are they of members who recently joined or existing members who have been with the company for a while?
Remember classic Ponzi feeds (or pays) the older members from monies that come from the new members. What happens when members stop joining?
It's not a nice feeling to be left out all alone and watching your hard-earned cash get taken away, is it?
Does Crowd1 sound like a Ponzi to you?
I would love to hear from you.
YOU CAN MAKE REAL MONEY ONLINE WITHOUT RECRUITING
Having said that, there are legit ways to make money online.And you can do it without having to recruit a single person.
I earn a passive income using the affiliate marketing business model.
You can start affiliate marketing without needing any previous experience. I joined a teaching platform that showed me how to do it.
True affiliate marketing allows you the freedom to choose your niche or topic. It can be your hobby or passion.
Here are additional benefits that this business model can offer you.
Benefits of Affiliate Marketing :
- You DO NOT need any experience to get started
- You can WORK FROM ANYWHERE in the world
- You DO NOT have to speak to anyone
- You DO NOT have to have your own product
- You DO NOT have to do any recruiting or cold calling
I think the most important benefit, is that it allows you the opportunity to build a passive income business. In other words, you can and will get to the point of not having to trade your precious time for money.
By this I mean have your business eventually work for you.
Since you have come this far, I would like to extend an invitation to help you to build your own affiliate marketing business.
Thanks for joining me on this Crowd1 review.
I hope that it has helped you out.
If you have any questions or comments, please leave them below.
I wish you everything of the best.
Regards and Take Care