Crowd1 review: What is Crowd1? Is Crowd1 Company a scam?
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Crowd1 is a new business model that has emerged in recent years. And now it is attracting the attention of many “investors” around the world. This article will learn about Crowd1’s company and business model.
What is Crowd1?
Crowd1 is an affiliate marketing business organization (multi-level marketing or MLM) with 80% of revenue sources to share and reward community development members. Crowd1 confirmed that this project is not a model of capital mobilization, investment trust … so it does not have to pay interest to investors. When joining Crowd1, users who buy investment packages will receive dividends from 2 Crowd1 subsidiaries, Affilgo and Miggster.
How much money is needed to join Crowd1?
To get started, you need referrals from other members, just like any multi-level marketing website. You choose to buy an optional course at the price of 99 – 3999€. Why is an online course so expensive? The representative of Crowd1 replied, “The more expensive the course, the more valuable the knowledge received”.
Do you know what kind of knowledge you will get when you own the 2499€ Titan package? (equivalent to $2952 at time of writing). Some slides and videos – About 2 hours in duration. Quite a trick!
Worse, according to Investiki.com, the Titan package revolves around content copied from the real estate investment book “How to be a Real Estate Investor.” This book is available in PDF and can be downloaded for free! If you are interested, you can read the book HERE.
Investment packages and project commissions
Currently, Crowd1 offers 5 packages (White, Black, Golden, Titan, Titan pro) for members to participate in community development and own Crowd1 Rewards (C1) “shares.” One thing to understand is that Crowd1 is not an investment project that pays daily or weekly interest. Still, you will participate in buying a package or community development agency to receive rewards. Depending on the investment package or the number of recruitment downlines, you will be paid a corresponding dividend.
In summary, there are 2 sources of income from Crowd1 that are: Community Development & Dividends. So someone will ask: Can I not develop the community? Answer: Okay. You still receive dividends from the revenue Crowd1 shares.
Users can Deposit (Deposit) to activate by Crypto portals (BTC, ETH), Gift code, Bank, etc.
Most MLM models create desirable commission policies to deceive investors. Investiki.com doesn’t want to go into the details, but you can read the original HERE if you’re interested in the detailed payout policy.
In general, Crowd1 pays up to 5 types of commissions for market developers. Crowd1’s main compensation policy is branch commission. To be eligible to receive branch commissions, you need to invite at least 1 person on the left branch and 1 person on the right branch to join.
- Affiliate commission is received according to the rule: 80% EUR, 20% A&M shares.
- When the strong branch has weighed a part of the weak branch, the rest of the strong branch will continue to be weighed until the full 6 months. After the 6 month period, they will recalculate the sales at the starting point.
- Affiliate sales commission is calculated at the ratio 1:1, 1:2, and 1:3.
In addition, Crowd1 has 4 more types of commissions for market developers:
- Quick Start Bonus
- Matching Bonus
- Streamline Bonus
- Gambling Bonus
Although brokers are full of praise about Crowd1, it is still essentially a Ponzi scheme, taking money from the latter to pay the former. Therefore, the risk of losing assets is considerable. Here are 7 suspicious things in this project.
1. The legality of the Crowd1 project
Crowd1 is currently headquartered in Spain, but the business license states that the business address is in Cyprus.
2. Project feasibility
Crowd1 claims to pay up to 80% of revenue for members actively developing the system, only 20% for other expenses. If you are a business person, you will understand that a typical business will spend 50% of its revenue on marketing communications, 30% on depreciation, human resources (HR), office, operations, and research expenses—product development (R&D) excluding costs incurred. Profit only accounts for 20% of revenue. This proves that Crowd1 has no actual business but only focuses on expanding the network as large as possible to attract money from new members. Then take the new person’s money into the system to pay the next person.
3. No specific product or service
On the website, Crowd1 uses many terms “beautiful” but does not clearly describe the products or services they provide. The product Crowd1 provides just a voucher package for books and video lectures called “The Crowd Movement” with sky-high prices. The fact is that Crowd1 requires members after entering the system to recruit the next “victim.
4. Relationship between subsidiaries
According to information from the leaders of Crowd1, when participants pay money to buy Crowd1’s investment package, they will receive shares of 2 subsidiaries of this business, Affilgo, and Miggster. Any stock marketer will see the absurdity of this investment..”
5. The Stock price
Investors have no basis for valuing this project’s stock. In fact, the founder can sell Crowd1 shares indefinitely at a price and valuation on paper that no authority can control. Crowd1 also regularly organizes “discounts” and “gifts” of shares. This is extremely illogical from an investment perspective since the price of a company’s stock should always depend on its valuation and the number of shares outstanding.
6. Project commission
The commission policy is something worth noting. There is no specific product or service, so all information about Crowd1 revolves around investment packages. Initial participants can only earn additional income through inviting new “investors” to join, with a commission structure that pays up to 5 levels. This is a multi-level pyramid model, taking money from the latter to pay the former.
7. Warnings from regulators
Currently, this company project has begun to be noticed by the authorities. The list of countries that warn of this multi-level variation pattern is getting longer and longer:
- Czech Republic
- Ivory Coast
- South Africa
- New Zealand
Is the Crowd1 model a scam?
Crowd1 is a large-scale multi-level project in the world. You buy an investment package and then refer someone else to buy it, and Crowd1 will share 80% of that person’s investment amount with you. In essence, Crowd1 offers no valuable products or services. This is the model of taking money from the latter to pay the former.
Investiki.com advises investors to stay away from this project! It’s only a matter of time before this transcontinental scam model breaks down.
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