A couple of days ago, a friend sent me a private message through Facebook inviting me to join in a muti-level marketing program. I didn’t say yes or no. I told her that I will study it first and give her my answer after several days.
The program’s name is RU Affiliates and claimed to be selling some digital products. I watched the introductory video, checked the whole website including their legal documents, and here’s what I have found.
1. The domain ruaffiliates.biz was registered on April 10, 2017, and set to expire (unless renewed) on the same date next year.
2. The business was registered with the Department of Trade and Industry (DTI) last May 31, with a “national” coverage.
3. Mayor’s permit acquired last June 15, 2017
4. There is no physical product other than digital guides and courses called IHX Factor. I have no idea what IHX means (whether its an acronym or not), but based on the explanation that I got, it contains 11 video-guides, and other informational materials on how to make money online. There is no way to find out what this program all about unless you pay P1,599 (worth of the product called IHX factor)
So far, the above are some of the most basic information I got.
Looking at its product structure and business model, it reminds of of Supreme Wealth Alliance (SWA), an MLM program around late 2010’s that victimized thousands of people. It never had a product except for tons of traditional and redundant marketing materials – the same thing offered by this RU Affiliates.
Any program that let members earn by recruiting people is a scam. Yes, you heard it right.
The Securities and Exchange Commission (SEC) said that a company should have a legit product that people can buy or sell, or use to make profit – not profit from registration fees paid by down-lines.
In the last five years, a lot of bogus companies came and go. Being registered with DTI, or having a business permit is not a guarantee that a business is here for a long time. Without solid products, this RU affiliate is destined to make money for admins, and will eventually gone.
New Business Opportunity (NBO), SWA, Goldxtreme, and a lot more were DTI registered and had business permits. They’re all gone with hundreds of millions of people’s money.
RU Affiliates, based on its business model will have the same fate soon.
The only difference of this RU Affiliates is that, it has a tolerable amount of registration fee, and it has bigger return for affiliates/referrer. In short, the company does not hold the bigger part of the money.
But you have to recruit in order to make money. You have to swindle your friend, neighbor, or relative to make profit, or make a break-even. You need two referrals to make at least P500 profit after you made the P1,599 membership fee.
Their system is some kind of blackmail as well. You have to pay in order to know the product details.
The details of their product is not explained in their website. There is no company history, and important company information.
The key people claims to have been in Internet marketing business for years, but how come these people are still talking about the obsolete autoresponders? Only the clueless ignorant individuals would believe.
Making money is not the reason why you should promote this scam. While making money for your self, other people are losing it, and this is not a legal way of making money.
RU Affiliates is a no-special networking scam that soon be exposed.
RU Affiliates may not be considered as an MLM because it has no leveling system, but this is clearly and illegitimate network marketing business where people need to recruit in order to make money.
Even the company owners keep only P599, and the recruiter keeps P1,000, they can still easily make P59,000 a day if 100 people register, while recruiters keep only P1,000 each. So yeah, if you think you are making more money than the company because you are getting the big chunk, you are wrong.
Only time can tellwhen the Securities and Exchange Commission discover this scam. /Larry Madrona – Internet Marketing Expert Since 2002/
Note: This article is contributed to Pinoyobserver.com by someone who has been in online marketing business for more than a decade. Any question about this article may be sent directly to Larry @ [email protected]