Earlier this month a reader reached out with particulars of a enterprise alternative run by Bob Schafer.
Replace sixth April 2022 – A reader within the feedback has let me know Schafer additionally goes by “Bob Shaffer”.
Bob and Jan Shaffer (his spouse) run their rip-off out of their modest residence in upstate New York.
/finish replace
A pitch of the scheme, which doesn’t have a reputation, was uploaded to YouTube on March 2019.
In my very own analysis I found marketed for Schafer’s scheme relationship again to 2018.
In an effort to keep away from regulators and fly beneath the radar, Schafer’s scheme goes by many names.
Listed below are a number of the names I discovered used over time:
- Leveraged Breakthrough System
- 15K Cash
- 10K Wealth Code
- 7K Cash
- Prosper With Bob
- 3D Wealth Machine
- Excessive-Revenue Cashflow
- Warrior to Wealth
- The Massive Revenue System
- Confirmed Passive Enterprise
- New 12 months Abundance
- Quick Begin Aspect Hustle
There are little question others.
The explanation for therefore many names is Schafer himself rotates them out periodically. Recruits additionally provide you with names to market the scheme beneath.
Key individuals in Schafer’s scheme are:
- Bob Schafer, aka Coach Bob
- Oscar Christian Kinney, aka Coach Christian
- Marc Wilson, aka “The Military Dude”
Members in Bob Schafer’s pyramid scheme purchase in at one in every of 4 ranges:
- Gold – $3000 + $247 admin payment
- Platinum – $7000 + $447 admin payment
- Diamond – $14,000 + $647 admin payment
- Extremely Royal – $21,000 + $847 admin payment
Bundled with every buy-in is entry to a digital product library.
Commissions paid out on every buy-in tier are as follows:
- recruit a Gold tier affiliate and receives a commission $1500
- recruit a Platinum tier affiliate and receives a commission $3500
- recruit a Diamond tier affiliate and receives a commission $7000
- recruit an Extremely Royal tier affiliate and receives a commission $10,500
The catch is you may solely earn as much as the tier you your self purchased in at.
E.g. You purchase in at Platinum and recruit an Extremely Royal affiliate.
Your most Platinum tier fee is $3500, which you receives a commission. The remaining $7000 is paid upline.
The system searches for both a Diamond or Extremely Royal tier affiliate to pay the remaining $7000 to.
If a Diamond is discovered first, they’re paid $3500 ($7000 minus the $3500 paid to you), leaving $3500 to be paid to first upline Extremely Royal.
If an Extremely Royal is discovered, they’re paid the complete excellent $7000.
Nothing is ever handed up when an Extremely Royal tier affiliate is paid.
This pass-up part of Bob Schafer’s unnamed pyramid scheme is what makes it an MLM alternative.
I’ve seen promotions the place new recruits are “upgraded” one tier above what they purchase in at.
I’ve additionally seen Extremely Royal tier new recruits supplied a 25% larger fee than the 50% customary charge.
I.e. as a substitute of incomes $3500 on a Platinum tier recruit you’d earn $5250.
Primarily based on advertising movies, individuals in Schafer’s scheme mail buy-in funds to one another.
The underside line is Bob Schafer’s enterprise alternative is a pyramid scheme.
Nothing is offered or marketed to retail clients. You’re paying a buy-in payment, which qualifies you to earn on direct and oblique recruitment.
As with all MLM pyramid schemes, as soon as recruitment dries up so too will commissions – each direct and pass-ups.
As soon as sufficient individuals cease selling, that’ll be the tip of it.
Math ensures nearly all of individuals in pyramid schemes lose cash.
Those that make the cash are Bob Schafer and those that acquired in early.
They gather admin charges, a minimal 25% lower of all buy-ins, plus pass-ups to their positions on the high of the pyramid.
This occurs on the expense of everybody else who buys in.