ClubShop gives no info on its web site about who owns or runs the corporate.
On its web site, ClubShop claims it was ‘fashioned and integrated in Englewood, Florida, USA in June of 1997.’
This conflicts with info offered within the footer of ClubShop’s web site;
Copyright © 2018-2021 – Clubshop Rewards Program by Proprofit Worldwide Ltd.
Proprofit Worldwide Ltd. – 98 Chingford Mount Street – E4 9AA – London, UK | Firm Quantity: 8525700
By way of the WayBack Machine archive I discovered that previous to ClubShop, the corporate glided by Low cost Residence Buyers Membership.
This dates again to the late 90s. An tackle in Englewood is offered, nonetheless with out firm possession info it’s unimaginable to determine whether or not ClubShop immediately is owned by the identical particular person(s) because the older iterations.
ClubShop’s web site area (“clubshop.com”) was first registered in June 1997. The area registration was final up to date on June nineteenth, 2020.
Proprofit Worldwide is listed because the proprietor, by way of an tackle in London, UK. This syncs with the UK incorporation particulars referenced above.
UK incorporation is dust low cost and successfully unregulated. It’s a favored jurisdiction for scammers seeking to incorporate dodgy corporations.
For the aim of performing MLM due-diligence, UK incorporation is meaningless.
A seek for ClubShop’s CEO returned an historical 2006 press-release naming Dick Burke.
This led me to Richard Burke (proper), who cites himself as ClubShop’s President on LinkedIn.
As per Burke’s LinkedIn profile he’s primarily based out of Englewood, Florda.
Whereas researching ClubShop I got here throughout a web page on their web site titled “Meet the CEO”:
As above the CEO wasn’t named. He does nonetheless characteristic in different ClubShop weblog posts and is called Fabrizio Perotti.
On LinkedIn Perotti (proper) cites himself as a Director of Proprofit Worldwide.
That led to Low cost Residence Shopper’s Membership’s Wikipedia entry, which states;
In 2018 the Clubshop model was acquired by Proprofit Worldwide Ltd.
Proprofit is a advertising and marketing firm based in 2013 by Fabrizio Perotti and Giuseppe Francavilla, the Clubshop Govt Administrators who efficiently developed the DHS-Membership and Clubshop manufacturers in Italy from 2001 to 2012.
Prior to buying ClubShop Perotti was selling Ad2Prosper, an adcredit pyramid scheme.
A February 2019 ClubShop weblog put up mentions a ‘new Clubshop platform just a few days in the past’. That is presumed to be the present ClubShop MLM alternative iteration.
To summarize; ClubShop is run by former associates Fabrizio Perotti and Giuseppe Francavilla (proper).
Perotti is from Italy however now resides in Portugal. Francavilla nonetheless resides in Italy.
ProProfit Worldwide is a UK shell firm and, except I’m lacking one thing, ClubShop at the moment has no ties to the US.
Learn on for a full evaluation of ClubShop’s MLM alternative.
ClubShop’s Merchandise
ClubShop has no retailable services or products, with associates solely capable of market ClubShop affiliate membership itself.
ClubShop runs an ecommerce platform, which for non-affiliates is free to enroll.
ClubShop’s ecommerce platform gives entry to reductions and cashback.
ClubShop’s Compensation Plan
ClubShop refers to its MLM alternative as GPS; International Accomplice System.
GPS contains all you might want to run your personal enterprise and make your entrepreneurial life simpler whilst you work to attain your objectives.
There are seven GPS affiliate membership tiers:
- Primary – $14.90 a month
- Primary Plus – $29.90 a month
- Professional – $49.90 a month
- Professional Plus – $89.90 a month
- Premier – $129.90 a month
- Premier Prosperman – not disclosed
MLM Fee Qualification
ClubShop associates have two choices to qualify for MLM commissions:
- recruit and refer associates/members who buy merchandise by way of ClubShop’s ecommerce platform
- pay ongoing affiliate membership charges
ClubShop’s official compensation documentation states technique two is ‘the simplest, quickest, and most safe method to get and hold certified’.
Recruitment Commissions
ClubShop associates earn a 50% fee on the primary month-to-month price paid by personally recruited associates.
This 50% fee can be paid out when a personally recruited affiliate upgrades their membership tier.
Residual Recruitment Commissions
ClubShop pays residual recruitment commissions through a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the high of a unilevel group, with each personally recruited affiliate positioned instantly underneath them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel group.
If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.
ClubShop caps recruitment commissions at six unilevel group ranges:
- stage 1 (personally recruited associates) – 2%
- stage 2 – 3%
- stage 3 – 4%
- stage 4 – 7%
- stage 5 – 14%
- stage 6 – 20%
Observe that residual recruitment commissions are paid on affiliate membership charges paid after the primary month.
Assured Month-to-month Returns
ClubShop pays qualifying associates a set month-to-month return.
The quantity paid every month is set by which of fifteen affiliate ranks is certified for:
- Walton (earn between $40 and $79.99 a month and have Primary Plus or increased membership) = $10.10 a month
- Brin (earn between $80 and $149.99 a month and have Primary Plus or increased membership) = $50.10 a month
- Web page (earn between $150 to $249.99 a month and have Professional or increased membership) = $100.10 a month
- Bloomberg (earn between $250 and $499.99 a month and have Professional or increased membership) = $200.10 a month
- Ellison (earn between $500 and $749.99 a month and have Professional Plus or increased membership) = $410.10 a month
- Koch (earn between $750 and $999.99 a month and have Professional Plus or increased membership) = $660.10 a month
- C. Koch (earn between $1000 and $1499.99 a month and have Professional Plus or increased membership = $910.10 a month
- Slim (earn between $1500 and $1999.99 a month and have Premier or increased membership) = $1370.10 a month
- Ortega (earn between $2000 and $2499.99 a month and have Premier or increased membership) = $1870.10 a month
- Zuckerberg (earn between $2500 and $2999.99 a month and have Premier or increased membership = $2370.10 a month
- Arnault (earn between $3000 and $3999.99 a month and have Premier Plus or increased membership) = $2750.10 a month
- Buffett (earn between $4000 and $4999.99 a month and have Premier Plus or increased membership) = $3750.10 a month
- Gates (earn between $5000 and $5999.99 a month and have Premier Plus or increased membership) = $4750.10 a month
- Bezos (earn between $6000 and $9999.99 a month and have Premier Plus or increased membership) = $5750.10 a month
- Prosperman (earn $10,000 or extra a month and have Premier Prosperman membership) = $9750.10 a month
Ecommerce Commissions
ClubShop pays commissions on
Clubshop Mall buy made (on-line and offline) by Buyers, Associates, Trial Companions, and Companions who’re positioned anyplace in your whole 6-generation business community.
The identical unilevel group with the identical percentages paid out as recruitment commissions is offered.
Presumably this implies ClubShop pays a proportion of affiliate commissions it makes when ecommerce platform customers store at partnered retailers.
Becoming a member of ClubShop
ClubShop affiliate membership ranges from $14.90 to $249.90 a month.
The extra a brand new ClubShop affiliate spends once they join, the upper their preliminary revenue potential.
Conclusion
I need to preface this conclusion by stating it is a evaluation of ClubShop as it’s immediately. I’m doing this as a result of ClubShop’s advertising and marketing depends closely on what it was years in the past.
Again within the day ClubShop noticed nearly all of its tens of millions of members throughout the US, Italy (the place the present homeowners are from), France, the Netherlands and Belgium.
In the present day, as per Alexa, ClubShop’s high drivers of web site site visitors are Russia (11%), Venezuela (9%) and Mexico (6%).
Russia and Venezeula are hotbeds for scams, with Venezeula particularly establishing itself as a sucker for MLM Ponzi schemes over the previous few years.
Russia is what it’s and all the time has been. When an MLM firm is in style in Russia ninety-nine instances out of 100 it’s due to a fraudulent enterprise mannequin.
ClubShop combines a pyramid recruitment mannequin with what I believe is a much less talked about two-tier Ponzi backend. The ecommerce platform is smoke and mirrors.
Let’s begin with the plain; charging associates charges and paying commissions from these charges in MLM constitutes pyramid recruitment.
That is very true when the one factor ClubShop itself sells by way of its compensation plan is affiliate membership.
Shifting on we have now the assured month-to-month returns.
Your final purpose is to attain the “Prosperman” Earnings title to benefit from the corresponding minimal month-to-month revenue of $10,000 per 30 days.
Ecommerce affiliate margins are slim sufficient as it’s. There isn’t any means recognized ClubShop is paying assured month-to-month returns from no matter they obtain by way of their ecommerce platform.
The one different income getting into ClubShop is affiliate membership charges.
Recycling mentioned charges ties into nearly all of commissions earned by way of recruitment, making a closed-loop circulate of cash. Or in different phrases, a Ponzi scheme.
That’s the primary tier. The second tier of ClubShop’s Ponzi scheme is TangiCoin. And right here’s the place issues get actually murky.
Along with rising your revenue, shopping for increased priced ClubShop affiliate membership tiers gives you with extra TangiCoin.
TangiCoin is tied to TangiWorld, which was first promoted as a part of Ad2Prosper.
This strongly suggests Perotti wasn’t simply selling Ad2Prosper, he owned it.
Ad2Prosper was a five-level deep pyramid scheme. ClubShop is identical fraudulent recruitment mannequin, expanded by one stage to 6.
TangiCoin seems to have initially been promoted on “tangicoin.org”. In the present day that area hosts a inventory WordPress set up.
The domains safety certificates can be misconfigured. It factors to Ads2Prosper’s web site area:
I’m undecided what number of TangiCoins are on the market, however there’s this ERC-20 shit token created 942 days in the past. That’s June 2018, the identical yr Perotti bought ClubShop.
Given the 425 TAG complete provide, maybe this was a prototype (ERC-20 tokens take 2 minutes to arrange).
ClubShop are awfully cagey about how TangiCoin matches into their compensation plan. Apart from how a lot you get whenever you join, there isn’t any point out of TangiCoin anyplace.
TangiWorld is featured, on one damaged webpage;
I believe ClubShop units an inner TangiCoin worth, letting associates withdraw their cash by way of an undisclosed inner trade.
That is your typical MLM crypto Ponzi factors mannequin and could be the second-tier of ClubShop’s Ponzi part.
Actually not one of the third-party retailers on ClubShop’s ecommerce supplier gained’t settle for TangiCoin. So aside from speculative manipulated funding, TangiCoin serves no function.
Even if you happen to low cost the TangiCoin funding scheme, the assured month-to-month returns ClubShop presents constitutes a securities providing.
Neither ClubShop, Fabrizio Perotti or Giuseppe Francavilla are registered to supply securities in any jurisdiction.
This alone means ClubShop is working illegally. Throw in pyramid recruitment and the enterprise mannequin goes from unhealthy to worse.
Each Accomplice’s purpose is to steadily reinvest part of their month-to-month earnings to improve to a better GPS kind, together with extra advantages and extra promoting shares to spice up the revenue development charge.
As with all MLM Ponzi and pyramid schemes, as soon as affiliate recruitment dries up so too will returns and commissions.
GPS is underneath a strict NO-REFUND coverage, and no refund is feasible underneath any circumstances.
It will immediate a collapse, ensuing within the majority of associates dropping cash.
One very last thing I need to contact on is ClubShop’s promoting coop. I’m a bit gray on the small print however along with getting coop shares whenever you join, associates can even purchase the shares instantly.
Supposedly one thing one thing promoting coop shares translate into recruited associates offered by ClubShop.
For those who want extra members on your group to spice up your development, you should buy extra promoting shares at any time by way of our Coop Promoting Program.
Sounds bullshit as a result of it most likely is. And word the emphasis on recruited associates. The Promoting Coop solely targets the enterprise alternative.
For these of you continue to maybe sitting on the fence relating to the legitimacy of ClubShop’s ecommerce platform mannequin, ask your self this:
If ClubShop’s ecommerce platform was really viable, why is the platform useless in nations it was as soon as in style in?
On-line buying is as huge as ever, so the issue clearly lies with ClubShop.
Specifically that ecommerce within the present enterprise mannequin is only a cowl. Whether or not the platform is marketed or not is neither right here nor there.