Kindred Hearts supplies no info on its web site about who owns or runs the corporate.
Kindred Hearts web site area (“kindredheartsteam.com”), was first registered in 2009. The personal registration was final up to date on June ninth, 2021.
A go to to Kindred Coronary heart’s web site reveals login/be part of buttons, and a message stating “US RESIDENTS ONLY”.
We all know this wasn’t all the time the case. I learnt of Kindred Hearts after publishing BehindMLM’s Present Of Legacy evaluation.
Lengthy story brief; a bunch of disgruntled South African Kindred Hearts associates launched their very own clone opp, after getting the boot from Kindred Hearts.
Present of Legacy founder Chris Hattingh, claims Kindred Hearts is being run by an nameless eighty-three yr previous girl from the US.
Makes an attempt to establish Kindred Hearts possession are clouded by different companies bearing the identical identify.
I’m discovered an Australian style firm and Kindred Hearts reward store in Michigan.
As all the time, if an MLM firm just isn’t brazenly upfront about who’s working or owns it, assume lengthy and laborious about becoming a member of and/or handing over any cash.
Kindred Hearts’ Merchandise
Kindred Hearts has no retailable services or products.
Associates are solely capable of market Kindred Hearts affiliate membership itself.
Kindred Hearts’ Compensation Plan
Kindred Hearts associates take part in four-tier $100 gifting cycler.
Kindred Hearts tracks gifting funds through a 2×3 matrix.
A 2×3 matrix locations an affiliate on the prime of a matrix, with two positions straight below them.
These two positions kind the primary degree of the matrix:
The second degree of the matrix is generated by splitting these first two positions into one other two positions every (4 place).
Stage three is generated in the identical method and homes eight positions.
A newly recruited Kindred Hearts associates enroll and presents $100 to whoever recruited them.
This locations them on the prime of their very own first-tier $100 2×3 matrix.
Positions within the matrix are stuffed through subsequent $100 gifting funds, made by straight and not directly recruited associates.
Observe that every Kindred Hearts affiliate is required to recruit personally recruit two associates to qualify to obtain gifting funds.
When all eight ranges of the matrix are stuffed, a “cycle” is triggered.
This leads to:
- a $300 payout
- $100 used to generate a brand new first tier $100 gifting place; and
- $400 used to cycle into the second gifting tier.
After this primary cycle, no new second gifting tier place is created. This leads to second and subsequent cycles producing $700 in stored gifting funds.
The opposite three Kindred Hearts gifting tiers function in the identical method:
- $400 second tier cycle – preserve $1800, $400 used to generate new second-tier gifting place and $1000 used to generate third-tier gifting place (second and subsequent cycles you retain $2800 as there’s no fourth-tier gifting place created)
- $1000 third-tier cycle – preserve $5000, $1000 used to generate new third-tier gifting place and $2000 used to generate fourth-tier gifting place (second and subsequent cycles you retain $7000 as there’s no fourth-tier gifting place created)
- $2000 fourth-tier cycle – preserve $14,000, $2000 used to generate new fourth-tier gifting place
Becoming a member of Kindred Hearts
Kindred Hearts affiliate membership is tied to a $100 gifting cost.
Kindred Hearts Conclusion
Kindred Hearts is an unlawful gifting scheme, advertising and marketing utilizing the identical cliche lies we see in each gifting scheme.
Essentially the most distinguished justification is US taxation legislation referring to financial presents:
What ought to be apparent is that this doesn’t apply to gifting enterprise alternatives.
Satirically, the identical Kindred Hearts presentation the above slide was taken from, goes on to outline what the US taxation legal guidelines apply to:
In unlawful gifting schemes like Kindred Hearts, gifting funds are made on the expectation of receipt of gifting funds from different contributors.
That is key to differentiating a no-string-attached gifting cost, and an unlawful gifting scheme.
Observe that denying the expectation of gifting funds doesn’t change this reality. Be cautious of anybody pretending they joined Kindred Hearts for some other purpose then to earn cash.
- Kindred Hearts Tier 1 – reward $100 and obtain $300/$700 from different contributors
- Kindred Hearts Tier 2 – reward $400 and obtain $1800/$2800 from different contributors
- Kindred Hearts Tier 3 – reward $1000 and obtain $5000/$7000 from different contributors
- Kindred Hearts Tier 4 – reward $2000 and obtain $14,000 from different contributors
That’s Kindred Hearts’ enterprise mannequin, interval.
So why is it unlawful?
MLM gifting schemes function as pyramid schemes. They require fixed $100 gifting funds to maintain the matrices biking.
If recruitment tanks and new $100 gifting funds decelerate or cease, the entire thing collapses.
What differentiates a gifting pyramid scheme from an everyday MLM pyramid scheme is that funds are made between contributors.
That is educational and has no influence on the illegitimacy of the scheme.
Like all pyramid schemes, nearly all of contributors in gifting schemes lose cash.
This is because of early adopters biking by means of to the top-tiers, by means of which nearly all of gifted funds are distributed.
When you want additional clarification on the legality of gifting schemes within the US (they’re unlawful in most jurisdictions), get involved with the FTC.
Both clarify Kindred Hearts’ enterprise mannequin to them or ship them this evaluation.
And if that’s an excessive amount of effort, as recommended by Kindred Hearts promoters, contact an accountant and run this enterprise mannequin previous them.
As a last focal point, Kindred Hearts’ web site visitors is in decline:
This interprets into the inevitable decline in recruitment which, as we’ve defined above, spells the top of an MLM gifting scheme.
Except gullible new recruits are discovered, Kindred Hearts is effectively on its strategy to collapse.