Pipz gives no info on its web site about who owns or runs the enterprise.
Pipz web site area (“pipz.com.br”) was registered again in 2015. The present proprietor of the area is Carlos Roberto Costa.
Sure, that’s infamous scammer Carlos Costa of TelexFree Ponzi fame.
Whereas he doesn’t function on Pipz web site, Costa does host Pipz advertising movies on their Fb web page:
That is in keeping with Costa’s position because the face of TelexFree in Brazil.
Regardless of a number of regulatory investigations and proof US regulators have been closing in, Costa continued to pump out “TelexFree isn’t a rip-off” themed movies on YouTube.
As I perceive it Costa is going through regulatory motion over TelexFree’s Brazilian operations (Ympactus), nonetheless it is a lengthy drawn out course of.
I’d be remiss to not point out Costa’s failed Federal Deputy election bid.
Sure, Costa really tried to enter Brazilian politics after TelexFree was shut down.
Costa was convicted of tax fraud final yr, though his virtually 4 yr sentence was decreased to group service.
Costa’s newest brush in with the legislation was final December, whereby he was arrested for TelexFree associated cash laundering.
Whether or not the case caught or not is unclear as Costa was launched just a few days later.
The standing of the a number of pending felony circumstances towards Costa in Brazil is unclear.
Learn on for a full evaluate of Pipz MLM alternative.
Pipz’s Merchandise
Pipz markets a “low cost membership”, which they declare gives entry to “Quite a few advantages, loyalty program, unique reductions and plenty of extra!”
The loyalty facet of Pipz’s platform seems to be tracked through “PZ” factors.
The consumer buys from our on-line and bodily companions, every buy accumulates Pipz factors. Normally 1Pz for each R$1!
PZ factors might be redeemed inside the low cost membership community.
Primary entry to Pipz’s low cost membership as a non-affiliate is free.
There’s additionally a paid R$99 after which R$49.9 a month possibility.
Paid Pipz Membership members obtain PZ factors after they recruit different paid Pipz Membership members:
- 499 PZ factors per paid Pipz Membership affiliate immediately recruited
- 100 PZ factors per Pipz Membership affiliate recruited down seven ranges of recruitment (unilevel)
Pipz’s Compensation Plan
Pipz associates pay a charge and are paid after they recruit others who do the identical.
Pipz affiliate membership is accessible in three tiers:
- Bronze Package – R$250
- Silver Package – $R600
- Gold Package – R$1000
Pipz pays recruitment commissions through a 5×5 matrix.
A 5×5 matrix locations a Pipz affiliate on the prime of a matrix, with 5 positions immediately underneath them:
These 5 positions type the primary degree of the matrix. The second degree of the matrix is generated by splitting these 5 positions into one other 5 positions every (25 positions).
Ranges three to 5 of the matrix are generated in the identical method, with every new degree housing 5 instances as many positions because the earlier degree.
Positions within the matrix are crammed through direct and oblique recruitment of Pipz associates.
As positions within the matrix are crammed, commissions are paid out.
Pipz don’t present funds for all of their affiliate kits, solely Gold:
- recruitment of a Gold Package affiliate on degree 1 of the matrix = R$100
- recruitment of a Gold Package affiliate on degree 2 of the matrix = R$60
- recruitment of a Gold Package affiliate on ranges 3 and 4 of the matrix = R$64
- recruitment of a Gold Package affiliate on degree 5 of the matrix = R$212
Assuming fee charges are considerably linear, from these figures we are able to estimate Bronze and Silver Package payouts:
- degree 1 – 10%
- degree 2 – 6%
- ranges 3 and 4 – 6.4%
- degree 5 – 21.2%
Voucher Matrix (???)
Pipz’s compensation documentation particulars a second 5×5 matrix, supposedly tied to affiliate spending with out the low cost community.
The instance supplied is supposedly a ten% fee charge, primarily based off an instance R$100 spend.
The precise figures supplied although make no sense:
Word on the backside the point out of “necessary consumption by the buyer voucher”.
Undecided what the specifics are, however this may very well be a voucher reward matrix versus precise commissions.
Becoming a member of Pipz
Pipz affiliate membership is accessible in three tiers:
- Bronze Package – R$250
- Silver Package – $R600
- Gold Package – R$1000
The distinction between the kits are bundled vouchers and “magnetic bracelets”.
All Pipz associates pay a R$49.90 month-to-month charge. In alternate for this charge, Pipz associates obtain 2000 PZ factors.
Conclusion
Pipz is a far cry from TelexFree. Apart from Costa being concerned, there doesn’t seem like any comply with on so we’ll consider Pipz stand-alone right here within the conclusion.
Pipz markets itself as “one of the best loyalty and direct advertising platform in Brazil”.
The issue with Pipz’s enterprise mannequin is it makes little to no monetary sense for retailers.
Pipz collects charges and spins out vouchers, these vouchers can be utilized in taking part retailers, begging the query what do retailers get out of it?
Publicity with out gross sales is dear, and I can see high-end product retailers getting screwed over.
Except in fact use of Pipz’s vouchers is closely restricted, thus making them largely nugatory.
The alternate worth of Pipz factors displays the present worth of product costs and providers in reais, that are routinely up to date by the Companions who make up the Pipz Program.
PIPZ has no interference with the method updating costs of services and products in reais provided by Companions to be exchanged by the Participant.
I couldn’t discover any point out of this on Pipz web site apart from the above, taken from Pipz’s phrases and situations (auto-translated from Portuguese).
Retailers aren’t going to screw themselves over, so I’m placing an enormous query mark on the precise worth of Pipz’s vouchers.
Probably including an extra layer of concern to Pipz is the chance PZ factors is perhaps redeemable for actual cash.
In the identical manner as the worldwide buying matrix, the consumption going down, the subscriber will probably be incomes credit that he’ll use to switch his Pipz of Low cost to his assertion to make use of in its entirety within the era of consumption vouchers in our companions and even withdraw to your checking account.
If you need you’ll be able to ship your low cost vouchers, acquired in your buy to our Change, and as quickly as utilized in any sale of the corporate that happens, you’ll obtain the corresponding Pipz Factors in your assertion.
Granted that is auto-translated from Portuguese, however it appears like PZ factors are exchangeable for actual cash through an inner alternate.
The place does this cash come from?
Ecommerce platform margins are already razor skinny. Pipz’s vouchers are created throughout charge funds and spending inside the service provider community.
Except the alternate worth is so low as to make it not price bothering with, Pipz’s alternate introduces a little bit of a mathematical gap cash clever.
Outdoors of those considerations you’ve received a fundamental ecommerce low cost community. Go someplace, present them your card, cellphone app or no matter and get a small low cost – nothing revolutionary.
The MLM facet of Pipz largely focuses on pyramid recruitment. Retail may crossover with the voucher matrix, however seeing as solely associates are positioned into the matrix, I don’t see how.
That leaves each matrices inside Pipz’s compensation plan tied to recruitment.
As with all recruitment-driven schemes, as soon as recruitment stops Pipz will collapse.
Even in the event you’re keen to look previous that, getting concerned in any MLM firm related to Carlos Costa looks like a dunce transfer.
If Costa had of owned as much as his TelexFree fraud and sorted it out (he’s had six years to take action), moved on after which gone on to launch Pipz, I’d be keen to be way more forgiving.
He hasn’t although, and so long as TelexFree felony expenses and civil lawsuits loom over Costa’s head, any enterprise he’s concerned in must be approached with excessive warning.