Main the Ruling Class’ MLM alternative launched in late 2018.
Main the Ruling Class itself is a Political Motion Committee, co-founded by Todd Workman and Invoice Luznicky.
Of the 2 Luznicky seems to be the face of the PAC.
Seeing as this clearly isn’t a normal evaluation, I’ll let Luznicky clarify what Main the Ruling Class is all about.
A video titled “5 minute PRC into 2 0” was uploaded to Main the Ruling Class’ YouTube channel on July 2018.
The video description for the video reads:
Introduction to the Main the Ruling Class motion
Within the video Main the Ruling Class founder Invoice Luznicky claims
There are millions of individuals going surfing each week to test us out. And we’ll finally have tens of 1000’s of members, becoming a member of collectively to face as much as the anti-American forces combating towards our President.
Since 2018, Primary the Ruling Class’ video has attracted 77 views.
Luznicky goes on to element Main the Ruling Class’ MLM enterprise mannequin.
Right here’s a transcript of the related components:
[0:27] If you happen to don’t have the flexibility to take a position a bit little bit of time and a bit bit of cash, you would possibly as effectively flip this off proper now.
Alternatively, if the way forward for your nation is that essential to you, I’ll present you how one can make a distinction – and presumably even earn a big residual earnings within the course of.
[3:13] We’ve assembled a crew of highly-skilled people and we’ve a way of urgency.
So we’re going to do every little thing we will to construct the group as quick as attainable.
That signifies that we’re going to borrow from the enterprise world, and set up a compensation plan that rewards individuals who garner donations and construct the crew.
That is the way it works: You make a modest donation to PRC PAC, and we’ll provide you with a “Develop the Motion” package that features every kind of cool issues.
As well as, you comply with generate a small automated month-to-month donation. It could come from you or different individuals.
And, by the way in which, we’ve a system that may assist determine an virtually limitless variety of like-minded people.
While you do that, it makes you an impartial affiliate member of PRC PAC.
Now that is the enjoyable half: Exit and discover no less than two different individuals to just do what you probably did.
[4:15] With our enable you’re going to create two groups.
Because the individuals you sponsor recruit their very own two, your groups can begin to develop exponentially.
[4:32] In the true world, nothing spurs individuals into motion like getting paid.
So we’re going to pay you to sponsor individuals. And also you don’t need to cease at simply two.
Anybody additional you sponsor you’ll be able to simply place down beneath somebody already in your crew.
And that may make them very completely satisfied. It makes everybody completely satisfied as a result of we’re not solely going to pay you a bonus on everybody you personally sponsor, we’re going to pay you ongoing overrides on the donations generated by everybody in your crew.
Now there’s a components we comply with, and it’s best to learn the compensation plan for particulars.
However mainly, the bigger your groups the extra overrides you’ll be able to earn.
Luznicky claims Main the Ruling Class has a “conservative, professional Trump and professional the ‘Make America Nice Once more’ agenda”.
Luznicky’s connection to MLM seems to be Zrii circa 2010:
How lengthy Luznicky was with Zrii for is unclear. Going additional again, I discovered this excerpt on Luznicky’s MLM historical past;
Invoice has loved 25 years of success within the community or web advertising and marketing business and commenced his profession earlier than there was an web.
As a matter of reality when he began there have been no PCs, fax machines have been all the fad, and most of the people couldn’t afford cell telephones.
What was extra essential than expertise nonetheless, was understanding individuals effectively sufficient to construct massive groups.
When he first began he didn’t have these expertise and understanding – however he was lucky to have nice academics.
By implementing easy expertise and methods in his first firm he was in a position to construct a full-time residual earnings that lasted 17 years.
By the point Invoice joined his third firm, FaceBook and Twitter have been turning into social media superstars and everybody was speaking about how expertise would revolutionize the business.
Whereas totally embracing the brand new applied sciences, Invoice utilized those self same time-tested methods and folks expertise to earn over $10,000 his first month and be instrumental in setting development data for that firm.
When Invoice joined his fourth firm smartphones and iPads have been all that folks used and he once more utilized those self same expertise to earn over $100,000 in his first 90 days there.
None of these 4 corporations are named. Notice I haven’t linked to the supply for the above copy because it’s at the moment flagged as unsafe (damaged SSL certificates).
In accordance with his private Twitter profile, Luznicky relies out of Dallas, Texas.
Learn on for a full evaluation of Main the Ruling Class’ MLM alternative.
Main the Ruling Class’ Merchandise
With respect to their MLM alternative, Main the Ruling Class has no retailable services or products.
Main the Ruling Class associates solicit political donations and promote Main the Ruling Class affiliate membership.
Main the Ruling Class’ Compensation Plan
This breakdown of Main the Ruling Class’ compensation plan relies on official documentation offered on their web site.
Main the Ruling Class pays commissions on
- recruitment of associates;
- ongoing month-to-month donations; and
- one-time donations
Main the Ruling Class affiliate membership is
- $97 a month;
- $1075 yearly;
- $1776 for 2 years; or
- $2999 for “lifetime” membership
Main the Ruling Class associates are anticipated to keep up a month-to-month donation autoship of $97, or solicit month-to-month donations from non-affiliates.
Main the Ruling Class Affiliate Ranks
There are 9 affiliate ranks inside Main the Ruling Class’ compensation plan.
Together with their respective qualification standards, they’re as follows:
- IAM – enroll as a Main the Ruling Class affiliate and preserve 75 CV in autoship or 150 CV in mixed quantity
- Certified IAM – recruit two IAMs (positioned on on either side of the binary crew) and have earned one step
- Director – preserve two personally recruited IAMs, solicit and preserve two non-affiliate month-to-month donors, have earned three steps and generate a complete downline of no less than fifteen IAMs
- Senior Director – preserve two personally recruited IAMs, solicit and preserve 4 non-affiliate month-to-month donors, preserve a 75 CV autoship order or generate 150 CV via mixed quantity and have earned twenty steps
- Bronze – personally recruit and preserve 4 Certified IAMs, preserve 4 non-affiliate month-to-month donors, preserve a 75 CV autoship order or generate 150 CV via mixed quantity and be incomes twenty-seven steps a month
- Silver – personally recruit and preserve six Certified IAMs, solicit and preserve six non-affiliate month-to-month donors, preserve a 75 CV autoship order or generate 150 CV via mixed quantity and be incomes twenty-seven steps a month
- Gold – preserve six personally recruited Certified IAMs, preserve ten personally solicited non-affiliate month-to-month donors, preserve a 75 CV autoship order or generate 150 CV via mixed quantity and be incomes 100 and thirty-four steps a month
- Platinum – preserve six personally recruited Certified IAMs, have two Gold ranked associates in your downline (one on either side of the binary crew), preserve ten personally solicited non-affiliate month-to-month donors, preserve a 75 CV autoship order or generate 150 CV via mixed quantity and be incomes 200 steps a month
- Diamond – preserve six personally recruited Certified IAMs, have two Platinum ranked associates in your downline (one on either side of the binary crew), preserve ten personally solicited non-affiliate month-to-month donors, preserve a 75 CV autoship order or generate 150 CV via mixed quantity and be incomes 200 and sixty-six steps a month
CV stands for “commissionable quantity” and counts donations made by an affiliate and non-affiliates they solicit.
CV is calculated at 75% of funds invested.
For data on steps see “Residual Commissions” beneath.
“Mixed Quantity” (to not be confused with CV), consists of an affiliate’s personal autoship and personally solicited non-affiliate donations.
Funding and CV shouldn’t be a 1:1 conversion. A precise conversion isn’t offered, with Main the Ruling Class solely stating that “CV and precise {dollars} could also be totally different”.
Notice that from Bronze rank, Main the Ruling Class associates should
be actively concerned in supporting your downline and selling the Main the Ruling Class agenda.
Particular particulars aren’t offered.
Recruitment Commissions
Main the Ruling Class pays a $50 fee per affiliate recruited.
A $100 fee is paid if a recruited affiliate upgrades to a dearer membership tier.
A $150 fee can be paid “for every Lead the Motion Bundle that you simply personally promote to a brand new IAM”. I’m probably not positive what constitutes “a lead”.
Lastly there’s a $500 recruitment bonus paid if a Certified IAM recruits two Certified IAMs (positioned one on either side of the binary crew), inside six months of signing up.
One-Time Donation Commissions
If a Main the Ruling Class affiliate solicits a one-time donation of $1000 or extra, they obtain a 7% fee on that donation.
Residual Commissions
Main the Ruling Class pays residual commissions by way of a binary compensation construction.
A binary compensation construction locations an affiliate on the high of a binary crew, break up into two sides (left and proper):
The primary stage of the binary crew homes two positions. The second stage of the binary crew is generated by splitting these first two positions into one other two positions every (4 positions).
Subsequent ranges of the binary crew are generated as required, with every new stage housing twice as many positions because the earlier stage.
Positions within the binary crew are crammed by way of direct and oblique recruitment of associates. Notice there is no such thing as a restrict to how deep a binary crew can develop.
On the finish of every day Main the Ruling Class tallies up new donation quantity on either side of the binary crew.
Residual commissions are paid out primarily based on “steps” generated on an affiliate’s weaker binary crew aspect (the aspect with much less donation quantity).
Donation quantity is tracked in Commissionable Quantity (CV).
A step is generated for each 500 CV in donation quantity on the weaker binary crew aspect.
The residual fee price per step generated relies on rank:
- Certified IAM’s earn $30 per step generated
- Administrators and Senior Administrators earn $50 per step generated
- Bronze and better earn $75 per step generated
Notice that Main the Ruling Class’ compensation plan states associates are capped at incomes as much as 40 steps a day.
The “full compensation plan” documentation particulars the next month-to-month restrictions:
- Senior Administrators can earn as much as 27 steps a month
- Bronzes can earn as much as 54 steps a month
- Golds can earn as much as 200 steps a month
- Platinums and better can earn as much as 266 steps a month
I’ve offered each for reference because it’s unclear whether or not the every day or month-to-month cap applies.
Rank Achievement Bonus
Bronze and better Main the Ruling Class associates qualify for one-time Rank Achievement Bonuses:
- qualify at Bronze for 3 consecutive months and obtain $2000
- qualify at Silver for 3 consecutive months and obtain $4000
- qualify at Gold for 3 consecutive months and obtain $10,000 plus Management Council eligibility
- qualify at Platinum for 3 consecutive months and obtain $25,000
- qualify at Diamond for 3 consecutive months and obtain $50,000
Notice that no details about the Management Council is offered.
Main the Ruling Class’ compensation plan additionally states:
An IAM that has bought a minimal of 600CV and maintains ‘Certified IAM’ standing has now met the minimal requirement to obtain Management Bonuses.
This implies that a further 600 CV in private affiliate donations should be made.
Based mostly on CV being an undisclosed lesser proportion of greenback donations, this might tie Management Bonus qualification to a minimal $600 private donation.
Automobile Bonus
As per Main the Ruling Class’ compensation plan materials;
You will need to generate a minimal of 75CV in AutoShip orders in the course of the qualifying and efficient months to be eligible for the Automobile Bonus.
Month to month Automobile Bonus qualification is tiered as follows:
- earn 54 steps in a month and obtain a $400 Automobile Bonus for that month
- earn 80 steps in a month and obtain a $600 Automobile Bonus for that month
- earn 106 steps in a month and obtain an $800 Automobile Bonus for that month
- earn 134 steps in a month and obtain a $1000 Automobile Bonus for that month
- earn 160 steps in a month and obtain a $1200 Automobile Bonus for that month
Becoming a member of Main the Ruling Class
Main the Ruling Class affiliate membership is
- $97 a month;
- $1075 yearly;
- $1776 for 2 years; or
- $2999 for “lifetime” membership
Main the Ruling Class associates can bypass “Energetic IAM” qualification by making a further “lump-sum donation of $12,000 or extra”.
Main the Ruling Class Conclusion
Main the Ruling Class is the primary political MLM I’ve seen (click on to enlarge).
The core difficulty right here is whether or not “retail” donations are the equal of retail gross sales.
Main the Ruling Class’ compensation plan is certainly arrange in that method, with one simply in a position to substitute retail clients for non-affiliate donors.
I’m going with non-affiliate donors aren’t retail buyer equivalents. Purpose being retail clients need to buy a services or products.
By donating to a political organisation you aren’t receiving both.
I did discover Main the Ruling Class promoting espresso (the one factor extra cliched could be dietary dietary supplements), nonetheless it has nothing to do with their MLM alternative.
Usually after we see “donations” and “MLM” collectively it’s money gifting. Fortunately in Main the Ruling Class that’s not the case.
What is clear nonetheless is that Main the Ruling Class is about up as a pyramid scheme.
Recruitment commissions aren’t tied to rank. Even when one pretends non-affiliate donors are a retail buyer equal, one can enroll as a Main the Ruling Class affiliate, go on autoship and receives a commission to recruit others who do the identical.
And that is clearly what is meant, as evidenced by donating 75 CV a month your self as an affiliate, or having to supply double that from non-affiliates.
If Main the Ruling Class was a product/service oriented MLM, that penalty would construct a robust case for autoship recruitment.
In anticipation of readers unfamiliar with MLM due-diligence studying this evaluation, this might equate to a pyramid scheme.
Whereas Main the Ruling Class isn’t product/service oriented, it’s nonetheless in a position to run as a pyramid scheme by advantage of adopting a standard MLM compensation plan.
Lastly there’s Main the Ruling Class’ shady Founder’s Management Pool, which incentivizes donation to the tune of $173,152:
To qualify for the Founder’s Pool, Main the Ruling Class associates needed to:
- “construct a prelaunch crew” (generate a downline of 100 energetic IAMs throughout prelaunch circa 2018);
- donate $12,000 or extra to Main the Ruling Class; or
- mortgage Main the Ruling Class $40,000.
The Founder’s Pool itself is made up of 1% complete Main the Ruling Class donation quantity (CV equal).
Anybody who went for the $40,000 mortgage choice was promised a 200% ROI from a separate 1% Founder’s Pool:
People making a qualifying mortgage will obtain the title and recognition of Founders Bonus Pool qualifiers and can obtain Lifetime Energetic IAM standing, however will NOT take part within the bonus pool payout – they’ll alternatively qualify for the next reimbursement phrases:
They’ll obtain 1% of PRC’s new month-to-month CV each month for the primary 12 months after PRC’s Official Launch Date.
The accrued reimbursement might exceed the unique quantity of the mortgage, nonetheless, it is going to be capped at $80,000.
Within the occasion that the total quantity of the unique mortgage has not been totally repaid by the tip of twelve months, the month-to-month 1% payout will proceed till full reimbursement is achieved.
Bonus recipients should stay Energetic within the PRC Compensation Plan to obtain the month-to-month payout.
A 200% passive ROI tied to an MLM firm drags Main the Ruling Class into potential securities fraud territory. Neither Main the Ruling Class, Todd Workman or Invoice Luznicky are registered with the SEC.
I got here throughout Main the Ruling Class by way of a Colorado Instances Recorder article by Erik Maulbetsch.
My authentic article working title was “A US political org is operating a pyramid scheme”. I used to be anticipating a easy recruitment construction.
When I discovered Main the Ruling Class was operating a full-blown MLM comp plan although, I switched to publication of a full evaluation.
Citing Federal Electoral Fee data, Maulbetsch writes;
Federal Election Fee data present that PRC PAC hasn’t made a single impartial expenditure or donation to a different committee since its inception in 2018.
That doesn’t imply it hasn’t been spending donors’ cash, nonetheless. The group classifies all of its spending as “Different Expenditures.”
In accordance with FEC data, practically the entire cash raised by PRC PAC has been paid out to a single firm, Medsabi LLC, which is owned by Luznicky.
Within the 2017-2018 election, PRC PAC raised about $11,000 and spent all of it. Of that quantity, $10,000 went to Medsabi.
For the 2019-2020 cycle, PRC PAC raised and spent roughly $52,000, paying Luznicky’s firm $50,000.
Within the first 5 months of 2021, Main the Ruling Class has raised $44,000 – “practically half” of which has gone to Luznicky’s firm Medsabi.
Admittedly US political regulation isn’t my forte. I do know operating pyramid schemes nonetheless is unlawful.
By extension I’d assume operating a political pyramid scheme, during which a founder is the first beneficiary can be unlawful.
When requested by the Colorado Instances Recorded about Main the Ruling Class’ MLM enterprise mannequin, Luznicky
denies that the PAC operate like a multi-level or “community advertising and marketing” enterprise.
He expressed shock that the doc quoted above was on the web site.
Which in fact makes completely no sense, seeing as Luznicky actually options in a 2018 advertising and marketing video pitching Main the Ruling Class’ MLM alternative (see introduction of this evaluation).
Whereas the writer of Main the Ruling Class’ web site isn’t credited, the message on the suitable seems on each compensation web page:
Given his many years of MLM expertise, Luznicky will surely have the know-how to place all of this collectively.
However uh yeah, let’s play dumb.
Greatest case state of affairs? Main the Ruling Class is working as a pyramid scheme not in violation of the Federal Election Marketing campaign Act.
Worst case state of affairs? Main the Ruling Class is working as a pyramid scheme, with no less than half of donated funds being funneled into Invoice Luznicky’s back-pocket via Medsabi LLC.
This doubtless isn’t going to finish effectively.