Wednesday, February 6, 2013

AddWallet Review

Here is my review on the AddWallet program.  The program is now in pre-launch, but here is what I have found out about AddWallet so far.  The website domain (addwallet.com) was registered December 26, 2012, but the registration information is set to private, so I cannot confirm who owns or runs the site.  Just last week AdWallet came out with a statement that Luis Cordero is the CEO of AdWallet and it is owned by Cartera International, an Ecuadorian-based corporation (yet I cannot find any corporation listing in Ecuador) and that AddWallet is completely offshore (Panama & South America ), with it opening a office in Ecuador sometime in February.

Since I cannot confirm this statement of ownership, I can only guess that maybe is also connected somehow with a "Coach" Blaine.  I say this because according to two different domain search records, the server host IP address for addwallet.com shows that the following domains were also being hosted by this same IP address back at the first of January, 2013.  They are "wcanow.com" and "members.wcanow.com", which are the websites for the World Consumer Alliance program which were owned by "Coach" Blaine.   It has also been reported that World Consumer Alliance has STOPPED paying its members in early January 2013, almost the same time that addwallet.com was registered and AddWallet was first announced.  As late as a 15 days ago, both the AddWallet and World Consumer Alliance websites were moved off the shared hosting account and placed on their own hosting servers. 


What Is AddWallet?  AddWallet product is basically selling advertising.  AddWallet sells advertising units to its members, who in turn can then use these units to enter advertising (of websites) into a members-only rotator.  Members are required to view other members ads each day to get member-funded revenue share earnings.  Since you do not have to sign up referrals to earn, the program is consider a passive type program.

How Does AddWallet Work?   AddWallet members are required to view seven ads each day to qualify for daily revenue sharing.  AddWallet sells, to its affiliates, advertising units at a rate of 1 unit per $1 and are available in eight packages of 10, 20, 50, 100, 250, 500, 1000, 2500 and 5000 units.  Each advertising unit  generates a Return On Investment (ROI) by the company’s “Retail Profit Pool” for 90 days from the date of advertising unit was purchased.  This Retail Profit Pool is paid out daily to qualified members.  A minimum of  25% of the daily ROI must be re-invested in the purchasing new advertising units.  Commissions are also paid out on the advertising units purchased by your referrals as follows: Silver members earn 7% on their level 1 referrals, Gold members earn 7% on their level 1 referrals and 5% on level 2 referrals, and Diamond members earn 10% on their level 1 referrals and 5% on level 2 referrals.

AddWallet pays one time referral commissions for new affiliates. These commissions depends on the paid membership level of an affiliate as such; Silver affiliates get $2 per new affiliate (all levels); Gold affiliates get $2 (Silver) and $10 (Gold & Diamond) per new affiliate; and Diamond affiliates get $2 (Silver), $10 (Gold) and $20 (Diamond) per new affiliate.  Silver members are paid membership fee commissions using a 2×10 matrix with Gold and Diamond members paid using a 2×15 matrix.  Monthly commissions are paid out as follows for monthly paying affiliates:  Silver members are paid 30 cents per affiliate in their matrix, Gold members are paid $1 per affiliate in their matrix, and Diamond members are paid $2 per affiliate in their matrix.  The matrix is a direct type matrix, which allows other affiliates to fall into your matrix (call spillover).

Membership to AddWallet is free, with the company charging a monthly subscription depending on how many advertising units have been purchased by you (including re-investment).  Silver membership ($10 a month) is required if an AddWallet member has purchased more than 10 advertising units, Gold membership ($50 a month) is required if an AddWallet member has purchased more than 50 advertising units, and Diamond membership ($99 a month) is required if an AddWallet member has purchased more than 100 advertising units.

My Option....   AddWallet themselves provide no information on how much the daily ROI percentage will be, however I have seen where some AddWallet members are quoting a minimum ROI of 1% a day and “up to” 2% per day.   Also commissions paid out on the advertising units purchased made by your referrals, also comes out of the daily ROI pool, thus driving down the ROI paid out to all members daily.  With no other revenue source and nothing being sold to retail customers, all that matters is that members continue to invest real money and recruit new members who also invest new money in advertising units to keep the program going.

It is "obvious" that all earnings from AddWallet come directly from new affiliate payments into the company and not from any outside sources, which is that exact definition of a Ponzi scheme.  The whole matrix and membership commissions are set up to sign up new members, which are paid straight out of each affiliate membership fees.  The whole “Retail Profit Pool” meanwhile is pretty much just a affiliate funded investment scheme, given that it’s only funded by new AddWallet affiliates purchases.  The more money invested by affiliates, the larger the ROI paid out.  And naturally once the earnings owed exceeds the new investments coming in (even with forced 25% reinvestment), the entire program collapses.

Plus when you consider that AddWallet appears to have ties to World Consumer Alliance it is not surprising their claims that “over 20 thousand” have already signed up.  Plus the fact that there no information on the AddWallet website pertaining to site owner, contact information, about us information, etc. make me very concern, so I think I will pass on this one.  Remember if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any of your money.

Your Friend,
Philip Reitcheck
greentreesmlm@gmail.com

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