Crowd1 is an online MLM opportunity that offers people exposure to the gambling industry while ironically, providing real estate education.
A number of people want to know the answer to this question: Is Crowd1 A Scam?
It poses as a high-tech marketing business that makes money for people by connecting online networking with online gaming.
So long as you have a mobile phone and can convince others to register too, you’re on your way to riches.
Or are you?
Well, in reality, Crowd1 operates a couple of mobile game/gambling apps and use random real estate training as a cover product. That way, they cannot be labeled a scam.
We’re going to explore the Crowd1 MLM opportunity scheme in detail.
Is Crowd1 A Scam and What Does It Claim To Offer?
When a newcomer initially looks at the Crowd1 website, you’re not exactly sure what the business is about.
Crowd1 has been in existence since 2007 but was officially launched in 2019 with one Johans Stael von Holstein as the CEO.
However, a couple of other names like Stelios Piskopianos and Jonas Erik Werner have been linked with the company as the CEO.
Therefore, it is unclear who exactly runs the company, which of itself is a HUGE red flag.
Crowd1 does not offer any retail or tangible products.
What you will get when you invest in joining will be educational training on topics like Real estate, funding, and marketing.
Also, you will get access to platforms like AffilGo and Miggster.
AffilGo is a crowd affiliate site where members can earn money through gaming companies in participation with Crowd1 while Miggster is an online mobile game and social media site that members will have access to when they join.
Both websites are owned by Crowd1, even though they claim that both are third-party websites.
This is about all that Crowd1 offers.
Crowd1 Compensation Plans
To join one of the investment levels, you will have to pay at least 99 Euros. This qualifies you for commissions and “owner right” shares.
This is a term the company uses for the returns they pay you.
Here is a breakdown of each level of investment and what you can earn on each:
- White Level – Invest 99 Euros. You will receive 100 Euros worth of owner rights shares
- Black Level – Invest 299 Euros. You will receive 300 Euros worth of owner rights shares
- Gold Level – Invest 799 Euros. You will receive 1000 Euros worth of owner rights shares
- Titanium Level – Invest of 2499 Euros. You will receive 3500 Euros worth of owner rights shares
Crowd1 pays residual commissions using the binary compensation structure.
This structure places an affiliate at the top of a binary team, split into two sides (left and right).
Positions in the binary team are filled via direct and indirect recruitment of affiliates, and there is no limit to how deep a binary team can grow.
Residual commissions are paid based on the investment volume generated on both sides of the binary team. You will need a 1 to 3 ratio using the point structure.
A 1/3 balance ratio sees residual commissions paid out on investment volume generated on the weaker side of the binary team.
For example, if you have 1 point on one side of the binary structure and 3 points on the other, then you qualify for a commission.
The point you can earn when you start to recruit begins at 90, so as the example above demonstrates, you would need 90 points on one side and 270 on the other.
When you or your downline team members sponsor someone at any level, the points will go towards the side of the binary compensation structure that the member falls in, depending on the level.
Here is a breakdown of the points you can earn per level that your new members join at:
- White – 90 points
- Black – 270 points
- Gold – 720 points
- Titanium – 2250 points
Crowd1 pays a matching bonus on residual commissions earned by downline affiliates.
This is tracked and paid using the uni-level compensation plan model.
This structure places an affiliate at the top of a team, with every member recruited by the affiliate placed under them.
Here is an illustration:
- 1st Level – The first level will only have your personally recruited members on it.
- 2nd Level – The second level will only have team members that your level 1 members personally recruited.
- 3rd Level – The third level will only have team members that your level 2 members personally recruited.
- And so on…
There are a total of 5 levels that you can earn this bonus on. However, how many levels a Crowd1 affiliate earns the bonus on is determined by an affiliate’s personal recruitment efforts:
- invest at the White tier and recruit four investors = a 10% match on level 1 (personally recruited affiliates)
- invest at the Black tier and recruit eight investors = a 10% match on levels 1 and 2
- recruit twelve investors = a 10% match on levels 1 to 3
- invest at the Gold tier and recruit sixteen investors = a 10% match on levels 1 to 4
- invest at the Titanium tier and recruit twenty investors = a 10% match on levels 1 to 5
Once you join at any investment level, you are rewarded with “streamline levels,” which differs depending on the level you invested in. This bonus appears to be a way to increase owners’ right share returns.
- White tier affiliates receive three Streamline levels
- Black tier affiliates receive eight Streamline levels
- Gold tier affiliates receive twelve Streamline levels
- Titanium tier affiliates receive fifteen Streamline levels
Fear of Loss Bonus
The Fear of Loss Bonus is a recruitment bonus; it is only active during a newly recruited Crowd1 affiliate’s first 14 days with the company.
During the Fear of Loss Bonus period, a Crowd1 affiliate earns
- €125 EUR per 4 White investment tier affiliates recruited
- €375 EUR per 4 Black investment tier affiliates recruited
- €1000 EUR per 4 Gold investment tier affiliates recruited
- €3000 EUR per 4 Titanium investment tier affiliates recruited
Gambling Residual Commissions
This bonus is earned from the company-wide gambling revenues.
These commissions start at 5% if you are at the Team Leader rank (by generating 500 points in weaker binary team volume) and increase to 10% for the Director rank (by generating 500,000 points in weaker binary team volume) and higher ranks.
Is Crowd1 A Scam – Final Verdict
Crowd1 provides no evidence of being registered with any financial regulator in the countries it operates.
This makes its operations in these countries illegal.
Secondly, the only verifiable source of revenue for Crowd1 is new investments. These are used to pay the owner the right share returns to existing affiliates.
Based on the facts, it would seem that Crowd1 is functioning as a Ponzi scheme.
It also has recruitment commissions, adding a pyramid layer to the scheme, meaning that the system is bound to collapse when new members stop joining the platform, and a huge number of people will lose money.
Crowd1 is, at best, a Ponzi scheme and should not be trusted.
Crowd1 is similar to other scam multi-level marketing platforms I’ve reviewed on this blog such as:
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