In studying multi level marketing and its prohibited relatives, the pyramid plans and the Ponzi schemes, it is in some cases instead discouraging to see that some people simply wind up reinventing old frauds, or are treading so close they might as well as asserted to have transformed the tire. Here’s one of those motto prices estimate to throw about:.
Those who can not remember the past are condemned to duplicate it.– George Santayana.
Probably in the modern-day times, it’s necessary to include a corollary:.
Those who could not explore the past are doomed to repeat it.
And today, we will check out one such biz … a relatively very upright one … except it seem to be a business design that’s a copy of a scam that was nearby the FTC 13 years earlier.
That business is called Lucrazon.
Lucrazon, goinged by Alex (aka “Alexy”) Pitt, asserts to be a merchant ecommerce remedy provider, and undoubtedly, Mr. Pitt case to have helped a significant solution supplier of such solutions. According to Lucrazon’s own website, exactly what you pay for is:.
Lucrazon maintains a settlement entrance that provides network connectivity, innovation and safety for a settlement system that enables its consumers to gain access to end-to-end electronic settlement processing remedies.
It offers a handled innovation and safety infrastructure, repayment applications, web services, and hookups to the TSYS repayment network.
The Lucrazon platform permits its customers to provide credit rating and debit card processing, ACH processing, gift card programs, electronic check handling solutions, safe and secure organized online terminal, organized protected payment page, reporting, internet services, and assistance for brand name terminals and gadgets for settlement processing.
Translation: reproduced e-store web site with buying cart and repayment handling.
The amount of do you pay? $1795 (discounted to $1000 up until end of year), and $99 a month.
IMHO, this is overpriced when compared with comparable solutions such as Shopify.com, with plans beginning as low as $14.95 a month and no fee upfront, but that’s not the point of this evaluation. It’s this NEXT step that could possibly acquire Lucrazon in to difficulty.
You see, Lucrazon permits “stacking”… as you can buy up to 15 web sites. Stacking for just what you ask? Piling so you could make money by sponsoring others.
Lucrazon pays its members (that had already purchased around 15 web sites / positions) via a number of means, al all of them pertained to subscribing even MORE associates, other than “business compensation” (i.e. you acquire FIFTY % of exactly what Lucrazon charges business each transaction).
There’s the “20 % referral payment, plus 3 % around 6 levels down” on sponsored associates, PLUS binary payment (an additional 6 % if you acquire two recruits to “combine up”, thus binary).
You could check out a testimonial by Oz over on BehindMLM, and their “neighborhood relationships supervisor”rebuttal.
When I first saw this, I believed … this seemed knowledgeable, however I cannot keep in mind where I’ve seen it. It had not been until Christmas Day, when I examined the topic once again, that I recollected the case … Skybiz.
Skybiz started in 1998, when it guaranteed riches to the masses to join the myriad of firms selling things online … if they buy several online shops, as well as recruit yet MORE people which wish to do the same point. Simply puts, you earn via recruiting people, not through offering things through your online shops. The company, based in Tulsa Oklahoma, spreading and was disallowed in a number of continents (North America, Australia, Europe, Asia, and Africa). FTC lastly pounded it closed in 2001, and assigned a recipient to sell off exactly what it could after seizure of properties and pay back those which shed cash … with cooperation from cops all over the globe.
MLM Attorney Jeffrey Babener blogged about Skybiz:.
Particularly, it is the company model where representatives are encouraged to buy a number of replicating internet websites, then are encouraged to cause others to buy several replicating website, all which are utilized mainly for sponsoring as opposed to e-commerce, that is triggering the biggest concern.
This describes Lucrazon PERFECTLY: several replicating web sites (as much as 15), motivated to sponsor others (all the repayments except as soon as are linked to recruitment) to also buy a number of duplicating internet sites, every one of which are used for sponsoring instead of e-commerce.
I have no idea Alex Pitt, so I don’t understand whether he sought to recreate Skybiz, or even he had listened to of Skybiz before starting Lucrazon. However he had effectively redesigned the Skybiz scam, 13 years after it was shut.
The greatest achievement Lucrazon did so far is adding a former Small Business Administration head, Mr. Barreto, to their board of supervisors (see below for associated web links). However that doesn’t actually confirm anything, other than additional ammunition for people who urge on making use of “legitimacy with association” bad disagreement.
The reality that Lucrazon seem to cause 7 out of 8 sign on Mr. Babener’s “Dot Scam” short article is a major problem.
Lucrazon might not be intended as a scam, however it is effectively a duplicate of a PROVEN scam. Hence, you ought to not even acquire CLOSE to it until proven or else.
And “Alex Pitt” needs to get in touch with an attorney ASAP.