According to clubshop.com, ClubShop is a company that claims to offer rewards and discounts by purchasing from online or offline stores.
There are three different ways to be a part of ClubShop: Shopper Member, Affiliate Member and Partner.
The company affirms to be working in around 70 countries in the world.
The Alexa stats show that most of the traffic of ClubShop is from Venezuela, Russia and Mexico.
Without waiting much, let us move ahead and understand the company profile along with the ClubShop business plan.
|When Started||June 1997|
|Opportunity Type||Affiliate Marketing|
|Products||Rewards & Discounts|
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What is ClubShop?
Before ClubShop it was known as Discount Home Shopper Club in the late 90s.
The official website shows that the company was founded and started in Englewood, Florida, USA in June of 1997.
On LinkedIn, Richard Burke claims to be the President of ClubShop and he is also the founder of ClubShop.
On LinkedIn, Perotti also claims to be the Director of Proprofit Worldwide which acquired ClubShop in 2018.
Hence it can be concluded that ClubShop is run by Fabrizio Perotti (Left) and Giuseppe Francavilla (Right). However, it is not declared anywhere on the official site.
Before purchasing ClubShop, Perotti was also promoting Ad2Prosper which was claimed to be an ad-based pyramid scheme.
To shop online, the affiliate is allowed to select the country of his choice.
In this post, GPS refers to Global Partner System i.e. the MLM opportunity offered by ClubShop.
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To join ClubShop one has to register and select any of the affiliate memberships. The membership ranges from $14.90 to $249.90 every month.
One can also opt for the 30-day trial where he can work and earn like an affiliate but the earnings remain pending till the affiliate join by paying the required membership fees.
There are mainly six GPS affiliate membership tiers:
|Tier||Membership Fee (Monthly)|
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ClubShop doesn’t include products that can be purchased and sold at retail prices instead, it provides cashback offers and discounts on the available products.
Below we have a glimpse of how the products and cashback are provided by ClubShop.
ClubShop Affiliate Ranks
The ClubShop Affiliates are paid fixed returns every month based on their current rank.
The below table includes attributes such as Affiliate Rank, the monthly required earning for every specific rank, the requirement of membership tier and lastly the monthly returns associated with that rank.
|Affiliate Rank||Required Earnings (Monthly)||Required Membership||Returns (Monthly)|
|Walton||$40 to $79.99||Basic Plus or higher||$10.10|
|Brin||$80 to $149.99||Basic Plus or higher||$50.10|
|Page||$150 to $249.99||Pro or higher||$100.10|
|Bloomberg||$250 to $499.99||Pro or higher||$200.10|
|Ellison||$500 to $749.99||Pro Plus or higher||$410.10|
|Koch||$750 to $999.99||Pro Plus or higher||$660.10|
|C. Koch||$1000 to $1499.99||Pro Plus or higher||$910.10|
|Slim||$1500 to $1999.99||Premier or higher||$1370.10|
|Ortega||$2000 to $2499.99||Premier or higher||$1870.10|
|Zuckerberg||$2500 to $2999.99||Premier or higher||$2370.10|
|Arnault||$3000 to $3999.99||Premier Plus or higher||$2750.10|
|Buffett||$4000 to $4999.99||Premier Plus or higher||$3750.10|
|Gates||$5000 to $5999.99||Premier Plus or higher||$4750.10|
|Bezos||$6000 to $9999.99||Premier Plus or higher||$5750.10|
|Prosperman||$10,000 or more||Premier Prosperman||$9750.10|
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ClubShop Compensation Plan
The ClubShop affiliates have two options to become eligible for MLM commissions:
- By recruiting and referring other people to join ClubShop
- By paying the ongoing affiliate membership fees.
There are mainly two types of earning in ClubShop Compensation Plan: Fast Start Bonus and TNT Residual Commission.
Fast Start Bonus
As soon as the personally recruited affiliate pays his first monthly fee, the leading affiliate earns 50% commission of the fee paid.
Also, a 50% commission is paid when the personally recruited affiliate upgrades the membership tier.
TNT Residual Commission
The TNT i.e. “Taproot Networking Technique” is used to calculate the residual commission of ClubShop affiliates.
ClubShop follows a unilevel compensation structure to pay the residual commissions.
The residual commission is capped at six unilevel team levels.
As soon as an affiliate completes six vertical lines of a unilevel structure, he receives the Team Pilot Status.
The residual commissions are only paid on the affiliate membership fees that too after one month.
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So we have discussed the ClubShop compensation plan and it seems interesting. But let us have a look over the other side where a few facts bring ClubShop in question.
ClubShop is Ponzi scheme?
It can be seen from the compensation plan that the affiliates are charged fees and asked to bring more people to earn a commission. Only after the payment of the fee of recruited affiliates, they are paid commissions.
There is no data available regarding how the monthly returns are paid to the affiliates. The only source of income that can be seen directly is the affiliate membership fees.
Hence it can be assumed that ClubShop creates a closed-loop flow of money and pays the money of new affiliates’ memberships to the old affiliates as commissions.
Above facts combined indicate that ClubShop is a Ponzi Scheme.
The operators of ClubShop themselves are in question and still are promising to provide guaranteed returns without disclosing any scope of income.
By paying referral commissions, they are luring people to bring more people in it.
Director of Proprofit Worldwide Perotti was promoting Ad2Prosper which was a pyramid scheme before purchasing ClubShop.
Apart from this, the presence of the TangiCoin logo at some places in the official compensation plan presentation again brings doubts.
TangiCoin is connected to TangiWorld which was promoted by Ad2Prosper. Ad2Prosper was a five-level deep pyramid scheme and with the facts we saw, ClubShop can also be concluded as a six-level pyramid scheme.
Should I join ClubShop?
According to the above facts, we can conclude that ClubShop is a money-circulation scheme. They are using coupon vouchers as dummy products to attract people and operating a Ponzi scheme.
Its operator has a nasty history and the company don’t have authorization from regulators to provide a public investment opportunity.
In short, it’s all about rob peter to pay paul. So keep yourself alert to these schemes and investigate before you invest.
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