The Company: Commhubb
Founder/ CEO: Vathek Mohr et al.
Affiliate Fees: $0
The company claims they will "occupy the Internet and make it free for everyone" by 2018. Provided you don't spend time and money recruiting people and you don't rely on an ROI from potentially valueless shares, there's not a whole lot of risk involved. I do not recommend it though.
What Is CommHubb?
According to the website this is a company who is going to make the Internet free for everyone and the reason they are doing this is because they "all about the people" and want to leave something good in the world.
To accomplish this goal they are trying to get as many people as possible to sign up for a free account and will earn money displaying advertising to those members over the next couple of years. By the end of the year 2018 they say they'll be doing an IPO (Initial Public Offering) to raise millions of dollars which will allow them to fund their very own ISP (Internet Service Provider) network. The end result is apparently going to mean free internet for the entire planet...
Who's Behind This Operation?
According to the website, there are 3 founders who own this company however, there is only one person officially listed named Vathek Mohr. There is no information on the website about where the company is located or who these people are and the website has been registered anonymously. I was unable to find any information about Vathek either... no social accounts, no picture, no nothing. Why so secretive?
Is This An MLM Company? Yes.
On several occasions the company website claims they are not a multi level marketing company.
Not only is this a blatant lie but stating this presents a massive red flag. There is nothing wrong with being a legitimate mlm company so why try to hide this? You get paid to recruit people into your 5 level downline... need I say more? For an absolute fact, this is an mlm company. Plain and simple.
Any legitimate mlm company must be providing a tangible product for members to be purchasing and should form the basis of any commissions earned. The only product offered by this company is a closed network advertising opportunity.
This form of advertising is generally pretty low grade but it can work to an extent IF you are promoting similar programs and if the member base is large enough. You are not told how many impressions or clicks you will receive though so it is difficult to evaluate properly.
Apparently, you are buying '1 week or 1 months' worth of advertising in various locations throughout the site. It stands to reason that not everyone can display ads in those locations at once so exactly how much exposure you are paying for is unclear.
The also provide a once off $50 purchase to display your link in one section of the members area for life which is realistically pretty useless.
Are They Really Going To Give The World Free Internet?
It's a nice ideal to try and provide the world free Internet, but is this realistic and could the company actually pull it off? Call me skeptical, but I highly doubt it. It seems I'm not the only one...
It seems they changed their story from 'free' to 'cheap' after you sign up and dig through the FAQ's section. It is theoretically possible to build their member base up into the millions and earn revenue through advertising, yes. As a result they could potentially grow a profitable company for themselves. They'd have to be pulling in some pretty epic numbers and getting a lot of people on board with their advertising to create an IPO in 2018 and launch their own ISP though.
Assuming by some stretch the company is legitimate and they do pull this off, are we really expected to believe they are going to just give Internet services away to the entire globe as stated? Come on.
Could this be a sneaky way to convince tons of well meaning people to promote the 'cause' and grow their member base while they sit back making money selling advertising on their site? Could they simply disappear after a couple of years and not pay out a single 'share'? I personally think this is very likely, especially since the value of the shares is hearsay until the company goes public.
The CommHubb Compensation Plan
The basic idea is that you get paid to refer people into your downline and when those referrals refer people, you earn on their efforts as well. Legitimate mlm companies base these commissions off genuine product sales, however this comp plan pays you directly for affiliate recruitment which is another red flag.
The difference with this particular plan is that you stop getting paid on your 1st level after 5 direct referrals which is strange. So, in this particular case it is NOT infinitely wide.
Since no one is paying to join this it stands to reason the funds used to pay the following commissions are coming from advertising revenues.
Level 1: Capped at $1 for your first 5 referrals
Level 2: Pays out $0.10 per referral
Level 3: Pays out $0.05 per referral
Level 4: Pays out $0.01 per referral
Level 5: Pays out $0.01 per referral
All things considered, this is a very unattractive compensation plan and in my opinion it borders on being a pyramid scheme. The only way they are avoiding being flagged as one is that membership is free and there is no cost to qualify to earn commissions. No matter which way you look at it, getting paid to recruit affiliates who then get paid to recruit affiliates is the hallmark of such a scheme.
Earning Shares In The Company
Along with earning recruitment commissions, you are also earning shares in this company. Since the company is not publicly traded this is not a standard investment. According to the company, members are engaging in what is known as insider trading. I am neither a lawyer nor an expert when it comes to the legality of investing, but it appears there are both legal and illegal forms of this type of trading as the link to the SEC website above explains.
What I do know is that these shares are not valued at anything and will not be until the company goes public which will possibly be by 2018. There is no way to know when or even if they will go public.
How It Works
There are several ways you can earn these 'shares' in company stock.
- Upon joining you are given 5 shares
- You earn 2 shares for anyone you refer to join and another 2 shares for anyone placed in your downline
- Every time you get 50 shares, the company will match it and give you another 50 shares
This means the only way to earn shares after getting your first 5 is to recruit people under you, which means participating in a recruiting scheme. The fact is that these shares are not actually worth anything. You could spend the next 2 years promoting this and build up 100,000 shares and if the company never goes public and never actually comes to be worth anything of value, you'll make nothing!
The website compares itself to that of Apple, Google and Microsoft and encourages you to 'get in on the ground floor' since the shares will be worth something down the line. Maybe they will, maybe they won't. Pretty hard to know considering we are dealing with practically anonymous founders.
Is This a Worthwhile Venture?
If all you do is sign up and get 5 shares, no harm done right? If you buy advertising and it gives you results, awesome! However, if you go out and spend your time and money working hard to build a downline in this company then I don't think it's worth it.
If you are relying on the future income from the shares then you are placing your trust in whoever is behind this site and since we don't even know who that is, good luck with that.
It might be free to join but this will take real work and often times real money to refer people just like any other mlm program. This compensation plan is neither ethical nor lucrative and to make any decent money as it stands it's going to mean MASS recruiting. This means that mathematically the majority of people will not make much money at all since there are such large numbers required for such a small amount of commissions. Furthermore, given the nature of recruiting schemes this is not a sustainable model.
What I Liked
- It's free to join
What I Didn't Like
- Operates as a recruiting scheme
- The value of the shares is $0 and that may never change
- The founders are practically annonymous
- Claim it's not mlm and other inconsistencies in their story
- There have already been a number of failed withdrawal requests (watch this closely)
While this is free to join and you do get a few free shares, it is impossible to know their true value and there are very real concerns overall as explained. I am personally not convinced that building a free ISP is their true objective. It is quite possible they are simply using this as a way to build their member base and profit from advertising without ever intending on paying out ROI's to members with shares. Either way, I do not recommend investing time or money on advertising to promote this scheme as it stands.