The Company: FutureNet Club
Current CEO: Stephan Morgenstern
Startup Cost: $10
About FutureNet Club (FNC)
The website was launched in September of 2014 and according to the WHOis database is run out of the Marshall Islands. It was c0-founded by Stephan Morgenstern and Roman Ziemian, both of which are listed as the current CEO.
The company also owns Future Ad Pro (FAP) which is a revenue share advertising platform. Signing people up into FNC will likely result in additional referrals coming into your FAP downline because FNC members will be eager to drive people to their landing pages and build their organisation.
Likewise, FAP members are going to be coming into FNC to maximise their income potential.
A Brief Word On This DUO
This is a good way to maximise your business but it’s not all roses and sunshine. The traffic quality is rubbish in those kinds of platforms- hence why it’s so cheap.
This is amplified by the fact that you are (to an undetermined extent) promoting FNC to people already signed up. To make money inside FAP you MUST view 10 ads per day, so the only reason a lot of people are even viewing your ads is because they have to.
The vast majority of people viewing ads inside FAP are doing so only because they have to in order to make money in that program. Much like a traffic exchange, ad viewing is essential to get ad views in return or qualify for something. The point is, it’s useless traffic.
I recommend you read this article on traffic exchanges to learn more about this kind of traffic. Will this arrangement drive more sales to and from each platform? Yes. Is FAP a good place to advertise? Given the inherently low quality traffic you’ll need to purchase TONS of views and/ or clicks to see any kind of worthwhile return.
The Social Aspect Of The Platform- Not So Fun!
There doesn’t seem to be any kind of non-business related social activity taking place at all and there’s a lot of spam kicking around:
It’s also full of sponsored ads, like every post on my ‘board’ was an advertisement for something. I suppose company sponsored ads is to be expected though and doesn’t really bother me but it’d be nice if there was more than just advertising at every corner though. It’s safe to say that by far and large the only ones using this platform are those pushing their opportunity.
I found something I’d almost overlooked with this that concretes my thoughts on this even further… the higher level you purchase into the opportunity, the more you are allowed to post and network each day. Yep!
If this wasn’t about gurus pimping their biz op, why would this be in place? Why should ‘standard members’ have less of an opportunity to share value and thoughts with people? Now, in all fairness I don’t think many people joining this are joining for the social aspect alone anyway so I don’t see it as much of a deal breaker in itself, it does however paint a clearer picture of what this is all about.
People in these sorts of platforms are building a business, plain and simple.
They’ve learned the art (some more subtly than others) of recruiting through personal networking. Make no mistake, as soon as you have no interest in buying something they offer, joining or upgrading their program- they’ll suddenly lose interest in talking with you.
In other words, from a social networking point of view, this is balls deep in all kinds of useless. For pimping your opportunity and building a list of prospects on the other hand, you’re in the right place.
Media Product Overview
Here’s some of the products on offer:
- Landing Pages- make money online niche
- Cloud Storage- quite reasonably priced according to my research
- Blog creator and website templates- nothing unique about what they are offering
- Video email- meh
- Other marketing products- again, meh
These are the kind of products that will allow a person looking to promote this opportunity some of the tools needed to get referrals. Through participating in the social side of things you can earn ‘media points’, these points allow you to buy the above products once you accumulate enough of them.
This is another incentive for recruiters to get amongst the social side of things- they get credits to put towards building their downline.
Compensation Plan Explained
As far as mlm comp plans go, this one seems pretty lucrative and gives distributors the chance to start small and work their way up. There are two main systems used in this compensation plan– a uni-level downline and a 3×10 forced matrix downline. I’ll explain those below as they apply but just know there are 2 different downline systems that your referrals will be going into at the same time to facilitate different ways of earning.
Costs Involved In The Opportunity
Enrolment Options: You can get rolling for free but you won’t earn much until you purchase a ‘matrix’ option. There are 6 matrix options to choose from and each come with a set amount of media points that will allow you to purchase the companies products- all of them except advertising.
Here’s a screenshot of the 6 ranking positions:
Each rank unlocks more credits and ultimately higher income potential through the recruiting side of things. You cannot just purchase one $100 level though, you must first purchase the $10, $25, $50 and then the $100 media point pack- so the $100 rank is going to cost you $185. Exactly how these packs come into play is explained in detail below.
Staying Active: There does not appear to be any kind of monthly fee or requirement to stay active which is pretty cool for an mlm. I could be wrong about this, but I couldn’t see anything anywhere in the comp plan or in the terms and conditions saying otherwise.
Other Expenses: This is going to include advertising and a landing page first and foremost in order to get referrals. If you buy enough media packs you’ll be in a position to get rolling with a hosted landing page/ autoresponder system. You’ll need to buy in at the ‘Gold’ rank to start off if you want a 12 month landing page subscription for this since it costs 9000 media points or $90.
The traffic on the other hand must be purchased using actual money, most of this traffic you will be encourged to get through FAP.
Ways You Can Earn
Social Media Platform Activity: Just for logging in, filling out your profile and participating in the platform you can make a few cents and earn some points.
Promoting Your Own Products: If you have an idea for a digital product you want to sell you could use this platform and leverage it’s member base to sell it. They give you 50% of whatever price you set when someone buys. This would only be good if you had some kind of highly relevant ‘biz opp’ style offer though in my opinion. You must have purchased one media pack to be eligible.
Sales Bonus: You’ll earn a 30% commission on any of the media products you sell to those you sign up directly- every customer must sign up under someone as if you’d recruited them for the opportunity. It’s the same process.
In addition to this you’ll earn between 3-5% of whatever media products your team is selling. This way of earning places your team members in your uni-level downline. This uni-level works by allowing you to place unlimited people on each level, 10 levels deep.
Think of this downline as a full map of exactly who recruited who since no one is ‘forced’ to go into any particular position as is the case in the matrix I am about to explain.
Selling Advertising: You’ll earn a 20% commission whenever someone you sign up purchases advertising inside the FNC platform.
Matrix Commissions: This is referred to as the ‘friends bonus’ in the comp plan. Each membership option/ rank constitutes a different and completely separate matrix downline system for you to earn from. They are all a 3×10 ‘forced’ matrix and are based on the matrix positions purchased by your referrals.
A 3×10 forced matrix just means you can only ever recruit 3 people on your first level and each of them can only have 3 on their first level and so on, 10 levels deep. The idea behind a matrix is that you have no other choice but to build your referrals downline at the same time as yours since you have a pre-determined number of people on each level.
This is a screenshot of exactly how many members can be on each level of your matrix. The actual commission amounts represent someone with a fully completed ‘Exclusive’/ $100 matrix.
Each member can only earn in a particular matrix if they have purchased it themselves and all the previous matrices. So to earn at the $100 matrix you must have purchased it and the previous 3 matrices as well, totalling $185. The end result of building your income in this way is that you will have 6 completed matrix downlines that cost you $1685 to participate in.
Each completed matrix is going to (but doesn’t have to) have the same referrals across multiple matrices. This is because referrals in one matrix can also move into your next matrix downline once they purchase a level you have personally acquired.
For example: You recruit John and he is only at the $25 (basic) matrix. You have purchased and are building your Sapphire matrix. John decides to buy his way into the Gold matrix, at which time you will earn a $4.25 commission (5% of $85). John later decides to buy all the way up to ‘Royal’ rank and since you haven’t obtained this matrix yet, you do not get that commission. You would only get a commission from the Exclusive and Sapphire matrices that you own. Of course, if any of your matrices along the way are full (59,049 reps) you’ll make nothing from John.
What a lot of people will do is recruit tons of people at the lower levels as quickly as possible and encourage them to continue purchasing matrices and ‘following you’ through as they earn and it becomes more viable.
Matching Bonus: Depending on the individual matrix, you can earn between 10-50% of whatever your direct referrals are making within their matrix organisations.
Leader Bonus: This is a 1-7% commission based on (appears to be based on) your entire downline’s purchasing including matrix positions, advertising and media buys.
Prizes: There are various prizes on offer from a smartphone to an Audi and each requires you to reach certain milestones and accumulate a certain number of points. Points are earned through your organisations purchasing.
Is This a Ponzi/ Pyramid Scheme?
To answer this, let’s look at some of the facts.
There is no retail store and everyone that signs up must go into their referrers downline or if they don’t have one are automatically assigned one. This means that the only time you are making any commissions is when someone has signed up into your downline because there is no other option for people to buy these products. Moreover, all of these products are geared towards promoting the same opportunity.
If the majority of people purchasing products are those who are interested in recruiting and the products don’t represent good value within themselves, then this does present a red flag.
Ponzi schemes pay existing members primarily through revenue gained through new investors, not by revenue gained by selling legitimate products and services. Considering the main way to make decent money is through massive recruitment and you are being paid when people purchase ‘recruitment opportunities’ AKA matrices, it doesn’t look very good.
Fun fact: showing the pyramid upside down doesn’t make any less of a pyramid scheme. Just saying…
If this is some kind of scheme does that mean you won’t make any money?
No. Lots of people make money with pyramid schemes, Ponzi schemes, cash gifting schemes and just about every other scheme under the sun, that’s the whole point. It just means it is not a sustainable business model for any length of time and is not going to be profitable for the majority.
Something like this is going to require a lot of recruiting to make it worth your while and there are only so many people in the world wiling to sign up to something like this. Once recruiting slows, people start dropping off at the bottom end first which triggers an inevitable chain reaction all the way up the line. It really is that simple.
The question really comes down to this:
Is the company honestly providing a high value and marketable product and do they focus on product sales as oppose to chain recruiting?
This is a tricky question to answer and (why I think) so many schemes operate untouched.
For example: the advertising potential within FNC and the networking potential amongst a niche group of business opportunity seekers are valuable products in themselves. Without the opportunity though, how many people would there be left to advertise to and network with? Few, if any. On the other hand, the cloud backup service is quite cost effective and could probably be marketed effectively on it’s own without recruiting. I very much doubt that anyone is signing up to promote cloud storage though, this would be a very small fraction of the companies overall revenue.
I’m not here to shout ‘scam’ or anything… I just want you guys to get the whole picture so you can make an informed decision. Unfortunately a lot of people sign up to these things without knowing all the facts which often leads to disappointment.
What I Liked
- Fairly lucrative compensation plan
- Low cost to start building your organisation
- Not about hustling family and friends like most mlm’s
- The products will help you build a downline to an extent
What I Didn’t Like
- Must sign up before getting any information
- Social side of things is pretty hopeless on all counts
- Compensation plan is grossly over simplified and hardly explains the full details adequately. It is very vague and ‘gimmicky’
- You are going to be relying on low quality ‘traffic exchange style’ traffic to get referrals
- System in place for providing distributors with training but the content is either missing or massively incomplete
- The marketing comes across very low budget and unauthentic
There is no doubt you could make money with a system like this if you know how to drive tons of traffic and convert that traffic into paying members. Looking at the social networking aspect along with the core products and the overall legitimacy of this business model though… this is not something I recommend to newbies trying to get started online.
You’ll likely end up spending tons of money on traffic and training materials to make money. That’s fine if you have the cash and learn from the right people, but quite often this is not the case when people are first starting out online. There are boatloads of programs online that are purely designed to make as much as they can out of people rather than actually helping them.
Speaking from experience, this can leave a person running around in circles having no freaking idea what to do except how to spend more money based on more false hope supplied by more self professed gurus… Again, this particular business opportunity could make you significant money, I’m not denying that. But I do think there are better options to consider.
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