Welcome to my Crowd1 review!
Is Crowd1 a scam?
This question might be going through your head, as you’ve seen the opportunity online.
This is how MLMs do to promote their products. You could see them anywhere online.
You might have become curious and wondering if they are a good investment.
If you’re searching for answers, then you have come to the right place.
In this review, I will provide answers and hopefully help you come to a conclusion about whether you should even consider the company or not.
So is Crowd1 a scam?
Let’s find out…
Crowd1 Review
- Name: Crowd1
- Website: crowd1.com
- Founder: Undisclosed
- Price: Membership fee is from €99 to €2,499.
- Recommended?: Definitely Not!
What is Crowd1?
Crowd1 is an MLM (Multi-Level Marketing) that’s supposed to sell opportunities called the mobile networking community.
They do not have retail products to sell, only giving the members the ability to create and grow an online network via digital marketing programs.
So you don’t really get anything, only a promise of returns when you invest in them.
It sounded more like a pyramid or Ponzi scheme than MLMs. With no retail products to sell, your only option to earn is through recruitment.
The Crowd1 domain was established back in 2007 but was only updated in 2018.
The founders, CEOs, and current owners are not clearly stated.
I have reviewed other companies with similar nature—Kangot, Tradera, Forsage, and Money Press Map.
The Crowd1 business opportunity
The business opportunity offered by Crowd1 is no different from others.
It’s very convoluted, which seems like you may need a professional finance person to comprehend the entire thing.
In perspective, any people who join MLMs primarily earn two ways—
- Retail sales – they sell the company’s digital products and then receive commissions as a result.
- Recruitment – they have to build their lower network and make sure that they remain active. In this way, they improve their personal volumes and bring them an inch closer to advancements and earning a higher income.
That just how it is! It looks like they’re making their compensation plans as complex as possible to prevent potential recruits from asking many questions.
Doing so exposes the many flaws of the business model (I’ll be explaining this in the later section).
And to save themselves completely, what they do is just show you how much is potential earnings.
If you’re looking for a more reliable source of income, then doing MLMs is not the way to go.
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What are the income streams of Crowd1?
The income streams of Crowd1 is as follows—
Residual Commissions
Crowd1 adapts a binary compensation model.
This means that you earn income based on each leg of the affiliate.
The income you’ll earn also depends on pointing systems. The points are derived depending on the products availed by the retail customer or affiliate—
- The white package costs €99 that yields 90 points.
- The black package would costs them €299 that yields 270 points.
- The gold package that costs €799 yields 720 points.
- The titanium package would costs them €2,499 yields that 2,250 points.
Matching bonus
This feature is earned through residual commissions from the members’ lower network.
- Purchase the white pack and personally recruit four new members and earn a 10% matching bonus on the first level.
- Avail the black pack and sponsor eight new members and earn a 10% matching bonus on the first and second levels.
- The member is supposed to earn a 10% matching bonus the first through third levels when they are able to recruit twelve new recruits.
- Purchase the gold pack and sponsor sixteen new members, and earn 10% matching commissions on the first through fourth level.
- Avail the titanium pack and personally recruit twenty new members, and earn 10% matching commissions on the first through the fifth level.
Streamline bonus
It’s a bonus that’s supposed to improve returns from the owner’s share.
This bonus works through a scheme they call company-wide recruitment. It is still derived from the people you signup and becomes your lower stream.
The bonus starts with the members’ third level network.
The summary is as follows—
€7.50 earnings per week on the third level. The package needed is the white pack with two sponsored recruits.
€10 earnings per week on the fourth level. The package needed is the white pack with three sponsored recruits.
€15 earnings per week on the fifth level. The package needed is the black pack with five sponsored recruits.
€25 earnings per week on the sixth level. The package needed is the black pack with five sponsored recruits.
€50 earnings per week on the seventh level. The package needed is the black pack with seven sponsored recruits.
€75 earnings per week on the eighth level. The package needed is the black pack with eight sponsored recruits.
€100 earnings per week on the ninth level. The package needed is the gold pack with nine sponsored recruits.
€150 earnings per week on the tenth level. The package needed is the gold pack with ten sponsored recruits.
€200 earnings per week on the eleventh level. The package needed is the gold pack with eleven sponsored recruits.
€250 earnings per week on the twelfth level. The package needed is the gold pack with twelve sponsored recruits.
€500 earnings per week on the thirteenth level. The package needed is the titanium pack with thirteen sponsored recruits.
€750 earnings per week on the fourteenth level. The package needed is the titanium pack with fourteen sponsored recruits.
€1,000 earnings per week on the fifteenth level. The package needed is the titanium pack with fifteen sponsored recruits.
There are no other specifics about this bonus, like payouts.
Fear of Loss Bonus
It’s apparently their way of encouraging new members to actively sell or recruit as well.
For the first fourteen days, they are privileged for the following incentives if they are able to comply—
- The newly recruited member earns €125 per four white packs sold.
- The new member earns €375 per four black packs sold.
- The newly recruited member earns €1,000 per four gold packs sold.
- The new member earns €3,000 per four titanium packs sold.
Gambling Residual
The title is a bit misleading because some might imagine that the way the bonus works is literally through gambling.
However, it is not.
It is still connected with recruitment.
The Crowd1 MLM agent increases its shares anytime they persuade someone to join the company.
The percentage bonus depends on rankings.
How much will it cost me to join Crowd1?
Click here to redirect to their registration page.
The membership of Crowd1 is connected with the packages the potential recruit purchases.
The packs are as follows—
- White Package – it costs €99.
- Black Package – it costs €299.
- Gold Package – it costs them €799.
- Titanium Package – it costs €2,499.
Of course, if you want to access their higher source of income, then you have to avail of the more expensive products.
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Can you make a reliable income from Crowd1?
Earning any reliable income from Multi-Level Marketing, in general, is extremely rare.
The business model of MLM is very flawed that the likelihood of losses is much higher than gains.
In fact, studies show that 98% of people who join MLMs incur losses than have any profits.
This instance was elaborately discussed in Jon Taylor’s book, “Multi-Level Marketing Unmasked.”
The explanations why MLMs fail to meet expectation is because of two things—
Recruitment
People who join MLMs have to recruit continually.
This is especially true when some of your lower networks have become inactive or quit altogether.
Capitalization
MLMs usually either charge a huge sum of money for memberships or require them to make monthly payments.
In the case of Crowd1, the member has to cash out and avail of the expensive digital products.
And it because problem to the investor that may lead to losses if the company fails to provide results—and take note that Crowd1 resembles a pyramid or Ponzi scheme since they do not offer anything in return.
And such a business model is a very high risk that the chances of incurring losses are much greater than having any form of income.
Is Crowd1 a Scam?
As mentioned, since they do not offer anything tangible products that the investor may sell, they do resemble a Pyramid or Ponzi scheme.
This may be the case—it’s still considered a legitimate Multi-Level Marketing business in some areas.
But some countries like Norway, Namibia, and the Philippines, Crowd1 is considered illegal and labeled a fraud.
The Securities and Exchange Commission of the Philippines had banned the operation of Crowd1 in our country.
The government is taking it seriously that any people, over the age of 21, selling the product could go to jail.
You can read the full story here—“SEC orders CROWD1 to stop the illegal investment scheme.”
The Philippine SEC wouldn’t ban a company without any sufficient grounds, so they must have really found something fraudulent.
So please, there are so many alternatives you can invest your money into. Just avoid this company to prevent any consequences in the future.
What I Don't Like About Crowd1
Banned in some countries
As explained, Crowd1 is banned in the Philippines, Norway, and Namibia.
Success is recruitment-based
You have to create a large downline network to make a significant income.
The cheap initial investment, but…
Yes, the initial is only €99, which may be affordable to some people. But in order for you to have better standing to earn a higher income, then you may have to avail of their more expensive products.
What I Like About Crowd1
Absolutely no positives about this company, it is better than you put your money somewhere else. Please!
Final thoughts
Thank you for reading my review, and hopefully, it somehow helped you answer the question—is Crowd1 a scam?
Although they are still legitimate in some parts of the world, I do not recommend them or any MLMs for that matter.
The business model of MLMs is so flawed that the success rate is only 2%.
If you’re looking for a better option, continue to the next section…
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Thank you for taking time off and reading my “is Crowd1 a scam?” content.
I hope it does indeed help you.
Until next time!
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Thanks For reading Okuse 🙂