Welcome to my Freebay review!
You might have come across Freebay as you’re searching for a legitimate investment.
For some reason, it might have aroused your curiosity, and want to know more about what they offer.
If this is your concern, then this content is what you’re looking for!
In this review, I will provide you a thorough investigation of their business opportunity and help you determine whether it’s a good investment or not.
So is Freebay a scam? Or is it legitimate?
- Name: Freebay
- Founder: Jurgen Pulvermuller
- Price: Initial membership is free. But to participate in the earning process, you need to avail membership package starting from €480 to €4,600, annually.
- Recommended?: No!
What is Freebay?
Freebay was founded by Jurgen Pulvermuller in June 2020.
It is labeled as Multi-Level Marketing that provides educational materials on cryptocurrency trading. All of this is stored in a video library they call Freebay Academy.
With this being said— I don’t feel that they are an MLM after all, and they might be running a Pyramid Scheme.
For one thing, they have no retail products to offer, and their operation is pretty much dependent on recruitment, as you will see as we progress.
Also, Freebay is the rebranded version of a Gold Ponzi scheme called Karatbars International, which was founded by Harald Seiz. (1) (2) (3) (4)
I also reviewed companies alleged to be a Ponzi and Pyramid Scheme in the past. You can check them out if you like—Million Money, Zukul, Mining City, Jamalife Helpers, and ClicXAds.
Or you want to check the full list of reviews here.
The Freebay business opportunity
The hallmark of Pyramid Schemes is their complex and almost incomprehensible compensation plan.
Those offered by Freebay is no different. It seems like you’d need an expert finance person to decipher the entire thing.
In dealing with Pyramid Schemes, you only have to remember one thing: they primarily depend on recruitment. I will explain more about this in the following chapters.
Anyway, the company currently rewards 12 rankings, which includes the following—
- One-Star Sapphire
- Two-Star Sapphire
- Three-Star Sapphire
- One-Star Emerald
- Two-Star Emerald
- Three-Star Emerald
- One-Star Ruby
- Two-Star Ruby
- Three-Star Ruby
- One-Star Diamond
- Two-Star Diamond
- Three-Star Diamond
Also, their income streams are as follows—
- Daily Investor Bonus
- V999 Token Investment
- Recruitment Commissions
- Residual Recruitment Commissions
- Matching Bonus
- Generation Bonus
I will simplify their compensation plan in the section so that you may comprehend them more clearly.
What are its income streams?
Daily Investor Bonus
The top ten investors of Freebay with the largest volumes shall receive a company-wide bonus of 0.01%.
As the term implies, the bonus is paid on a daily basis.
V999 Token Investment
As mentioned, the potential member invests in what they refer to as V999 tokens.
Now, the company claims to provide a daily sharing of V999 Token Investment Rewards that amounts to 0.02%.
The investor of Freebay shall receive a Recruitment Commission based on the membership package they recruit avails.
Also, the commission rate shall depend on your rankings and packages purchased as well. The summary is as follows—
- One-Star Sapphire – the investor receives a 7% commission.
- Two-Star Sapphire - the investor receives a 15% commission.
- Three-Star Sapphire - the investor receives a 21% commission. Another alternative is that they have to recruit an investor availing of the EVO Academy package.
- One-Star Emerald - the investor receives a 23% commission. Another alternative is that they have to recruit an investor availing of the EVO Expert package.
- Two-Star Emerald - the investor receives a 25% commission. Another alternative is that they have to recruit an investor availing of the EVO Life package.
- Three-Star Emerald - the investor receives a 26% commission.
- One-Star Ruby - the investor receives a 27% commission.
- Two-Star Ruby - the investor receives a 28% commission.
- Three-Star Ruby - the investor receives a 29% commission.
- One-Star Diamond - the investor receives a 30% commission.
- Two-Star Diamond - the investor receives a 31% commission.
- Three-Star Diamond - the investor receives a 32% commission.
Residual Recruitment Commissions
Freebay uses a binary model of network marketing for Residual Recruitment Commissions.
This means that the representative has two personally recruited investors directly under him.
And then, the two investors will each have two personally recruited investors under them, and so forth and so on.
Residual Recruitment Commissions are based on the total Group Volume generated from recurring payments from lower networks.
The summary of the group volume points are as follows—
- 2 group volumes are generated from monthly payments of EVO Academy.
- 5 group volumes are generated from monthly payments of EVO Expert.
- 10 group volumes are generated from monthly payments of EVO Life.
- 24 group volumes are generated from annual payments of EVO Academy.
- 60 group volumes are generated from annual payments of EVO Expert.
- 120 group volumes are generated from annual payments of EVO Life.
The representative earns through pairings. The income is decreased as the number of pairs is increased. Also, the ceiling is at 180,000 pairs.
The summary is as follows—
- €25 is earned in each of the first 10 pairs.
- €20 is earned in each of the first 11 to 25 pairs.
- €18 is earned in each of the first 26 to 50 pairs.
- €17 is earned in each of the first 51 to 100 pairs.
- €16 is earned in each of the first 101 to 150 pairs.
- €15 is earned in each of the first 151 to 200 pairs.
- €14 is earned in each of the first 201 to 700 pairs.
- €13 is earned in each of the first 701 to 2,100 pairs.
- €12 is earned in each of the first 2,101 to 4,500 pairs.
- €11 is earned in each of the first 4,501 to 10,000 pairs.
- €10 is earned in each of the first 10,001 to 30,000 pairs.
- €8 is earned in each of the first 30,001 to 80,000 pairs.
- €5 is earned in each of the first 80,001 to 180,000 pairs.
It’s a bonus that qualifies the Two-Star and Three-Star Sapphire to One Star Emeralds.
They become eligible for a Matching Bonus if the personally recruited investor of the representative reaches the same rank as their sponsor.
It is summarized as in the following—
- A 5% Matching Bonus is received by investors in the ranks of Two-Star Sapphire.
- A 7% Matching Bonus is received by investors in the ranks of Three-Star Sapphire.
- A 10% Matching Bonus is received by investors in the ranks of One-Star Emeralds.
So how about high ranking investors?
They earn the next bonus…
Freebay adapts a unilevel of network marketing in providing Generation Bonus.
What this means is that the personally recruited investor of the representative shall all be placed directly under them.
You have to be in the ranks of Two-Star Emerald or higher to qualify for a Generation Bonus and paid up to seven levels deep.
The bonus is summarized as follows—
- 1% Generation Bonus is paid to the first, second, and third levels.
- 2% Generation Bonus is paid to the fourth up to the sixth level.
- 3% Generation Bonus is paid to the seventh level.
How much will it cost me to join them?
The good news is that the membership fee for Freebay is free!
What’s the bad news?
You will not earn anything if you choose this membership fee.
To participate in the earning process of Freebay, you have to either settle membership fees monthly or annually.
There are four available membership plans, and it is as follows—
- Free membership – as mentioned, no income opportunity here.
- Academy Membership Package – its cost is €480 annually or €50 monthly.
- Expert Membership Package - its cost is €1,820 annually or €190 monthly.
- Life Membership Package - its cost is €4,600 annually or €480 monthly.
Of course, the higher the investment, the higher the investment should be. However, the membership packages are too expensive, considering that the risk of joining Pyramid Schemes is very high.
If you want a more legitimate source of income, one that won’t require you to spend thousands of money, then check out my best work-at-home recommendation below—
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Is it a reliable source of income?
Success is in Pyramid Success is very rare and risky.
Pyramid Schemes fail to meet expectations because of two factors—
As stated earlier, Freebay requires potential investors to provide payment if they want to benefit from their compensation plan.
This can become problematic if the investor isn’t earning anything but continues to provide recurring payments.
Recruitment is the bread and butter, or the lifeblood of MLMs to put a more accurate term. The reason for such is that their entire structure will collapse without it.
Imagine this for a moment—if the investors at the very bottom of the network fail to recruit sufficient people under them, it will cause them not to earn anything as well.
On top of that, they have to settle monthly or annual fees, which will lead to losses eventually. Thus, it will result in them becoming inactive and quit the business altogether.
This cycle will continue up to the next bottom level, and then the next and so forth and so on…
It will continue up until it finally collapses.
If you’re looking for a more reliable and risk-free source of income, then you have to check out the following description—
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Is Freebay a scam?
Although MLMs, Pyramid Schemes, and Ponzi’s have their similarities, they are technically different on the grounds of legality.
The primary distinction of an MLM (Multi-Level Marketing) is that they also function as a direct selling company—which explains why they are considered legitimate.
When you invest in them, you receive something of value that you can resell for profits.
On the other hand, a Pyramid Scheme is illegal because you don’t receive anything in return. What you get instead is just a promise of high returns.
Also, its income streams are primarily dependent on recruitment.
With this being said—Freebay doesn’t have anything to retail merchandise to offer.
The company is relying on recruitment for stability. Therefore, this classifies them like a pyramid scheme.
You have to note that this type of business model is considered illegal and even banned in many countries that include the United States, Canada, the United Kingdom, France, and Germany, just to name a few of them.
What I Don't Like About Freebay
It’s linked to a Ponzi
As mentioned earlier, Freebay is connected to Karatbars International.
A Pyramid Scheme
The operation of the business seems to be more focused on recruitment.
No BBB credentials
The Better Business Bureau or simply the BBB is one way most people do to check the credibility of a company.
Not having one doesn’t necessarily mean that a company is immediately fraudulent, but it will definitely have a huge impact on the decision-making of the individual.
Success is recruitment-based
Your success in the business is based on your lower network.
What I Like About Freebay
I can’t find any positives about the company.
I hope my content has provided you the answer to this all-important—is Freebay a scam? Or is it a scam?
In my opinion, the company is a Pyramid Scheme because it mainly depends on recruitment.
If you’re looking for a legitimate source of income, then continue to the next section and discover how you can achieve financial freedom online…
Why I choose Affiliate Marketing over Pyramid Schemes
Affiliate Marketing is a better alternative than any companies engaged in Pyramid Schemes, Ponzi’s, or Multi-Level Marketing for few apparent reasons, and it includes the following—
- It is free, to begin with!
- Super Affordable!
- No Upsells!
- Unlimited income because you can essentially promote as many businesses as you want!
Yes, what you’ll basically be doing is to promote a brand using an affiliate link through your online site.
And then, you earn commissions every time someone engages the link you’ve provided and use it to purchase the products or services offered in the landing of the brand you’re promoting.
Of course, the success of this endeavor relies on the quality of traffic being driven into your website.
If this is your concern, then I have an excellent solution for you!
Tickle the description below and learn how you can create a stunning website that’s driving a lot of traffic from scratch—
Well, I guess that’s just about it!
Thank you for taking time off and reading my “Is Freebay a scam” content!
I hope to see you next time!