I first came across Crowd1 in Kenya when unexpectedly, I was added to a Facebook group and someone asked me whether I had heard about Crowd1.
Mark you, I was not invited to the group, found myself there (was added without my consent). Already this raised a red flag.
There so many MLM companies in the past that have left Kenyans empty and dry. I was not ready to join another (I will share with you my experiences with GNLD and how I was left with dead stock.
On inquiry from the promoter of this business, this is the message I got.
“Hello …….this is a growing online investment company that allows members worldwide to their own right(shares) in their investment plan through third party companies. Once a shareholder of Crowd1, you are entitled to profits accrued by four major affiliated companies and more joining thus creating a pull (sic ) of profits.
As a member, you are entitled to weekly streamline earnings of 2.5 Euros, which is paid quarterly as dividends (crowd1 rewards). There are four bonuses in place once a member and you earn from your team. The package to shares range from minimum 99 Euros. This is an opportunity that is giving millions of affiliates an extra earning. For more information and presentation if around, we are available.”
Wait a minute, would earning 2.5 euros (about Ksh. 280.00) a week excite me? This blog alone earns me 750 Euros a month without recruiting people and selling non-existent products.
I went into research to find out what exactly this is and whether GNLD has finally metamorphosed.
This what I found out.
So is Crowd1 a legit business or is it another scam?
The short answer is that Crowd1 is not worthy investing in for two reasons.
- It has no proper company profile and therefore looks suspect.
- It has no products its offering (A common feature with most pyramid companies).
The long answer, to understand those two points in detail, continue reading.
What Exactly is Crowd1 in Kenya?
Crowd1 provides no information on their website about who owns or runs the business. Any genuine will display the company profile on its website. Crowd1 fails to do so.
A closer scrutiny of the website domain “crowd1.com shows that the website was first created in 2007 and the last time it was updated was back in 2018.
According to the WHOIS, Stelios Piskopianos is the owner of Crowd1 Network Europe Ltd, whose email address is registered in Cyprus( Another red flag).
If you are not in the know, Cyprus is a safe haven for money laundering and as of writing this article, is a scam friendly country with no MLM regulations. Looking at Stelios Piskopianos Linked profile, this person has background in things finance.
However, curiously, Crowd1 does not appear on Stelios Piskopianos profile. Why would that be the case?
Whether Stelios Piskopianos is working alone or with some other individuals is unclear. You would expect a company to be run by a board of directors.
How does Crowd1 operate?
A close look at the business model revels the following details discussed below. You can go through this to decide whether this is good for you.
One thing that Crowd1 fails to say is what its products are. Any genuine company sells some product or service. We all know what Safaricom or Kenya Breweries sells. Crowd1 has nothing to show. What affiliates are marketing is the membership alone.
Affiliates are required to invest funds with the promise of advertised returns. According to Crowd1, this done as follows.
- White – Invest €99 EUR and receive €100 EUR worth of owner rights shares.
- Black – Invest €299 EUR and receive €300 EUR worth of owner rights shares.
- Gold – Invest €799 EUR and receive €1000 EUR worth of owner rights shares.
- Titanium – Invest €2499 EUR and receive €3500 EUR worth of owner rights shares.
How does affiliates earn? This could be familiar to you if you have ever joined GNLD or Forever Living.
Theirs is a binary system which requires that you have a right and left leg, that is you have to sponsor two people and expect then to sponsor two others and so on.
This is illustrated better below.
As you can see, the first level houses two levels, the next four, then eight and so on. Of course, you being at the top.
The positions are filled by direct and indirect recruitment of affiliates (that is why I was approached in the first place). This can go on to obtain a deep binary team.
Residual commissions are then paid based on investment volume generated on both sides of the binary team (this is what my would-be recruiter did not tell me).
Investment volume is tracked via points earned, which correspond with Crowd1’s investment tiers as follows:
- White – 90 points
- Black – 270 points
- Gold – 720 points
- Titanium – 2250 points
Crowd1 calculates residual commission using what they call a “1/3 balance” ratio. A 1/3 balance ratio sees residual commissions paid out on investment volume generated on the weaker side of the binary team.
This volume is matched in triple against the stronger binary team side (assuming matching volume is available). Once a payable volume is tallied up, affiliates receive 10% of the total volume amount.
Let us say an affiliate signs up at the black tier, this generates 270 points, which is marched with 810(270*3) points on your strong team side.
10% of this is then calculated leading to 81 Euros. Mark you, your investment at the black level would be 299 Euros.
Note that if 810 points do not exist on the stronger binary team side, the system will try to match either double or an equal amount of points from the stronger binary team side.
If there is not enough to match the weaker binary team side, only 10% on the weaker binary team side points is paid out.
According to Crowd1, Matching Bonus is paid on residual commissions earned by downline affiliates. The Matching Bonus is paid out via a unilevel compensation structure.
A unilevel compensation structure, if you may not know, places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them.
This better illustrated below.
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3, this goes on and on to infinite number of levels. However, Crowd1 caps payable Matching Bonus unilevel team levels at five.
How many levels a Crowd1 affiliate earns the Matching Bonus on is determined by an affiliate’s personal recruitment efforts.
The efforts you put in goes as follows;
- When you invest at the White tier and recruit four investors = a 10% match on level 1 (personally recruited affiliates).
- When you invest at the Black tier and recruit eight investors = a 10% match on levels 1 and 2.
- When you recruit twelve investors = a 10% match on levels 1 to 3
- When you invest at the Gold tier and recruit sixteen investors = a 10% match on levels 1 to 4.
- When you invest at the Titanium tier and recruit twenty investors = a 10% match on levels 1 to 5.
You see, it is hard work out there.
Another bonus that Crowd1 talks of is the Streamline bonus. This seems to be a way to increase owner rights share returns.
So how does this one go?
As they say themselves, Crowd1 tracks the Streamline Bonus via company-wide recruitment. When you sign up and people sign below you, they fall in your Streamline Bonus.
There are “streamline levels” that correspond with how much a Crowd1 affiliate has invested as follows;
- White tier affiliates receive three Streamline levels
- Black tier affiliates receive eight Streamline levels
- Gold tier affiliates receive twelve Streamline levels
- Titanium tier affiliates receive fifteen Streamline levels
Other than stating “all Streamline Bonus is paid out in exclusive limited Owner rights”, Crowd1 fails to explain how exactly the Streamline Bonus is paid out to affiliates.
Gambling is a word I do not like, but seemingly, Crowd1 affiliates can increase their share of company-wide gambling revenue.
This is how.
This starts at 5% at the team leader rank and increases to 10% for the director. Note that to be a team leader, you have to generate 500 points in weaker binary team volume and to be a director; you have to generate 500000 points.
If you are seeking to join Crowd1, then it would be important to note that it is an open-ended investment MLM opportunity (no formal ROI structure), with pyramid recruitment to drive new investment as opposed to selling products or services. According to them, their revenue is generated though gambling online.
To join Crowd1, you can do so at four levels as follows;
- White – €99 EUR
- Black – €299 EUR
- Gold – €799 EUR
- Titanium – €2499 EUR
Your recruiter will often talk about the first level.
This article brings you all the information you would be looking for about the latest company to hit the Kenyan streets.
This article is not meant to encourage you to join, but to give information you will require to make a sober decision.
Personally, I would not waste my time and money joining. There are better risky free ways to make money online. You can start a blog like mine or invest in shares at the NSE or government bonds. No money comes easy.
Have you heard of Crowd1 in Kenya? If so what are your experiences?