In this review we have a look at Crowd1 that is promising you an opportunity to make money from your home.
What is Crowd1
Crowd1 is presented as a marketing company based in the UAE that gives people all over the world the opportunity to make money in the digital economy.
To start you have to buy one of the packages, the cheapest one costs 109 euros. Then you have to make other people buy these packages to make money.
The packages include things like access to a social gaming platform (Miggster), audio courses for personal and professional growth (Mindoe), better deals for hotel booking (LifeTRNDS), a strategy game (Planet IX), loyalty points and a digital business card.
How much can you make? It depends on how many people you refer to Crowd1, how much these people spend, how many other people these people refer to the system and so forth.
Stay away from Crowd1
We believe that it is better to stay away from Crowd1 and in this review we explain why.
Typical pyramid scheme
Crowd1 is unfortunately a typical pyramid scheme. Meaning a structure that sells more or less useless products just to look legal, while the main aim is just to build a pyramid structure that will take money from new members and pass it on up to older members.
And you don’t have to take this explanation from us, because several financial regulators from different countries have already warned the public against Crowd1, for example the FMA from New Zealand, FSC from Mauritius, Bank of Namibia, SEC from Philippines or the CNV from Paraguay. Even the BBC has a video about Crowd1 being a pyramid scheme that people should avoid.
Don’t get us wrong, legit products can be sold through a multi-level structure. But it is not the case with Crowd1 because it is selling products that nobody really needs.
The most important thing is that Crowd1 packages are not marketed as packages of products, but as a way to make money. This is why it was blacklisted by the financial regulators listed above. Because Crowd1 is in fact an investment scheme and it does not matter what they say on their website.
What counts is how they really work and regulators have seen through Crowd1’s structure. If there were no products at all, it would be a straightforward Ponzi scheme and scam.
But Crowd1 has some products, even though they are bogus, so it is a Pyramid. Which in many countries is also illegal, you can consult it with your national financial regulator to see what is Crowd1’s status in your country.
Why you should avoid Crowd1
In the paragraphs above we have described how Crowd1 works. It is reselling bogus products in a pyramid structure, so people earn thanks to commissions on their referrals’ sales.
So in order to make money, you will have to promote Crowd1 and make people buy their packages. Which can already be illegal, because promoting illegal pyramid schemes is not permitted in many countries. Again, for more information, see with your national financial regulator.
In any case you would have to persuade people to buy those bogus products. Which is nearly impossible, so you would have to sell them for what they are – a cash flow in a pyramid scheme.
How long do you think such a scheme can last? Pyramids of this kind always stall and then collapse, history is full of examples. Unless you have a product that people need and want, your multi-level structure is destined to collapse.
In such schemes only the people on top levels make some decent money, then some will be happy to break even, while the majority will lose their investment.
Most of the people involved in programs like Crowd1 will get nowhere, they will just pay their entry fee and never get anything back. It is because most of the people don’t realize how hard marketing and recruiting is, even if you have a good product, which with Crowd1 you don’t. You don’t to be introducing people to a structure that is considered illegal in many countries, do you?
Crowd1 review – Conclusion
Several regulators have flagged Crowd1 as an unauthorized investment scheme because it is a pyramid selling useless products. You should stay away from it.
If you are interested in legitimate investing, you can try a free demo account with a regulated broker.
If you consider investing real money, please be sure to understand the risks.