Crowd1 says it has things to sell

But just how ‘tangible’ are they?
The company says its ‘chicken’ (its network of around 7m people) is in place and it’s now just a matter of sorting out what ‘eggs’ they should sell. Image: Shutterstock

Controversial Spanish firm Crowd1 says its recently launched range of digital products shows that it is an above-board operation.

The group, which claims to be a multilevel marketing firm, reiterated this point after it was accused of being a pyramid scheme by various financial regulators around the world, including the Bank of Namibia on February 21.

Locally, the South African Reserve Bank’s Prudential Authority is investigating the company to see if it’s acting like a bank, while the National Consumer Commission said a few weeks ago that it is looking into whether it is a pyramid scheme.

Read:

A pyramid scheme is where most of the revenue comes from signing up new customers rather than the sale of a product.

Crowd1, which is run by Swedes, says the release of its digital products demonstrates that it is a serious business that will be around for a while.

“We are here for the long term,” said Johan Staël von Holstein, CEO of parent company Impact Crowd Technology SL, at a launch event on July 4. “We need to take away the suspicion this industry has. We need to be transparent and compliant.”

The event was a showcase of six companies it had signed up as partners as well as the launch of its own publication, Crowd magazine.

But wait, there’s more …

A closer look at some of the companies it has signed up, however, raises more questions than answers.

MyGritHub, which is based in the United Arab Emirates, for example, sells real estate training packages from between €99 and €2 499. Its website does not spell out many details about the specifics of these packages and questions such as ‘Are the products region-specific?’ and ‘What  is the price difference between buying your products directly or through a Crowd1 affiliate?’ could not be asked as technical issues on its site did allow emails to be posted through it.

There are also questions around its e-sport partner Miggster, which provides no contact details and doesn’t offer any description of the service or product it provides.

There is a similar story with gambling service AffilGo; while it does give a description of its service, no contact details are provided.

LifeTrnds, a US-based multilevel marketing travel service, is also lined up as a partner but is also yet to deliver a product.

Discounts and ‘commission’

Though there are questions around the actual products of these companies, Crowd1’s other partners – Nigerian-based luxurious skincare products, fragrances and jewellery group Tribute Lifestyle, and South African security app SAfer – do provide tangible products and services.

Tribute Lifestyle’s can be bought through its Facebook page, but Crowd1 says not only will its members be able to make purchases at unspecified discounts, they will also get a cut from any “network commission”.

For its part, the SAfer app can be downloaded through various app stores and the service paid for directly.

SAfer’s normal offer in SA is R49.99 per month but Crowd1 members can get it for R44.99 per month.

Chicken and egg

At the launch, Von Holstein asked global regulatory authorities to give the group a chance to prove itself. He said Crowd1 had solved the “chicken and egg” problem multilevel marketing firms face when trying to figure out whether to focus on growing the sales network versus finding the right products to sell through this network.

With a sales network of about seven million people, Von Holstein said the group’s “chicken” is in place and now it is just a matter of sorting out the “eggs” (the products).

From the group’s promotional videos at the launch, however, it looks like South Africans do not need the eggs these companies are developing in order to derive an income from Crowd1.

Members spoke of how they paid off debt or bought a Mini Cooper for a daughter – despite the group still being in the process of defining (and switching) products in the year or so in which it has been operating.

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my reaction is still thanks, but no thanks – simply in the first place i don’t need your “product / service”

“If it looks like a (Ponzi scheme), swims like a (Ponzi scheme), and quacks like a (Ponzi scheme), then it probably is a (Ponzi scheme)”. 🙂

It’s chickens in this case, not ducks?

A fool and their money are soon to be parted

As with facebook and twitter, the members are the product

How much do those members pay for their membership? And how much does a Facebook member “earn” because he/she has members below them?

Also the members(users), the owners(investor & shareholders) and customers(advertisers) of Facebook et al are not the same persons.

So no, not a good comparison to make your point.

Mirror Trading International is easy money.

They trade Bitcoin making billions and would like to share it with you. The fact that they don’t even know you does not matter.

Get your slice of the pie now!!!!

It almost sounds to good to be true. Hahahaaaa.

This scam has nothing on MTI (Mirror Trading International) even Covid-19 cant spread as fast as this PONZI.

Ecsponent also had things to sell

A fool and his money are easily parted.

What is always really entertaining, is how vehemently such a scheme’s victims (sorry, “members”) will protest that it’s a real business, and how angry they will get at media reports pointing out that the emperor has no clothes.

Pyramid scheme 101 – any scheme that requires investors below you in the stack to increase your share is a pyramid scheme.

Thats not true.

It is likely a Ponzi scheme , but not always.

That’s exactly what makes it so attractive and why so many get tricked into participation.

There are a number of factors to consider. I have no doubt that Crowd1 is a Ponzi scheme or some derivative there off.

I

‘We have things to sell’ is a rather bazar statement from any company.

Stay away.

I wish the authorities would investigate Karatbars and that Lifestyle Galaxy Bitcoin bunch, living large, business class flights all over all advertising “success”. That will be the next big one to blow, mark my words. MLM=Ponzi.

You people shut up! If your pockets are full then let the people make money while they can.

Surprising they dont offer Crypto as well.
Lots of innocents and tasty bait.

End of comments.

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