Surge365 is a Multi-Level-Marketing(mlm) company operating in the travel niche. Launched in 2015, this company provides access to an outlet called Vortex that allows people to get discounts on cruises, rentals, flights, hotels, and other travel services.
With credence given to technicality, Surge365 cannot be tagged as a pyramid scheme or a scam. After all, it has a product it markets. Also, there is a probability that the company would still be in existence should affiliate or investor recruitment stall.
Yet, there are obvious signs that invest ing Surge365 could turn out to be a bad investment choice. Worse, Surge365 could be a Ponzi or pyramid scheme in disguise. Today, in the mlm space, It is not uncommon to find companies with marketable products but whose business workings and offerings qualify them as Ponzi or pyramid schemes.
The antecedent of the owners of Surge365 is something to worry about for investors. Coach Tomer, Scott Tomer, Chris Cokley, and Duane Vancil joined forces in 2015 to bring about Surge365. Before 2015, Coach and Scott Tomer ran YTB International – a pyramid scheme posed as an mlm company in the travel niche.
Investors’ downward ratings and various lawsuits drove YTB International into bankruptcy in 2013. Earlier, YTB International had featured on the Better Business Bureau(BBB). In released data, the BBB claimed that over 80% of the income being got by YTB International actually came from new affiliates and not from other sources. This gave YTB International off as a pyramid scheme.
While Surge365 founders’ prior connection with Ponzi schemes does not necessarily mean that Surge365 is another Ponzi scheme, the obvious sign of a reinvention can not be overlooked.
Notably, the chances of earning much with Surge365 are very low. At a time when skepticism about mlm companies is sky high, Surge365 has to meet up with high sales and recruitment requirements. In the previous economic year, 65% of Surge365’s investors earned nothing at all while only 21% could manage to earn an average income, according to Surge365’s income disclosure.
Being an mlm company, it is clear that only a few early adopters really have the opportunity to earn much. The amount of money an average investor could earn does not match the rigours of direct selling and recruitment.
More importantly, a person who is newly introduced to the MLM business model doesn’t stand a chance of really grasping exactly how Surge365 is going to compensate them as a Business Associate. This is because Surge365 runs an unnecessarily complicated compensation plan. The same could be said for its ranking system.
Surge365 runs a basic 5 tiered ranking system with about 8 sub ranks interspersed into the highest ranks. It also runs a compensation plan filled with 11 kinds of incentives and bonuses meant to drive sales.
The over generosity of Surge365 put aside, the requirements needed to be met to move up the ranks are over-the-top. The fact that the travel much is overcrowded with other companies offering a more viable income opportunity does not help
The Federal Trades Commission( FTC) gives enough reasons to steer clear of Surge365 and other mlm companies. According to the FTC, 99% of all MLM participants lose money. The chances of profiting by running your own small business are 38% more than by joining an MLM. The profitability rate of running an online business is 10% – 20% higher than the profitability rate of joining an MLM.
Also, a 2018 poll of 1049 MLM reps across various companies found that most of them make less than 70 cents an hour, 20% of them never made a sale, 60% of them had earned less than $500 in sales over the past five years, and 32% of them acquired credit card debt to finance their MLM. Clever investors would want to steer clear.