Recently the SEC alleges Zhunrize to drive a Pyramid Scheme and the SEC’s argument is “substantially all of Zhunrize revenue has comes from the sale of memberships (referred to as stores)”.
Dubli is a larger MLM with a simular e-commerce program and cashback shopping mall and has been expanding to the USA.
Dubli’s strategy is very open as it is a public company and has warned in its own report:
“Continuing analysis of the customer subscriptions, the inherent danger Dubli faces is that, in bundling so many subscription vouchers with paid affiliate memberships, there won’t be a significant amount of customers purchasing subscriptions”.
And:
We are subject to the risk that, in one or more markets, our network marketing program could be found not to be in compliance with applicable law or regulations.
Regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers and that advancement within an organization is based on sales of the organization’s products rather than investments in the organization or other non-retail sales-related criteria.
Affiliate membership to Dubli is available at three price-points:
Business License – $594 ($99 +