Wealth Generators is a Multi-Level Marketing (MLM) company that came onto the scene in 2013 and has been one of the hottest MLM companies since 2015. They made a lot of buzz; they promised to make everyone rich; and they signed up loads of associates to promote the business to others. But recently they got more attention this year thanks to its members using social media to attract people.
They sell a trading tool and promise that their software will give you an enormous return on your investments with 1-2 hours of work per month.
They give you a Forex trading platform and ‘training’ that is supposed to make you big money in a short period of time. However, you could download a Forex trading software also for free on the Internet. Companies are giving it for free because then they will earn commissions when a person trades money there.
Even though their product is supposed to concentrate on training, their main focus (like in all MLMs) is recruiting new people. I prefer affiliate marketing because there you don’t need to recruit new people. You can provide great value for other people and genuinely help them.
Colombia’s Superintendencia Financiera regulatory body claimed in December 2016 that Wealth Generators is a pyramid scheme. CSF is similar to the United States Securities and Exchange Commission (SEC). It’s a Colombian government agency that oversees financial regulation and market systems.
The Financial Superintendence of Colombia made this claim against the company on December 16, 2016: The Superintendency was able to verify that the mentioned company offers to pay “benefits,” represented in money, to affiliates that fulfill the requirement of recruiting more people who contribute their monetary resources—which is the only source of money that sustains the pyramid.
The success of Wealth Generators depends on the recruitment of more affiliates who contribute money to keep the pyramid growing in geometric progression.
I am always wondering how so many people get into MLMs. The promises of getting rich quick must sound so interesting that people are ready to risk a few hundred dollars for that. I know I was when Wealth Generators was presented to me.
Members or ‘recruiters’ are really getting tricky with how they present the scheme to you. The person who introduced me to Wealth Generators didn’t even reveal the name of the company until I had agreed to pay $260 to join the team.
Before, he presented it as his own business and had 20 people joining his training camp for one week. During the week he told you about the application MetaTrader4 that is a legit trading app, but investors spend lots of time and money before making a legitimate profit.
He gave me all the tools I needed to set up a dummy account and told me what I needed to trade in order to make money.
It seemed very easy and a great way to make money. However, what he didn’t tell me was that I would never get my money back if I don’t recruit new people.
I’m glad I did my research. Too many people don’t realize how MetaTrader works. The leaders make you believe that this is a good system and it will eventually work. New people are losing money until they recruit new ones and so on. One reason that MLMs spread to many countries is probably because in a new country people don’t probably know it’s a scam. But nowadays we have the Internet so you should always check a few reviews if somebody is selling you some get rich quick scheme.
If somebody tells you that they have made lots of money with Wealth Generators or with other MLMs, it doesn’t mean that a system is legit or valuable. Even drug dealers are making big money, but are their actions giving value to other people? The truth is that more than 80% of people never make money after joining an MLM system and 99% earn less than an average salary.
One important characteristic of a pyramid scheme is that its products are much more expensive than their real value. This is the case with Wealth Generators.
Even their cheapest products cost $149.99 per month, which equal to $1,800/year.
MLM systems excite people because it’s always something ‘new and different.’ They get a feeling of being their own boss for a while.
It’s something very different than their normal 9-5 jobs where they know the routines and everything is the same. But a normal day job is in 99% of cases more profitable than MLM-systems, so stay far away.