DirectPayBiz Review – Pyramid Scheme Exposed

Review of: DirectPayBiz
Price:
$9.00 Tier ONE

Reviewed by:
Rating:
1
On February 23, 2014
Last modified:September 2, 2014

Summary:

Pyramid Scheme. Avoid

Is DirectPayBiz a Scam?

WARNING! You are entering a SCAM-FREE ZONE. 

 

If you arrived here in the hope of finding a portal to take part in the DirectPayBiz pyramid scheme, I have to disappoint you. I am in no way affiliated with this outfit nor do I provide any link to it.

You will find an honest REVIEW of pyramid schemes in general and DirectPayBiz in particular.

DirectPayBiz definitely belongs in the group of pyramid schemes. Great efforts by the owners try to disguise this fact. With this post I will expose pyramid schemes and show you why DirectPayBiz is one of the worse scams that someone can find on the Internet.

Many people think of MLM (Multi Level Marketing) programs as pyramid schemes due to the social organization of their business practice. Allow me to briefly explain the differences between MLM’s and pyramid systems. 

 

Comparison Overview:

 

 

DirectPayBiz Pyramid Scheme
This chart shows why pyramid systems can be impossible to sustain

MLM

What is it: Marketing Strategy

Purpose: Sale of tangible product and payment of commission to distributors at multiple levels

Compensation: New Enrollees are asked to purchase product upfront. An enrollment fee may be applicable. Participants then make money in form of price mark-ups and from the enrollment fees (where applicable)

Product: Different tangible products are being sold through MLM

Legitimacy: Legal

 

Pyramid Schemes

What is it: Fraudulent Scam

Purpose: To promote the program and recruit new members

Compensation: New Enrollees pay enrollment fee to join. Participants make money exclusively from the enrollment fee from new enrollees.

Product: There is no tangible product to sell. Pyramid schemes try to disguise their real purpose by offering new enrollees worthless goods (like out-dated e-books)

Legitimacy: Illegal

 

Pyramid Scheme models:

 

(1) The Chain Letter Scheme:

 

DirectPayBiz Scam Exposed
Looks darn good. Doesn’t it?
If only this Pyramid scheme would work!

I remember receiving a letter from a friend containing ten names and addresses. As instructed I mailed a $10.00 bill to the person on top of the list. Then I removed this person, added myself to the bottom and mailed ten copies to friends of mine.

I never received a single $10.00 bill. That was a long time ago though, and people wised up to the nature of this kind of schemes. The pyramid image above shows you why this thing just can’t work.

Sure, those that started the whole mess, and some early birds joining in, did indeed make good money. But late comers lost their money for obvious reasons.

But yet, times have changed and so have the means of running pyramid schemes. Computer technology and the Internet are the ideal vehicle to reach a vast pool of potential participants.  Sure enough, the scammers just re-invented the pyramid scheme and gave it a different name.

 

(2) Forced Matrix Scheme:

Definition: A Forced Matrix is a system where there is a limit to the number of referrals any affiliate member can refer.

They claim that their new system is not a pyramid scheme due to the fact that you will be forced to move up to the next tier and are not allowed to recruit new enrollees.

More details about Pyramid Schemes, their differences,  legality and how the different countries are dealing with them, can be found by following this link:

http://www.crimes-of-persuasion.com/Crimes/Delivered/pyramids.htm


I have chosen the DirectPayBiz scam to demonstrate to you how this works, and also why it is doomed to fail.

 

The DirectPayBiz Scam and how it is supposed to work:

 

DirectPayBiz Scam Review 2014
Keep reading and you will learn the truth about this scam!

I ask you to take a close look at the first screenshot, taken from their sales website. (Click on it to enlarge). This is the “teaser page” designed to draw people into wanting to see more and move on to the next page. What really stands out on this piece of crap is “Turn your $9.00 into $597,170.00“.

On the next page of their promotion you will find an explanation how it all works and here is a quick run-down.

You are greeted yet with more gloating how powerful the System is, how you can make $9, $15, $30, $60 or even $800 “multiple” times a day and how “incredibly easy” this all is.

This is followed by TWO tables which show you the “earning potential“, how much every move up the pyramid ladder will cost you and how much money you will receive in each tier. The introduction to this program is closed out with about 20 sentences filled with some technical details.

I almost forgot to mention the “fine-print“, conveniently snuggled between a bright red “$597,170” and a “Join Us Now!”, also in red.

“DirectPayBiz provides Instant Access to digital products as soon as your account activated! Every time a partner upgrades their membership access is granted to an increased quantity and value of new products. There are over 160 resalable e-books and software available for our members when they enter the system”

You can see how they try to disguise the real purpose of the program and, at the same time, make an effort to claim legitimacy for their pyramid scheme.

 

The Numbers Scoop

 

Time to talk about the numbers and start to unravel this scheme. I will show you the real meaning of the numbers of participants it really takes for you to reach a significant number of dollars flowing into your account.

Looking at the 2 tables provided at their website will help us revealing the real nature of this system.

 

DirectPayBiz Scam Revield Phase One
Phase ONE Pay Table shows the “potential” profit, but also the cost to join the different tiers

 

DirectPayBiz Pyramid Scheme
Phase Two Pay Table shows the End Goal of over 1/2 million dollars profit

 

 To participate only cost you $9 bucks, and you decide to give it try and shoot for the riches. Upon crossing over to the “other side“, you will get a referral link to “DirectPayBiz“. The link is actually a “one-page-website” you post on  Face Book, YouTube or any other social network you wish. There are thousands of this one-pagers out there, most of them claim to be a “DirectPayBiz Review” to draw in new recruits.

You also may e-mail a text link to all of your friends, family members and others you have on your e-mail list. Now you have done all the work there is and you wait for the money to flow in. Here is THE BEST CASE SCENARIO for you to make money:

 

Scam Free Zone to make money online
You joined DirectPayBiz, placed your member link allover and can take a well deserved rest.

1) Tier 1: This is a piece of cake and you received $45 from 5 new participants almost instantly. You are done with Tier 1 and move on to Tier 2. Even if there are more newbies participate through your link, you only can receive 5 payments at this level. The others spill over to other members at the same tier.

2) Tier 2: You pay $15 upwards to the person that referred you and now are awaiting 25 payments of $15. All five folks you referred must now fill up their tier 1 with 5 participants. Although it is a little slower now you hear the lovely sound of the cash register every now and then, but you receive a total of $375. Onward you go to Tier 3

3) Tier 3: This time it cost you $30 which you pay happily because now you are awaiting 125 payments of $30 each. Great, you think, that’s a cake walk. Now the going gets a little rougher, payments come in slow and several days go by before you, finally, receive the last of the 125 payments. WOW, you already made $3705.

4) Tier 4:  At a cost of $60 you finally can taste the sweetness of receiving $37,500 from 625 happy campers like you. You wait and you wait. Cash register slowed down considerably, but you do receive payments. Not really fast, but steady. It takes about 3 weeks and you can’t believe it! You did it; your PayPal account indeed shows that total of $37,500.00………and you move on to Phase 2.

Hallelujah! Of course you are elated and it “is so easy”! But is it? I only showed you the Best Case Scenario possible and this is where the NUMBERS come into play.

 

In the Real World:

 

I have a little task for you. Fetch a calculator, take a few minutes and try to figure out

How many participants are in your down line when YOU start Tier Four

When you are ready, simply hover over the Image below and find out if you came up with the correct answer:

 

Logo Design by FlamingText.com

I know you are thinking that I must have made a mistake; that the number is wrong because 5 x 5 x 5 x 5 = 625. That’s true, but look at what’s really happening here. To reach Tier 4 you received payment from 125 members, each needed 25 members in his down line to get paid; these 25 each had received 5 payments. Right?

Let’s do the math now.  125 x 25 x 5 equals 15,625. Another way to calculate this is to realize that while you are sitting on Tier 3, the 25 Tier 2 members each need their down line to fill up with 5 members. That brings the total there to 125 also. We now multiply 125 with 125 which equals 15,625. Same result again.

What does this all mean?

You need to understand that every single person participating is building a down line exactly the way you do. You can easily figure out that the pool from recruiting new members will dry up very fast. That’s the inherent problem all pyramid schemes have alike. And the noise you hear is “The Pyramid Crumble“!

Can you make a lot of money?

Yes, Maybe, No. It depends at what stage you enter the scheme. If you are lucky enough to enter immediately after a new launch, you may see some significant money rolling your way. However, the later a participant enters, the changes are very slim. In the worse case scenario a member will not even be able to make it past Tier 1.

Is it legal?

No. But the way the law in the USA is written, provides the scammers with an easy way to circumvent legal action against them. By making available out-dated e-books and worthless software (share-ware products) to their members to re-sell or even give away for free, they are able to operate their schemes.

Is DirectPayBiz a Scam?

Yes. And I give you the reasons for it:

  • Pyramid Scheme exposed
    Witness the “Crumble of a Pyramid” and watch the scammer “scramble”!

    It’s impossible (at least for me) to determine Ownership. My e-mails went unanswered and every other attempt I made to find out were equally unsuccessful. My best guess would be it was launched by the Syndicate of Internet Scammers, which promotes each others program on T.V. and “empower” (hint, hint) themselves to achieve their riches.

  • Another big UNKNOWN is the number of starter seeds. What would a group of people, let’s say 12 good buddies, stop from launching a pyramid scheme and put themselves as the No. 1 spot in 12 different matrices? Almost guaranteed to make it to Phase 2, they all would collect some significant bucks. I will let you toy with this thought, I said enough.
  • The 3rd reason DirectPayBiz is a scam is the frequency with which these kind of programs are popping up. Statistics show that there always is a quiet period of 28 to 36 months in between launches. Sure, you see a different name, the matrix has changed and so did the participation fee.

 

Summary: DirectPayBiz is a Pyramid Scheme and a Scam!

 

sign of two thumbs downI would recommend to avoid any kind of Pyramid Schemes altogether. True, the entry fee of $9.00 is low and the promise to make some money without having to work for it seems enticing. The amount you would lose is insignificant enough to warrant the try.

Before setting out to write this article, I joined DirecttPayBiz just to get “on the other side” and learn first hand what really is going on. Upon signing up and posting my link through different channels, I did not make it past Tier 2. So I made $36.00 and have no reason to be too upset.

 


 

However, I love making money the honest way. Not knowing anything about Internet Marketing and how to start my own business, I fell for some of the online scams. Finally, I came across Wealthy Affiliate and was interested about their program.

They offer to join their educational system for free, like test driving a car before you buy it, and even provide you with 2 free websites to start an online business. If you are interested in “jumping on the Internet bandwagon” to earn money online, I recommend you give Wealthy Affiliate a try. You can read my Wealthy Affiliate review right here for more details.

 solution to how to start an online business

 

 


 

John Worthy ProfileMy name is John, the owner of this website. Have you had any bad experiences with Pyramid Schemes or any other scams? I would like to hear the details about it. Drop a comment below or e-mail me directly. Thanks for dropping by and let your friends know about my website. e-mail: john@factsaboutinternetmarketing.com

 

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2 Responses

  1. John

    Wow that’s a very thorough number crunching expose. I didn’t know the difference between MLM and a pyramid scheme.thanks

    • John Worthy

      Thanks John, I hope people can understand the math behind it. Reality is that after tier 4 the number is way over 9 million. It takes not very long until the pyramid just crumbles down.

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