Category : Scams
Lately, there has been activity on a site called Smashfund. There are those who believe it to be the best thing since sliced bread, and there are others that see all the makings of a scam on the way.
For me, let’s just say I have been slammed by a few website owners that have embraced Smashfund with open arms telling everybody how fantastic they are and you better hurry up and sign up under them.
Some people are claiming they have made money from the people they have invited to sign up as far back as May. The fact is their posts were published before July in the prelaunch period. Publishing posts before July mean no money has been collected so there is no way they have been paid for anything yet. For some of the other ones, they feel they have their July payment covered. Hope they’re right!
So what is Smashfund and what are these red flags people should be cautious about before joining?
The launch date for Smashfund was July and everybody could join free of charge before that. What Smashfund wants, is you to invite and sign up as many people as possible before July for free by using an affiliate referral code, then everybody will start to pay a monthly charge of $149 moving forward. At that point, they say they’ll start their multi-level payout for those connected.
First, consider the 10/10 that people have been giving Smashfund in reviews to join an organization that has done nothing, proven nothing other than give you the big spiel of how fantastic they are.
Here you have an organization that states it is the first social network and crowdfunding platform built into one.
In the month of May, I read reviews from some about how great Smashfund is, and they are going to make all kinds of money because they have people all signed up on the prelaunch with them.
The funny part to me is at the same time these reviews were coming out, if you signed up the members area was not even ready for any profiles.
That part of the website was not to be ready until July. So even though you could not create a profile they were ready to take all your credit card details before you could have access to what they have not prepared yet.
They also state how they will be dealing with crowdfunding but that part is blank, and they have nothing in place.
I guess all their time needed to be spent on making sure your credit cards could be accepted, and they’ll consider the rest later.
Using MLM tactics
Here you have a system that takes free social networking and combines it with crowd funding and decides you can now pay $149. You’ll be given a unique URL for tracking activity by your affiliate referral code.
There are no real products/services other than having people pay the $149/month so you can earn money off their credit card payment from all the recruited people in your downline. These would be people that like the idea of paying for their social media instead of using free ones like Facebook, Google+, Linkedin to name a few, to be paid for people wanting to be part of social media that requires everyone to pay up.
Now the plan is to take this $149 and break it down to pay $50 out for direct invites who sign up with you. Then $4 for each person who subsequently connects to your invited people known as viral connections will be paid to you. Your total allowable downline is a max of 16,000 connections for your network.
There are no time lines or goals to meet or percentages taken from contributions other than the third party Stripe fee of 2.9% + $0.30 per transaction. Funds are to be deposited weekly.
So as an affiliate you are paid $50/month for each recruit.
You also receive $4/month uni-level compensation plan.
Level 1: Personally recruited members
Level 2: Your level 2’s recruited, members
And the downline continues…
Their compensation plan is incomplete to where or how there may be caps in place etc.
A lot of people who have seen MLM’s before, have a better understanding of how these companies come up with some loophole for how you’ll be paid or lose the earnings by not meeting requirements.
The system is set up for you to give all your credit card information before you could get access to the members area for this free prelaunch system.
Yes, you heard me correctly that the free prelaunch was only free with the entrance of your credit card details. No credit card, no entrance to the free prelaunch.
Oh, wait! It gets better, not only was there no place to set up your profile, there was no area where you can cancel your credit card or quite. Later in June they modified it so you can add more credit cards, but there is no canceling. Once you signed in for the prelaunch, you’re paying for July. They now have full access to your credit card.
What you get is a video of the owner explaining very little and having access to next to nothing.
What Rob Towles the owner of Smashfund did do was make sure that you and anybody else you got to sign up, gave all your credit card information. This way you cannot change or cancel it so he can collect your money after the prelaunch and also anyone who enters now will instantly pay.
If the details up till now have not been raising any red flags of yet, then try Googling the CEO of Smashfund, Rob Towles.
It appears that back in 2009/2010, Rob has a lawsuit for a pyramid scheme already against him. Google his name and you’ll get this “Efusjon-Pyramid Scheme Alert.”
Efusion was an MLM business based on an energy drink. Rob was sued in 2010, and the doors closed for Efusion.
A company called LabActive came out in 2013 where DSA records showed Rob Towles is behind it even though the site does not mention it anywhere. The site appears to be abandoned with no growth.
Setting the bait
So how do we go about recognizing the red flag waving all around us? The classic get rich quick routine. Smashfund offers you the potential to earn up to $64,000 per month.
To get you in the right frame of mind where they need you, they use the comparison of Facebook and what they have become. They want you to think of how rich you’d be if you had a dollar from every member on Facebook.
There are many major flaws with this way of thinking. Just to mention a couple of issues on why Smashfunds comparison is crap. First off Facebook is free to join. All the great sites that are built on free platforms are beyond any paid platform.
Every one of the social medias that offer a free profile has far more free members than paid subscribers.
Secondly, Smashfunds primary concern seems to have everything set up for receiving your money, and nothing else is complete or ready.
Earning potential with Smashfund?
With all the hype and the rose colored glasses they put before your eyes, you’ll make like a banded.
If you sign up five people/week by the end of the month, you’ll have earned $1,000. Each month that will grow as you recruit more, so long as they don’t bail on you.
So you’re probably wondering why I mentioned about people bailing on you. Here’s the thing, MLM’s are notorious for always recruiting people just to see them quite, and you have to find more to replace them.
Now this is just standard procedures with MLM’s that have quality products/services that they offer, but they constantly lose people, and you have to keep replacing them.
Most people are not into direct sales or recruiting others.
So what is going to happen, when you tell people they are going to pay $149 for an affiliate link. Smashfund has no real products/services that they offer and your paying to join a social network when most people already belong to free ones.
Now they are saying you have the opportunity for crowdfunding but once again what is so special about trying to drum up money from others with Smashfund than with other crowdfunding sites.
For me, it’s a simple decision that requires very little thought about whether to spend any time or money on Smashfund, No!
Most people want the best deal they can have so when it comes to social media Facebook and all the other social media websites that offer free packages will always rule. These free sites also have options you can buy into which is good business for them and good offerings for those paying for the marketing as they are established.
Smashfund is nothing more than a smoldering wet fire with people taking the bait hook line and sinker scrambling to make money selling an affiliate link.
I have never seen a business last through the years without a product/service that helps people. Trying to earn money by being on top or in first is more of a failing pyramid scheme that always collapses when it’s based on passing money around without products/services.
I realize as some people can not see the forest for the trees they will continue to be up in arms about this post. If I’m wrong and after a few years down the road Smashfund proves itself, then I’ll say so but until then It is not a place I’d recommend.
If you’re looking to make money, then I recommend a place that you have the opportunity to try for free with no requirements of having to use a credit card.
The only time you’d need a credit card is if you decide to go for the premium package for full access. You could cancel at any time, for any reason, if you chose to. I think you’ll find as I have and thousands like me in the community, this is the place to be when you’re serious about having an online business.