Digital Downline fails to offer possession or government data on its web site.
Digital Downline’s web site area (“digitaldownline.com”), was first registered in 2004. The personal registration was final up to date on August twenty third, 2024.
Additional analysis reveals two Digital Downline LLC shell firms not too long ago registered:
- Digital Downline LLC was registered in Washington by way of an agent utilizing a Lafayette Oregon tackle on September sixteenth, 2024
- Digital Downline LLC was registered in Oregon by way of the identical Lafayette Oregon tackle by Brandon Brown on October twenty second, 2024
On social media Brandon Brown cites his location as British Columbia, Canada.
In Digital Downline advertising movies Brown has posted to social media, he cites himself as the corporate’s founder:
Why this data isn’t disclosed on Digital Downline’s web site is unclear.
Of be aware is Digital Downline additionally showing to be marketed as “Excessive Ticket Franchise”.
Brown seems to have an extended historical past in digital advertising. Current schemes he’s been concerned in embody Fearless Entrepreneur and Attraction Advertising and marketing Professional.
On the MLM facet of issues Brown is a high-ranked Enagic distributor:
Enagic markets Kangen water filters that price 1000’s of {dollars}.
Of be aware is the above Enagic advertising materials claiming Brown not too long ago moved to California from Canada.
As all the time, if an MLM firm is just not brazenly upfront about who’s working or owns it, assume lengthy and arduous about becoming a member of and/or handing over any cash.
Digital Downline’s Merchandise
Digital Downline has no retailable services or products.
Associates are solely capable of market Digital Downline affiliate membership itself.
Digital Downline affiliate membership supplies entry to video trainings from Brandon Brown.
Digital Downline’s Compensation Plan
Digital Downline doesn’t present customers with compensation particulars on its web site.
The next compensation particulars are put collectively kind numerous off-site Digital Downline advertising displays.
Digital Downline associates pay month-to-month charges starting from $100 to $2000:
- Mentee – $100 after which $80 a month
- Apprentice – $250 after which $200 a month
- Recruiter – $500 after which $400 a month
- High Producer – $1000 after which $800 a month
- Elite – $2000 after which $1600 a month
Commissions are paid after they recruit others who do the identical.
Referral Commissions
- recruit a Mentee tier affiliate and earn $40
- recruit an Apprentice tier affiliate and earn $100
- recruit a Recruiter tier affiliate and earn $200
- recruit a High Product tier affiliate and earn $400
- recruit an Elite tier affiliate and earn $800
Referral commissions are paid out month-to-month so long as recruited associates proceed to pay charges every month.
Matching Bonus
Digital Downline pays a 100% Matching Bonus on referral commissions earned by personally recruited associates.
Becoming a member of Digital Downline
Digital Downline affiliate membership prices between $100 to $2000 after which $80 to $1600 a month:
- Mentee – $100 after which $80 a month
- Apprentice – $250 after which $200 a month
- Recruiter – $500 after which $400 a month
- High Producer – $1000 after which $800 a month
- Elite – $2000 after which $1600 a month
Digital Downline Conclusion
With nothing marketed or offered to retail clients, on the floor Digital Downline presents itself as a easy MLM pyramid scheme.
I did see a “Pupil” choice in some advertising movies however that is by no means addressed. It seems to be a token try as pseudo-compliance.
You join, pay charges and earn commissions on recruitment of associates who do the identical.
Left opaque within the Digital Downline advertising displays I watched was whether or not associates must buy-in to a tier to earn from it.
Usually associates who recruit somebody who has purchased right into a tier they haven’t lose the fee to somebody who has purchased in.
If we have a look at how funds are made into Digital Downline, we discover newly recruited associates straight paying present associates:
This makes Digital Downline an MLM gifting scheme, which is basically a pyramid scheme variant.
Word that for each preliminary gifting tier buy-in throughout Digital Downline, Brown takes a minimize (because of this the month-to-month gifting funds are lower than the unique qualification buy-in).
It ought to be even be famous that participation in unlawful gifting schemes violates the TOS of PayPal, bank card processors, CashApp and Zelle.
Along with gifting schemes being outright unlawful throughout the US, Digital Downline associates are additionally placing their private fee accounts susceptible to termination.
Talking of termination, whether or not Enagic are conscious certainly one of their top-ranked US distributors is working an unlawful gifting scheme on the facet is unclear.
Gifting schemes investigated and prosecuted as fraudulent enterprise alternatives by the USPS, FTC and DOJ.
Breaking down regulatory compliance, when you might have contributors paying contributors in MLM you’re working a gifting scheme.
Extra potential FTC Act violations Digital Downline is committing embody:
- failure to reveal firm possession data to customers; and
- failure to reveal compensation particulars to customers
- failure to supply customers a refund
As per Digital Downline’s refund coverage;
The acquisition of a package deal from the Digital Downline library and the Digital Downline membership payment is NON-REFUNDABLE.
The MLM gifting enterprise mannequin renders no matter is hooked up to the mannequin, digital advertising movies on this occasion, irrelevant. Consider it just like the previous “however we have now merchandise!” pyramid scheme protection.
A comparatively latest instance of a gifting scheme being taken down by US authorities is Blessings In No Time (BINT).
The FTC filed go well with in opposition to BINT’s co-founders in June 2021. The DOJ adopted up with legal fees in November 2023.
One other instance is 8 Determine Dream Way of life. Initially taken down by the FTC in 2019, the 8 Determine Dream Way of life defendants settled for $31.9 million in 2020.
The DOJ adopted up with 8 Determine Dream Way of life arrests in January 2024.
As with all MLM gifting schemes, as soon as Digital Downline recruitment dries up so too will gifting funds.
This may ultimately trigger a collapse, ensuing within the majority of contributors dropping cash.