GivBux fails to offer possession or government info on its web sites.
GivBux operates from two web site domains:
- givbux.com – first registered in October 2017, personal registration final up to date on March third, 2024
- givebuxglobal.com – privately registered on July sixteenth, 2024
Additional analysis reveals Kenyatto Jones, aka Ken Jones, citing himself as founder and CEO of GivBux on social media:
On its web site, GiveBux gives a company tackle in California. This tracks with a 2019 Washington Division of Monetary Establishments consent order, citing Jones as a resident of California.
As per DFI’s consent order, which names GiveBux World Companions and Jones (proper) as Respondents;
Between January and March 2019, the Respondents raised a complete of $106,000 from the sale of frequent inventory in Givbux to roughly six buyers, together with an accredited investor residing in Aberdeen, Washington who bought 82,000 shares for $41,000.
Along with the Non-public Providing Memorandum, Givbux additionally disseminated an Govt Abstract, which contained deceptive monetary projections. Givbux said that it had a aim of 1.8 million customers inside 12 months.
Givbux represented that the worth of its buy transactions would develop from over $130 million within the first 12 months of operations, to over $3.4 billion within the second 12 months, and to over $13.9 billion within the third 12 months.
Givbux’s income was projected to develop from roughly $3.2 million within the first 12 months of operations to over $480 million within the third 12 months.
The Govt Abstract indicated that Givbux would earn a internet revenue of $423,151 within the first 12 months of operations, which might develop to over $64 million within the third 12 months.
These projections lacked any cheap foundation actually. Givbux did not disclose that these projections weren’t supported by the corporate’s historic efficiency, that the corporate was nonetheless testing and growing its app, and that it had not but earned any income.
The Govt Abstract deceptive said that Givbux had “No direct competitors on this area at [the] current time (none might be discovered with an associates program).”
In actual fact, the cell pockets and cell fee trade is extremely aggressive.
In its Non-public Providing Memorandum, Givbux disclosed that it competes with different well-established international cell pockets companies together with Apple Pay, Samsung Pay, and Sq., that are “a lot bigger than the Firm” and have “superior monetary assets.”
The Respondents did not disclose materials info concerning using investor proceeds, the monetary situation of Givbux, and the compensation that will be paid to Jones and different individuals.
The provide and/or sale of the frequent inventory described above represent the provide and/or sale of a safety as outlined in RCW 21.20.005(14) and (17).
Givbux World Companions, Inc. and Kenyatto M. Jones every violated RCW 21.20.010, as a result of, as set forth within the Tentative Findings of Truth, they made unfaithful statements of fabric reality or omitted to state materials information essential to make the statements made, in gentle of the circumstances wherein they had been made, not deceptive.
IT IS FURTHER AGREED AND ORDERED that Respondents Givbux World Companions, Inc. and Kenyatto M. Jones, their brokers and staff every shall stop and desist from violating RCW 21.20.010.
IT IS FURTHER AGREED AND ORDERED that Givbux World Companions, Inc. shall be chargeable for and shall pay a high quality of $1,000 on or earlier than the entry of this Consent Order.
IT IS FURTHER AGREED AND ORDERED that Givbux World Companions, Inc. shall be chargeable for and shall pay investigative prices of $500 on or earlier than entry of this Consent Order.
Jones signed the Consent Order on July seventeenth, 2019.
Pursuant to GiveBux setting a aim of 1.8 million customers by the tip of 2020, as of October 2024:
- GivBux on the Apple Retailer has 38 scores (downloads unknown)
- GivBux on the Google Play retailer has between 5000 to 9,999 downloads
As all the time, if an MLM firm just isn’t overtly upfront about who’s operating or owns it, suppose lengthy and laborious about becoming a member of and/or handing over any cash.
GivBux’s Merchandise
GivBux markets what it calls an ecommerce “tremendous app”.
GivBux goals to change into the worlds largest neighborhood of givers by turning into probably the most used buying app of alternative. The cell software has been designed to retailer, ship, obtain, donate and spend rewards.
GivBux customers can now use their cell gadget to make real-time purchases on the level of sale at many prime retail manufacturers, eating places, leisure venues and extra.
By making purchases at any of our taking part retailers, customers obtain rewards; the one requirement is to provide a proportion of these rewards to a worthy trigger.
Entry to GiveBux’s app is free.
GivBux’s Compensation Plan
GivBux pays commissions and bonuses tied to affiliate recruitment.
GivBux Affiliate Ranks
There are eight affiliate ranks inside GivBux’s compensation plan.
Together with their qualification standards, they’re as follows:
- Affiliate – refer and keep 5 energetic retail clients
- Supervisor – keep 5 energetic retail clients, recruit 4 associates and generate $250 in month-to-month GivBux app transaction quantity
- Director – refer and keep ten retail clients, have 4 Managers or increased in 4 recruitment legs and generate $500 in month-to-month GivBux app transaction quantity
- Space Director – refer and keep fifteen retail clients, have 4 Administrators or increased in 4 recruitment legs and keep $500 in month-to-month GivBux app transaction quantity
- Regional Director – keep fifteen retail clients, keep 4 Administrators or increased in 4 recruitment legs, $500 in month-to-month GivBux app transaction quantity and generate $300,000 a month in whole downline app transaction quantity (contains personally referred retail clients)
- Senior Director – keep fifteen retail clients, keep 4 Administrators or increased in 4 recruitment legs, $500 in month-to-month GivBux app transaction quantity and generate $750,000 a month in whole downline app transaction quantity (contains personally referred retail clients)
- Vice Presidential Director – keep fifteen retail clients, keep 4 Administrators or increased in 4 recruitment legs, $500 in month-to-month GivBux app transaction quantity and generate $2,000,000 a month in whole downline app transaction quantity (contains personally referred retail clients)
- Presidential Director – keep fifteen retail clients, keep 4 Administrators or increased in 4 recruitment legs, $500 in month-to-month GivBux app transaction quantity and generate $5,000,000 a month in whole downline app transaction quantity (contains personally referred retail clients)
GivBux defines a retail buyer as anybody who makes use of their app. Word that associates are explicitly not counted as retail clients.
A Buyer is anybody that has registered the GivBux App, that’s not additionally an Affiliate.
An energetic buyer is a GiveBux app consumer who has made a minimum of one transaction up to now month.
From Director, required clients should have $25 loaded into their app (one-time requirement). At the very least 5 clients should even be energetic.
Word that required month-to-month GiveBux app quantity is simply counted from an affiliate’s spend and that of their personally referred and recruited clients and associates.
Additionally word that not more than 50% of required whole downline app transaction quantity can come from anyone recruitment leg.
Recruitment Commissions
GivBux pays recruitment commissions by way of a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the prime of a unilevel group, with each personally recruited affiliate positioned instantly beneath them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel group.
If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.
GivBux caps payable unilevel group ranges at seven.
Recruitment commissions are paid as a proportion of affiliate join charges paid by recruited associates throughout these seven ranges based mostly on rank:
- Associates and Managers earn $25 per affiliate recruited on stage 1 (personally recruited associates), and $20 on stage 2
- Administrators earn $25 per affiliate recruited on stage 1, $20 on stage 2 and $15 on stage 3
- Space Administrators earn $25 per affiliate recruited on stage 1, $20 on stage 2, $15 on stage 3 and $10 on stage 4
- Regional Administrators earn $25 per affiliate recruited on stage 1, $20 on stage 2, $15 on stage 3 and $10 on ranges 4 and 5
- Senior Administrators earn $25 per affiliate recruited on stage 1, $20 on stage 2, $15 on stage 3 and $10 on ranges 4 to six
- Vice Presidential Administrators and Presidential Administrators earn $25 per affiliate recruited on stage 1, $20 on stage 2, $15 on stage 3 and $10 on ranges 4 to 7
Residual Recruitment Commissions
GivBux pays residual recruitment commissions by way of the identical unilevel group used to pay recruitment commissions (see “recruitment commissions” above).
Residual recruitment commissions are paid on the month-to-month $24.95 affiliate membership payment.
- Associates and Managers earn $2 on ranges 1 and a couple of
- Administrators earn $2 on ranges 1 to three
- Space Administrators earn $2 on ranges 1 to three and $1 on stage 4
- Regional Administrators earn $2 on ranges 1 to three and $1 on ranges 4 and 5
- Senior Administrators earn $2 on ranges 1 to three and $1 on ranges 4 to six
- Vice Presidential Administrators and Presidential Administrators earn $2 on ranges 1 to three and $1 on ranges 4 to 7
Management Infinity Bonus
The Management Bonus is a recruitment bonus that pays on every unilevel group leg till a Regional Director or increased ranked associates is present in that leg.
- Regional Administrators earn 50 cents per Affiliate, Supervisor, Director and Space Director in every unilevel group leg
- Senior Administrators earn $1 per Affiliate, Supervisor, Director and Space Director, and 50 cents per Regional Director in every unilevel group leg
- Vice Presidential Administrators earn $1.50 per Affiliate, Supervisor, Director and Space Director, $1 per Regional Director and 50 cents per Senior Director in every unilevel group leg
- Presidential Administrators earn $2 per Affiliate, Supervisor, Director and Space Director, $1.50 per Regional Director and 50 cents per Vice Presidential Director in every unilevel group leg
The Management Bonus is paid month-to-month from the month-to-month GivBux affiliate payment.
Matching Bonus
GivBux pays a 50% Matching Bonus on the Management Bonus paid to 2 same-rank or higher-rank associates in every unilevel group leg.
Word that if a 3rd same-rank or higher-rank affiliate exists in a unilevel group leg, no Matching Bonus is paid out on that leg.
Bonus Pool
GivBux takes 2% of company-wide app transaction quantity and locations it into the Bonus Pool.
The Bonus Pool is cut up and paid throughout 4 rank-specific bonus swimming pools:
- Regional Administrators earn an equal share of 20% of the Bonus Pool
- Senior Administrators earn within the Regional Director pool and an equal share in 30% of the Bonus Pool
- Vice Presidential Administrators earn within the Regional Director and Senior Director swimming pools, in addition to an equal share in 40% of the Bonus Pool
- Presidential Administrators earn within the Regional Director, Senior Director and Vice Presidential Director swimming pools, in addition to an equal share in 10% of the Bonus Pool
Word the Bonus Pool is paid out quarterly.
Becoming a member of GivBux
GivBux affiliate membership is $149.95 after which $29.95 a month.
GivBux Conclusion
Whereas GivBux’s formation as an organization is rooted in securities fraud and false representations, the corporate has steered away from securities associated violations since 2019.
Sadly GivBux as an MLM firm although operates as a pyramid scheme.
Initially I used to be confused as I went by way of GivBux’s compensation plan. GivBux explicitly excludes associates as being clients, however then represents commissions are tied to buyer exercise.
This initially made no sense as turning into a GivBux buyer is free. So how was the corporate paying out all these commissions?
In actuality GivBux’s MLM commissions are tied to charges paid by recruited associates. By definition GivBux’s “buyer acquisition bonus” has nothing to do with clients.
In actual fact aside from requiring acquisition of consumers who load $25 into their account, GivBux’s MLM alternative has nothing to do with retail buyer exercise.
GivBux requiring acquisition of retail clients who load $25 doesn’t negate the compensation plan paying out on recruitment exercise.
From a regulatory compliance perspective, an app consumer signing up and loading $25 into their account isn’t a purchase order. And even when there was a requirement that the $25 loaded be spent, that nonetheless doesn’t justify GivBux’s commissions and bonuses being tied to recruitment exercise.
The FTC has been clear on MLM firms not paying out on retail buyer exercise being unlawful pyramid schemes.
As with all MLM pyramid schemes, as soon as affiliate recruitment dries up so too will commissions.
This may see these on the backside of GivBux’s pyramid scheme cease paying month-to-month affiliate charges. When that occurs the associates above them cease getting paid – ultimately leading to them additionally ceasing to pay month-to-month charges.
As soon as sufficient GivBux associates cease paying month-to-month charges, an irreversible collapse is triggered.
Math ensures the vast majority of members in an MLM pyramid scheme lose cash.