DubLi Network Scam Video

Update: Dubli is changing their company name to Ominto.

One of the common scams that is out there in the MLM world is one where they have you join a business opportunity that offers an online store from which you can make money.  They also sell you your own version of the online store to make money off of selling to customers.   The reality of this type of scam is the majority of the money is made recruiting people into the business opportunity instead of from the selling of products from the store. A few examples of this scam are  YourTravelBiz (YTB) and Zhunrize.  Let’s take a look into DubLi and see what type of business opportunity they offer.

DubLi Network Scam Claims

DubLi Network creates tremendous opportunities for entrepreneurs to build global distributor organizations that focus on selling a variety of memberships for DubLi, the world’s ultimate online travel, shopping and entertainment destination. Word-of-mouth advertising, the most effective form of direct selling, provides the foundation for driving traffic and transactions to DubLi.com via memberships and product sales. The revenue generated from these members’ online transactions allows associates to build a rewarding career or a powerful second-income stream.

Here is how the DubLi Network is presented.

DubLi Scam Presentation Video

DubLi Network Scam Reality

Founded in 2003 by Michael B. Hansen. 

DubLi Scam CEO Michael B. Hansen

During 2012, their business operations consisted of online auctions, an online shopping portal that allowed customers to search for products offered by various online stores, and an online entertainment portal that enabled customers to search and stream audio files from public sources.

During 2013, they ceased their online auctions program and have focused their operations on shopping and entertainment portals, online travel and lifestyle, finance and insurance, and telecom services.

Michael B. Hansen is the President and Chief Executive Officer of the Company since October 2009 and a director since September 20, 2010. Mr. Hansen originally founded the DubLi group of companies.

Mr. Hansen started his career in 1989 as a developer at the Danfoss A/S, a Denmark-based producer of components and solutions for refrigeration, air conditioning and heating.  In the early 1990’s, he worked at The LEGO Group as technical designer and was responsible for world development and designs.  From 1996 to 1999, Mr. Hansen was the owner of a chain of restaurants in Denmark. 

During 2012, the Company had a lease ending in 2020 for 10,476 square feet in Boca Raton, Florida for their global headquarters. On December 31 2013, the Company ended their lease prematurely and moved to Ft Lauderdale, Florida. As a result, the landlord filed suit against the Company for breach of lease.

DubLi seems to have some serious financial and ethical issues.

Their current address is in Florida at the following business center.

http://www.regus.com/locations/business-centre/florida-fort-lauderdale-cypress-park-west

DubLi Scam US Office

DubLi, Inc.
6750 N. Andrews Avenue Suite 200
Fort Lauderdale, Florida 33309 U.S.A.

DubLi is not a profitable company. They have incurred losses since the inception of their operations. As a result, they have a deficit of approximately $24.1 million, as of September 30, 2012. For the period September 30, 2012 to date they continue to lose money.

Income From Shopping Mall Product Sales 2012 $313,881

Michael B. Hansen’s CEO Base Pay $420,000

Income From Advertising and Sales Events $2,229,752

– Source SEC

Michael B. Hansen’s pay is larger than the money that is brought in by the Shopping Mall selling products.  Much more of the income for this company is from recruiting people into the DubLi Network instead of from retail sales of goods through the Shopping Mall.  In my opinion, this is a clear product-based pyramid scheme.

Cost

$594 Business Associate – Business Package and  V.I.P. Qualification Vouchers. This is the typical starting package.

$99 Business Package – To qualify to earn commissions and receive complete access to the DubLi Network back office, everyone who registers as a BA is required to purchase a Business Package. The Business Package only needs to be purchased once and no annual renewal is required.

$49.50 Monthly V.I.P. Qualification Voucher (When Purchased In A 10 Pack) – Starting in month 2, you are required to purchase a V.I.P. Qualification Voucher each month for the continuous usage and maintenance of the DubLi Network back office system.

$2475 The Team Leader Accelerator Package -The Team Leader Accelerator Package allows brand new BAs and TMs the chance to become a Team Leader (TL) immediately and offers them a variety of tools to hit the ground running in building their DubLi Network business from the start. It combines the best features of the Business Package, Membership Package, and Partner Program into one streamlined bundle.

 The package includes:

  •  1 x Business Licence
  • 3 x Membership Package: 30 x One-year discounted V.I.P. Membership Vouchers
  • 2 x Membership Package: 200 x One-month discounted Trial V.I.P. Membership Vouchers
  • 1 x Partner Program Certification
  • TLA status

$6000 The Team Leader Accelerator Package – The Team Leader Accelerator Packages allows brand new BAs and TMs the chance to become a Team Leader (TL) immediately and offers them a variety of tools to hit the ground running in building their DubLi Network business from the start. It combines the best features of the Business Package, Membership Package, and Partner Program into one streamlined bundle.

These packages were designed as a direct result of the growth of DubLi’s Partner Program, a complementary vehicle to help you increase your earnings quickly, simultaneous to building your DubLi Network business. The Partner Program allows you to increase your income on a large scale with a shorter sales cycle.

 The package includes:

  •  1 x Business Package
  • 3 x Membership Package: 30 x discounted One-year V.I.P. Membership Vouchers
  • 2 x Membership Package: 200 x discounted Trial V.I.P. Membership Vouchers
  • 1 x Partner Certification (Value US$999)
  • TLA status
  • 1 x Partner Program Registration Voucher (Value: US$ 6995)
  • Incl. one year FREE Partner Monthly Maintenance Fee (Value: US$ 5988)

$12000 The Elite Team Leader Accelerator Package – The Team Leader Accelerator Package allows brand new BAs and TMs the chance to become a Team Leader (TL) immediately and offers them a variety of tools to hit the ground running in building their DubLi Network business from the start. It combines the best features of the Business Package, Membership Packages, and Partner Program into one streamlined bundle.

These packages were designed as a direct result of the growth of DubLi’s Partner Program, a complementary vehicle to help you increase your earnings quickly, simultaneous to building your DubLi Network business. The Partner Program allows you to increase your income on a large scale with a shorter sales cycle.

 This package includes:

  •  1 x Business Package
  • 3 x Membership Package: 30 x discounted One-year V.I.P. Membership Vouchers
  • 2 x Membership Package: 200 x discounted Trial V.I.P. Membership Vouchers
  • 1 x Partner Certification (Value US$999)
  • TLA status
  • 3 x Partner Program Registration Vouchers (Value: US$ 20,985)
  • Incl. one year FREE Partner Monthly Maintenance Fee (Value: US$ 17,964) 

– Source DubLiNetwork.com

Compensation Plan

Here is a video overview of the DubLi compensation plan.

DubLi Scam Compensation Plan Video

Click Here To View The DubLi Compensation Plan

Dubli pays out commissions directly on the recruitment of new affiliates.

Recruitment commissions are paid out as a percentage of membership fees paid by newly recruited affiliates.

  • Business License – $495
  • Team Leader Accelerator – $2,475
  • Platinum Team Leader Accelerator – $6,000
  • Elite Team Leader Accelerator – $12,000

How much of a percentage is paid out is determined by how many affiliates a Dubli affiliate and their downline have recruited:

  • Team Member – 5%
  • Team Leader – 10%
  • Team Coordinator – 15%
  • Sales Director – 20%
  • Vice President – 25%
  • Senior Vice President – 27.5%

One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling. – Source Federal Trade Commission on Multi-Level Marketing

In my opinion, the idea that you are going to make significant income from paid DubLi customer memberships is foolish. If your potential customers are looking for low prices, deals on travel or cash back from purchases they have many other great free options to choose from.  Here are a few.

Fatwallet.com Coupons, Sales, and Deals with generous Cash Back rewards.

Kayak.com Cheap flights, hotels, vacations and rental cars.

Priceblink.com A web browser plugin to automatically find lower prices while shopping.

Refund Policy 

A new Business Associate has three business days (5 days for Alaska residents) to cancel his or her Business Package and/or product purchase and receive a full refund.

– Source DubLi Policies And Procedures

DubLi BBB Complaint By Customer Not Receiving Cashback 8/18/2014

In January of this year I signed up for the service at its middle range offer. The following month I upgraded to their VIP membership for $99. After a few months of use it came time when after using the service my cashback rewards from shopping online became available. I was excited about this as I had transferred my first cashback rewards in a month or so prior to this recent withdraw of cashback rewards. On 6/29/14 I requested $59.99 be transferred to my eWallet account and then on 7/9/14 I requested $54.90 to transfer to the same account. According to the information on the site it takes up to 5 business days to transfer the funds and make them available. For both of these this timeframe is up, especially for the first request. After multiple attempts at trying to contact Dubli through its support ticket platform I consistently kept getting the excuse that they had no idea when the funds would be available and no further information is able to be provided. Now I am very, very upset with Dubli. The main reason I signed up for the service in the first place was because I could earn cashback on my purchases and now they are violating their service agreement and will not give me my money. I am greatly irritated with this company and disgusted with its poor service and customer service that just gives unsatisfactory excuses.

DubLi Network Scam Conclusion

In my opinion, the DubLi Network business opportunity uses access to limited income from free affiliate programs to provide cover for a product-based pyramid scheme. Each person who profits in the DubLi Network does so primarily from the payments of others who are themselves making payments in order to obtain their own profit. DubLi is an unprofitable company which makes the majority of its money from Business Associates signing up and purchasing V.I.P. Membership Vouchers.  It is not from customer sales. In my opinion you should avoid this scam.

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