Zhunrize Scam Logo

Is Zhunrize “The Home of Savings and Convenience, a better way to shop, and an OPPORTUNITY whose time has arrived!” or is it just a scam? My subscribers have requested I take a look. Here is what I found.

Zhunrize Scam Claims

The Home of Savings and Convenience, a better way to shop, and an OPPORTUNITY whose time has arrived!

Zhunrize changes the way people shop and enables new E-Com business owners to become financially independent by creating their own economy.

Zhunrize has a Business Building System with a proven plan with clear vision and strength, enabling our E-Com Virtual On-line Business Owners to earn residual income, which can lead toward financial security.

Zhunrize Presentation Video

Zhunrize Scam Presentation Video

Note: If you see a presentation like this, run do not walk to the exit. It is a scam.

Zhunrize Scam Reality

Zhunrize was started back in 2012.

Jeff Pan

Jeff Pan – CEO

77,000 people have invested money in the Zhunrize business opportunity since 2012.

Zhunrize claims to be a legitimate multi-level marketing business by which members purchase online stores and then sell merchandise through them, while earning commissions on products purchased by their customers and through store sales to other members and hosting fees paid by those members.

There are 5 distinct ways to begin as an E-commerce Business Owner with Zhunrize.

  1. Premier Online Savings Store (Premier OSS) $3000 one time, plus $100.00 monthly hosting fee.
  2. Pro Online Savings Store (Pro OSS) $1500 one time, plus $75.00 monthly hosting fee.
  3. Basic Online Savings Store (Basic OSS) $495 one time, plus $50.00 monthly hosting fee.
  4. ECR Online Savings Store (ECR OSS) $99 one time, plus $30.00 monthly hosting fee.
  5. ICR (Do Not Own On-line Store) $0 one time, $20.00 monthly hosting fee.

Zhunrize Compensation Plan Overview

After a review of the compensation plan by the SEC, this is what they had to say.

The commission structure is based on the continual recruitment of new members, with the most lucrative returns dependent on the downline recruitment of other members through store sales irrespective of any product sales.

Zhunrize does not disclose, that to date substantially all of its revenue has comes from the sale of memberships (referred to as stores) and the corresponding monthly internet hosting fees associated with operating those stores, rather than the sale of products. Indeed, both Pan and a Zhunrize vice-president testified that the company currently derives 80-90% of its revenue from selling online stores and the monthly internet hosting fees for them, as opposed to actual products from these stores. Thus, contrary to the representations to potential investors, Zhunrize is actually a fraudulent pyramid scheme.

On September 22, 2014, the Securities and Exchange Commission filed a civil injunctive action in the Northern District of Georgia against Zhunrize, Inc. (“Zhunrize”) and its CEO, Jeff Pan (“Pan”). In connection with the filing of this action, the Commission obtained a temporary restraining order against the defendants and an order freezing all of defendants’ assets. The Commission alleges that Zhunrize, an Atlanta-based multi-level marketing company, and Pan have been operating a fraudulent pyramid scheme that has raised over $100 million from investors worldwide.

– Source SEC

Zhunrize Scam Conclusion

In my opinion Zhunrize is a clear product-based pyramid scheme that focuses on endless recruitment to generate returns for people that join the business opportunity. Product sales are just a cover for the endless recruitment.  You should avoid this scam.

What is a product-based pyramid scheme?