Global Wealth Trade Scam? Yes It Is In My Opinion!
Purchasing an online store that sells goods and services has been tried before in the MLM world. An example of this was BurnLounge which sold opportunities to operate on-line digital music stores. BurnLounge ended up being shutdown by the FTC. Global Wealth Trade (GWT) gives you the opportunity to sell fashion products through an online mall. My subscribers have requested that I take a look at the Global Wealth Trade business opportunity. Here is what I have found.
Global Wealth Trade Scam Claims
GWT’s exclusive FREE FLOWING and VARIABLE, 10/10 INFINITY compensation plan is top rated by industry’s premium MLM portal businessforhome.org. It’s unprecedented up to 75% payout coupled with its FREE FLOWING and VARIABLE structure pays out much more and much faster than any other MLM compensation plans. This simply means, NO flushing, NO “rank” restrictions and NO “pay leg” payout. You will get paid on every sale in your entire organization to INFINITY.
How does earning up to $10,000 a week sound? With GWT it is possible and many have done it.
Here is how the GWT opportunity is presented:
Global Wealth Trade Scam Reality
The founder of Global Wealth Trade is Ramin Mesgarlou aka. The Forensic Networker. Ramin Mesgarlou founded Global Wealth Trade Corporation (GWT Corp) and sold the first distributorship in April 2005 from his home office in Ontario, Canada.
“Ramin has been in the direct selling industry since 1990, as a full-time distributor for 12 of those years (10 of which earned him a six-figure income). He has been the top performer for four direct selling companies and built organizations with over 30,000 distributors in 15 countries. Ramin thinks big!
He was President of a direct selling company in 2003 and Vice President of a media company in 2000.” – Source networkingtimes.com
There is almost no information on Ramin Mesgarlou before 2005. This is very curious when he is claimed to be such a major player in the MLM world.
This is what I was able to find on Ramin Mesgarlou:
My family and I had a successful restaurant business. It was 1990, and I was twenty years old.
This guy was in the carpet cleaning business, but he had just begun working with a new business on the side. He started drawing circles, and I was fascinated. Nobody had ever approached me about network marketing, and I’d never heard of anything like it. “Wow,” I thought, “this is like a franchise. This is pretty cool.”
I signed up the next day. – Source ourjoyvision.com
On May 29, 2000, Ramin Mesgarlou was hired by 3XS Enterprises to manage the company’s sales staff and sales program. An Ottawa-based franchise of the United Consumers’ Club, 3XS sold club memberships to consumers, entitling them to the privilege of purchasing a wide range of household products at discounted prices. The company’s profits were derived entirely from the revenue generated by the sale of memberships. Mesgarlou’s contract of employment provided for an annual salary of $42,000, plus bonuses.
Mesgarlou was successful at his job, and sales increased under his leadership. In August 2000, Mesgarlou approached the company’s owner and requested a more lucrative remunerative package. He indicated that, if he was not offered more money, he might seek employment elsewhere. Reluctant to lose Mesgarlou, the company agreed to significant increases in Mesgarlou’s salary and bonuses.
By the spring of 2001, however, the company had decided that Mesgarlou’s remunerative package was too great a drain on the resources. The company was seeking to find a way to revisit the issue with Mesgarlou when the owner and Mesgarlou became embroiled in an argument over staff. After a heated exchange, Mesgarlou’s employment was terminated. – Source lancasterhouse.com
Ramin Mesgarlou is said to be a six figure earner in the MLM world, but by 2000 he takes a sales job for $42,000 and gets fired? In my opinion, this does not seem to match the claims of MLM success before 2005. Why would you be working a job when you are making so much money with MLM?
To signup for GWT at the base level of being a retailer you are going to need to pay them $169 upfront and $69 per year to sell their products. They provide no average retail figures for what people are making by selling their products. Why would you pay them money if they can’t provide you this basic information? You have 10 days to find out if it is worth your time. I don’t believe this is enough time.
To access 7 other streams of revenue you need to pay them much more. The packages can cost over $3500. Again, no average income information is provided for you to decide if this is a good opportunity to make money. Also, recruiting is required to take advantage of these 7 streams of revenue.
In my opinion, GWT above the retailer level turns into another recruiting scam where the vast majority of money comes from representatives recruiting other representatives. The retail sales are the sales included in the packages the representatives buy.
Here is what the FTC had to say about BurnLounge:
BurnLounge recruited consumers through the Internet, telephone calls, and in-person meetings. The sales pitch represented that participants in BurnLounge were likely to make substantial income. BurnLounge recruited participants by selling them so-called “product packages,” ranging from $29.95 to $429.95 per year. More expensive packages purportedly provided participants with an increased ability to earn rewards through the BurnLounge compensation program.
The BurnLounge compensation program primarily provided payments to participants for recruiting of new participants, not on the retail sale of products or services, which the FTC alleges would result in a substantial percentage of participants losing money.
I see a lot of similarities with BurnLounge and GWT when you get above the retail package level. The retail products included with the GWT packages seem to be a bonus for participation in the recruiting part of the compensation plan. This is a red flag for me.
Retailer $ 169.00
I.A dollars credited: 0
Siledium $ 699.00
I.A Dollars credited: 370
Gold Rebate $1,399.00
I.A Dollars credited : 620
Gold $ 1,899.00
I.A Dollars credited: 1120
Diamond Rebate $2,599.00
I.A Dollars credited: 1100
I.A Dollars credited: 2100
Retailer E-MALL’s will be automatically renewed at $69 plus applicable taxes.
Monthly product purchase using the monthly I.A contribution is optional:
$35 (plus tax) equates to 35 I.A. Dollars
$75 (plus tax) equates to 75 I.A. Dollars
$150 (plus tax) equates to 150 I.A Dollars
Making such monthly contribution allows the full amount to accumulate in their I.A immediately and the member can use these points at any time to buy product. Retailer, Siledium and Gold members may choose to contribute $150 per month to their I.A. Monthly I.A contributions are charged on the member’s I.A day – which is seven (7) days BEFORE the anniversary day (the day the member’s application was entered into the system).
luxury designer products:
All Commissionable Volume (CV) generated from the Package Sales, Website Purchases, and Monthly Inventory Account (IA) Sales contribute to the total 5000 point cycle requirement. Every 5000 points of CV earns you up to $500, as long as either team has a minimum of 1667 (1/3) in points of CV.
Click Here for a written overview of the compensation plan.
The GWT compensation plan is elaborate and can be difficult to understand. They also pay commissions to an infinite levels deep.
Excessive levels in a downline is another sign participants are expected to sell primarily to their downline, rather than to the general public. This makes it an exploitative money transfer scheme. – Source The problem with 5 or more levels of compensation.
As with any business, your results may vary, and will be based on your individual capacity, business experience, expertise and level of desire. There are no guarantees, promises, representations and/or assurances concerning the level of success you may experience. Your level of success depends of the time you devote to the business, the ideas and techniques utilized, your finances, knowledge and various skills, since such skills and factors differ according to individuals.
Compensation for the majority of Canadian members conducting activities necessary to realize the plan’s benefits for over one year are forecasted to be between $2,500 and $15,000 per year. (This is clearly not an average of all members joining to make money.)
In my opinion, it does not look to me that it is likely that you will be making $10,000 a week. I was unable to find anything that verifies that a significant amount of people are making money with GWT.
GWT offers a 100% money-back satisfaction guarantee within thirty (30) days from the date of purchase for all FERI Flawless products.
Membership cancellations will be accepted provided that Global Wealth Trade Corp are advised of the cancellation in writing via support ticket or email. If a Siledium E-MALL, Gold E-MALL or Diamond E-MALL is within the prescribed 10 day cooling off period, they may be subject to a partial refund as stated below.
Retailer E-MALL’s are non-refundable and regardless of the chosen package, there will be an automatic deduction of $169.00 plus 5% credit card processing fee. If a member has placed a product order of any amount using their I.A Dollars within 10 days of becoming a member, then the 10 day cooling off period becomes void. (A request for a refund under such circumstances will be considered a voluntary termination and will be treated accordingly.)
If a member upgrades within their 10 days cooling-off period, then the 10 day cooling off period becomes void. (A request for a refund under such circumstances will be considered a voluntary termination and will be treated accordingly.) Any time an upgrade of membership takes place, they are non-refundable.
Global Wealth Trade Scam Conclusion
In my opinion, the Global Wealth Trade turns into a recruiting scam when you get above the retailer package level. They provide no information on what people are making on average for retail sales so you are going in blind. Is it worth the money even at the most basic level? I don’t think 10 days is enough time to find out. I see a lot of similarities with BurnLounge and GWT when you get above the retail package level. The retail products included with the GWT packages seem to be a bonus for participation in the recruiting part of the compensation plan. This is a red flag for me. I would not join the Global Wealth Trade recruiting scam.