Is MOBE a Pyramid Scheme? It Kind-of Is
When looking at MOBE it is no wonder that many people are wondering is MOBE a pyramid scheme. It certainly does appear to be one but if you take a closer look you will see that it actually isn’t, but its not really any better.
MOBE has somewhat of a similar compensation structure to that of a pyramid scheme, yet it is very different. You could kind-of call MOBE a mlm business, but that term wouldn’t really fit very well either and I’ll go over why.
MOBE’s Compensation Plan
In a pyramid scheme you will be recruited by a member and then you will then go out and recruit members, and they will go out and recruit members and so on. You will earn money from the efforts of those beneath you as the money slowly trickles up the pyramid to the top.
Your pyramid starts with you and grows out and down as your recruits and their recruits keep recruiting.
MOBE’s comp plan doesn’t match up with a typical pyramid scheme. It doesn’t keep growing downward. Instead, members only can earn commissions off of people they personally recruit.
Their affiliate program is 2-tiered. And on the first tier there are your personal recruits. Like I said, those are the only people you will make money off of. But the 2nd tier is important because you will receive commissions off of the money that your 1st level makes, which will be coming from the 2nd tier of people that they recruit.
So as a MOBE affiliate you will be making money off of recruiting new members, off of upselling those members, and by the money that those members make.
How Could This Be a Pyramid Scheme?
Ok, so MOBE does not match up with a pyramid scheme at its purest. A “pure” pyramid scheme has no products to sell and relies solely on new recruits buying in and paying a fee for its revenue.
MOBE obviously does have products. They have all their tools, training, and done-for-you marketing resources.
But just because they do have products doesn’t make them legitimate. In fact, most pyramid schemes do actually sell products in an attempt to cover up the underlying truth of their business, which is it being a pyramid scheme. You call these product-based pyramid schemes.
In order for MOBE to be considered a product-based pyramid scheme it would have to be overly dependent on recruitment rather than product sales.
The Reality of MOBE’s Business
So is MOBE overly dependent on recruitment?? I sure think so and I don’t really see how anyone could argue with that statement.
Since when have you seen someone promoting MOBE saying that they should become a member to help grow an existing online business or to startup a new online business in an industry of their choice??? NEVER
The answer is never, or at least almost never. When you see someone promoting MOBE they are always promoting it as some fairy-tale program where they can earn up to over $10,000 per sale. And what they are talking about is selling MOBE products.
While MOBE doesn’t literally force you to go out and sell MOBE to other people, thus recruiting them in, they do put an overwhelming amount of incentive and focus on indirectly getting you to do so.
Sucking You Into The Scheme
MOBE’s most famous product is their 21 step course called My Top Tier Business or MTTB.
This is the product that is usually pushed on new recruits because it is cheap. It is only $49/month and is a way for people promoting MOBE to get you through the door.
This course butters you up and gets you ready to go out and promote MOBE. Taken straight from MOBE’s website, here are the topics covered in this course…
What this course does is gets you all ready to make money. It makes it sound like the best thing since sliced bread and then it slowly but surely starts pushing you to promote MOBE.
See step 7 above? The proven and profitable business that it is talking about licensing is MOBE. See step 10 talking about $3,000 and $5,000 commissions? Those commissions they are talking about are coming from selling MOBE products to other people.
So while newcomers might think they are going to be getting help creating their own online business, really they are being used as tools to go out and do the promoting of MOBE.
And the $49/mo is just the beginning of it.
Selling MOBE Products
There is no doubt that MOBE sells a heck of a lot of products. So this may make you wonder… well how is this a pyramid scheme then? Because in order for it to be considered a product-based pyramid scheme they would be overly reliant on recruitment rather than product sales.
The problem here is that with MOBE they somewhat force products sales on people.
In step 7 of the MTTB program it mentions licensing a business, which is MOBE that they are hinting at.
You see in order to sell MOBE products you first have to license them. And what this means is that you have to buy them. Because the way it is set up is that you will get the license to resell them once you buy them.
Because of this MOBE members often buy products for the right to resell them to other people and make money off of them, not because they actually want the product for what it contains.
So members often feel forced to buy more products costing prices that got up to as high as $26,997 at most. That $49/mo in the beginning is just the beginning.
Pyramid Scheme? It Basically Is
Just to reiterate some of the things I’ve said and put this all in perspective, this is how it all works.
People looking to make money online are recruited into MOBE by existing members. They can be recruited in at different levels, but usually they are through the MTTB course, which is one of the lowest cost courses that is to just get their foot in the door. After they are recruited in they are then upsold on other more costly products because they need these products to promote them and actually make money selling them.
Although MOBE’s comp plan is just 2-tiered, which isn’t your traditional pyramid scheme, it still fits many of the common characteristics of one.
By the way, one thing that is important to note here is that I am not saying that MOBE’s products are bad products. I have been involved in online marketing since 2015 and from what I see they are very professional and high quality products. They provide you with top-notch training, pro tools, and done-for-you systems like lead pages, sales funnels, etc.
The products are without a doubt good products. The problem is that they are undoubtedly geared to get buyers to go out and promote MOBE to other people. The done-for-you lead pages, sales funnels, sales pages….. all of that is designed to promote MOBE.
So its like this: MOBE has products but the products that they have are focused on getting members to recruit… Shady? I think so.
I know I’m going to be catching a lot of heat for writing this post from all he hard-core MOBE members out there that are earning a lot of money by recruiting others in beneath them… but I’m not writing this for them. I’m writing this for all the prospects out there that are likely to lose a lot of money with MOBE.
There are a lot of complaints out there about MOBE from former members that feel they have been scammed. And I bet they wish they had read this before they started.
Ripoff Report is a good place to go where you can read some reviews from members/former members.. And here is actually one I found that agrees with my opinion of it being a pyramid scheme…
Overall, I just don’t think MOBE is a very good business to get into. VERY FEW PEOPLE MAKE MONEY with MOBE. Most people fail to be successful. This is because of the nature of pyramid schemes, the top few that are able to recruit like madmen are able to reap the rewards, whereas most people will not be able to.
Personally, I will stick with Wealthy Affiliate as my online business training platform. Wealthy Affiliate is a whole lot more affordable and I can feel good about what I do, not having to trick people into signing up.
If you were interested in making money online with MOBE then I suggest you look into Wealthy Affiliate instead. I have written a review on Wealthy Affiliate and there is no doubt I would recommend it over MOBE.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂