Awakend went into prelaunch round two months in the past.
Earliert his month co-founder Danelle Meoli boasted about Awakend making “file breaking gross sales”.
The issue with that declare is Awakend has but to ship a single product – to recruited associates or retail prospects.
And regardless of having no retail prospects, Awakend has now doubled down with a recruitment promo.
The FTC classifies any MLM firm with out important retail gross sales as a pyramid scheme.
There may be some leeway with MLM prelaunches on this however, as acknowledged, Awakend is about to cross over into greater than two months of prelaunch.
And through that point, the one factor distributors are in a position to do is recruit new distributors. And regardless of no merchandise being shipped, earn commissions on that recruitment.
To drive house some extent: Awakend is actually working as a productless pyramid scheme.
As per the promo slide above, Awakend will reward
- its high recruiter with $2500
- its second high recruiter with $1000 and
- three extra “winners” with $500
Observe that Awakend’s promo begins on October eighth however doesn’t have an finish date. Awakend’s flyer merely states it ends “when Zenith ships!”
Zenith is Awakend’s flagship weight reduction complement. Zenith is at the moment on the middle of ongoing patent dispute litigation, which is anticipated to be resolved subsequent March.
Zenith at the moment doesn’t have a delivery launch date.
Profitable Zenith’s recruitment promo requires recruitment of Starter Pack and Founders Pack associates.
- recruiting a Starter Pack affiliate ($260 to $500) = 1 share
- recruiting a Founders Pack affiliate ($1295 to $3495) = 5 shares
Exterior of a prelaunch tied 100% to recruitment and supposedly fleecing shoppers out of tens of millions, Awakend’s post-launch enterprise mannequin is not any higher.
BehindMLM just lately reviewed Awakend and famous a compulsory 100 PV month-to-month order.
Energetic – This implies you preserve not less than 100 PV inside a 5-week rolling interval.
This 100PV should be a private order (doesn’t embrace Buyer CV).
Having a 100 PV Subscribe and Save order is the easiest way to take care of energetic standing.
This units Awakend as much as function as an autoship recruitment scheme post-launch, at any time when that’s.
Going balls to wall on recruitment for months on finish with a prelaunch, and having an autoship recruitment focus post-launch, isn’t the muse of a reputable MLM alternative.
It’s a pyramid scheme enterprise mannequin that immediately violates the FTC Act.
Moreover it units up nearly all of Awakend associates who join, hoping to make cash on recruitment, for a monetary loss.
Between Elomir pulling this stunt a couple of months again with their Axis Klarity bungled launch, I’m hoping this “now we have no product to ship” prelaunch isn’t a brand new MLM pattern.
In that case, the FTC would possibly must reevaluate how lengthy it goes about doing nothing about pyramid schemes earlier than launching an investigation.
