Wealth Generators (now known Kuvera LLC and Kuvera Global) has been one of the hottest MLM (Multi-Level-Marketing) companies in 2015. They made a lot of buzz, they promised to make everyone rich and they signed up loads of associates (aka distributors) to promote the business to others.
Looking for Legit Work From Home Jobs?
Here are 12 online opportunities that actually PAY in 2020
If you are reading this post in hopes of finding positive information on Wealth Generators then stop reading now. Today I’ll be writing about the dark side of MLM and I’ll be sharing some details about this specific company that the people involved with WG will not like at all.
If you’ve been to my blog before you know that I don’t like MLMs simply because most of them (not all) turn out to be pyramid schemes, stealing money from easily influenced people. However, since I work in the marketing space, I can’t help but be exposed to a lot of news in the industry. This is how I come across yet another shiny promising Network Marketing businesses, the Wealth Generators.
UPDATE: December 2016
Colombia’s Superintendencia Financiera regulatory body (similar to SEC), claims that the Wealth Generators is a pyramid scheme. The Financial Superintendence of Colombia made this claim against the company on December 16th 2016:
The Superintendency was able to verify that the mentioned company offers to pay “benefits” represented in money, to affiliates that fulfill the requirement of recruiting more people who contribute their monetary resources, which is the only source of money that sustains the pyramid.
The success (of Wealth Generators) depends on the recruitment of more affiliates who contribute money to keep the pyramid growing in geometric progression.
Superintendencia reminded the residents of Colombia that pyramid schemes are illegal in the country and the people participating in such practices run the risk of becoming involved in illegal activity.
Ladies and gentlemen, this is the tipping point.
Update: March 2018
Wealth Generators LLC changed its name to Kuvera LLC. The new website is now called Kuvera Global.
Wealth Generators – First Impression
In this case I got very curious about Wealth Generators because of the people involved in it. You see, some of their top sales people were also involved in WakeUpNow (WUN). WUN worked hard on recruiting innocent people into its pyramid scheme for about 5 years. It ended up falling apart (as it usually does) and since a lot of people were losing money (82% of their members), the top recruiters started leaving the company, blaming the management, blaming each other and blaming pretty much everyone else on the planet except themselves.
Fast-forward a few short months and we started seeing the same people now promoting the Wealth Generators. These salesmen do have a talent at persuading gullible people into joining another over-hyped network by promising incredible riches and a minimum amount of work (if any at all). If you ever tell any of the WG “associates” that the business sounds like a pyramid scheme, they would look all offended and they’ll start yelling: “How can it be a pyramid? Pyramid schemes are illegal!”… more on that later.
What Is Wealth Generators
WG positions itself as a “proven plan to financial fitness and personal wealth”. Their promotional videos tell you that you don’t need to have any experience in trading or finance for that matter and that you only need to invest 1 to 2 hours per month to achieve financial success. This is the first red flag. Do you really think you can invest 1 hour per month and start trading FOREX (foreign exchange) and make millions of dollars? Top traders on Wall Street spend 60-80 hours every single week working, but Wealth Generators can show you how to do in 1 hour per month… seriously?
However, if you look up any of their team leaders, they will never tell you anything about trading on WG tools. They will explain that the real money comes from selling Wealth Generators memberships to other people. Whenever you enroll new members into the program – you make money. And this is, ladies and gentlemen, the main goal of WG – to recruit as many paying members as possible. So yes, Wealth Generators is a multi-level-marketing company. Like many other similar companies who went bankrupt or got shot down by the FTC, WG uses their “financial tools” as a front for their possible pyramid scheme. They came up with a front-end “product” so they could stay legal in the eyes of the law but it probably won’t last long.
What You Get Inside Wealth Generators (Kuvera)?
WG offers some basic training on Forex as well as a forex software. They also offer you access to TaxBot, a software that will help you keep track of your expenses and income to facilitate your tax declaration. WakeUpNow also offered TaxBot to their members. Now TaxBot is a legit software, certified by the IRS (as far as I know) and it normally retails at $19.99, it also often goes on sale and you could get it for $9.99.
You also get access to a Forex trading software. This is where it gets more interesting. Their software allows you to trade virtual money (simulation) or you could start trading real money, if you are willing to risk it and the risk is very high. This kind of software has been around for YEARS and most of the time you can get it completely free. Forex software developers give it out for free because they make a commission every single time you trade real money. They don’t care if you lose your life savings or if you turn a profit – as soon as you put real money through the system – they will earn a commission. Maybe Wealth Generators makes money off of your trades maybe they don’t, their main goal after all is to have you enroll more members into the system.
The main concern here is the advice they give you on trading. I have not been able to find any proof that WG reps are certified by the U.S. Securities and Exchange Commission (SEC). It is illegal to give any kind of financial advice in the US without being certified/approved by SEC and similar financial authorities in other countries. They might get destroyed by SEC once the commission figures out what WG does, however I am sure that WG has good lawyers to protect themselves (at least for a while).
Ask any professional (and certified) trader about Forex and they will tell you the risk is incredibly high and even people with 20-30-40 years of experience in the field would usually recommend against trading forex as there is no way to predict the outcome.
How Much Does Wealth Generators Cost?
Wealth Generators membership costs $129.99 per month. However when you’ll be joining, you would be highly encouraged to also pay the one time fee of $249 so you would qualify for coded bonuses (and then keep paying the $130 monthly fee). But hey, if you bring in 3 other members willing to pay $130 each, WG will wave your membership fee. Their membership fees keep jumping around but at the time of writing this that’s the cost of joining WG.
What do you get for $130 per month? A $9.99 tax software and a free forex trading software. More importantly, you get the right to sell the WG opportunity to your friends, family and everyone else around.
Wealth Generators – The Pyramid?
If you are working with Wealth Generators a.k.a. Kuvera, you’re probably already on the edge after reading this blog post. I know you want to kick me in the face screaming WG cannot be a pyramid scheme because pyramid schemes are illegal, and I understand you. Selling the “financial tools” as a product actually does make WG legit, at least temporarily. However, I looked through the content published by WG’s top earners and I realized that they never talk about forex, or investing, or taxbot, or anything else beside the recruitment. They train people by showing their compensation plan and by explaining that real money is in the enrollment of new members for Wealth Generators.
Wealth Generators comp explanation videos show us how you will get paid 7 level deep into the system (or pyramid). For example, your sign up 3 people. Each one of them signs up 3 people. Each one of them signs up 3 people. And so on for 7 levels. Here is an image of a 3 level pyramid just to give you an idea.
Wealth Generators compensation plan
So how much do you get paid for enrolling new members into the Wealth Generators system?
They will pay you $5 for every active members. Of course many restrictions apply on comp plans and bonus but the general rule is you get 5$ per customer. Also they have this thing called clubs. Club basically means you are getting a guaranteed amount of money every month. For example if you have 12 people in your
pyramid downline, you’ll make $500 plus $5 per each member (total $560). Of course people will fall off your line, many will see it as a scam and just quit, many others will be forced to quit because they aren’t making a single dime yet they have to spend $130 monthly to remain a member. The point is, you’ll always have to be pushing this “opportunity” on new members in order to make some kind of money. This is not a business, this is a job which requires you to trick people into wasting their hard-earned money by promising them easy and indefinite riches.
If you look at the Wealth Generators earnings disclaimer, they clearly state that: “Many Wealth Generators are UNABLE to earn ANY commission”. This shouldn’t come as a surprise. Although Wealth Generators is yet to publish an income report for their members you could simply look at any other MLM report to get an idea of income levels. About 0.1% to 0.2% of people in these companies will generate 6 figure incomes. Yes, that’s the very top level of the pyramid. The owners of the company and the few top recruiters. Less than 1% of people will earn around 6-10k for a full year. More than 80% of people will not make a single dime and will actually lose money. I am sure it’s not any different with WG.
But What About Wealth Generators Money Back Guarantee?
Like many other MLM companies, Wealth Generators is registered in Utah. Utah is considered as MLM heaven because of their MLM friendly laws and low taxes. Additionally, the laws in Utah oblige companies to offer a 72 hours full refund to every customer. This time frame is quite larger in all other states. Three (3) days may not be enough for most people to realize they are being involved in a scam. If you look at the donations received by the Republican and Democratic parties in Utah, the top 2-3 companies that donate money are MLM companies (much bigger than WG). There are also several congressmen and women in Utah who are involved in MLM companies and publicly endorse them.
Wealth Generators also promises to refund you TRIPLE of your membership fees if you fail to make money with their Forex software within 6 months. This guarantee sounds amazing and very enticing. However you need to understand that there are very specific requirements to be entitled for this refund. You need to prove that you’ve been following the training to the dot (how can you ever prove that?) and you need to show them that you have done a required number of trades. Needless to say that they will find a reason why you didn’t qualify for their triple refund.
Also, most people who will refuse to become WG associates and will only use the software provided to them will cancel their membership within a month or two, or maybe even three months. People will pay the membership fee of $130 per month, they will realize they can’t make money trading Forex and that TaxBot only costs $10 (when it’s on sale). But if you cancel your membership without sticking around for the whole 6 months (about $800 investment from you), you will also be disqualified from any refunds. As simple as that.
How Is It Legal?
I think Wealth Generators is yet another pyramid scheme. There is a very thin and faded line between the very rare legit direct selling companies and milti-level-marketing pyramid schemes that scam people. Whenever a new MLM appears they need to come up with a “product” in order to disguise their main structure – the pyramid. FTC (Federal Trade Commission) understands this and they often shut down such companies because they understand that the “product” or “service” offered is phony and simply serves as a disguise. However, the bureaucracy and amazing lawyers who are hired by pyramid scheme MLM companies makes FTC’s job very hard and long-lasting.
Sometimes it takes a few years for the FTC to review a company and prove that a company is in fact operating an illegal pyramid scheme and not a legitimate business. While the investigation goes on, MLM recruiters keep running around screaming “It’s not a pyramid scheme, that would be illegal!”. Earlier this year Vemma MLM company was shut down by the FTC for that same reason. Their reps also ran around in circles calling people stupid for not understanding the amazing opportunity of Vemma. However, when FTC shut it down for running a pyramid scheme most of the reps shut up and moved to yet another MLM scheme (I am sure some of them are now proudly representing Wealth Generators).
Tired of looking for an easy way to make money?
That’s because there isn’t an easy way. You can certainly start your own successful business online but get ready to work hard.
What Is The Future Of Wealth Generators?
About 99% of MLM companies don’t last more than 5-6 years. Some decide to shut down before FTC forces them. Some will declare bankruptcy in order to avoid refunding the members or paying out compensations (while the owners are laughing all the way to the bank) and some others will eventually be shut down by the FTC.
This is of course a speculation on my part but I see WG being shut down before 2018. The easiest way to predict the eventual end of an MLM is by simply following a few of their top recruiters. These people know what’s going on and they are the first to jump ship.
I hope you enjoyed this post and I hope you haven’t lost money by joining the Wealth Generators.
Check out my #1 Recommendation in online business training. This training concentrates on affiliate marketing where you learn how to build on online business with different affiliate programs such as Amazon associates, iTunes affiliates, eBay Partners and many others.
If you do have any comments or question, please do use the comment form below!
Start Your Own Online Business In Just 5 Days!
Step by step course. No experience or money required.
136 thoughts on “Is Wealth Generators A Scam? This Review Will Save You Money”
Can you check out;
Arrowheadoption com, forex and crypto trading.
They scammed me😡!
Beware of scam Binary options or any kind of scam
I initially invested a total of $95,000 over a period of 18 weeks. My bonus/profit was $170,000, every attempt to make withdrawal failed and I was instructed to make another deposit of $25,000 before I can make withdrawals which I did. Up till now I’m still unable to make withdrawals and all attempt to contact broker has failed. This is very pathetic and I advise everyone to desist from binary options generally. I did a due diligence test before investing with them but guess what I ended up getting burned. This is to create awareness, not everybody can be as lucky as I was. I’m saying this because I was able to recover my funds. Thought someone might find this information useful.
Hey, a very interesting article as well as your responses to the comments.
I was approached by my friend who seems to have gotten involved just recently and overall I wasn’t that interested in most of their offers. However, their mirroring professional trades and crypto mining contracts seemed interesting as I have been wanting to get into mining as well as mirroring traders.
Heres a quick break down for lowest and highest contract(1200 days):
lease contract: Generator Premiere
contract price(CAD): 500$ 5000$
hashing rate MH/s: 11-15 120-150
1st month pv: 100pv 600pv
Pv after 1st month: 0 2-8
Total pv: 100 pv 1300 pv
crypto points: 1 6
I have done some light research but it seems like you have more information and exposure than me when it comes to these topics. That being said, I would appreciate your opinion/advice.
How do these match up with other contracts in terms of hash rate and length? Do you feel it is somewhat fair? If not, what alternatives would recommend? Have you or any friends of yours used any such services? Have any of your friends used WG product/service?
The reason I am asking all this is that I am planning to sign up just to help my friend (I will be discussing the potential risks of their involvement in this program before doing so) as I don’t mind losing 229$ if it benefits them and doesn’t really set me back. Since I am doing this, just wanted to see how worthwhile it would be to experiment with their products/services matched up to other ones in the market.
With regards to mirroring, have you had any experience and if so do you have any recommendation of any service providers? I do understand the risk and am ok with it.
Sorry for the lengthy comment and looking forward to your response.
Unfortunately I cannot tell you about WG’s involvement into the world of crypto currency. As Bitcoin, Ethereum and Ripple are making a lot of waves we see more and more companies popping up claiming to make you rich with crypto. This has happened with every major tech trend and it will keep on happening.
Anyway, I do suggest you check out this resource about WG and Crypto.
You can also check out Investview (they own Wealth Generators). In their last SEC filing this company showed how they are millions dollars in debt and their shares have been plummeting for a very long time. Besides some people that got involved with them have some very dark history with SEC. I personally would stay far far away.
they are FULLY involved in crypto – selling securities without a license – bad stuff
Also a name change – now called Kuvera –
Wealth Generators #Kuvera
Is the biggest con and rip off. They stole my money $29,700 and have no explanation what so ever. It’s a total scam and people are Pocketing the money.
Hi Alex, I am a proud member of WG. This is the best that has happened to me this year. From your post, you said they will shut down before 2018. Well, we now MINE Crypto, We have the RYZE technology, we have bought over DIVEE SOCIAL and HODO GLOBAL and MORE is on the way. I normally dont comment on such post but had to do so because of your wrong information. The truth is not everybody will do well in everything even if they are spoonfed. Even with your online marketing. Only the READY and HUNGRY does well which requires hardwork as you said. The financial knowledge, guide, informations and capacity building that I have gotten is far beyond what I have put in. My concern is who WG is helping me to become not just how much I earn (even though I have made some bucks and still making)..
Do a better research, this time with a positive mind and not to criticise. Thanks Alex
It appears that I was wrong about WG shutting down before 2018. I guess the SEC and/or FTC didn’t get to it yet and it seems like it won’t since they’ll probably be looking into Investview instead 😉
Excellent blog, I have a very good friend already involved in WG, he is already selling all of his uneducated friends to this, but he already double his initial investment. My advice to him get out of it as soon as possible with what you earn. If it is a “pyramid you loose”, that is my experience. Alex What about those off-show bank accounts with high interest accounts they keep money, could it go bankrupt as well?
Hi Summa. Your friend claims that he doubled his initial investment, did he count it how much money he spent so far and if he’s actually profitable? I’ve had friends who claimed they made a bunch of money with ACN, Herbalife and other MLM companies. Yet none of them were able to show proof of that. The lucky once got out within a few months only losing a few hundred bucks. The less lucky folks stuck there for years, lost thousands of dollars and most of their friends along the way.
Unfortunately I have not heard of “off-show bank accounts with high interest accounts” that you’re mentioning so I can’t really comment on that.
Wealth Generators has been nothing bu fabulous! We are now being publicly traded on the stock market and I have made over $700 last week from only one of their products.
Hi Jennifer. Unfortunately there is no way for me to verify your income claims. WG’s own disclaimer is “Many Wealth Generators are UNABLE to earn ANY commission”.
Many penny stock scams and others are also being publicly traded. Some menage to do that for years until they finally get shut down. Unfortunately being a publicly traded company does not guarantee the company’s legitimacy.
Best of success to you,