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.
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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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
That’s because there isn’t an easy way. You can certainly start your own successful business online but get ready to work hard.
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.
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– Alex
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View Comments
What's your opinion of primerica? I recently joined it an just got told to join WG from my friend
There are some good companies out there. When picking a company you need to be passionate bout the product, does it appeal to all types of people, is it a stable company, is it the next trend in business, etc. You can always check direct selling news for info on probably most of the network marketing companies. If you are looking at other companies let me know and would be glad to help.
Hi Alex, do you always erase peoples comments when they state a valid fact that you dont agree with?
No. Comments are automatically deleted if they use profanity or insults or if they promote a product irrelevant to the post. You wouldn't believe how much spam comments a website could get.
I approved this comment in order to answer it but usually irrelevant comments do not pass the moderation.
Hey John.
I've heard of Primerica, I knew people who were in it for a while (and tried to get me into it), most of them eventually quit that company.
In general I dislike the MLM business and naturally I suggest against it. I am sure there are some honest and good MLM companies but it isn't my cup of tea. I prefer building a business that can generate an income without me constantly trying to recruit new members in my downline.
Alex
Hi, I am actually in Wealth Generators, and I learned a lot there...
1.They have an app full of videos, articles and material about financial education and about trader
2.They have live sessions whit experts about financial education and PIP ROOMS, where I can be in touch with the professionals traders who send to WG the information about when and where inverts the money into Forex and make my own questions...
3.Wealth Generators send the expert's information to you, call it "Alerts", across you member acount, so you can sell and buy in forex exchange market and start to generated money without know exacttly what are you doing while you start to understand how to do it by yurself...
4...and i never see that about 1-2 hours per month! Maybe somebody say that for enrroll but if you go into wealthgenerators.com can be shure about is not like you say it.
5.English is not my lenguage ;)
Have a great day!
Hi Natalia, English is my 4th language so we're on the same page here ;)
Since WG is so great, how much money have you been able to generate through their "Alerts" is it's not a secret?
And the promise of No Experience and only 1-2 hours per month is in their intro video. The video has now been removed from their website however it is still on their official Youtube channel, here it is:
https://youtu.be/5PW0Dy-VWnE?t=2m18s
Alex
I am a successful business person - led a start up to $25M in traditional business model and am now in another MLM and totally believe in the business model if approached professionally and vetted properly. There are some great MLM opportunities and 90% of people fail as in traditional startups. It's not always the fault of overhype. It's usually that people get sold as a get rich quick scheme. This is not the fault of MLM but people too willing to pray on people with "dumb money." Regarding WG, I tried it just for trading and lost money. If you can be available to every trade alert, you can do well. However, if you miss an exit, you can get creamed as I did. They have a Forex system that so far has lost money. Over time, they may get the kinks out, but my guess is their retention rate is in the pits which means members only make money if from enrollments and enrollments of enrollments.
Conclusion: Don't avoid MLM because of this one and "one of those" should not apply to all MLM's, but do avoid this one.
Thanks for your feedback Alim.
As I mention in the review there are a few legit MLM companies that actually make most of their income from selling their product rather than recruiting. Unfortunately those are so few they're pretty much unicorns.
I do agree with you that most of these programs lure people in with crazy promises of easy riches. Like WG states: No Experience Required, Only 1-2 Hours Per Month... and you will be rich. It's so sad that people don't raise a red flag right here.
And Forex is another story. Money can certainly be made bit it could be lost even faster and easier. Trading always has a risk and in my opinion trading foreign currencies is pretty high risk.
Alex
Thanks for this information and could you please share the names of some of the legitimate company's that require selling a product that one could maybe consider
Vegas, pretty much any big retailer online gives you an opportunity to promote their products and receive a commission per sale. For example: Amazon, eBay, Walmart, Toys R Us... and the best thing? They do not charge you a single penny to become their affiliate. Find their "affiliate" or "associate" link, join in for free and get to work ;)
Alex
I was offered this today here in Venezuela, thank God I googled it and found your article. I feel like I've dodged a bullet :D Thank you so much, Alex.
Soliana, I am happy to hear you found this post helpful.
I am in WG, thinking of leaving because the FX Simplifier has proven to be financially detrimental since I started. Yet still, I do not believe this company is a total scam full of evil people trying to trick you into draining your life savings etc.
I appreciate the bluntness with which this review is written. However, you ignore the simple acknowledgement that the people at the top of these companies worked their balls off for their success. Most people who say they want success simply aren't willing to do what it takes. That only 3% succeed in this industry does not mean it is a scam. It means that 97% either just don't want it badly enough or realize that it's not for them, as I have.
Are there dishonest people who use unethical sales tactics to get recruits? Duh of course there are. That is not WG's fault.
MLM does not equal scam. It is hard work though and you either love love love it or you don't. That being said, with this company in particular, there are many kinks to be ironed out where the trade signals are concerned but that's about it.
Hi Layla.
Thanks for such a detailed comment.
I don't doubt that people at the top of Wealth Generators work very hard however their income is not generated by trading FOREX but rather by recruiting a constant flow of new paying members into WG.
This is the real problem here. Another disturbing factor about WG is their promise that you will make money with NO experience and investing only 1-2 hours per month! That's completely ridiculous and
unfortunately it lures people in. An honest company wouldn't make such claims as we all know it's impossible to get rich by doing nothing.
Alex
Hi Alex,
Someone invited me to join WG today, being a sharp person, as soon as I checked out their website it smelled fishy and I instantly realized it was "another one of those".
Great blog and thank you for spelling it out for the public to see, you have just saved so many people from getting robbed.
Naturally the thieves are going to hate you, just like those trolling comments up there "Oh hey I made so much money or he/she made so much money", if I'm making so much money I would keep my mouth shut and keep making so much money!
I thank you for taking the heat for the rest of us, Alex!
Thank for reading Louis. There are a lot of opportunities online that will allow you to make good money. A lot of these aren't a secret but you'll need to work hard to get to an interesting level of income. However, it's sad that people fall for claims such as "make a bunch of money by working just 2 hours a month"...
Sooo let's say I join WG and I start making money. What happen if the company gets shout down or bankrupt? Can I lose the money I supposedly earned?
Gabriel, it really depends on what happens and hot it happens. Many MLM companies that went bankrupt did not pay out their distributors because well, they had no money. If a company gets shut down by SEC or any other authority, they will try to reimburse the investors but often it doesn't happen.
Great article Alex.
What is your opinion on Amway?
Juan, when it comes to MLM, I think there are very very few legit opportunities to make money, however those unicorns do exist. However, personally I would not touch any MLM, let it be Amway, Herbalife, ACN, Tupperware or anything else. It's a personal choice.
Hi today 2 friends invited me to participate in WG program, I have watched on their facebook page that they have made per week 800 USD, But let me tell you something First I´m from a town in Mexico City call Queretáro and YES this type of program is now in here and is getting really popular they even have metting and all that stuff in really nice hotel and beaches, I´m really curios about this becouse, one of them a friend from college quit his job and seem to be doing great, but now that read this i´m felling insecure about this, can you explain to me how are they making money if they are only 5 PPL, how are they winning that kind of money if they are only 5
As all the people I want to make more money, I would like to have my own business as anyone and I´m about to join in so can you please help me and explain to me sorry for the lenguage but
HOW THE HELL ARE THEY MAKING THAT KIND OF MONEY?.
I just run with you blog awesome to read about this and more been from a different country.
Hi Ezequiel.
First of all, have you seen the money that they earned or are they just talking about it? Every time I am approached by A Wealth Generators recruiter they promise me awesome results. When I ask them to show me proof of the money they made, they usually say something like: "Well I personally didn't make that money yet but this guy who got me into WG did, you have to believe him" blah blah blah.
Another thing to think about: if your friend is the very first one to get people into WG in your group, he will be making commissions on all of your membership fees - that's how he will earn money, by building a pyramid and calling it a business. Google "Wake Up Now" or "MonaVie", "FHTM"... Herbalife is currently being investigated by the FTC, SEC, and DOJ...
Hey ?, good morning Alex. I enjoyed your blog it made a lot of sense. Recently I joined wealth generators and I sent an email back stating that I wanted to get out. They have this 10 day policy where I could get out with any penalty. I read their terms and conditions and realized this wasn't for me. Everything sounded to good to be true. Now they sent me an email stating they would refund my money and they wouldn't take any monthly costs out my account. If this is true great and if I isn't what should I do?
As you said, if they refund you and stop charging you - great! Keep me updated on this ;)
The 10 day policy you mention is probably state specific as every state (and country) have different laws and regulations.
However if they do not stop billing you and do not refund you, you can probably contact your bank and explain the situation. I have noticed certain people getting some kind of arrangement from WG after doing a complaint on BBB. In any case, good luck to you.