Onpassive Review Reveals Risky MLM Opportunity

An Onpassive Founder member asked me to join Onpassive. This Onpassive review tells you what I found and why I decided to pass on this online money-making Multi-level Marketing (MLM) business opportunity.

I was an Amway Independent Business Owner back in the mid-90s for several years. As an IBO, I was not very good at it because I had little time available to commit to business building.

However, I learned that to be successful in an MLM-based business requires good SALES team-building skills. Successful sales teams are those that are recruited, trained, motivated, retained, and supported to make product sales. If product sales is not the focal point of activities while recruiting is a priority, then it may be a scam according to the Federal Trade Commission.

I may not have been good at building sales teams, but I am a full-time affiliate marketer now. Furthermore, I learned to recognize scam warning signs. (It does not hurt to have an accounting background and experience in forensic auditing.)

What is Onpassive?

Onpassive is an online MLM program that provides marketing and advertising services, including business building tools like bulk emailers, autoresponders, and member advertising.

Onpassive is registered in Florida as a Limited Liability Company as seen in the following screenshot from the Florida company registry.

Florida company registration

As you can see,

The company director is Ash Mufareh, who is a very successful Global Domains International (GDI) distributor.

Ash Mufareh LinkedIn profile

According to Behind MLM, Ash Mufareh promoted AshMax, TelexFree, and PayDiamond, all of which did not end well for investors and participants. In his video about Onpassive, Mr. Mufareh acknowledged making mistakes in the past.

The following image shows the Better Business Bureau status for Onpassive.

Better Business Bureau info on Onpassive

What is the Onpassive Compensation Plan?

The Onpassive compensation plan is based on an MLM matrix with recurring commissions members earn.

OnPassive offers a recurring subscription on four levels as shown in the following compensation chart. Qualifying for residual commissions requires a monthly subscription plan at each price point starting with $25.

Onpassive compensation plan

The Onpassive promotional material indicates the $25 is a one-time payment assuming that a member's profits will self-fund the monthly subscription cost. A member's profits would also pay for the higher priced plans.

The compensation plan shows a theoretical projected amount of potential income. The prior sentence is a fancy way of saying it will never happen. Attrition alone means there would be gaps in a member's matrix that would prevent profit maximization.

Because of high attrition rates, MLM companies are notorious for front-loading new members with “fast start” products and tools, loading them up with products/services, sending them off to pay-to-attend seminars, selling them training/marketing materials, signing them up for an online-access subscriptions, etc., before they’re gone.

However, the most damaging statistic is only 15% (historically) of members will recruit more than two new members. When members have a three member wide matrix level, most members will not fill their first level. The lucky few will be fortunate to have a sponsor in the 15% who sponsors more than two new members. Therefore, there is a small probability that spillover will occur. (Spillover is the placement of a new member in a lower level or tier.)

As a result, most members at the $25 level will never make enough profits to self-fund either their $25 monthly subscription or pay for the $125 level plan.

Note: Those founder members who joined Onpassive mid-2018 have a better chance of self-funding their monthly requirements. However, they cannot afford a high attrition rate

The Founder's fee of $97 is an annual pre-lauch discounted cost and is not commissionable.

When Will Onpassive Launch?

At the time of publishing this post, the launch date is unknown. Onpassive has been in pre-launch mode since mid-2018. The company registered the domain name onpassive.com during June 2018.

The never-ending pre-launch phase without a target launch date is a red flag.

Is Onpassive a Scam?

The Onpassive promotional material indicates that members receive a total marketing package of business tools to help build their businesses. Internet marketing tools include done-for-you content, unlimited autoresponders, sales funnels, landing pages, and hosting.

From the hours of promotional videos I watched, I found the advertising (traffic) to other members to be a benefit of buying the OPTIONAL matrix position. The higher the matrix package, the larger traffic packages members receive to promote their core products.

  • $25 [No traffic]
  • $125 [traffic]
  • $250 [More traffic]
  • $500 [Most traffic]

I did not find a clear description of the ad packages or traffic sources. If the traffic consists of ads sent to other Onpassive members, then the response rates may not be good if members are promoting products or services related to make money online (MMO). As an owner of a pet-related niche website, my target audience is not in the MMO niche.

Based on the limited amount of information about the business tools and traffic packages available to members, Onpassive appears to meet the Federal Trade Commissions rules of being a pyramid scheme. The following image shows an extract from the FTC guidelines.

Federal Trade Commission discussion of pyramid schemes

However, the question that FTC regulators may ask is whether the ad packages (matrix plans) are something of value or provided only to mask a pyramid scheme. People criticize MLM companies for pricing products high to pay commissions to uplines.

According to a study done on behalf of the FTC,

"From analyses of the compensation plans of hundreds of MLMs, I have found a consistent pattern of pay plans that are recruitment-driven and top-weighted, meaning they are driven by incentives to recruit, with company payout of commissions going primarily to founders and a select few “TOPPs” (top-of-the pyramid promoters) who are usually those who were positioned at the beginning of the recruitment chain."

If a person were to join Onpassive only to use the business tools, then there are other internet marketing tool suites available online. Several come to mind including:

WARNING – This program could be hazardous to your wealth!

Hyped Onpassive Sales Material

Much of the promotional material makes extraordinary claims of potential success. Many are like the following images:

Onpassive promises 100% success
Onpassive being hyped.
Onpassive promotional material

Unfortunately, the Onpassive website contains not much more than a link to a signup page. Furthermore, the signup link leads off of the Onpassive website to a GoFounders website that only contains a signup form and a login.

My Onpassive Review Conclusion

My recommendation is to AVOID Onpassive until it launches and then reassess.

I am not calling Onpassive a scam. However, based on what I have seen, I believe it over-promises what it can deliver. The promotional material creates high expectations that I think will disappoint members.

I base my recommendation on the following:

  1. Onpassive has been in prelaunch for over a year.
  2. There is no projected launch date on the website.
  3. The Onpassive website does not contain any information to assess the potential of success or describe the business tools they may offer.
  4. Most promotional material highlights the income potential of the 3X10 matrix.
  5. Based on Mr. Mufareh's history with prior businesses, I don't trust that this ​money-making opportunity will be any different.

WARNING – This program could be hazardous to your wealth!

I hope my ​Onpassive review has provided useful information. If you have questions or comments, please fill out and submit the form below. I am looking forward to responding.

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