Jeff Long, owner of Abundance Network, began soliciting new affiliate memberships for $200 this week, signaling a relaunch of his embattled enterprise. This move follows the collapse of the previous "gifting scheme" model, which drew regulatory scrutiny and led to payment processor withdrawals last month. Early sign-ups can secure a discounted rate of $150 until August 8th.
The new compensation plan outlines a simple distribution for the $200 affiliate fee. Half of the payment, $100, goes directly to the individual who recruited the new member. Another $50 ascends to the nearest "Master Reseller" upline, while Long pockets the remaining $50.
Becoming a "Master Reseller" requires a separate payment of $697. Of this sum, $500 is directed to the recruiter who brought in the new Master Reseller. Long retains the remaining $197 from this transaction. The Master Reseller option is not yet active, with Long indicating a future launch date without further specifics.
Residual income for Master Resellers stems from "pass-ups" generated by new $200 affiliate sign-ups. When someone within a Master Reseller's downline recruits a new affiliate, the $50 Master Reseller portion of that sign-up fee is passed up to the first qualified Master Reseller above the recruiter. This system allows for commissions to accrue from multiple layers of recruitment below the Master Reseller.
Long, however, disputes this characterization in an affiliate update. He explicitly stated, "THERE ARE NO MORE PASS-UPS" and claimed Abundance Network is "NO LONGER STRUCTURED AS A 'MLM' TYPE COMPANY IN ANYWAY!" This contradicts the mechanics of the described compensation plan, where a portion of the sign-up fee clearly moves up the recruitment chain.
The Federal Trade Commission (FTC) consistently warns against business models that generate revenue primarily through recruitment rather than genuine product or service sales to end-users. Such schemes often collapse when the pool of new recruits dries up, leaving the majority of participants with losses. The FTC emphasizes that legitimate multi-level marketing (MLM) companies must have a robust retail component, where most revenue comes from sales to customers outside the distributor network.
Abundance Network's previous "gifting scheme" operated similarly to a "Blessing Loom" or "Sou-Sou" model, where participants contribute funds with the expectation of receiving a larger sum as new members join. These structures are illegal in many jurisdictions, including the United States, as they are inherently unsustainable and rely on an endless supply of new money. The prior collapse was directly linked to payment processors refusing to handle transactions for a business model exhibiting clear pyramid scheme characteristics, causing the entire system to halt.
The current relaunch appears to replicate the fundamental flaw of its predecessor: a lack of any discernible retail component. Every dollar paid into the system, whether for an affiliate membership or a Master Reseller title, originates from a new participant's recruitment fee. There are no products or services sold to external consumers. Participants earn solely by bringing in new individuals, a hallmark of illegal pyramid schemes.
Individuals considering joining Abundance Network or similar programs should scrutinize the compensation plan carefully. The absence of genuine retail sales and the reliance on recruitment for income are critical red flags. The Federal Bureau of Investigation (FBI) advises consumers to report suspected pyramid schemes to their local field office or via the Internet Crime Complaint Center (IC3).