Adveshares, an investment platform promising 150% returns in 60 days, operates without disclosing its ownership or management. The adveshares.com domain was registered on July 3rd, 2012, with private registration details.
Adveshares' Facebook page lists a virtual office in Los Angeles. This address does not appear on the company's official website. The absence of disclosed leadership information is a common warning sign in investment schemes.
Adveshares offers no retail products or services. Members invest funds directly into the company, expecting promised returns on these investments. Each investment package includes advertising credits for the Adveshares website. These credits function as a cover for the underlying investment scheme.
Investors commit funds in $13 increments. Adveshares guarantees a 150% return, disbursed over a 60-day period. Upon an investment's maturity, members must reinvest 30% of their returns into the program.
The program pays referral commissions through an eight-level unilevel structure. Direct recruits occupy level one, their recruits populate level two, and so forth. Commissions on new investments decline with each deeper level: 7% on level one, 5% on level two, 3% on level three, and 2% for levels four through eight.
Membership itself is free, but no withdrawals are possible without an initial investment. Free members can recruit and earn commissions, but any payouts adhere to the mandatory 70/30 reinvestment rule.
Adveshares lacks retail products, guarantees 150% returns in 60 days, and derives all revenue from new member investments. These characteristics align with a classic Ponzi scheme.
The company funds payments to existing members with money from new investors. This model requires a continuous influx of fresh capital. Yet, Adveshares promotes claims such as "Earn PASSIVELY! NO SPONSORING REQUIRED!" and "Earn 15% of your investment every 6 days like clockwork for 60 days!" It also promises "A unique compensation plan ever created with 0% risk GUARANTEED!"
Adveshares suggests its forced reinvestment rule resolves the sustainability issues common to Ponzi schemes. The company states, "What makes this possible is the 70/30 rule! Why? Because 30% of your income goes to the auto repeat purchased, that what makes this program sustainable!!!"
Forced reinvestment does not eliminate the fundamental problems of such schemes. It merely postpones an inevitable collapse. High returns funded by new investments require constant fresh capital; internal money shuffling only delays the point where the financial model fails.
The company's FAQ section indirectly acknowledges this vulnerability. When asked "Is there any risk to lose my money?", Adveshares responds, "NO. As long as our site are making sales." These "sales" refer to new member investments. The scheme collapses when new investments cease.