ScamTelegraph chronicles the history of Seth Fraser's Freebie Force, a multi-level marketing venture launched in 2007 that promised access to free products and recruitment commissions for a monthly fee. The company failed by 2010 due to reliance on continuous recruitment, selling its member list to LiveSmart 360. Fraser is now launching a new enterprise, "That Free Thing."
Seth Fraser introduced Freebie Force in 2007, operating on a model where participants paid a monthly fee to access complimentary products and earned commissions for recruiting new members. Within three years, by 2010, the company faced collapse as the pool of potential new recruits diminished. In response, Fraser sold the Freebie Force member list to LiveSmart 360. The transition involved existing members being transferred to LiveSmart 360, reportedly without an option to decline, though their membership fees were initially waived.
The announcement of the Freebie Force acquisition by LiveSmart 360, led by founder Mark McCool, was reportedly made through videos featuring both Fraser and McCool. These videos have since been removed from public access. During these announcements, Fraser cited a Freebie Force member list of 117,000 individuals. However, he clarified that this figure encompassed not only active members but also those who had merely provided an email address for a free tour, making the actual number of paying members unclear. Despite being circulated to this extensive list, the promotional videos garnered minimal engagement, with one recording 301 views and another only 241 at the time of their original publication.
The partnership between Freebie Force and LiveSmart 360 proved short-lived, failing within seven months. This marked a second multi-level marketing venture under Fraser's leadership to face collapse. Following this, Fraser initiated efforts to relaunch the freebie MLM business model under a new company named That Free Thing.
The compensation structure for Freebie Force, initially complex, was later simplified. Its final known plan utilized a 5 by 7 matrix, offering a commission of $1 per month for each directly recruited member. Theoretically, filling all 97,655 positions within such a matrix could yield a monthly income of $97,655 from membership commissions alone. However, without a tangible product and an inherent reliance on a continuous influx of new recruits, Freebie Force ultimately became unsustainable and failed.
With That Free Thing, Fraser appears to be revisiting the same freebie business concept and a similar compensation plan, raising questions about whether this new venture can avoid the pitfalls that led to Freebie Force's demise. The similarity in model, coupled with the same founder, prompts scrutiny into its long-term viability.
What was the core business model of Freebie Force?
Freebie Force, founded by Seth Fraser in 2007