Peter Gantner, identified as CEO of KulaShare Inc., is a central figure in KulaBrands, a company whose operational model has raised significant questions. KulaBrands' platform involves affiliates pledging to pre-purchase products, a process critics suggest could be used to artificially inflate a product's perceived popularity. This crowdfunding mechanism is central to the company's operations.
Doug Kyle registered the kulabrands.com domain name in September 2015. He previously attempted to fund a product called "Fuel Matrix" on Kickstarter in late 2015. The project aimed to raise $50,000 for a fuel additive claimed to reduce emissions and improve gas mileage. However, by January 2016, only $10,312 had been pledged, falling far short of its goal.
KulaBrands does not offer its own products for sale. Instead, its affiliates market affiliate memberships. Third-party merchants can list products on the KulaBrands network. Affiliates then vote on which products to support by pledging to pre-purchase them. If a funding target is met, the product moves to an external crowdfunding platform like Kickstarter or Indiegogo. KulaBrands affiliates contribute funds to these projects. The company then operates replicated storefronts where affiliates can sell products that are successfully developed.
Gantner has a history with other multi-level marketing ventures. He was an affiliate for Visalus from 2008 to 2012 and Lyoness from 2012 to 2013. A marketing video from February 2016 also showed Gantner promoting Kannaway, though his current involvement with that company remains unclear. In October 2016, Gantner contacted this publication to clarify that KulaBrands and KulaShare Inc. are distinct entities with no affiliation beyond shared ownership.
Under KulaBrands' compensation plan, third-party merchants pay a royalty fee for each product sold through the platform. KulaBrands negotiates this fee. If a project is funded and products are manufactured, KulaBrands retains a portion of these royalties and distributes the remainder to its affiliates.
The company's structure, where affiliates are incentivized to pledge funds to projects before their viability is fully proven on external crowdfunding sites, has drawn scrutiny. This method of engagement, combined with the focus on recruiting new members to join and pledge, raises concerns about the sustainability and transparency of the KulaBrands model.