PayOfRewards runs a financial scheme that promises daily returns up to 60% on "advertising credits" while hiding its operators' identities. The website's domain, registered on May 21, 2013, uses private registration to obscure ownership details.
Nobody knows who owns PayOfRewards. The company website offers no information about its management or leadership. A name, "Albert Midwall," appears linked to a Twitter account from the site, but the account has no posts. Searches for Albert Midwall outside of PayOfRewards yield nothing. The person likely does not exist.
This anonymity acts as a major warning sign. An MLM company that conceals its leadership should not receive anyone's money.
PayOfRewards claims to sell advertising credits. Customers supposedly buy these credits to display ads. Yet, the PayOfRewards website itself contains no advertising. It remains unclear where any such ads would actually appear. The true product is the scheme itself.
Affiliates pay up to $10,000 to join. They then purchase advertising credits. Each credit bought generates a "point" within the system. PayOfRewards pays daily returns on these points for 90 days. To qualify for payouts, affiliates must give away at least 10 advertising credits daily to retail customers they recruit.
For every credit an affiliate buys, they receive a bonus point. The company then pays daily ROI on these bonus points, which expire on a rolling 90-day basis. PayOfRewards states these daily returns can reach "up to 60% of the revenue earned that day."
Sixty percent daily returns do not exist in legitimate business. This math points directly to a Ponzi scheme.
The recruitment component further complicates the structure. Affiliates earn ongoing monthly commissions by recruiting others. Silver affiliates receive $2, gold affiliates $10, and diamond affiliates $20. These payments trigger each time a recruited person pays their monthly membership fee.
A matrix commission system also exists. PayOfRewards does not specify the matrix's width, but affiliates can reportedly earn commissions down 21 levels. Each filled position in the matrix, whether through direct recruitment or the efforts of those below, generates a commission. The amount earned depends on the affiliate's paid rank.
This structure is a textbook multi-level marketing setup. Money primarily flows from new recruits paying in, not from selling an actual product to genuine customers. The advertising credits, without visible ad placements, serve as a thin cover for a model based on recruitment.
Anyone considering PayOfRewards should understand they are looking at an anonymous operation. It promises impossible daily returns for buying phantom advertising inventory and recruiting others into the same deal. These schemes inevitably collapse when new recruitment slows. The people at the bottom lose their money.