Wouter van der Schagt, CEO of Hong Kong-based QoinPro, is leveraging his past experience in multilevel marketing to build a cryptocurrency recruitment scheme. The company, currently in beta, offers affiliates Bitcoin rewards for signing up new members.
Van der Schagt previously spent years as a NuSkin Enterprises distributor in Asia. His LinkedIn profile details his work building distribution networks and conducting motivational seminars, tactics he is now applying to the cryptocurrency space. QoinPro’s business model centers entirely on affiliate recruitment.
The company offers no discernible products or services. New members join QoinPro for free and receive small daily Bitcoin payments. The company itself acknowledges these payments are currently minimal, stating they must ensure operational stability before increasing payouts. This suggests uncertainty about the long-term viability of their reward structure.
The primary incentive for affiliates is the commission earned from recruiting others. QoinPro employs a unilevel compensation plan that pays down four levels. Direct recruits yield a 7.5% commission, followed by 5%, 3%, and 1.5% for subsequent levels. Achieving "Ambassador" status by recruiting 100 people significantly increases these percentages, offering up to 15% and 10% on the first two levels.
This structure mirrors classic multilevel marketing operations, where money flows from new recruits to those at the top of the pyramid. Participants at the lower levels are unlikely to see significant earnings. The financial success is concentrated among a small group at the apex.
Van der Schagt’s history with NuSkin, where he focused on building sales networks and motivating distributors, indicates a familiarity with these recruitment-driven models. He is now using Bitcoin as the lure, a departure from the health and wellness products often associated with such schemes.
QoinPro's appeal lies in its low-risk presentation: free membership, daily Bitcoin rewards, and recruitment commissions. However, the absence of a revenue-generating product means the operation relies solely on new member inflows. Such schemes inevitably collapse when recruitment slows, leaving the majority of participants with no returns. The cryptocurrency aspect appears to be a superficial attraction, masking the core business of signing up individuals and encouraging them to recruit others. This is not a genuine business opportunity but a multilevel marketing operation.