Zubaduba, an online venture launched in July, collapsed its initial pyramid scheme model within two months, announcing a shift to an ad pack Ponzi scheme on September 9th.
The company initially operated as an MLM. It charged $8 for membership to an e-book library. Its compensation plan used a 1-up structure, paying $5 from monthly fees.
After its pyramid scheme failed, Zubaduba introduced a new earning structure centered on "ad packs." Members now buy "shares" at 50 cents each. These shares promise a 150% guaranteed return on investment over time. But to qualify for withdrawals, members must view at least 25 pay-to-click (PTC) advertisements within a seven-day period.
Each investment bundles advertising credits. Deposits of $10 or more also include a year of "unlimited" web hosting. The provider for this service remains undisclosed.
Investments are accepted in specific lots: $1, $2, $5, $10, or $50. Zubaduba states that 80% of all purchases are distributed among active ad packs within the same share plan. This means 80% of new member funds into each pool finance the promised returns for earlier investors in that specific pool.
The remaining 20% of funds, not directed to the ROI pools, partly covers a 5% referral commission. This commission applies to investments made by personally recruited members (level 1) and by members they recruit (level 2).
Just as Zubaduba's first iteration faltered when new member fees stopped, this ad pack model faces a similar fate if new investments cease. The company has not disclosed its ownership or management details since its inception.