ClubShop Review – A 2-in-1 Pyramid and Ponzi Scheme!

ClubShop is a MLM or multi-level marketing company that makes money in the eCommerce niche where members are offered an eCommerce shopping website and earn money when customers buy something from their websites. 

I know that their business model looks a lot like affiliate marketing or dropshipping, but trust us, it’s far from what it really is. 

On their website, ClubShop claims that they were incorporated in Englewood, Florida, in June 1997 but there are several conflicts with this information found on their website footer: 

Copyright © 2018-2021 – Clubshop Rewards Program by Proprofit Worldwide Ltd.

Proprofit Worldwide Ltd. – 98 Chingford Mount Road – E4 9AA – London, UK | Company Number: 8525700

The WayBack Machine archive also shows that prior to becoming ClubShop, the company was formerly known as Discount Home Shoppers Club, which started back in the 1990s. 

There’s an Englewood address tied to the Discount Home Shoppers Club business, but there’s no information about who owns it. 

They have a UK incorporation but this is absolutely meaningless. It’s easy to get one and it’s unregulated, making it one of the best things that a scammer can get to make themselves look legit. 

ClubShop’s CEO is Dick Burke and is based out of Englewood, Florida. On their page, they have a “Meet The CEO” page and someone else is listed as CEO. Fabrizio Perotti cites himself as the owner of Proprofit Worldwide, who owns the domain name for Clubshop.

Proprofit is a marketing company founded by Perotti and another marketer named Giuseppe Francavilla. Both marketers actively promoted DHS Club and Clubshop brands in Italy from 2001 to 2012. 

Prior to Clubshop, Perotti was promoting Ad2Prosper, an adcredit pyramid scheme.

ClubShop Product Line

Clubshop has no retail products or services to offer as a MLM. Members are only able to market the Clubshop membership itself. 

The ecommerce platform is free to sign up for non-members and gives out discounts and cashbacks. 

Does The Product Work?

The review of Clubshop is focused on what it is today, and not on what it was a couple of years ago. 

Clubshop’s members are spread out in the USA, Italy, France, Netherlands, and Belgium. Most of the traffic come from Russia and Venezuela. These are two countries which are hotbeds for scams over the last few years. 

Clubshop is a combination of a pyramid recruitment scheme with a two-tier Ponzi system. 

The ecommerce platform is nothing more than pseudo-compliance to make it look like they have something to offer as a MLM company. 

The only source of income coming into Clubshop is through recruitment. New membership fees are used to pay out the older members and those at the top of the pyramid. 

The Ponzi part of Clubshop relies on their TangiCoin, which you purchase through the higher membership tiers. Tangicoin is tied to Tangiworld, which was promoted by Ad2Prosper.

The coin itself has no value to the market and is an arbitrary currency from Tangiworld. The value of the coin is decided by the powers that be, and those are the people behind Clubshop. 

We believe they set this up so members can withdraw their funds through the coins via an undisclosed coin exchange.

Even if you look past their pyramid scheme, their monthly returns constitute a securities offering. This is something they’re not even registered to do in any country or jurisdiction. That means they’re committing securities fraud on top of operating a pyramid scheme plus being a Ponzi scheme. 

It just goes from bad to worst!

There’s only one way to make money from Clubshop and that’s through new member recruitment. 

How To Get Started with ClubShop?

Clubshop has different membership tiers, which we’ll list down below. It will cost you anywhere between $14.90 and $249.90 a month. 

The more money you spend, the more money you make.

ClubShop Compensation Plan

Clubshop’s MLM opportunity is called Global Partner System. This has you running your own business and making your entrepreneurial life easier. 

There are 7 membership tiers for you to choose from. 

• Basic – $14.90 a month
• Basic Plus – $29.90 a month
• Pro – $49.90 a month
• Pro Plus – $89.90 a month
• Premier – $129.90 a month
• Premier Prosperman – not disclosed

MLM Commission Qualification

Clubshop has two options in order to qualify for MLM commissions: 

1. Recruit and refer members who purchased products through the Clubshop’s platform
2. Pay ongoing membership fees

The second option is the safest and most consistent way to qualify for commissions according to their marketing documents.

Recruitment Commissions

Clubshop members earn a 50% commission on the first monthly fee paid by their personally recruited members. This 50% commission is also paid out when their recruit upgrades their membership tier.

Residual Recruitment Commissions

Clubshop pays out residual commissions following a unilevel compensation structure. They cap out the commissions at 6 levels as follows:

• level 1 (personally recruited affiliates) – 2%
• level 2 – 3%
• level 3 – 4%
• level 4 – 7%
• level 5 – 14%
• level 6 – 20%

#1 Recruitment Ponzi Scheme!

As you can see from their compensation plan, everything revolves around recruitment. You’re not going to get any income from your ecommerce platform because the platform is still doing recruitment for you. 

This makes it the biggest red flag of them all. Since they’re registered in the USA, the FTC has issued strict guidelines for MLM companies in order for them to not be flagged as a pyramid scheme. 

Clubshop violates every single one of these guidelines. 

#2 Securities Fraud!

On top of operating a pyramid scheme, Clubshop is committing securities fraud due to their passive income opportunity. They’re not registered to carry out these transactions, so that’s another illegal activity on their belt. 

You could go to jail for promoting this program, especially if you made money off of this program. 

#3 Misleading Customers!

They’re luring customers based on what their old business model was, which was legitimate. Their old business model has nothing to do with what they’re offering now. 

This means that they’re making customers think they’re getting into a legitimate business opportunity when in fact they’re not.

There’s nothing to like about Clubshop. It’s just one big scam hiding behind its former and legitimate self. 

Clubshop is a Ponzi scheme and pyramid scheme rolled into one program. There’s nothing legitimate going on around here because their compensation plan violates every single guideline issued by the FTC on MLM companies. 

The name of the game is recruitment, and that’s the only way to make money from their program. There’s no proof that they’re generating income other than through recruitment. 

Stay away from this program.

I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.

Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.

The reason is simple...

• You don't have to recruit anyone to make money
• You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
• It's Free to get started

In fact, with affiliate marketing...