What Is Digital Income Systems? It’s a Traffic Rotator Pyramid Scheme!

Digital Income Systems markets themselves as a traffic rotator program, with the income opportunity as the center of the program. 

As of this writing, the program’s landing page is nothing more than an affiliate member login page. Visiting a Digital Income Systems referral link will get you a marketing video about the program. This is where to try to recruit you into the program. 

The website will not present you with any information on who runs the website, or who owns the company. The website was registered privately back in 2018, so we don’t know who did the registration. 

Several names came out of our research for this program. Most notably Derek Jones and Bill Foley, but we were unable to verify if these names are correct. It wasn’t until we got to the FTC lawsuit where we found several other names linked to the creation and/or promotion of this program. 

As it turns out, Derek Jones is actually Derek Jones Foley. 

Digital Income Systems Product Line

Digital Income Systems offers no retail products or services. Members are only marketing the income opportunity of the program, which is a bad version of affiliate marketing. 

Does The Product Work?

Digital Income Systems claims they have a “closed-loop vacuum” that’s attached to the traffic rotator to promote the income opportunity. 

The gist of their program is that members sign up, use the marketing tool, use the tool to recruit people, and get paid if they get people to sign up. 

This will loop on and on, and while it does look like affiliate marketing, the program’s income opportunity is rooted in its recruitment incentive. 

With recruitment as its main incentive, it doesn’t come as a surprise that it was flagged by the FTC as a pyramid scheme.

This means that 100% of the members’ new investments are paid out and recycled into the upper tiers of the program. That’s why you’re signed up as a “affiliate” and can’t start your own tier. You’re going to be someone else’s downline. On top of that, the anonymous admin takes out 50% of fees paid company-wide.

Recruitment is the only way to make money from Digital Income Systems. 

How To Get Started with Digital Income Systems?

Digital Income Systems membership costs between $1000 and $25,000. 

The difference between these programs is that the higher investments get you access to higher income potential. 

• Entrepreneur – $1000
• Director – $3000
• Professional – $5000
• Ambassador – $12,000
• Executive – $25,000

Members can also upgrade their investment tiers along the way when they see fit. 

Digital Income Systems Compensation Plan

Digital Income Systems members purchase an investment tier between $1,000 and $25,000 as listed above. 

Digital Income Systems pays out a 50% commission on recruiting new members. This 50% pays out as follows: 

• recruit an Entrepreneur ($1000) and receive $500
• recruit a Director ($3000) and receive $1500
• recruit a Professional ($5000) and receive $2500
• recruit an Ambassador ($12,000) and receive $6000
• recruit an Executive ($25,000) and receive $12,500

But you can’t earn more than what your rank is capped at. For example, if you’re ranked Director and recruited an Executive, you don’t get $12,500 but rather $1,500. 

The remaining balance of $11,500 is paid out to a higher upline (in this case, a Professional rank member or higher) until it reaches an Ambassador or Executive ranked member

This is why you’re forced to upgrade or buy into the highest ranking tier possible so you get the highest income potential possible. 

#1 Sued By FTC!

Digital Income Systems was sued by the FTC for its “fraudulent money-making opportunity scheme”, as aptly called out in their lawsuit. 

The named defendants of the lawsuit are: 

• Digital Income Systems Inc.
• Derek Jones Foley (owner, Florida resident)
• William Foley (owner, Florida resident)
• Christopher Brandon Frye (promoter, Arizona resident)
• Jennifer Hedrick (promoter, California resident) and
• Kaitlyn Scott (promoter, South Carolina resident)

The FTC alleges that these defendants are falsely telling their consumers that through the program of selling memberships, members are likely to earn a lot of money. 

While the defendants take up a huge percentage of these newly invested funds, the vast majority of their members never received a single cent from the program. 

Two promoters of the program were also named on the lawsuit, namely Brandon Frye and Jennifer Hedrick. Hedrick used the Covid-19 pandemic as a way to market the program while Frye claimed to have made over a million dollars. 

At this time of writing, it’s unclear how much money is unpaid (excluding the amount of the promoters’ payouts). 

The FTC sued these defendants for:

• misrepresentations regarding earnings;
• disclosure document violations;
• earnings claims violations;
• general media earnings claims violations;
• misrepresentations regarding income or profits; and
• misrepresentations (general).

#2 Pyramid Scheme!

Their program is nothing more than a flatout pyramid scheme. Recruitment is the name of the game, and you’re forced to get members so you get your payout. 

But in reality, you’re never going to see your money again no matter how many people you recruit.

There’s nothing to like about Digital Income Systems.

Digital Income Systems is a pyramid scheme that was sued by the FTC for its fraudulent income opportunity. 

The program is similar to what we saw from MOBE and Digital Altitude, with recruitment being the only source of income. 

The founders or the people running the show have been sued by the FTC, including the promoters of the program. As of this writing, they have reached a settlement with the FTC but it doesn’t change the fact that there were legal actions taken against them. 

Stay away from this program. If they do rebrand into something else, at least now you know what to look for. 

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...