Philip Reitcheck | greentrees

Bid Ambassadors Club Review

Apr 30th 2013 at 4:40 PM

This is my review of the Bid Ambassadors Club which is a group of different online MLM income programs. These include the BidsThatGive penny auction site, BTG Virtual Mall shopping site, Trivia That Gives trivia site, Getaways That Give Travel Club, and BTG Charities.  As you can see all the different programs are directly connected to the BidsThatGive (BTG) penny auction program.

The web site is www.bidambassadors.com and is shown as owned by Bids That Give and its server location in Seattle, WA, USA.  The web site has been online for 361 days and is set to expire on April, 24th, 2015.  It is shown as having 8,316 visitors per day.

The BidsThatGive auction site website is www.btgpennyauctions.com, is shown as owned by Liberty International and its server location in Seattle, WA, USA.  The hosting company is Unified Layer which is located in Provo, UT, USA.  The web site was created on June 7th, 2012 and is set to expire on June 7th, 2014.  It is shown as having 2,206 visitors per day.

The the Bid Ambassadors Club was started as a  part of the main BidsThatGive program, so that is the program that I will concentrate on for this review.  The web site is www.bidsthatgive.com, is shown as owned by Bids That Give and its server location in Seattle, WA, USA.  The web site has been online for 388 days and is set to expire on March, 28th, 2014.  It is shown as having 2,041 visitors per day.

BidsThatGive founder is Randy Jeffers and he appears to be operating out of Provo, UT, USA.  Now Randy Jeffers is not new to network marketing, he rose to fame with a online program called Destiny TelCom in the1990's that closed in 1997 after SEC regulators shut it down.  He then started another  company called Liberty International (yes the same company that is shown as the owner of the BidsThatGive auction site) in 1999, which went bankrupt in 2010.  Then during the MLM wireless crave, Randy Jeffers launched WOW Mobile in 2010 which became bankrupted in just a few months because of a problems between T-Mobile and Randy, leaving many affiliates with unpaid commissions.  After the bankruptcy of Liberty International and WOW Mobile, Jeffers launched the Liberty Freedom Network which is   marketing restaurant coupons.  Randy Jeffers has also started a company called the Private Sharing Profit Company, with the web site URL www.privatesharingprofitcompany.com that was registered on July 1st 2012 and shares the same private domain registration as www.bidsthatgive.com, but as of yet this company isn’t active.

How Does BidsThatGive Work? Like almost all the other penny auction based MLM companies that have popped up since the "failed"end of the ZeekRewards MLM penny auction program, the BidsThatGive compensation plan works on the purchase of bids by retail customers and affiliates.  There are three types of bids available for use at the penny auction site.  They are retail bids (65 cents each), wholesale bids (50 cents each), and subscription bids.  Retail bids are available for purchase by penny auction retail customers with a 20% commission for affiliates.  Wholesale bids are only purchasable by BidsThatGive affiliates (called Bid Ambassadors) to be given away to auction customers they have signed up for the penny auction site.

For each wholesale bid given to a penny auction customer, affiliates are given 1 point in the “Daily Profit-Sharing Pool”.  The pool is made of up of 50% of BidsThatGive's daily profits from bid purchases, auction winner fees, and affiliate membership fees.  The more points a affiliate has, the larger their share of the profit pool.  Payouts are capped at $3,000 a day Monday-Friday and $5000 on Saturday-Sundays.  A $20,000 global cap also exists, but excludes wholesale bid commissions.  To qualify for the daily profit pool affiliates need two retail customers (to give wholesale bids to), to purchase of at least 10 wholesale bids, and place one BidsThatGive auction ad each day.

Subscription bids are bids given to affiliates when they pay their monthly membership fee.  These bids can only be used in affiliate “Ambassador Auctions” and do not generate any points.

Affiliates also receive commissions from the purchase of wholesale bids by their down line affiliates. This commission amount is depends on the membership level of the qualifying affiliate and is paid out on three levels, direct affiliates, your level 2 affiliates, and your level 3 affiliates.  The following are the four different affiliate levels and their commission rates:

  • Contributor – $10 per month, 5% on levels 1 and 2 and 2.5% purchases
  • Guardian – $50 per month, 7% on levels 1 and 2 and 3.5% on level 3 purchases
  • Benefactor –  $100 per month, 10% on levels 1 and 2 and 5% level 3 purchases
  • Ambassador – $250 per month, 12% on levels 1 and 2 and 6% on level 3 purchases

Their are also subscription bonus pools called Mentor Pool, Visionary Pool, eight different VIP Pools, and Presidential Elite Ambassador, plus a car payment program, that I do not have room here to describe them.

In addition to penny auctions, some affiliate's are also given a BidsThatGive retail store stocked with items from BidsThatGive.  Affiliates earn commissions when they sell items through their store, calculated as the difference between the wholesale price and retail price of the item sold.  But the affiliate must be either a Benefactor or Ambassador level to get the retail store.

My Option.... BidsThatGive states on their website that they are “Not An MLM”, which I do not understand as they offer referral purchase commissions down 3 levels, have MLM type membership ranks & qualifiers, and a MLM multi-level compensation plan for all its bonuses, which makes it match the complete definition of a MLM program..  

A major RED flag for me is the fact that the Bid Ambassadors Club and BidsThatGive affiliate websites are receiving 8,316 and 2,041 visitors daily.  The penny auction site is only receiving 2,206 visitors daily, yet with a two customers requirement per affiliate rule there should be more than double this traffic at this the auction site.  What this means is that more than 1/2 of the auction customers are NOT using their bids at the auction site and even fewer affiliates are using their bids.  Since this means that very few people are actually bidding on the penny auctions, almost all of the daily company profits are coming from affiliates purchasing bids.

Meaning tha basically BidsThatGive affiliates are being rewarded daily directly from the amount of money they themselves or new affiliates invest.  They call this investment “purchase of wholesale bids” but it still means money being paid directly by affiliates to the company, with the affiliates hopes of an eventual return that exceeds their total amount invested.  Of course re-investment in more bids is encouraged to grow your point balances, to increase your daily profit shares.

The BidsThatGive income caps are interesting as I have not seen a MLM penny auction program use them before, however it’s far from a way to sustain program daily profits.  The earnings cap only serves to cap "passive' investors who join BidsThatGive, but do not want to recruit.  Affiliates that do recruit new referrals to invest, effectively remove the cap on their earnings after hitting the Presidential Bid Ambassador membership and generating a new Bid Ambassador position.

I do not know how many auction customers a affiliate needs as they grow their point balances and daily ROI's.  As I did not see any limit on giving wholesale bids to auction customers in the back office.

As for the whole children’s charity angle, that appears to be more of a marketing ploy than anything else, as I have checked with over 20 different children's charities and have not found ONE that has recorded any donations from BidsThatGive, Bid Ambassadors Club, BTG Charities, or Randy Jeffers.  I suspect that the children's charity angle might also be used as a pre-emptied deterrent for regulators that might investigate the company, given Randy Jeffer’s previous MLM program history.

The commission plans alone pretty much point you to where BidsThatGive are planning on getting most of their revenue from and it doesn’t look well for a long-term MLM company both legally or otherwise.  That said, there could be some short term earnings that could be made with BidsThatGive, but I feel that since the program is already over one year old, the time needed to earn any money with this program is now coming to a quick end.  In other words, I advise NOT investing in this program at this time.

Just My Option,
Philip Reitcheck
greentreesmlm@gmail.com

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