Vortexity Scam - Why is it a Ponzai Scam?

Basically more and more people are starting to actually see that Vortexity is actually a Ponzi scam. And it is not only because the CEO used to be the mastermind of the previously failed BurnLounge Ponzi Scheme, but its because the compensation plan by Vortexity actually mimics that of a Ponzi Scheme.

If you look at the compensation plan offered by the company, you will notice that the only way for you to seriously earn money is to sell the Vortexity membership to your friend and families.

Here is why..

Even though Vortexity allows you to earn money through the 50% of the ad revenue earned by the company, the money is going to be pretty pathetic. The reason why I know that is because I have join such social networking sites before,and trust me guys, it ain't as easy as it sounds.

The money you are going to earn from the advertisement is going to be so little, its laughable. Try looking at this site Yuwie. It boost the same concept of Vortexity, just that it is actually FREE to join, and it does not require you to pay USD$1000.

And from my past experience, it actually took me 3months for me to earn my first USD$10 cheque (after working really hard, and getting about 55 'downlines' under me). And trust me, the Yuwie actually pays out the same amount as Vortexity (50% of the ads revenue)

Look at it this way, you actually have to pay USD$1000 for chance to earn pennies from each click by your downlines? I do not think that anyone of you is actually crazy enough to do that!

That was the reason why I chucked during the Vortexity opportunity talk when the CEO of Vortexity said:

"You are going to be so cool, you can tell people that Vortexity is YOUR business, you are earning money by surfing a Social Networking site!"

I wanted to stand up and tell him that:

"I do not think that $10 can allow me to survive for 3 months"

Well. I do not think that anybody can survive on that amount, unless you are living in China province or something.

If you sit down and carefully think about it, you will begin to realize that no doubt the internet is booming, and social networking is going to be the next 'in' thing. However, Vortexity is actually using social networking, to cover up their intentions, they are actually a Ponzi scheme company in sheep's clothings.

So, whats a Ponzi Scheme?

Well, a Ponzi scheme is basically a hit-and-run fraud company that thrives on the naivety of people. A Ponzi MLM company does not actually sell any products, instead members get to earn money through the recruitment fee.

So basically Vortexity is not a real MLM company because they do not actually sell any products. The only way you get to earn money is through recruiting more and more people.

I would actually recommend you guys to check-up more about Vortexity before you throw your money into the company.

BurnLounge Scam

Remember from my previous Vortexity Scam post that I meantioned that the Vortexity CEO used to be the mastermind of a Ponzai scheme company called Burn Lounge? Today while surfing the net, I managed to find out more information about BurnLoungr

Heres what i got from LounderSoft

Someone named TJ (Teresa) Searcy was kind enough to have invited me to attend a BurnLounge function here in Memphis on Wednesday night at Holiday Inn Select - 2nd Floor Ballroom 5795 Poplar @ I-240, Memphis on Wednesday, May 23, 6:30pm. After receiving the invite, I responded that I might be attending. I got frustrated with her emailing me the same evite repeatedly (four times in 12 hours). So after I had already responded saying I might attend, I did some research that I think people should check out. You see, folks, BurnLounge is a giant scam and they’re using some big names to try to convince you that they’re for real.

Memphis is a city filled with individuals who make art desperate for a chance to earn a living from their art. BurnLounge being a giant pyramid scheme, what better place to take advantage of people’s greed and ignorance than the city where stands a giant pyramid as a looming suggestion of how easily people can be manipulated. Everyone around here is desperate to make a buck, so who better to use as “marks” in the scheme than your own friends and family (or people who dream of making money on the internet)? When you see “Justin Timberlake Enterprises” and “Elvis Presley Enterprises” as people included in their “store owners”, you might be able to suspend your disbelief long enough to pay the fee to, as you would be led to believe, sell music. Nothing could be further from the truth.

The Fine Print (or what the hell is wrong with these people):

1) BurnLounge uses interchangeable language to sell you on their “store owner” concept. People are led to believe that they can sell music through their store; however, BurnLounge’s financial schematic doesn’t really revolve around sales — it revolves around what all MLM’s revolve around, signing people up under you as “store owners”. They use the language of the music industry as a ply to get you to come on board and be involved. If you replace their references to the music industry in their pitches with any other industry — vitamins, time shares, cleaning products — you will get the exact same pitches used by notorious MLM’s like Herbalife, Amway, and many many others.

2) Up until recently, the format of the songs you could purchase were only good for people who are running Windows and are using Windows Media Player. No brainer, it’s not a tech-savvy site because, think about it, they don’t care if you sell/buy anything or not. Even though they now sell MP3’s, it changes nothing. The reason they made this change was to continue to look like they are “developing strategy” when, in reality, they’re just changing their tune to fit the model.

3) The only way someone can find your “store” is to search from within the BurnLounge interface — there are no direct links to your store that you can give to people, you can’t find your store in Google by searching for it, and you have to email people to get them to join you — which fits directly in line with the MLM model. Edit: They have direct links to stores enabled now and people have dedicated sites that merely redirect you to their BurnLounge stores.

4) Most Many of the songs (it is widely reported) are horrible quality, don’t work on your iPod, and/or are off-brand versions of the originals – and if you email their support team about it, you will get slow or no response to your issue, something you don’t find happening with iTunes. Among these many versions you will find many karaoke versions of well-known songs, instrumentals, and the like. Why is this? Because they’re not actually making the partnership deals with the major labels that they promise they are. The labels are all hip to what BurnLounge is and are unwilling to license their premium content to BurnLounge because of what it is: a top-heavy scam.. Edit: Major labels do license their content to BurnLounge, however licensing agreements are not the same as partnerships.

5) Representatives use misinformation to get you to buy-in to their plan. I have been approached by more than one person with a BurnLounge store who repeatedly denies that what they are doing is in any way a pyramid scheme. If you look at their model and what it is, there is nothing else that it can be.

6) You can make money, but not necessarily from sales of yours/other people’s music. You can make money either by signing people up as store owners or by selling songs. The primary method of generating income (as with all MLM’s) is how many people you sign up underneath you. Edit:You may have to complete a “sales quota”, but this is only so that you maintain a regular financial contribution to the downline.

7) They are quick to tell you about their affiliations with celebrity names in order to get you interested in making money with them. What they don’t tell you is that these people are all top-levels on the pyramid and you, who end up on the bottom rung of the pyramid, are not getting the same residuals as Rick Dees, Shaquille O’Neal, MC Lyte, Ted Nugent, and the others whose names they throw around. See, those people have thousands of contacts to place in their own downline. If you don’t, then you don’t earn any money.

This is network marketing that attacks the very fabric of Memphis’ music underbelly, manipulating and feeding on the hopes that you’ll get some mailbox money for your work as an artist. There is nothing I can say to you to make you stop what you’re doing, Justin Timberlake (why is Futuresex/Lovesounds is all but absent from BurnLounge even though you have a store?), but know that the Federal Trade Commission is keeping an eye on BurnLounge even though they’re trying to now manipulate people into believing their site is another social networking site for music fans in yet another attempt to create new marks for your so-called business.

Vortexity Scam - How it all started

Many people wondered why I created this Vortexity scam website.

Heres how it started:

A close friend of mine called me the other day, and was telling me that there was a interesting new network marketing company riding on the wave of the social networking concept that can make me lots of money.

Enticed by the possibility of pioneering a new network marketing firm, I gladly accepted the offer and went for the talk.

During the talk, I was fascinated about how powerful fusing both the internet and the MLM concept can be. There were talks about how Myspace were able to gather 110million users worldwide just using 5 years, and was able to sell half the company off at 25million. We were also told how social networking is the trend now, and that we should jump onto the bandwagon now while the opportunity is here.

I was so hypnotized by their words and examples, that I almost paid the USD$1000 fee to join on the spot. However, there was this nagging feeling in my head that is prompting me to go check up more about the company before I put my money into it.

Therefore, I came onto the net, and found this shocking discovery..

First I found a forum thread post from www.scam.com

To read it, just click on Vortexity Scam

Although the thread was not directed directly at Voretexity, but I found that that the mastermind of Vortexity is actually the CEO of a recently revealed Ponzai Scheme company called BurningLounge.

Then I went onto the net and tried to find more information about BurningLounge.

Here is what i found from Digital Music Weblog

Basically BurningLounge is a supposedly MLM company that is trying to ride on the rising digital music trend (sounds kinda familiar ah?) . It allows people to actually set up paid accounts that allows them to set up their own online music shop, and they are able to earn a certain amount of money when people downloads music from their site.

But at the next level things start to get more complicated - the BurnLounge Affiliate and Music Mogul Programs also allow users to sign up and build their own stores, but users at this level can also sign up affiliate retailers - and every time they do that they will get a share of any revenue generated from sales on their affiliate's stores and a share of the fees that their affiliates pay.

If a retailer does manage to sign up a lot of affiliates, it does seem that they have a good potential to make cash from the scheme, but probably not from actual sales of music themselves, rather from the costly sign-up fees involved. While the basic package starts at a modest $29.95 per year, if you take a VIP package with the works and join the Music Mogul Program that's going to set you back a whopping $605.35 per annum.

After reading it, I was kinda shocked, as it sounds kinda familiar from what I manage to hear from the Vortexity opportunity talk. Further probing into the search engines, I manage to find Burn Lounge even on *gasp* wikipedia!! Click here to read more about it.

I managed to go to a few more websites to find out more about Vortexity, and I manage to find quite a few websites urging people NOT to join Vortexity because it is just another scam engineered by the CEO to rake profits off the disillusional people, like you and me!

Many forums are discussing that the aim of this company to just to rake in profits from the initial bunch of investors to the company, and then to run away with the money just like what happened to BurnLounge.

There may not be alot of information about Vortexity out yet, because the company is not operational yet. However, after reading all the websites, I have decided not to put in my hard-earned money into the company.

I would be doing more indept research into Vortexity so if you would like to find out more information about Vortexity scam, do drop by this blog often.

Vortexity Scam

If you have come to this page, you would most probably like to find out whether Vortexity is a Scam, or is it a true blue business that you should invest in.

I am going to show you why Vortexity IS a scam, and why you should NOT join it if you are looking for a legitimate business to invest your time in.