The Institute for Wealth in Networking describe themselves as a nationwide technology services company with experience as an innovative leader for the last ten years. Their marketing pitch is about Learning and Earning… But is it a worthwhile program for you to sign up to? Well I have completed some thorough research into this program and can tell you what it is actually all about and answer the question… is the Institute for Wealth in Networking a Scam?
What is the Institute for Wealth in Networking All About?
In essence, they are a MLM (Multi-Layer Marketing) platform with an emphasis on recruiting people to join IWIN. Participants pay up to $7,500 (directly) to qualify for recruitment commissions. When you sign up you pay a membership fee which goes directly to your upline sponsor (whoever referred you) and dependant on the level they are currently in. There are five levels, which I will discuss later. You can only benefit if you have someone join the same level as you, so you cannot be on level one and invite someone to join level five – you would need to be level five also.
The business opportunity they describe is really only about the recruitment element and not the education part that is plastered all over their homepage. The training they talk about is also aimed at teaching you how to promote the system – this includes mass mailing postcards and an emphasis on making and returning phone calls. Which seems like cold calling, which I know won’t work in the UK as most people will cut off these types of calls.
How Does It Work?
You sign up to the program in one of five levels, this allows you to qualify for the recruitment commissions. The commission is dependent on a couple of factors but is typically 90-100% of each sale. This sounds high and does sound appealing, but it also flags that the products they offer has no retail value. How do they justify charging people $1k’s for a product, when the underlying cost is $0?
The products they offer are simply rewritten PLR (Private Label Rights) eBooks on marketing and self-development. They sell it as you would be able to resell these, but you can find this type of information quite freely via a search online. But this sell becomes a non-event because of this.
Due to the compensation rates, you will naturally be inclined to work on the recruitment of new users.
IWIN Compensation Plan.
90% commission sounds awesome and due to the way, they sell it, why wouldn’t you think it is totally possible to work from home and sit back and live on them? Right, I hope you sensed that I am not entirely sold on the premise. There are two reasons:
The first is the compensation plan is complicated to understand. It is based on a ‘1-up’ downline structure. You receive commission on your first sale, the second commission goes to your upline (your sponsor) and everyone you introduce does the same. On second level introductions you only receive 10% for the first, 90% for second and none for any going forward. (Yeah, complicated). ON further levels down, you receive no commissions.
The website talks about how they will help you with first few introductions – helping with phone calls and the like, but it is actually the introducer who does this. So, you would need to help anyone who you introduce for their first couple of introductions. Sounds more work when you only receive commission on the first two. The problem with this model is a lot of the commission is actually not ending up in your pocket, but those above you. In these types of schemes, the people at the top always benefit. They thrive on being vague and confusing, as you are sold on the high rates of return they use in the marketing, i.e. 90% commission would have anyone consider it. That is why research is key.
The second reason I am not sold on the premise is, when you watch their videos of ‘Real People” who have benefitted from the system and they have been able to retire comfortably on the system, etc. But, when you do some digging and see that the same people are offering their services on Fiverr for doing videos promoting your product.
Both of the people I checked out are actors and you can hire them on Fiverr – Fivver is a freelance site where you can hire people to do activities, i.e. write posts, reviews, create a logo, etc.
I am not saying the Institute for Wealth in Networking is a scam, but why resort to such tactics. If this service works for real people, why are you not using real people in your videos?? Why, because this business model is about making sure the people at the top of the tree are the real beneficiaries and not the people who do the hard work.
The Five ‘Buy In’ Levels
The amount you can earn is dependent on the amount you are willing to invest. This system is fundamentally a ‘Pay to Play’ system, the higher levels have the higher commissions – the ones that will mean you are able to work from home without a day job.
Level One: L250 – costs you $250 and the commission rate is $225
Level Two: L500 – costs you $500 and the commission rate is $450
Level Three: L1000 – costs you $1000 and the commission rate is $900
Level Four: L2000 – costs you $2,000 and the commission rate is $1,800
Level Five: L3750 – costs you $3,750 and the commission rate is £3,375
Like I have mentioned before, the sting in the tail is, you must buy each level separately. You cannot decide you can afford the level five tier and go straight to it, you must buy each level bringing the total to $7,500 to qualify for all of the levels.
Can Real People Make Money?
It is hard to say, they use actors in their marketing videos which gives me the impression you cannot trust them, and these types of video is usually a red flag towards a scam. Their commission rates are confusing to follow. Unlike most affiliate programs there is an emphasis on phone calls, this just flags as cold calling and doesn’t represent a high rate of return. It is possible for some to earn money through this system, but would I recommend it…
This type of business model can work, referring people and earning commission is quite common – Refer a Friend has been a thing for years, genuine survey sites (Swagbucks) do it, Our No.1 Recommended Product has an affiliate program too. But the big thing that differentiates these systems is being genuine and honest. Who is behind the Institute for Wealth in Networking? What are their average Returns for a typical user? What support do they offer past the initial support? There are too many reasons why I would not recommend them, I would not use the word scam – but they have many traits that would put them in that category. Eventually all recruitment schemes collapse as people start leaving them due to them not working but they also lose the money they have invested.
There is a better way to build a profitable online business and enjoy it too. I am one of many that have shown it can work – see how you can get started too
Thanks for reading this, if you have any experience with IWIN or have any questions, then please leave them in the comments. Let me know what you think of this post too. I would love to connect with you.