Is CoopInc a Scam? Investigating David Rosen’s Cooperative Ponzi
CoopInc stands out as a crowdfunding scheme masterminded by David Rosen, a well-known figure in the world of MLM Ponzi schemes. Delve into our in-depth review of coopinc.com to uncover the inherent risks associated with this venture.
David Rosen, a Canadian native, strategically positions himself in various locations, aligning with the projects he champions. His latest endeavor, CoopInc, introduces a crowdfunding platform within a cooperative framework.
About David Rosen, founder of CoopInc
In 2015, he gained MLM recognition with PIE 24/7, a pyramid scheme that generated millions from investors. After PIE 24/7’s demise in 2018, he initiated Cooperative Crowdfunding, a matrix-based gift scheme.
In that same year, he unveiled 50/50 Crowdfunding, also known as CoopCrowd. CoopCrowd faced a downfall in 2020, and despite its collapse, he promoted Coop5050 until its eventual failure in 2021.
In 2022, David Rosen initiated the CoopCrowd reboot, but it swiftly collapsed. This year, he introduced CoopBusiness, a platform we recently uncovered as a three-tier matrix pyramid scheme.
Predictably, CoopBusiness faced a brief existence, attempting a revival through Coop20. Our investigation centers on why this high-risk, no-reward platform closely mirrors CoopInc.
How does CoopInc sell itself as a cooperative crowdfunding project?
CoopInc asserts itself as a unique platform, aiming to swiftly supplement lost income or bolster existing financial streams. The platform pledges to assist members in meeting monthly expenses through innovative debt-relief strategies.
This platform not only proposes an opportunity for investors to earn but promises daily returns, distinguishing itself from mere one-time donation systems. CoopInc emphasizes its CoopWallet, designed for seamless transactions within its ecosystem.
The proposition appears straightforward: join the platform, and effortlessly start accumulating earnings from the cooperative ecosystem. However, this seemingly simple process raises skepticism, as the promise of receiving free funds lacks credibility.
In the realm of MLM pyramid schemes, there’s invariably a caveat. CoopInc, unfortunately, fails to provide the authenticity it claims. The platform operates with a concerning lack of accountability and transparency.
Contrary to the assertion that payments are required, the reality is different. Investors must make initial deposits to access what appears to be gratuitous rewards from CoopInc. Unbeknownst to many investors, the platform permits only partial withdrawals of the initial investment.
Affiliate and Commissions CoopInc
CoopInc operates as an MLM platform, enticing investors with numerous bonuses and commissions through its referral program. Participants stand to earn over 25%, based on the three-tier affiliate program.
Additionally, CoopInc affiliates are promised $20 every 28 days, with varying amounts depending on the matrix tier. However, our scrutiny reveals a lack of authenticity within the platform.
To receive any partial commissions, affiliates must fill nine matrix positions, a feat yet to be achieved by any participant. Withdrawals for referrals made remain elusive.
This unveils the true nature of David’s project, placing the burden on affiliates to drive results. The origin of funds for investor payouts becomes questionable, rendering CoopInc a potentially risky investment platform.
Cons of CoopInc
Before engaging in any project, it’s crucial to conduct thorough research to assess the advantages and disadvantages. Is Coop Inc a genuinely reliable platform for obtaining funds, and does the commitment to effortless earnings hold true on the platform?
Here’s what found out as the main cons of investing with coopinc.com;
A Initiative Offering Financial Relief
A major concern with this platform is its practice of distributing free funds to investors, signaling a lack of authenticity. Essentially, it operates as a Ponzi scheme, aiming to attract a large user base without a clear mission statement.
The absence of a mission statement raises questions about the platform’s sustainability. Authentic cooperatives typically invest in various projects to provide free giveaways responsibly.
Complicated Commission Structure on CoopInc.com
CoopInc.com features one of the most intricate commission-based structures in the MLM realm. Affiliates face the challenge of navigating a nine-level matrix before the platform even considers releasing payouts. This complexity poses a significant issue for affiliates doing the heavy lifting.
Moreover, the lack of transparency on conversions during the referral stages leaves affiliates without the necessary data. This accountability gap undermines the platform’s credibility.
Coop Inc’s Emphasis on Recruitment
David Rosen appears to be running a recruitment agency in the guise of affiliates and referrals, rather than a cooperative crowdfunding project. His track record in similar projects suggests a pattern of failure, making the relentless push for recruitment questionable.
The focus on continuous recruitment is a telltale sign of a pyramid scheme, relying on ongoing deposits for viability. Once deposit numbers decrease, the project’s chances of survival dwindle.
Lack of Demonstrated Revenue Source from Coop20
The platform seems solely dependent on funding, lacking a visible revenue source. If members fail to contribute, the project is at risk of collapse. Despite presenting itself as a cooperative crowdfunding model, there’s no evident income-generating mechanism.
Support from David and His Team
Upon signing up and depositing the required sum, don’t anticipate immediate support from David or his team. Instead, you may receive calls from a call agency attempting to persuade you to sign up.
Considering David’s history of launching unsuccessful projects, there’s a strong likelihood that this venture will follow suit. This exposure aims to highlight the platform’s lack of authenticity and substantial offerings.
Customer Complaints Ratings and Reviews
Before diving in, it’s crucial to check out what others are saying about a specific project. CoopInc Review is a handy resource to gauge public opinion on David Rosen and his ventures.
Regrettably, all of Rosen’s projects have garnered zero-star ratings, and the ones that didn’t make it generated significant backlash from the community. It’s advisable to stay away from this platform to prevent potential losses. Here’s a breakdown of why steering clear of his poorly-rated projects is essential.
CoopInc’s Products
CoopInc has no retailable products or services.
Affiliates are only able to market CoopInc affiliate membership itself.
CoopInc’s Compensation Plan
CoopInc operates on a structured model where affiliates acquire positions within a 3×6 matrix. There are three distinct membership levels:
- CoopInc20 – $20 every 28 days
- CoopInc28 – $28 every 28 days
- CoopInc20/28/280 – $280 every 28 days
The numerical values “20,” “28,” and “280” correspond to three matrix tiers:
- CoopInc20: A 3×6 matrix
- CoopInc28: A 3×10 matrix
- CoopInc280: A 3×10 matrix
In the 3×6 matrix, an affiliate occupies the top position, with three positions directly below them. This structured system defines the CoopInc membership and compensation arrangement.
The initial tier of the matrix comprises three positions. To create the second tier, each of these three positions is divided into an additional three positions, resulting in a total of nine positions.
Continuing this pattern, levels three to six of the matrix follow the same approach, tripling the number of positions with each new tier.
Expanding from a 3×6 matrix to a 3×10 matrix involves adding four more levels, maintaining the principle of tripling the positions at each stage.
Recruitment Commissions
CoopInc affiliates receive 25% of position fees paid by personally recruited affiliates.
Residual Commissions
Regardless of the matrix tiers, commissions are paid as a percentage of each directly or indirectly recruited affiliate’s buy-in.
Exact commission percentages are determined by which level of the matrix a position is filled.
CoopInc20
- level 1 – 15%
- level 2 – 5%
- level 3 – 10%
- levels 4 and 5 – 5%
- level 6 – 10%
CoopInc28 and Coop280
- level 1 – 10%
- levels 2 to 4 – 5%
- level 5 – 2.5%
- level 6 – 5%
- levels 7 and 8 – 2.5%
- level 9 – 5%
- level 10 – 7.5%
Note that once a matrix is filled, a new matrix is opened up at the same tier (CoopInc20, CoopInc28 or CoopInc280).
Also note that CoopInc affiliates who don’t recruit only earn residual commissions on
- three matrix levels for CoopInc20 and
- two matrix levels for CoopInc28 and CoopInc280
Unlocking all six or ten matrix levels requires the following qualification criteria to be met:
CoopInc20
- recruit one affiliate to unlock matrix level 4
- recruit three affiliates to unlock matrix level 5
- the three affiliates who you recruited recruiting three affiliates of their own unlocks level 6
CoopInc28 and CoopInc280
- recruit one affiliate to unlock matrix level 3
- recruit two affiliates to unlock matrix level 4
- recruit three affiliates to unlock matrix level 6
- one of the affiliates you recruited recruiting three affiliates of their own unlocks level 7
- two of the affiliates you recruit recruiting three affiliates of their own unlocks level 8
- three of the affiliates you recruit recruiting three affiliates of their own unlocks all 10 levels
Bonus Royalties
25% of each position payment is put aside for “Bonus Royalties”.
Other than Bonus Royalties being tied to recruitment (recruit three affiliates who recruit three affiliates), nothing else is disclosed.
Joining CoopInc
CoopInc affiliate membership is $20.
CoopInc Conclusion
CoopInc is a continuation of David Rosen defrauding consumers through a long-running series of pyramid schemes.
New affiliates sign up and pay money, and that money is paid to whoever recruited them and other affiliates who joined before them.
They in turn receive money from either directly or indirectly subsequently recruited affiliates.
Rosen markets this fraudulent business model on the premise consumers can make $10.7 million dollars every 28 days.
While technically accurate, the notion that even a single CoopInc affiliate will come close to this is highly unlikely.
Rosen’s marketing claims for CoopInc would undoubtedly breach the FTC Act due to deceptive income assertions. The Canadian equivalent would likely follow suit.
Similar to all MLM pyramid schemes, when recruitment inevitably dwindles, so do commissions.
Within CoopInc’s 28-day subscription model, this will lead to those at the pyramid’s base ceasing payments eventually.
Once this occurs, those above them will stop receiving payments, ultimately resulting in them discontinuing payments as well.
Once a sufficient number of CoopInc affiliates halt fee payments, an irreversible collapse is set into motion.
