MWR Life Scam: Pyramid Scheme or MLM? [Review]

If you’re like many people these days, you might be looking for ways to earn some extra cash. Perhaps you’ve heard about MWR Life, a global travel club that offers a lifestyle membership around the world. Maybe a friend or family member has mentioned it to you.

As an online entrepreneur, I have reviewed many similar online opportunities over the years. So I can tell you what you need to know.

As a disclaimer, I’m not affiliated with MWR Life, so you can trust that my review is unbiased. I’ll give you the honest truth about what it takes to succeed with this MLM program.

And if MWR Life isn’t the right fit for you, don’t worry. I’ll also share the alternative program that has enabled me to make a full-time passive income online. So, stay tuned!

What is MWR Life?

MWR, formerly known as My Warranty Rewards, changed its name to MWR Life in 2015. Initially, MWR focused on pre-paid phone plans and warranty plans. However, they recently switched gears to become a travel discount company.

It’s not uncommon for reboots to fail if they don’t address the root issues, and MWR Life may have experienced this. Nonetheless, the company persevered and went on to found MWR Financial in 2018.

MWR Financial offers a diverse range of financial services, such as credit counseling and debt management, among others. The company was founded by Jay Tuerk and Yoni Ashurov, and it seems like they’re committed to continuing MWR’s journey in helping people save money and manage their finances.

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What Products Does MWR Life Offer?

When you sign up, you’ll get access to flight discounts, travel credits and vouchers, and even the opportunity to earn commissions by promoting the products. It’s a win-win situation!

Of course, if you don’t travel frequently, it might not make sense to pay for the services on a monthly basis. But if you’re someone who loves to jet set, this could be the perfect solution for you.

MWR Life also offers a financial product called Financial Edge, which costs $79.97 per month. With this product, you’ll get CreditMax, QualityMax, MoneyMax, WealthyMax, and access to the Debt Resolution Center. It’s a great way to stay on top of your finances and get the most out of your money.

Is MWR Life an MLM?

Yes, MWR Life is a multi-level marketing (MLM) company. When you become a member of their MLM program, you’ll work as an independent distributor of MWR Life products and won’t receive a regular salary.

However, it’s unlikely that you’ll make a significant income solely from selling their products. Like most MLM programs, your success will depend on recruiting new members to work under you. You’ll earn a commission on the sales and new recruits generated by the people you hire once they begin producing results.

To understand this better, imagine a triangle. In an MLM, the people beneath you are called your “downline,” and you are their “upline.” If the person at the top recruits ten people, and each of these ten recruits ten more, everyone in the triangle is in your direct downline. This means you’ll earn commissions from everyone in the triangle, and if you can bring in just 10 people, you’ll make $1100.

Most people in MLMs prefer earning a lifetime passive income from recruiting others rather than a one-time commission from selling products, even if the MLM offers a wide range of products. Those at the top of the triangle have the most financial success, while those at the base have the least, as the money flows upwards.

To succeed in an MLM like MWR Life, having a large number of people in your downline is essential. So, if you’re interested in joining an MLM, make sure you’re comfortable with the recruitment aspect and have a strategy to build a substantial downline.

You may also want to read our article on the top MLM companies.

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Is MWR Life A Pyramid Scheme?

No, MWR Life is not a pyramid scheme. Let’s get this straight: MWR Life is a legitimate MLM (Multi-Level Marketing) company that allows its members to earn money by selling their products. Unlike pyramid schemes, MWR Life doesn’t rely solely on recruiting new members to make money.

Pyramid schemes, on the other hand, lure people in by promising money or services in exchange for recruiting others. These schemes are often scams because the members at the bottom are destined to lose their money. In a pyramid scheme, members have to pay a fee to the company that runs the scheme. The company then shares a portion of the funds raised from each new member as a reward.

MWR Life distributors, however, don’t get paid to recruit new members. There are no direct financial incentives for recruiting. Pyramid schemes are only profitable for the directors of the company, those at the top of the pyramid, who receive a portion of the payments from every newly recruited member. The scheme can only continue if more and more members are recruited, making it unsustainable in the long run.

Pyramid schemes are notorious for not selling valuable goods or services. Instead, their only source of revenue is from recruiting new members and soliciting more money from current members. This means that they would have to keep growing indefinitely to make money for everyone involved, which is impossible due to the finite population of the planet.

The scam ultimately fails when there are no new recruits or other sources of income. Since the majority of members are at the bottom of the pyramid, they end up losing their money. Vemma, a producer of energy and weight loss drinks, is an excellent example of a pyramid scheme. The FTC accused Vemma of operating a pyramid scheme in August 2015, as it paid more to recruit new members than to sell products. New members were required to pay $600 for starter packages and hundreds more for monthly products, with the majority of participants losing money.

You may read our article on the difference between MLM and pyramid schemes here.

Is MWR Life a Scam?

No, MWR Life is not a scam. According to the Oxford Living Dictionary, a scam is “a dishonest scheme; a fraud,” and MWR Life is not that.

However, it’s worth noting that not everyone who sells MWR Life products makes money. In fact, the majority of MWR Life representatives don’t earn anything. But if you’re willing to put in a lot of effort, you could make some money selling MWR Life products. It’s also true that some people make a lot of money from MWR Life by recruiting aggressively.

One thing to keep in mind is that MWR Life sometimes makes disingenuous and irresponsible marketing claims to recruit members. This is why some people view it as a scam.

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MWR Life Compensation Plan

If you’re considering joining MWR Life, it’s essential to understand their compensation plan. Here’s a breakdown of what you need to know.

Affiliate Ranks

MWR Life has six affiliate ranks, starting with Manager and advancing to National Manager. To move up the ranks, you’ll need to meet specific goals, and with each new rank, you’ll receive various bonuses. While most people won’t reach the top rank, advancing even one level can provide significant benefits.

Retail Commissions

As an MWR Life affiliate, you’ll earn $80 for each new customer you sign up. However, if a customer cancels within the first three months, you’ll receive $40 instead. You can also earn additional compensation by bringing in repeat customers, with bonuses ranging from $25 to $500.

Recruitment Bonus

MWR Life’s new employee bonus is known as the Momentum Bonus, or Rising Star Bonus. If you bring in three people within the first 30 days, you’ll receive a $300 Life bonus and a $150 Financial bonus. And if you refer more people, the bonuses can add up quickly.

Daily Guarantee Commissions

You can also earn bonuses based on the number of Customer Points you and your recruits earn each day. The more points you accumulate, the higher your daily bonus will be, with potential earnings of up to $1000 per day.

Check Match Bonus

MWR Life offers a Check Match Bonus, which gives you 25% of all residual commissions earned by people you recruit. So if your team is successful, you’ll be rewarded for their hard work.

Bonus for the President

Finally, MWR Life offers a Presidential Bonus for its top earners. This bonus is paid out monthly and can range from $500 to $100,000, depending on the number of GCP earned.

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How Much Does It Cost To Join MWR Life MLM?

To join MWR Life, you’ll need to pay $99 upfront and then a monthly fee of $30. If you decide to join MWR Financial, it’s the same upfront cost of $99 but the monthly fee is $40. Keep in mind that you’re not obligated to pay the monthly fee, but if you want to take advantage of the entire compensation plan, you’ll need to cough up the extra cash.

Now, let’s talk about making money. The good news is that you won’t usually get paid for recruiting or for anything your downline does. So, you can take the pressure off of yourself to constantly recruit new members and just focus on building your business.

However, it’s important to note that you’ll need to pay that monthly fee to reap the full benefits of the compensation plan. The fees do add up quickly, and by the end of the year, you’ll have spent around $500. So, be sure to factor that in when considering whether or not to join.

In summary, joining MWR Life MLM will cost you $99 upfront plus a monthly fee of $30 or $40 if you join MWR Financial. While you won’t usually get paid for recruiting, you’ll need to pay that monthly fee to maximize your earning potential.

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Why I Don’t Recommend MWR Life MLM Program

Good Reviews May Be Biased

You may have come across glowing reviews of MWR Life online. However, many of these reviews are written by the company’s affiliates who earn a commission if you sign up through their links. As a result, their reviews may not be entirely trustworthy. These sales pages may not disclose all the hidden costs and difficulties associated with making money with MWR Life. It’s important to read reviews from non-affiliates to get a more accurate picture.

Making Money Can Be Difficult

Success in MLM companies like MWR Life is challenging. According to statistics, between 72.5 and 99.9 percent of MLM members lose money. This is because MLMs require members to meet sales quotas to qualify for commissions. If they don’t meet these quotas, they won’t get paid. Many MLM members end up losing significant amounts of money before they can recruit anyone into the company.

Losses May Be Framed As Investments

MWR Life uplines may reframe financial losses as “investments” to keep their reps in the MLM scheme. This can be misleading since you are unlikely to get your money back, and the return on “investment” is usually negative. In reality, these are not investments at all, but losses.

Cult-Like Culture: Critical Thinking Discouraged

One major issue with MLMs is that they often have a cult-like culture. Critical thinking is discouraged, and representatives who ask questions that deviate from the company’s message are chastised or isolated. MLMs encourage reps to isolate themselves from anyone who questions their involvement, making it difficult to leave the company or speak out against it.

Leaving an MLM can be particularly difficult, as former representatives are often labeled as failures or bad people, and reps are not allowed to contact them. Losing connections with people you once considered family can be devastating.

Purchasing Products Yourself: A Losing Proposition

If you don’t have a large network of friends, family, or neighbors to sell to, you may find yourself needing to purchase MWR Life products yourself each month. This is a losing proposition, as you end up spending more money than you make. It’s also frustrating to have to buy products that you’re supposed to be selling to others.

Overpriced Products: Difficult to Sell

MWR Life, like many MLMs, offers overpriced products that can be difficult to sell. Comparable products are often available from other brands at lower prices, making it hard to convince prospects to purchase MWR Life products. This is why many people who join MLMs focus on recruiting others instead of selling actual products.

Unfair Commission Distribution

MWR Life’s MLM model is flawed because commissions are heavily skewed towards the top. The pioneers and top tier members make the most money, while those at the bottom may not even break even after a few months. This is why many people don’t see MWR Life as a legitimate business opportunity.

Exaggerated Income Claims

Like other MLMs, MWR Life makes exaggerated income claims. But the truth is that very few people actually make a good living promoting MWR Life. The low retention rate of less than 41% is also discouraging, and according to MWR Life’s payouts, over 99% of distributors never make a profit.

Recruiting is Necessary for Success

Recruiting is key to success in MLMs like MWR Life. Eight out of ten ways to make money with MWR Life require recruiting. If you don’t recruit, you’re likely to lose money. That’s why I don’t recommend MLMs to people.

Final Verdict

After reviewing MWR Life, I have come to the conclusion that it’s not a great opportunity to make money. The beginning stages of prospecting and finding recruiters can be tough, especially since you might have to rely on family and friends to join your business. And even as you struggle to get people to join your downline, your upline will encourage you to buy more Business Support Material.

The sad reality is that you’re more likely to lose money. In fact, according to a case study on the FTC’s website, 99% of people who join an MLM break even or lose money. And the pressure to succeed often leads people to leave these types of businesses.

Instead, I suggest starting your own online business if you want to earn money and have a flexible schedule. You can choose what you want to promote, rather than being told what to promote. 

In the next section, I’ll explain how to build a legit online business that can generate passive income. This is the approach I took, and it allowed me to make a full-time income in just one year. Most importantly, unlike MLM models, it’s 100% legit and sustainable.

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Is There a Better Way to Make Money Online?

Starting an online business can be overwhelming, especially with so many programs out there promising to make you rich quick. But not all programs are created equal. If you’re looking for a program that can actually help you build a successful affiliate marketing business, then look no further than Wealthy Affiliate.

You may read our article about the difference between MLM and affiliate marketing.

Wealthy Affiliate is an all-in-one platform that provides everything you need to build your online business from scratch. From web hosting and keyword research tools to community support and comprehensive training, Wealthy Affiliate has got you covered.

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If you like what you see, you can upgrade to the premium membership to access even more tools and training. And unlike other programs, there are no upsells afterwards.

But you’re probably wondering, how much can you really earn with Wealthy Affiliate? Well, let me tell you about a 21-year old student who was able to earn over $7,000 in just one week by applying what he learned inside Wealthy Affiliate.

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate Testimonial

And he’s not the only success story. Wealthy Affiliate has been around for 15 years and has over a million members, with many more success stories to share.

So why not give Wealthy Affiliate a try? Sign up for the free starter membership and get instant access to the community, training modules, networking, and more. And if you decide to upgrade to the premium membership, it’s only $49/month or $395/year – a small price to pay for the tools and support you need to build a successful online business.

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