Is PHP Agency a Scam Pyramid Scheme? Exposed!

Are you looking for a PHP Agency MLM review? Is PHP Agency a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about PHP Agency MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through PHP Agency MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like PHP Agency MLM.

To help you make a more informed decision, I have thoroughly researched the PHP Agency MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with PHP Agency MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to PHP Agency MLM that has enabled me to make a full-time passive income online.

What is PHP Agency MLM?

PHP Agency is a multi-level marketing company that sells insurance and financial products. Patrick Bet-David founded it in 2009, and its headquarters are in California. Patrick previously worked for the WFG pyramid scheme. WFG is a pyramid scheme operated in the United States by Indian Sikhs.

He used the pyramid scheme concept to create Php Agency, which he worked on for years. Php Agency is similar to World Finance Group but with a new look.

PHP agency employs over 12,000 agents who sell insurance throughout the United States. They claim that their company has assisted over 200,000 families in the United States.

Insurance companies collaborate with Php Agency, and Php Agency serves as a liaison between you and them.

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What Products Does PHP Agency Offer?

PHP sells a variety of third-party insurance and financial products.

They sell the following items:

  • Term life insurance
  • Return of Premium term insurance policy
  • Indexed universal life insurance
  • No-medical exam life insurance
  • Fixed indexed annuity

These services are provided by Foresters Financial, AIG, National Life Group, Nationwide, National Western, American National, and Allianz.

To sell insurance, you will also need to obtain a license. When you get your license, you must also pay a variety of fees.

What Markets Does PHP Agency Focus On?

PHP is now marketing to middle-class consumers. This is a very different approach because most MLMs today only sell to the wealthy because they believe it is easy to do so.

They were looking for markets in the middle, average, and below-average ranges.

As a result, the company suggests that agents sell products such as Final Expense and Medicare Advantage to people in the lower middle class

Or, if they want to follow other MLM rules and have enough experience, they can sell expensive products to people with higher incomes, such as Annuities.

This is a very unique way of doing things, and I believe it is a very smart way to enter a market that isn’t already saturated. Markets for the wealthy and markets for the lower middle class are both extremely crowded. And the market for the lower middle class is receiving little attention.

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What is MLM?

Before we get into PHP Agency MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like PHP Agency MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

How Does PHP Agency MLM Work?

As PHP agencies claim to be a multi-level marketing company, there are two ways to profit from it…

  1. Sell insurance and make commissions on it
  2. Recruit people and build a downline which is what they focus on.

The first method is known as retail MLM, and as the name implies, you will receive a commission on every sale. It functions similarly to the “B to C” business model.

The second is now looking for people. You must recruit others to join in order to earn commissions or recurring income.

If you’re unfamiliar with the term “recurring income,” it means that you do the work once and then earn money from it as long as the person you referred continues to pay the company.

You will receive commissions as long as the person you referred to the PHP agency continues to pay the company.

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Is PHP Agency A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is PHP Agency, then, a pyramid scheme?

No. PHP Agency does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

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What is the PHP Agency MLM’s Compensation Plan?

PHP’s compensation plan, like most MLM compensation plans, is difficult to understand if you are unfamiliar with MLM terms and jargon.

I’ll summarize the main points so you can understand them all.

Affiliate Ranks

There are 11 ranks at PHP, and you advance through them by meeting sales and recruitment targets. As you progress through the ranks, you will receive various benefits (mainly higher commissions on sales).

In PHP, you can advance to the following levels:

  • Trainee
  • Associate
  • Field Associate
  • Director
  • Marketing Director
  • Senior Marketing Director
  • Executive Marketing Director
  • Senior Vice President
  • Executive Vice President
  • President’s Council
  • Chairman’s Council

To reach the final rank, you must recruit 600 affiliates, at least 12 of whom must be Marketing Directors, and generate 1,200,000 GV (Group Sales) per month.

Retail Commissions

The rank of your affiliates determines how much money you make from retail sales.

Here are the commission rates for each rank:

  • Trainees get 30% commissions
  • Associates get 40% commissions
  • Field Associates get 50% commissions
  • Directors get 60% commissions
  • Marketing Directors get 75% commissions
  • Senior Marketing Directors get 77% commissions
  • Executive Marketing Directors get 78% commissions
  • Senior Vice Presidents get 79% commissions
  • Executive Vice Presidents get 80% commissions
  • President’s Council get 81% commissions
  • Chairman’s Council get 82% commissions
  • Direct Commission Bonus

This is a bonus you can earn if you recruit a certain number of people and sell enough GV. These bonuses can range from 5% to 40% of your total earnings.

Generation Bonus

Your Generation Bonus is the money you earn from your downline, and the way you get paid is referred to as a “unilevel compensation structure.”

Here is the amount you can earn from the levels below you:

  • 10% on Level 1 (personal recruits) 
  • 5% on level 2
  • 4% on level 3
  • 3% on level 4
  • 1% on levels 4 to 7

If you recruit 5 affiliates and earn 25,000 GV per month, you will receive a 5% bonus on level 1 recruits.

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10 Reasons Why I Don’t Recommend PHP Agency MLM

1. The Good Reviews are Written by PHP Agency MLM’s Affiliates

You probably have found some other reviews of PHP Agency MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join PHP Agency MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of PHP Agency MLM.

2. Very Few People Can Make Money With PHP Agency

Success is difficult to achieve with an MLM company like PHP Agency.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From PHP Agency MLM Are Reframed As Investments

PHP Agency MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. PHP Agency MLM is a Cult

Why do people continue to work for PHP Agency if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase PHP Agency Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like PHP Agency. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. PHP Agency Products are Overpriced

As with other MLMs, PHP Agency offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell PHP Agency products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. PHP Agency’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like PHP Agency is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider PHP Agency to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

PHP Agency, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting PHP Agency.

PHP Agency’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to PHP Agency’s payouts to distributors, over 99 percent of PHP Agency distributors never make a profit.

9. PHP Agency Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

PHP Agency is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like PHP Agency put a lot of effort into recruiting. Eight out of ten ways to earn money with PHP Agency require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this PHP Agency review.

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How Much Does It Cost To Join PHP Agency MLM?

PHP Agency does not state how much it costs to join on their website or anywhere else.

Starting with PHP Agency, according to what I’ve heard, costs around $600.

PHP Agency MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • None

Negative Feedbacks

  • They present themselves as multi-level marketing
  • Low rate of success
  • Trading time for cash
  • You must pass the license test.

Is PHP Agency MLM a Scam?

I cannot say PHP Agency MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling PHP Agency products? We already know that a majority of PHP Agency reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from PHP Agency is by recruiting aggressively.

Also, PHP Agency blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider PHP Agency MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

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Final Verdict: PHP Agency MLM Review

Here comes the conclusion of my PHP Agency MLM review. Overall, I don’t recommend joining PHP Agency MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your PHP Agency commission.

The worst part is that you practically have to ask your family and friends to join your PHP Agency business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of PHP Agency MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than PHP Agency MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

PHP Agency MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

You can enjoy all these values without paying a penny.

So I strongly recommend you to register a free account and see it yourself.

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