The Company: THW Global
Founder/ CEO: Annonymous
Affiliate Fees: $495 + $39.95 p/m
What first appears to be a simple way to earn money from home turns out to be a sneaky chain recruiting scheme. In my opinion, this is not about helping everyday people earn a legitimate income using a free video based platform. There is much more to the story.
What Is THW Global?
This is a free membership platform that anyone can join and one that supposedly pays in excess of $25 per hour to watch videos and perform simple tasks. At least, this was the amount they initially stated to get people in the door. It awards points to members for completing simple tasks along with an 'option' to refer others via the multi level marketing business model.
They claim their video platform is "YouTube on steroids" which is a pretty lofty claim to make all things considered. It's also a bit misleading since all they do is scrape existing YouTube videos and place them on their website...
The website's domain was anonymously registered in May 2016 and there is no information about who owns or operates this company. They were originally set to launch on July 4th however, they are still in pre-launch mode and will apparently be launching officially on the 21st of September this year.
The Token & Points System Explained
The company rewards members using a token and point based system. Tokens are redeemed for points and points are redeemed for real money. How many points or tokens a member earns and what they are worth varies as explained below.
Free members earn tokens by completing various tasks such as viewing, liking and commenting on videos, buying products through THW affiliate links and completing other simple tasks. The actual value of each token is currently unknown and changes according to the companies algorithm on a month to month basis.
How long it takes to earn a single token is also not made clear but will likely be explained when they officially launch. The way you actually make money is by converting these tokens into points and points are redeemed for actual money.
Points are awarded in a variety of ways, one of which is converting tokens into points as just explained. The other ways to earn points are tied up with becoming a 'certified IV' which is explained in more detail shortly. Every 100 points equals $1.
The 'Free IV' Membership
When the company originally started promoting this, they claimed people would be getting paid "up to $25 per hour" just to watch videos. After luring quite a number of people into this it seems they have now removed all mention of this. Really? That's not very cool.
Either way, no one was ever going to be getting paid $25 or more per hour to watch videos.
Under the current system, free members can earn tokens in several ways:
- Watch, comment on, share and like videos within the THW Global network
- Purchase products through the companies affiliate links
- Complete surveys (not yet available)
- Play games (not yet available)
- Surf the web (not yet available)
There is no way to know just how much anyone is going to be earning from these activities though since the figures needed to calculate this are not provided.
- Work required to earn 1 token= unknown
- Token conversion to 1 point= unknown
You can also earn tokens when you refer free members who complete tasks to the tune of 20% on level 1 and 4% on levels 2-10 of your downline. This is realistically going to be a VERY small amount and unless you become a paying member, you are not going to be earning much of anything this way. It is hard to determine exactly though since we don't have the figures needed.
The 'Certified IV' Membership
Becoming a certified IV opens up addittional income potential for members and in my opinion, it's the primary purpose in getting members onboard. The company states that becoming certified is all about "selling digital media and advertising products" but as I go on to explain, I don't believe this is the case.
The cost of this certification is $495 one time and $39.95 per month thereafter. This qualifies an affiliate to earn commissions promoting the following 'products' to others:
- Certification Course (affiliate membership)
- Monthly Education (qualifier)
- Limited Partnership Referrals (extremely high risk loan scheme)
- Sponsored Products (no information about this)
- Advertising Sales (no information about this)
The first 2 income streams are earned by recruiting people into the same system and the 3rd is earning commissions for convincing people to loan the company money. The remaining 2 refer to unknown products that are apparently going to be introduced once this officially launches.
In other words, the only way affiliates are being paid (as it stands) is through new affiliate membership purchasing. Alarm bells anyone?
Selling Advertising Products... Really?
The only revenue the company website is currently generating is through Google Adsense advertisements. These ads pay the website owner (AKA publisher) a few cents every time a visitor views and/ or clicks on one. Advertisers pay Google and Google pays a percentage of this to the website owner. This is a legitimate strategy to monetise content but it doesn't pay the visitor a dime.
In other words, this has absolutely NOTHING to do with members or selling advertising to anyone. This is somehting that is paying whoever is running this website, and them alone. Plain and simple.
Yes, they might introduce advertising products once they launch such as video overlays or banner ads throughout the site. If they do, this would likely just be selling ad placements to members that are shown to other members of the same platform. This kind of 'closed network' ad platform is both low quality and nothing new.
Free members are required to watch 5 hours of video per week in order to remain qualified to earn commissions, meaning any advertising views are the result of members trying to remain qualified. This approach results in super low quality advertising with members simply opening videos up, muting the sound and carrying on with other activities. This is similar to how a traffic exchange operates.
The TWH Global Compensation Plan
The company pays out recruiting commissions via the multi level marketing business model. The basic idea is that you get paid to recruit members directly and when your recruits bring others under them. The company uses a 'unilevel' downline structure to determine who gets paid what.
Again, the primary way these commissions are being generated is through the $495 affiliate membership and monthly 'education subscription' which is required to participate in the core compensation plan. There is nothing wrong with mlm or building a downline team, but when there is no tangible product it becomes an issue.
This pays out a percentage of points based on the activities and purchasing of your referrals. In other words, whatever points your downline has earned, you'll get a cut. The following table break this down and shows the percentage of points you earn vary from 20% down to 4%.
Imagine you referred Jenny who then referred Tom. Tom went on to purchase the $495 affiliate membership which would earn you 4% of the total points allocated. Since the $495 membership has 20,000 points attached, you would earn 800 points, which equates to $8.
This pays out commissions according to both your rank AND where the sale took place within your downline. The higher the rank, the higher percentage of points on the sale you get. Below is a list of each rank and the percentage of points paid out:
- 1 Star Affiliate pays up to 7.5% of the available points
- 2 Star Affiliate pays up to 15% of the available points
- 3 Star Affiliate pays up to 22.5% of the available points
- 4 Star Affiliate pays up to 30% of the available points
- 5 Star Affiliate pays up to 37.5% of the available points
- 6 Star Affiliate pays up to 45% of the available points
- 7 Star Affiliate pays up to 50% of the available points
In order to earn these ranks you essentially need to recruit more people. You get paid whatever percentage you qualify for based on whatever sale took place in your downline. Every affiliate between you and the sale will take their cut first. This is a little confusing so I think the best way to explain it is with an example.
Coded Bonus Example
You are a '4 star affiliate' and as such are eligible for 30% coded bonus commissions. Ken is 27 levels deep within your downline organisation and purchases a $495 affiliate membership. There are 2 affiliates standing between yourself and Ken.
- YOU- 3 star affiliate earning a $35.38 commission (22.5% of 15,725 points => 3,538 points)
- Kerry- 1 star affiliate who makes a $12.75 commission (7.5% of 17,000 points => 1,275 points)
- Dave- 2 star affiliate who makes a $30 commission (15% of 20,000 points => 3,000 points)
- Ken- purchases membership for $495 which has a 20,000 point value attached
As you can see, the original sale began with Ken and eventually earned you a $35 commission even though the sale took place 27 levels below you. Remember, 100 points equals $1 so that's how we arrived at these figures.
Signing Up & Staying Qualified
While it is free to sign up and participate in completing simple tasks, this is not how anyone is going to be earning anything worth talking about. As a free member you must watch 10 hours of video initially and 5 hours per week thereafter to remain commission qualified.
The only way to participate in the 'meat' of the compensation plan is to purchase an affiliate membership for $495 and continue to pay the $39.95 each month. Paid members don't need to watch any videos however, both free an paid members must maintain a set amount of points to 'unlock' all levels of recruitment income as show in the table.
The Limited Partnership Program
The company has a program that apparently allows you to become a 'limited partner' with them. All you need to do is hand over anywhere from $5,000 to $1,000,000 and they will pay you 5% per month in interest over 3 years. The payments begin after 90 days and are paid out of 10% of the companies gross revenue.
Hand over a large amount of money to 'someone' who will hopefully start paying it back after 3 months out of 10% of the revenue generated primarily through an unsustainable chain recruiting scheme... that about sums it up.
In my opinion, anyone doing this runs an insane risk of losing their investment.
Is This a Worthwhile Venture?
It is difficult to say how much you could make as a free member but I honestly don't think it'll be very much. I certainly don't believe it will be $25 per hour for the majority. I also think the free membership is a pretty big waste of time all things considered. It might be free but your time is very valuable and there really are better ways to earn an income online.
As for the paid membership, affiliates are signing up for $495 to access a vaguely described 'course' in order to sell non-existent advertising products and then recruit others to do the same. It sounds silly but as it stands that is literally what is happening.
What I Liked
- Not much
What I Didn't Like
- Claim to be a better version of YouTube yet all they do is rip off their videos...
- Pays existing members based on new affiliate membership purchases
- No evidence of any advertising products even after months of the so called 'soft launch'
- Solicits loans which are paid back based on 10% of the revenue gained largely through chain recruiting
- Started out saying members could earn $25 per hour watching videos and later reveal true intentions
Even if the company does eventually bring out some form of advertising product it is likely just going to be members buying ad space to show to other members inside the same platform. This is nothing new, it's low quality advertising and in no way is it worth $495 to become 'certified' to sell.
If all you do is sign up and waste time watching ripped off YouTube videos to earn a few bucks... no big risk financially speaking. If however, you start getting into recruiting things become a lot more risky. Why? When recruiting inevitably slows down, people stop making money at the lower levels. Since everyone above them is relying on both new membership purchases and continued monthly membership revenue, their income slows and eventually stops. This is when you'll start seeing complaints and when the website will go offline.
That is also the point at which anyone who has 'partnered' with these people will lose out big. The terms clearly state that you get paid back out of 10% of the companies revenue. Obviously, if recruiting slows their revenue will be drastically reduced along with their ability to pay back your loan.
I do not recommend this as a legitimate way to build a home based business and I strongly advise against handing large amounts of money to whoever is behind this. It would be nice if this were legitimate and people could get paid as advertised, but I really don't think this is their true purpose.
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