The MOBE Scam – How To Steal Money Without Remorse
The MOBE Scam was the most significant and far-reaching in the United States. The Federal Trade Commission asked If MOBE was A Scam and decided on June 11th, 2018, that it was indeed a scam. The FTC filed a restraining order against MOBE owner and native Australian Matt Lloyd and his posse. Also, the feds have over 4.500 pages of evidence to back up all the charges brought against MOBE.
When I write posts like this, it makes me happy that I decided to build my own online business and not have to experience losing large sums of money like many M.O.B.E. associates have!
The MOBE Scam – You Could See It Comming A Mile Away
Using its MASSIVE sales funnels, the multi-level marketing group MOBE has stolen well over 124 million dollars from its customers. This would make MOBE one of the largest illegal Ponzi schemes in decades! Similarly, it’s amazing that some people didn’t see this coming or are shocked that this happened.
All over the world, thousands of people were claiming that MOBE, which stands for My Online Business Education, was a multi-level marketing scam. I never joined MOBE personally because some practices MOBE was engaged in made me uncomfortable. I wasn’t the only one. The Federal Trade Commission wanted to determine whether MOBE was a scam. Also, there were so many complaints that the FTC planted an undercover investigator to check MOBE out.
The MOBE Scam – When the FTC Plants A Mole, You’re in Trouble
Following years of more than 1,100 complaints, the FTC sent one of its own to become a member of MOBE. This undercover investigator discovered many of the scam claims that thousands of people have made were indeed true. Two of the top earners at MOBE, Michael Giannulis
On June 7th, an email to Williams’ and Giannulis’ MOBE downline said in part: “The FTC has brought the hammer down upon MOBE, and we have to cut ties with them 100%. If we do not, we could find ourselves stuck in a sticky situation.” I have to tell you, if I received an email like this, I’d be furious. What’s even more amazing is that even after all of this, thousands of people still supported MOBE.
The MOBE Scam – A Load Of Shenanigans
If you go online and Google search MOBE and read some of the comments after the article or post, thousands of people will still do whatever these guys ask! That’s simply unbelievable! Also, the founders of MOBE tried to make some course corrections in their business practices.
However, by the time they knew the FTC was breathing down their necks, it was too late, and any so-called “course corrections” made no difference. The problem with this hot mess is that once one starts an illegal enterprise, it cannot be changed to appear legit as it was never legit to begin with. One of the main reasons I never joined MOBE is that they purposefully headquartered their operations in Malaysia to avoid any possible legal actions.
MOBE used to be located in Australia, but the Australian government banned them. However, they were banned because they were considered an illegal MLM (Multi-Level Marketing) scheme. MOBE works like the classic pyramid scheme, which is prohibited in a country like the United States. At this point, the FTC (the US Federal Trade Commission) shut MOBE down. Also, they stopped its online traffic from countries that have judged MOBE illegal, such as Canada, Australia, and the United States.
Make no mistake: once the FTC prevents MOBE members and visitors from accessing the MOBE website, then MOBE is finished! The second problem I had with MOBE was the required purchases. All new members
The MOBE Scam – Where Did The Problem Start?
But Wait! Hold on! This $2,470 membership was just THE FIRST of 5 products you must invest in to reach the higher commission levels. Please understand that THIS IS WHERE THE PROBLEM STARTS. MOBE members who wanted these higher commission levels to make big money HAD NO CHOICE. Therefore, If you wanted to make the big money, you had to purchase the $2,470 “Silver Mastermind” membership.
Here Is the Root of the Problem: What You Need to Learn About Multi-Level Marketing
The Federal Trade Commission, in the case of MOBE and all MLM
Only the people within MOBE were buying what MOBE was selling, and they had to keep making sales within MOBE to make the business viable. The FTC concluded that an MLM company without significant retail activity is a pyramid scheme.
The FTC has presumably done its homework and concluded the retail revenue in MOBE among its members/participants is quite substantial. If the majority of company-wide revenue is NOT derived from selling products and services to retail customers, then YOU ARE IN TROUBLE! It doesn’t take a village idiot to figure out that people not associated with MOBE aren’t paying $30,000 to $60,000 for marketing courses outside of the income opportunity.
If an MLM company’s products offer real value, it will have no trouble establishing and maintaining a retail market outside of the MLM opportunity. Also, if there is NO RETAIL ACTIVITY outside of the MLM, then the actual income opportunity is marketed, which differentiates a pyramid scheme from a legitimate MLM company.
This is true regardless of what products or services an MLM company markets. Therefore, to answer whether MOBE is a scam or not, you have to look at the facts. MOBE provided good training. The actual instruction was not a scam. MOBE’s business structure is the problem. What they were asking members to do was NOT LEGIT! This brings me to my next point:
What Does This Have to Do With You?
Most people who lost thousands and tens of thousands of dollars with the shutdown of MOBE were part of a multi-level marketing organization or MLM. The problem with MLMs is that they DON’T teach you how to build a real business. They primarily teach you how to recruit others into the MLM opportunity. However, the platform I’m associated with, Wealthy Affiliate, teaches you how to build your own online business.
Unfortunately, far too many people put their hopes and trust in multi-level marketing organizations to make money either as a part-time opportunity or to replace their full-time income eventually. Therefore, you need to know the warning signs of fraudulent multi-level marketing organizations.
Warning: The RED Flags of Multi-Level Marketing Schemes and Scams Online
It would be best to watch out for these things with multi-level marketing companies, as they are red flags you should not ignore. Taking note of these eight signs can save you considerable time and money.
- The Company Does NOT Offer a FREE Trial
This is a big one to look out for. Most information products are worthless, and if you could jump directly into those products and “try them out” before investing in them, you would never invest in low-quality garbage. That is why they hide behind a payment. If their information is so good, should they not prove it by allowing you to access what they offer?
2. Companies That Don’t Clearly Outline Pricing
If you go to a sales page for a product and they don’t disclose the price clearly, you will likely get “duped.” Any legitimate company will offer clarity on pricing and have a pricing page on their website. MANY companies in this industry HIDE their pricing; it is unethical, and it will almost certainly scam you. Also, if the company charges hundreds or even thousands of dollars for their products or for joining their business “opportunity,” it should be of concern.
3. MLM Companies That Use Video Sales Pages / Squeeze Pages
If you visit a “sales page” and the only thing you see on it is exaggerated promises of quick money, this will almost certainly be an expensive, overpriced scam. This marketing tactic is used to HIDE pricing and hide the product itself. They typically ask for your email or a small payment, and then you will be put through an extensive and expensive sales funnel.
4. Companies That Don’t Have a High TrustPilot Rating
TrustPilot is where you should get genuine consumer reviews about products/services you plan on buying. If a company doesn’t exist on this website or has a rating lower than 4.5 out of 5 stars, you may want to seriously reconsider joining. There are going to be better programs and services available without the financial risk.
5. Multi-Level Marketing Companies That Sell “Riches” Without Telling You the Process
If you are being pushed by the idea that you are going to be “rich” or that you’ll be able to “make money in a short period ” without telling you what you will be doing to earn this money (in a specific way), then they are selling the “sizzle”…and chances are there is no “steak” after you make your purchase. Avoid programs these types of programs like the plague.
6. Companies Without an Easy Way to Contact Them
If you don’t have a direct way to contact the company to answer questions about their program, they are hiding behind something. That is the first clue, and I recommend you test it. If the company has an email address, email it. If you don’t get a response within 48 hours at most, then that is probably the sort of help you can expect in the future.
7. Companies That Don’t Offer Direct Access/Communication with the Owners
Who owns the product? Can you get help and communicate with them directly? If NOT, then this program is more than likely in the business of taking your money. CEOs in the opportunity world who are unwilling to communicate with their customers directly have a “too good for you” mentality, which should be avoided.
8. Companies That Are Just “Information”
If they are providing you with “ideas” about how you could create a business without offering you all the tools, services, and levels of ongoing support that you need to succeed online, you will have a tough time succeeding. Many companies charge you for their information and then tell you that you need to purchase all sorts of stuff actually to use the techniques taught.
When you consider the above eight points, multi-level marketing platforms like MOBE are not business opportunities you want to get involved with!
As you can conclude from the above information, multi-level marketing companies are not all what they claim to be. Too often, people put their hope and trust in someone else making money for them instead of learning how to leverage the power of the internet with their own online presence. People look for others to rescue them financially when, in reality, YOU have to come to your financial rescue!
However, there is a BETTER OPTION if you want to create your own online business. There is a platform available that will teach you step by step how to build your own online business, an ethical platform whose primary focus is to help everyday people learn how to make money online, a platform where you can immediately have access to individuals who are highly successful with their online businesses. Introducing Wealthy Affiliate, The Industry Leader in the Online Business Space…
- WA Offers a Free Trial
- WA Offers Clear Pricing
- WA Offers a comprehensive website
- WA has a High TrustPilot Rating
- WA is not a get-rich-quick scheme
- WA offers a clear way to contact the company
- You can contact Kyle & Carson directly
- WA offers tools and support
(1) Companies That Don’t Offer a Free Trial.
This is one of the key reasons I want to introduce you to Wealthy Affiliate. You can get a “test drive” to Wealthy Affiliate, but that doesn’t end, and there is NO credit card requirement. This is their Starter membership, including more than any paid product I have seen in this industry. Here are a few things you get with the COMPLETELY FREE Starter membership.
- One Free Profit-Ready Website (Hosting Included)
- Getting Started Training, 10 Full Video Lessons
- 7 Days of Full Mentorship & Expert Help
- Communication Directly with Kyle & Carson (the founders)
- Keyword and Market Research Tools
- The Affiliate Opportunity Platform
- Ability to Network with Millions of Fellow Entrepreneurs
- 100’s of training resources
- And Much More!
(2) Companies That Dont’ Clearly Outline Pricing.
Wealthy Affiliate’s pricing page clearly outlines three available memberships: a Starter membership (FREE), a Premium ($49/month), or a Premium Plus+ ($99/month). There are no upsells, and nothing more complex than this. You are not obligated to upgrade, but if you do decide to, you can run a million-dollar online business utilizing the platform and tools that Wealthy Affiliate offers.
(3) Companies That Use Video Sales Pages / Squeeze Pages.
Wealthy Affiliate offers a comprehensive website where you can learn more about the exact process of building an online business and all of the platforms, technology, and services involved that are offered to you as a member; this includes a thorough outline of WA’s education, hosting, website, domains, community, and success elements.
(4) Companies That Don’t Have a High TrustPilot Rating.
WealthyAffiliate.com has a 4.8 STAR rating on TrustPilot. The owners personally get back to every comment, and this leads to the industry. It is tough to achieve a rating like this in any industry, let alone the make-money-online niche.
(5) Companies That Sell “Riches”.
One thing you will not hear from Wealthy Affiliate in their training or marketing is “get rich quick.” The reality is that to build a business, you first have to build a solid foundation and understand it. Wealthy Affiliate provides you with the tools, training, and platform you need to create a business of any size online (even million-dollar websites). Still, it would be best if you were realistic about the process. It will take some hard work and dedication.
(6) Companies Without an Easy Way to Contact Them.
You can contact Wealthy Affiliate directly from their website without being a member. They have a contact form, and the owners freely share their email addresses if you need to contact them or have any questions. They are kyle@wealthyaffiliate.com and carson@wealthyaffiliate.com. Feel free to reach them directly if you have questions, and of course, as a member, you will have access to them within the community. Which leads me to…
(7) Companies That Don’t Offer Direct Access/Communication with the Owners.
Wealthy Affiliate is the most transparent company in the space and offers you access to Kyle and Carson, the founders, directly within the community. If you want help from them directly, ask. You can even access them for their help and mentorship within the first seven days of the Starter membership…so without paying a dime, you can access both owners directly!
(8) Companies That Are Just “Information”.
Many things are required to build a successful online business, and Wealthy Affiliate includes all of them. To build an online business, you need a website, top-tier hosting, marketing and research tools, ongoing education of the latest marketing strategies, writing tools/platforms, and a way to find the TOP opportunities online. Not to mention support, mentorship, and expertise. These are ALL things that Wealthy Affiliate provides you with any membership level, equipping you to create, grow, and manage a business of any level online.
No other company in the industry offers a free “test drive,” as they likely don’t have the confidence that someone would purchase a trial. WA gives you access to its platforms, websites, hosting, research tools, community, and support within the free membership…so there is ZERO risk, and you can decide if you ever want to purchase a premium membership.
Wealthy Affiliate teaches people how to become proficient affiliate marketers through training modules. Furthermore, Wealthy Affiliate does not have a
Wealthy Affiliate members only earn commissions from sales made through their referral links. We do not earn anything from the sales of members we signed up for. No one is recruited. You’ll find no down or up lines, recruiting meetings, or high-pressure sales meetings.
Wealthy Affiliate do not promise you the moon and the stars; they never have in their 12 years of existence. If a person or organization tells you that you don’t have to work hard for your financial success, “follow their system,” and collect checks and sip cocktails by the beach – you know something is seriously wrong. Sadly, most people are lazy daydreamers who want “the good life” to come to them easily.
Additional Resources
- You Just Got Scammed: Now What Are You Going To Do?
- How To Avoid Affiliate Marketing Scams And Not Lose Money
The Problem With Done-For-You Platforms Like MOBE
Many multi-level marketing businesses, like MOBE, promote “Done-For-You” systems for their members. This is a HUGE mistake for the members who think they’re catching a break because critical elements of their blog or website are already done. Google hates done-for-you sites because of the issues with duplicate content. Google will always detect duplicate content that is not original.
Therefore, if your website’s content is like thousands of other MOBE members’ websites, then how can Google consider that “original content?” People are attracted to systems like M.O.B.E. and Digital Altitude because they don’t want to sacrifice large amounts of time, mental energy, and emotional energy to build their own online business.
The “Done-For-You” aspect is just too appealing as opposed to rolling up your sleeves and doing your work—so many people fall for the scam. Very few are willing to work Saturdays and Sundays or work on their business after their 9-to-5 jobs Monday through Friday. Unfortunately, scammers are also aware of this, and they devise systems to take advantage of people’s reluctance to do their work to build their own businesses.
Where do you stand? What do you think about this MOBE FTC investigation? Please feel free to leave your comments below. I really would like to hear what you have to say. Also, check out my Wealthy Affiliate review to better understand how this platform can help you learn how to make money online!
Talk Soon,
Howard
Just another garbage MLM company amongst thousands that are out there! I have never been involved with anything MLM because in my mind you have to have no scruples at all who you sell to. I love it when you mention big earners. These are marketers who have big email lists and I’d like to bet most of their subscribers end up unsubscribing. I see you are part of Wealthy Affiliate, how is it going? Thanks for the information.
Hey Mick,
Thank you for the reply!
Sad to say, most companies that follow the MLM pattern wind up becoming dumpster fires! It never ceases to amaze me how well read, educated people fall for these companies.
As far as Wealthy Affiliate, so far it’s going well. I’ve learned more in the last 6 months about online marketing and making money online than I have in the last 6 years!
Talk Soon,
Howard
People get tricked into so many things! Someone can make up a great story, people believe it and fall into the trap.
Usually, people that spend their money on these kind of businesses are the ones in need, and out of desperateness, they follow the “honey-dipped” words of these people and get ripped off.
It is simply not fair that his company has stoles such a large amount of money from the people. When I see that, I do have to bite my tongue in order not to say many things that I do regret later on.
Thanks for sharing this review. Appreciate that you help to bring things to light.
Oscar
Hey Oscar,
First of all, thank you for taking the time to read this post. I really appreciate it.
Everything you said is correct. You’re right, it isn’t fair that so many people were scammed out of their money. The problem, Oscar, is that people don’t realize online marketing is a REAL business. An actual , bona-fide home based business. It requires a ton of time and work.
Most people who are attracted to things like MOBE< Digital Attitude, etc, want to make large amounts of money without the blood, sweat and tears that go along with it.
Please continue having success at Wealthy Affiliate.
Talk Soon,
Howard
Hi Howard:
Wow, what a scam this is! I’m so glad you’ve let us know about MOBE.
$124 million is a lot of money to scam out of vulnerable people. As you say, it’s simply unbelievable that people would continue to support these guys.
They ask you to invest $2,470 right off the bat – if that isn’t a red flag I don’t know what is!
Are you saying that the primary way MOBE made its money was through the pyramid and not through the selling of products. If so, that really sounds like a scheme.
I never liked the concept of MLM because as you say, it seems like you spend all your time trying to recruit everyone you meet. That just isn’t my cup of tea!
Thank you for your informative post!
Hey Christopher,
Thank You for taking the time to read my post.
I totally agree with you …MLM isn’t my cup of tea either.
Glad you weren’t sucked in like so many other people were.
Talk Soon,
Howard
Hi Howard,
A great article and thank you kindly for detailed indepth overview of MOBE.
I have been aware of these and Matt LLoyd for years and avoided them, and thankfully so.
Correct me if I am wrong but has MOBE not been know by many other different names such as My Online Business Empire, also?
Hey Derek,
Yes, you are correct – MOBE stands for My Online Business Empire.
I’m very happy you avoided them…Wise decision on your part!
Thank You for reading…I really appreciate it!
Talk Soon,
Howard