I’ve been seeing payment receipts from Racksterly all over my Twitter timeline. So, I thought for a minute: why not look into the platform. After a careful research about the platform, I found some information that aroused my suspicion. Even so, this isn’t a post to tell you whether or not to avoid the platform, that’s your decision to make.
Is Racksterly a Ponzi or pyramid scheme? Yes, it is a pyramid scheme. I’d be telling you why I think so. Promoters of Racksterly usually compare it to Google Adsense, the facts obtained proved otherwise. There’s not a single similarity. The platform claims to provide clicks and impressions to their advertisers by using Facebook accounts of their users. This is quite similar to how the defunct NNU worked.
You are required to provide your bank details to sign up. You’d be paid your “earnings” through that account. The goal of Racksterly is to also get your family members and friends on board. They are willing to pay you referral bonus for everyone you invite.
To “make” money on the website it is compulsory that you subscribe to one of their plans. There are four plans: dew plan ($18 per month plan), drizzle plan ($25 per month plan), storm plan ($45 per month plan) and the typhoon plan ($75 per month plan). The only thing they were honest about is naming of their plans; storm and typhoon. This is a description of the imminent financial disruption. The amounts on the website are all quoted in dollars, I’m sure you know why; to make the website appear genuine to unsuspecting victims. It’s really funny why a Nigerian website would use dollars while dealing with Nigerians, when na naira all of us dey use.
The amounts you pay to suscribe determines your daily returns. For the dew plan, you’d be paid $1.2 per share/per day. And $1.8, $3.5 and $5.6 for drizzle, storm and typoon plan, respectively. When your subscription ends, you’d have to renew your subscription or invite a lot of persons. I think this is a well thought out strategy.
Here are 5 questions that can help you to determine if Racksterly is actually a Ponzi scheme. Are the promised returns unrealistically high? Is the Racksterly’s profit strategy too ambiguous? Is Racksterly registered under a regulatory body, like the Securities and Exchange Commission (SEC) since it’s a Nigerian company? Do they have any legal documentation of the subscription amounts? Are there difficulties in withdrawal?
Are the Promised Returns Unrealistically High?
Yes, they are. For the lowest subscription fee (investment) on Racksterly, you are to pay $18 to receive $1.2 dollar daily. Within a 30 day period that is $36. That is 200% interest rate per month. For the other three plans, the rates are even greater than 200%. No genuine investment company can assure you of 20% in a month, not to mention two hundred. So, we can conclude the rates are unrealistically high. It is obviously set up to fail.
Is the Racksterly’s Profit Strategy Too Ambiguous?
The website claims that it is based on Facebook advertisement. We all know how Google Adsense works. Several companies, big and small, pay Google to advertise their products. But there are too few persons paying Racksterly to advertise their products. So how does it generate the mega profits they pay to you? Obviously through the subscriptions of new users. In local terms, they are robbing Peter to pay Paul. This is wrong in all counts.
They should treat these subscriptions as capital. You don’t touch the capital, only the profits it generates. That is basic business ethics. Only a business doomed to fail would do distribute its capital as dividend.
Is Racksterly Registered Under a Regulatory Body, Like the Securities and Exchange Commission (SEC), Since It’s a Nigerian Company?
There is no information on the ownership of Racksterly.co on the internet, and that’s exactly what fraudsters do. Although promoters of the website claim they have an office in Lagos, Nigeria, a simple search would tell you there is none. Also, no official phone number. You can only reach them on Facebook, as it’s a company based on advertising with Facebook. Lol. There are several WhatsApp groups for members though, resembling how other bigger Ponzi schemes operated.
A genuine company would have a face, an identity, someone to hold accountable. Clearly, Racksterly isn’t registered under any regulatory body. That means they can play with your funds whatever way they deem fit.
Do They Have Any Legal Documentation of the Subscription Amounts?
Nah nah. Just mails.
Are There Difficulties in Withdrawal?
Yeah, they have a policy of not allowing withdrawals until the 30th day. They do this in order to control the amount of funds (or capital) that leaves the system as profit. It would only work for now, because as soon as the number of users doubles it would start experiencing more difficulties.
I see some similarities between Racksterly and MMM. A multitude of people believed that MMM would be solution to Africa’s problems. I read about people that left their jobs in order for them to become fulltime “guiders” on the platform. The platform seemed perfect to them. The problem started when the users began requesting for help, while there were only a few providing it.
Eventually, a Ponzi scheme always meet its end when you least expect it.
Racksterly is not a legitimate website because it relies primarily on paying investors with the subscription of new members.
It is not generating income from any other source. This is an unethical business practice because eventually the amount of old users will be more than new users. At that point, there would be no enough money to pay the old users.
Racksterly is a pyramid scheme where an investor continue to climb the ladder of income. It does not have it’s information made public.
It claims to work like Google Ads. But news flash, Google is a registered company in the US. Racksterly is not registered any where. Google has a CEO and executives that can be held accountable for its actions. Racksterly has no face, absolutely no one to hold accountable.
No, we wouldn’t advise that. It’s a pyramid scheme waiting to fail.