| hen applied to a network marketing company, the term Ponzi is usually used to identify a company where the claim is that income from membership fees to participate in the business opportunity are used to pay commissions to the new members, and there is no true product. Just an endless chain of enrollments of new members.
DubLi membership fees include DubLi tokens used to participate in the auctions. Even though those DubLi tokens are virtual, they are in essence 'consumed' through use. A consumable product is one of the key elements regulars look for when determining if a company is a Ponzi, or Pyramid Scheme.
In DubLi, Consumers are given goods for their investment, representatives are given bonus percentages for the shopping of the consumers referred, and everyone benefits from the shopping done through the portal. Although people may label this company as a "DubLi Scam",
many network marketing companies are frequently cited as being fraudulent by consumers, however until a regulatory agency like the FTC files in court labeling a company a Pyramid Scheme or Ponzi, it's important for consumers to do their own research entering into any opportunity. |
