Is Surge365 a Legit MLM or a Pyramid Scheme? Read Our Full Surge365 Review to Find Out
Is Surge365 a pyramid scheme? That’s the question on many people’s minds, and in this Surge365 review, we’ll answer that question for you. Surge365 is a multi-level marketing company that operates in the travel niche. The company has a sketchy history and has been involved in several legal problems. In this review, we’ll tell you everything you need to know about Surge365, including what it sells, how to join, the company’s compensation plan, and more. We’ll also give you our honest opinion on whether or not we think Surge365 is legitimate or a scam. So if you’re curious about this MLM company, keep reading!
History of Surge365
Surge365 was founded in 2014 by Lloyd (Coach) Tomer, Scott Tomer, and Chris Cokley. The company is based in Birmingham, Alabama and operates in the travel niche. Surge365 sells membership packages that give customers access to discounts on hotels, rental cars, cruises, and more.
The company has a sketchy history and has been involved in several legal problems.
In 2015, Surge365 was sued by the state of Florida for operating as an illegal pyramid scheme. The state alleged that Surge365 was promising customers big profits for recruiting new members, but those profits never materialized. Surge365 denied the allegations and the case was eventually settled out of court.
In 2016, Surge365 was sued again, this time by a former member who claimed that the company was operating as a pyramid scheme. The plaintiff alleged that he had spent $5,000 on a Surge365 membership but only made back $60 in commissions. He also claimed that Surge365 was using false advertising to lure people into joining the company. Surge365 denied the allegations and the case was eventually dismissed.
Coach and Scott Tomer (father & son) used to own another travel MLM company called YTB International which was launched in 2001. YTB was also accused of being a pyramid scheme and was sued by the state of Illinois in 2009. The Tomers eventually settled the case and agreed to pay $1 million in restitution to customers.
In August 2008 California Attorney General Jerry Brown sued YTB for $25 million for operating as a pyramid scheme as well as for using deceptive marketing practices. YTB agreed to settle the case for $4.5 million in 2010.
Lloyd Tomer, Surge365’s CEO, has also been involved in several other MLM companies over the years, including Herbalife, Vemma, and World Financial Group.
Scott Tomer is Surge365’s President and Chief Operating Officer. He has over 20 years of experience in the direct selling industry. Prior to joining Surge365, he served as the Vice President of Sales and Operations for World Financial Group. He also held leadership positions at Vemma and Herbalife.
Cokley is Surge365’s Chief Visionary Officer. He is also a co-founder of the company. Prior to joining Surge365, he served as the Vice President of Marketing for World Financial Group. He has also held leadership positions at Vemma and Herbalife.
After the YTB scandals, the Tomers went on to launch Surge365. Surge365 has many similarities to YTB, including its business model, compensation plan, and the fact that it sells memberships that give customers access to discounts on travel-related products and services.
Despite these legal problems, Surge365 continues to operate and is currently one of the most popular MLM companies in the travel niche.
How does Surge365 work?
Surge365 sells membership packages that give customers access to discounts on hotels, rental cars, cruises, and more. The company also sells a business opportunity, promising big profits for those who recruit new members.
Surge365 offers four membership packages:
- Basic Membership: $199.95 per year.
- Silver Membership: $399.95 per year.
- Gold Membership: $599.95 per year.
- Platinum Membership: $999.95 per year
Each membership level comes with its own set of benefits and discounts. For example, the Basic Membership gives customers access to discounts on hotels, rental cars, and cruises. The Silver Membership includes all of the benefits of the Basic Membership plus additional discounts on airfare, restaurants, shopping, and entertainment.
The Gold Membership includes all of the benefits of the Silver Membership plus additional discounts on hotels, rental cars, and cruises. The Platinum Membership includes all of the benefits of the Gold Membership plus additional discounts on airfare, restaurants, shopping, and entertainment.
In addition to these membership packages, Surge365 sells a business opportunity, promising big profits for those who recruit new members. The company’s compensation plan will be discussed in more detail later on.
How to Join Surge365
Joining Surge365 is simple. You can sign up for a membership package online or through one of the company's independent distributors. The cost of membership ranges from $199.95 to $999.95 per year, depending on the level of membership you choose.
Once you've sign up for a membership package, you'll have access to Surge365's member website where you can book travel-related discounts. You'll also be able to take advantage of the company's business opportunity and start earning commissions by recruiting new members.
Surge365’s Compensation Plan
Surge365’s compensation plan revolves around recruiting new members and selling membership packages. Independent distributors can earn commissions by selling membership packages to retail customers and by recruiting other people to join Surge365 as independent distributors.
Retail Commissions
Independent distributors can earn a commission on every membership package they sell to retail customers. The commission rates range from 10% to 20%, depending on the level of membership sold.
For example, if you sell a Basic Membership for $199.95, you’ll earn a 10% commission, which comes out to $19.99. If you sell a Platinum Membership for $999.95, you’ll earn a 20% commission, which comes out to $199.99.
Recruitment Commissions
Independent distributors can also earn a commission on every membership package sold by the people they recruit. The commission rates range from 5% to 10%, depending on the level of membership sold.
For example, if you recruit someone who sells a Basic Membership for $199.95, you’ll earn a 5% commission, which comes out to $9.99. If you recruit someone who sells a Platinum Membership for $999.95, you’ll earn a 10% commission, which comes out to $99.99.
Recruitment Bonuses
In addition to these commissions, Surge365 pays recruitment bonuses when you reach certain goals. For example, you’ll earn a $100 bonus when you recruit three people who each sell a Platinum Membership. You’ll also earn a $500 bonus when you recruit 10 people who each sell a Platinum Membership.
Surge365 has 10 ranks:
- Independent Distributor: You’ll need to sell or recruit two membership packages to qualify for this rank.
- Bronze: You’ll need to sell or recruit four membership packages to qualify for this rank.
- Silver: You’ll need to sell or recruit eight membership packages to qualify for this rank.
- Gold: You’ll need to sell or recruit 16 membership packages to qualify for this rank.
- Platinum: You’ll need to sell or recruit 32 membership packages to qualify for this rank.
- 1 Star Director: You’ll need to sell or recruit 64 membership packages to qualify for this rank.
- 2 Star Director: You’ll need to sell or recruit 128 membership packages to qualify for this rank.
- 3 Star Director: You’ll need to sell or recruit 256 membership packages to qualify for this rank.
- Regional Director: You’ll need to sell or recruit 512 membership packages to qualify for this rank.
- National Director: You’ll need to sell or recruit 1,024 membership packages to qualify for this rank.
To maintain your rank, you’ll need to sell or recruit at least two membership packages every month. If you don’t meet this requirement, you’ll be moved down to the next lower rank.
What we like about Surge365
There are several things we like about Surge365.
- The company offers a simple product that is easy to understand and sell.
- Surge365 has a variety of membership levels, which makes it accessible to people with different budgets.
- The company’s compensation plan is straightforward and easy to understand.
- Surge365 provides its members with training and support to help them be successful in the business opportunity.
What we don’t like about Surge365
There are also several things we don’t like about Surge365.
- The company requires its members to maintain a minimum monthly sales volume in order to stay active in the business opportunity.
- Surge365 has a sketchy history, with several lawsuits and investigations filed against the company.
- The company’s compensation plan relies heavily on recruitment, which could lead to pyramid scheme activity.
- Surge365’s products are overpriced and there are cheaper alternatives available on the market.
Are there alternatives to Surge365?
There are several alternatives to Surge365, including:
- WorldVentures: WorldVentures is a direct selling company that offers travel memberships. The company has been in business since 2005 and has an A+ rating with the Better Business Bureau.
- Xango: Xango is a direct selling company that offers health and wellness products. The company has been in business since 2002 and has an A- rating with the Better Business Bureau.
- Amway: Amway is a direct selling company that offers a variety of health, beauty, and home care products. The company has been in business since 1959 and has an A+ rating with the Better Business Bureau.
If you’re interested in exploring the travel MLM niche, we recommend checking out WorldVentures and Xango. If you’re interested in exploring the health and wellness MLM niche, we recommend checking out Amway.
Our verdict
We believe Surge365 is a legitimate MLM company. However, we also believe the company's compensation plan relies heavily on recruitment, which could lead to pyramid scheme activity. We recommend that you proceed with caution if you're considering joining Surge365.
As we always recommend, it's crucial that you thoroughly research any multi-level marketing company that you're looking at joining. This research should include reading reviews, checking out the company's website, and speaking with current and former members of the opportunity. This will help you make an informed decision about whether or not an MLM is the right company for you.
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