Has anyone heard of Shop to Earn?

Discussion in 'Business Opportunities and Programs Reviews' started by smithc5892, Jun 28, 2008.

  1. OK2

    OK2 New Member

    The great thing about this concept is that I made my money back in just one month. The greatest part of the deal is that I save rediculous amounts of gas money every month. The amount of time to me is comparable because I am online searching numerous companies to find the best deal. It's like a game! And I save.

    As far as the $100 spent per month. You get money back so you are only spending $80. I spend that anyway in Target, Wal-Mart, grocery stores etc... If you take the time to browse through the Shop to Earth side, you will find more than you need. I am holding off from spending over $200 on the "green" side so I have some of it for next month. Nutrition bars, cleaning supplies, etc...

    The business model is a no-brainer. You need to realize that it's not a race. It may take you 6 months to see results. If you say or tell someone one thing everyday about Shop To Earn, you will do well with it!

    Have an open mind. It works [​IMG]
  2. birdie

    birdie New Member

    Where you a broker asking for a full refund within the 14 days you joined? Did you get the full $448 back?
  3. Ramo

    Ramo New Member

    Many MLM have a big flaw is that the product they have has limited audience ei how many soaps can you buy. So you end up all this stuff in your garage from a brand nobody knows

    This what I find Great about shop to earn you and the people invloved buy only what you need from the store they know. It is not for everyone and everyone should not join specailly if you are afraid to talk to people. I personally have made my money back without shopping , by havings 4 people join.

    MLM have had a bad name and for a good reason. Shoptoearn is not perfect but it close to resolving many of the flaws of past MLM.
  4. Robinator

    Robinator New Member

    Ramo, I hear what your saying about the product part of MLM, BUT and thats a big BUT, the FTC considers any direct sales company that makes more off of recruiting than product sales and illegal pyramid scheme.
  5. PAMom

    PAMom New Member

    Shop To Earn ??“ Is It an Illegal Pyramid?
    Opinion from an Insider and FTC Rulings

    Mia culpa for joining ShopTo Earn/ShopToEarth (STE) prior to doing my homework. It is so easy to get swept up in the fever of earning quick money during a home presentation where an early investor shows his paycheck. Sounds like inducement which has been deemed illegal by the FTC. However, now that I joined as a broker for $448, I would like to share some details of my direct experience which in my opinion classifies STE as a pyramid. In addition, I have included some rulings by the FTC on similar "mall" shopping companies which were forced to shut down and two FTC articles on warning signs of an illegal pyramid scheme.

    First of all here is some background on the STE's design and structure. You may join STE as a Business Builder ($99) and you are only paid for recruiting others. However, to receive your commission, you or your friends "must generate at least $100 in monthly business volume through his/her website's link to ShopToEarth to become qualified to SCORE!" (taken directly from the company's commission rules; link to this document is shown below under Related Documents). The commission rules also state that a Business Builder must refer (recruit) three new Website Owners or Brokers within the first 30 days. These recruits must pay their renewal fees at the end of one year or the Business Builder must refer (recruit) another Website Owner/Broker to continue to be eligible for commission.

    Or, you may join as a Web site Owner ($349) which allows you to shop with 500 retailers and earn cash back with a $69 annual renewal fee. You also earn points for anyone who shops at your Web site. However, to receive your commission through STE you or your friends "must generate at least $100 in monthly business volume through his/her website's link to ShopToEarth to become qualified to SCORE!"

    Doesn't it sound great to earn cash back for shopping online? Slow down. Did you know that you can do the very same thing through many sites on the internet, earn cash back at MORE retailers and get paid to refer friends all for FREE? Some of these sites are cashbaq.com, ebates.com, mrrebates.com. For example, cashbaq.com has over 1700 retailers available and they show available online coupons per store which may be used for additional discounts. This is known as affiliate marketing where retailers pay for affiliates to promote their goods to a consumer with a direct link to the retailer's online site. The affiliate receives a rebate from the retailer and is sharing a portion of the rebate with the consumer. So, why would you, your loved ones or friends spend the $349 when you can do the same thing for free? In addition to collecting your $349, STE is receiving the rebate from the retailer as an affiliate and only sharing a portion with the member.


    Then there is the Business Builder and Website Owner rolled into one position known as a Broker. The cost to become a Broker is $448 with an annual renewal fee of $119. From STE Commission Rules - "A Broker functions under the same Commission Rules as a Website Owner and a Business Builder; however, a Broker (Website Owner + Business Builder) only has to refer 2 Website Owners and place at least one on the Left Side and at least one on the Right Side to become qualified to SCORE! A Broker has an annual renewal fee of $119 and 50 points are paid to that Broker (Website Owner + Business Builder) and up-line to all Business Builders." Again, to receive your commission through STE, you or your friends "must generate at least $100 in monthly business volume through his/her website's link to ShopToEarth to become qualified to SCORE!"

    As for the requirement to purchase $100 in ShopToEarth products monthly, I have looked through the green products available and I cannot come up with $100 that I need every month. I also feel that most of the prices on these green products are inflated and this requirement only serves to put more "green" into the pockets of the top levels. Yes, STE is truly a "green" company.

    So if you found $100 from the ShopToEarth site to purchase and now you are ready to receive your commission. But wait, there's more. Your are not eligible to receive your commission unless your right and left side are balance. Now the complexity comes into the genealogy of the tree you are creating on your right and left side. Remember, as a Broker, you must recruit one person on your right and one on your left which begins your tree. To earn your commission, at least 1/3 of your total points must come from one side. Why is this put into place? It forces you to continually recruit new members on your weaker side. New recruits mean more money. Think about it though. Everyone is trying to balance their sides. So if I have a strong right side but someone below me on that side is weak, they will continually try to recruit more on my strong side. I don't want this. It will make my strong side even stronger! Yikes. Why was this put in place? The company ensures solvency through your continual balancing act of recruiting new members and not paying commission to existing members who are out of balance.

    Here are some other issues that I have with STE:
    1.STE readily promotes checks on the STE Tour call, at home presentations, seminars and on individual Web sites. You can go to any member's Web site, click on their picture in the lower left corner and then click on $ My Check to see the member's check. In my opinion, this is inducement and is illegal according to the FTC.
    2.In order to not classify as a pyramid, FTC states that 50% of the business must come from customers not being paid commissions. STE owns the ShopToEarth products so this means that 50% of the business in ShopTo Earth must come from those purchasing products yet not receiving any commissions. Good luck with that one STE especially since as of September 2008 you now require all members to purchase $100 in products from ShopToEarth to receive commission.
    3.STE is promoting business as if they have teamed up with Home Depot, Target, Staples, etc... This is misleading. STE is merely an affiliate and they offer a link to major retailers. In my opinion, this is deceptive and an attempt to legitimize the company.
    4.To be a legitimate company, refunds must be made to consumers. STE promises to refund your money if you put in a ticket within the first 14 days. There are several blogs about people not being able to get their refund as promised, which leads to the next issue.
    5.No STE telephone number available anywhere on the Web site.
    6.Bullying tactics of STE attorney (Nehra) with cease and desist communication to bloggers on the internet who are questioning the legality of STE. Why this tactic? Does STE have something to hide and what about our right to freedom of speech?

    What does the company say about itself? Under About Us on the STE Web site, Patrick Welsh, founder, the verbiage reads -"Pat has spent the last 10 years creating and developing this ShopToEarn platform that couples networking and e-commerce. By forming partnerships with the biggest names in retail while seeking out positive partnerships with the finest green companies, our mission of helping people become healthier and wealthier is being realized by many.
    Our ability to interface and partner with companies that produce products that are good for us and good for the planet will define our uniqueness as our mission of creating a wave of health and wealth and making a difference is ultimately our contribution that future generations will be proud of."

    In my opinion, STE is merely a recruiting scheme hiding under the guise of teaming up with the larger retailers (aka affiliate marketing) and promoting a "Green" company which is good for the planet. Pat's message fails to tell you that the monthly $100 purchase of the overly in
    flated (opinion-but see my next post on actual research which confirm my opinion) green products are mandatory to receive your commission or your points are wiped out. However, even though your points are wiped out, these points are still generated up-line. Who benefits the most? STE since they own the ShopToEarth products and of course, those at the top of the pyramid. The $100 monthly requirement is passed off as being in line with the company's philosophy when in actuality it is keeping the company solvent at the expense of the members.

    With all of this information and knowledge of the FTC rulings on similar companies, I cannot in good conscious recruit members (even strangers) to sign up when they can shop online for free and get cash back and money for referring friends who also don't have to fork over $448 plus $100 per month in products. And I failed to mention that you may not get the best price for your purchase as well as previously mentioned by another post. The STE site does not have a search engine for the product offered at the lowest price like Amazon.com or NexTag.com. You could use these sites to first see which retailer is offering the lowest price then come to STE and see if the retailer is on the list. If it's not on the list, you could purchase it from a retailer on STE and your cash back may equal the cost offered by the lowest retailer. So, have you saved anything by spending $448 to join STE? No. You make money by recruiting and the FTC has ruled this as illegal.

    FTC Rulings on Similar Online Mall Companies and FTC Related Articles on Pyramids
    How does the FTC weigh in on this type of business? Below are some recent FTC rulings on online malls and an FTC related consumer article on how to spot a pyramid.

    1. FTC shut down two previous shopping internet malls with links to retailers. Key passages from the article are detailed below along with the link to the to the entire FTC article:

    For Release: May 12, 2005
    FTC Cracks down on Internet Mall Pyramid Promoters
    Operators of online malls that disguised themselves as legitimate business opportunities have settled Federal Trade Commission charges that they were
  6. PAMom

    PAMom New Member

    As most of you know, ShopToEarn/Earth requires that you spend $100 per month from their "green" retailers in order to receive your commission. In addition to forcing you to buy these products, you are spending far more than if you purchased these same products from other online retailers. For some of the vitamins I researched, you are spending almost double the cost AFTER YOUR CASH BACK. Below is a brief comparison of the prices I found on a quick search. To ensure proof of my claims that I am comparing "apples to apples", I have screen shots of all products and prices.

    1. Alacer Emergen C MuliVitamins Kids Strawberry 36 packets

    Vitacost.com Price = $7.37

    ShopToEarth Price = $17.45 - $2.62 (cash back) =14.83 ($7.46 MORE)
    Way to go STE. Not only do your investors have to wait 1 month for their cash back (minus $5.00 for direct deposit fee), they are spending $7.46 MORE. Where is that extra profit going????

    2. Alacer Emergen-C 1000 mg Vitamin C Tropical 36 packets

    Amazon.com Price =$6.89

    ShopToEarth Price = $14.95 ??“ $2.24 (cash back) = $12.71 ($5.82 MORE)
    These outrageous mark-ups are not limited to vitamins. Below are some other examples of STE's overly inflated products they are forcing on their members.

    3. Chocolite Protein Bars Cookies N Cream (16 bars)

    Netrition.com Price = $16.99

    ShopToEarth Price = $23.49-$3.52 (cash back) = $19.97 ($2.98 MORE)
    4. Ark Naturals Sea Mobility Chicken Jerky Strips 3/ 9 ounce strips

    Vitacost.com Price = 3 X $7.87 each = $23.61

    ShopToEarth Price = $37.47 - $5.62 (cash back) = $31.85 ($8.24 MORE)
    I found these in less than 20 minutes of comparison shopping. I have a good hunch that this price inflation is rampant through the green store which makes the founders and those at the top very green. WAKE UP STE investors!!!
  7. dale52872

    dale52872 New Member

    Hello David Park,
    Just had to go to your STE site to see what your name is...great acct of your business so far. I joined as a Broker 7/21 - on 8/20 $345 was deposited into our checking acct and last Friday 9/19 we received our August commission of $1600+. Just as it should be, just as promised. This is a great opportunity for additional income...yes I have met the top earners that make approx $7K per day with 15,ooo people under them...I have 106 below me and have referred just 8 people myself...it is a joint effort - as the founder says the great billionaires of the world "Use Other Peoples Ideas, Other People's Money and Other Peoples' Efforts" to help them make their Money! This is so true...it is not snap your fingers and money appears, ANY business takes time, effort and work! We do have to spend the $100 from the Earth side each month...did people who invested in GOOGLE or any other company not have to put ALOT of money into their company??? We spend money on product that we choose, we do not have to purchase specific product and store it in our garages so sell to someone else...this business opportunity is not for everyone. Some people's minds are just not open to new opportunities and if they are happy with their present income, who are we to tell them otherwise...as far as all the negativity about Shop To Earn...hey look on the internet about our presidential candidates...are the STE nay sayers not voting for one of the candidates because both have GOBS of negativity attached to their names????
  8. PAMom

    PAMom New Member

    For the misguided who think they are making money by shopping hence the name, Shop To Earn, here are some more of the outrageous mark-ups in the Shop To Earth site which you are forced to spend $100 per month to receive commission. You are NOT making money on sales, you are making money by suckering others into signing up which is a classic pyramid. It is only a matter of time before the FTC catches on. Frankly I don't want my name associated with such a fraudulent business but others seem to have no scruples and have no problem taking $448 from friends, family and loved ones. I have not found one product on the Shop To Earth site which is equal to or less than the price offered by other online retailers. And, of course these other retailers are making a profit off of their products which means Shop To Earth is gauging its own members!!!!

    Myvitanet.com Aloha Bay Mistletoe Bouquet Candle 21. oz $12.35
    ShopToEarth Aloha bAy Mistletoe Bouquet Candle 21. oz $21.99 - $3.30 cash back = $18.69
    $6.34 (MORE)

    Myvitanet.com Aloha Bay Ocean Mist Candle 21. oz
    $12.35
    ShopToEarth Aloha Bay Ocean Mist Candle 21. oz
    $21.99 - $3.30 cash back = $18.69
    $6.34 (MORE)

    Vitapal.com George's Aloe Vera Shampoo 8 oz.
    $3.75
    ShopToEarth George's Aloe Vera Shampoo 8 oz.
    $5.95 - $.89 cash back = $5.06
    $1.31 (MORE)

    Vitapal.com George's Aloe Vera Conditioner 8 oz.
    $4.49
    ShopToEarth George's Aloe Vera Conditioner 8 oz.
    $6.89 - $1.03 cash back = $5.86
    $1.37 (MORE)

    Vitaminthrift.com Genisoy Ultra-XT Soy Protein Shake Chocolate 22 oz. $12.91
    ShopToEarth Genisoy Ultra-XT Soy Protein Shake Chocolate 22 oz. $20.19 - $3.03 cash back = $17.16
    $4.25 (MORE)

    Imedmart.com Genisoy Protein Bars Chocolate Chip 12-1.58 oz bars $12.92
    ShopToEarth Genisoy Protein Bars Chocolate Chip 12-1.58 oz bars $19.99 - $3.00 cash back = $17.99
    $5.07 (MORE)
  9. yolo

    yolo New Member

    pamom you said you joined up with ste, have you cancelled your membership? did you sign anyone up?
  10. yolo

    yolo New Member

    To Dpark How much was deposited in your account last week for your August business?
  11. yolo

    yolo New Member

    pamom The additional markup of the items on shop to earth vs what can be found on other sites is the margin used to pay upline members. It basically makes everyone in the line a distributer/retailer and if you add up all the upline dollars paid from all the downline purchasers it will offset any lower price found elsewhere. The upline earnings for all aspects of the revenue stream from recruiting and purchasing makes the lower price moot.
  12. yolo

    yolo New Member

    to pamom, in addition the cost of joining the brokerage side of the concept is just $99, which is below the threshold fo $200 to $500 to be classified as a business opportunity, which is set by the FTC in determining whether the company should be investigated. The cost of purchasing a website for $349 to be able to purchase through the portal and obtain cash back is not considered a part of the investment for the mlm. The attorney for ste was with Amway for years and is fully qualified in assuring the company stays with-in the rules.
  13. BillChechel

    BillChechel New Member

    I have heard alot on the FTCs law on inducement.

    Does anyone have any links to this exact law? I would love to see how this is worded and exactly how the FTC defines inducement.
  14. PAMom

    PAMom New Member

    Yolo,
    I understand clearly why the reason for the outrageous mark-ups in the ShopToEarth products. The price gauging makes those above you rich at the expense of those lower in the pyramid (oh, I mean hieracrchy, LOL). And, as of Sept 2008, members are forced to buy these overly inflated products to support the payment upline. What a joke.

    As for your laywer previously with Amway- are you saying the STE has figured out the loopholes and is now able to fly below the radar of the FTC? Makes perfect sense to ensure that the $448 is just below the threshold of investment. So the brain trust of STE went to the former Amway lawyer and said, OK, how do we create a pyramid to get rich quick and avoid the FTC watchdog? Sounds very, very shady. Also, since you know so much of the background in STE, are you part of the brain trust?

    You haven't come up with a rebuttal to the FTC rule that 50 % of the sales must come from consumers NOT involved with the commission plan though. You (and your Amway lawyer) probably already know that the FTC usually allows three years for a company to prove that this is happening. Hum, I wonder if STE will take down their shingle and vanish into the night in about two years?

    No, I wasn't able to request a refund because my research came after the 14 day period. I am a single mom and my own mother is on hospice care and living with me. Needless to say, my life is quite chaotic and difficult at this period in time. Otherwise I would have done my homework prior to signing up. In addition, if it wasn't for my emotional state of watching my mother die, I most likely would not have done so in the heat of the moment. That's what happens though to victims who are facing difficult times in their life when money is a crunch and you see this plan to make quick money and checks are shown up on the screen- you fall pray.

    I am only hoping to prevent others from falling pray. If I can save at least one other person, then it is worth it. Sure, I could make money by recruiting others but I have a moral fiber which is too strong. At the end of the day, I have to look myself in the mirror and feel good about the person in the reflection.
  15. PAMom

    PAMom New Member

    Yolo,
    I understand clearly why the reason for the outrageous mark-ups in the ShopToEarth products. The price gauging makes those above you rich at the expense of those lower in the pyramid (oh, I mean hierarchy, LOL). And, as of Sept 2008, members are forced to buy these overly inflated products to support the payment upline. What a joke.

    As for your lawyer previously with Amway- are you saying the STE has figured out the loopholes and is now able to fly below the radar of the FTC? Makes perfect sense to ensure that the $448 is just below the threshold of investment. So the brain trust of STE went to the former Amway lawyer and said, OK, how do we create a pyramid to get rich quick and avoid the FTC watchdog? Sounds very, very shady. Also, since you know so much of the background in STE, are you part of the brain trust?

    You haven't come up with a rebuttal to the FTC rule that 50 % of the sales must come from consumers NOT involved with the commission plan though. You (and your Amway lawyer) probably already know that the FTC usually allows three years for a company to prove that this is happening. Hum, I wonder if STE will take down their shingle and vanish into the night in about two years?

    No, I wasn't able to request a refund because my research came after the 14 day period. I am a single mom and my own mother is on hospice care and living with me. Needless to say, my life is quite chaotic and difficult at this period in time. Otherwise I would have done my homework prior to signing up. In addition, if it wasn't for my emotional state of watching my mother die, I most likely would not have done so in the heat of the moment. That's what happens though to victims who are facing difficult times in their life when money is a crunch and you see this plan to make quick money and checks are shown up on the screen- you fall pray.

    I am only hoping to prevent others from falling pray. If I can save at least one other person, then it is worth it. Sure, I could make money by recruiting others but I have a moral fiber which is too strong. At the end of the day, I have to look myself in the mirror and feel good about the person in the reflection.
  16. yolo

    yolo New Member

    pamom Sorry to hear about your mother's condition. It is rough to see a parent fade, as I did last year with my dad. God be with you.
  17. PAMom

    PAMom New Member

    Thanks Yolo, sorry to hear about your dad. Also, here's an update from the FTC. They proposed a bill in 2006 to remove the $500 threshold. It often takes up to three years for a bill to pass so it may just be around the corner. An exerct--
    FTC'S PROPOSED BUSINESS OPPORTUNITY RULE:
    Why is the FTC Proposed Business Rule of such concern to the industry?
    DETAILED ANALYSIS of Problematic Provisions
    On April 12, 2006, the Federal Trade Commission published its Notice of Proposed Rulemaking, and its proposed Business Opportunity Rule. 71 Fed. Reg. 19,053, (April 12, 2006), (to be codified at 16 C.F.R. ?§ 437).

    This rule will markedly expand the FTC's regulation of sellers of business opportunities, and as currently written, it will mean that all network marketing/MLM companies are subject to its provisions. The original FTC Business Opportunity Rule is narrowly drawn, and excluded many ventures that should have been considered business opportunities from its scope. With the proposed rule, in its current form, the FTC has gone in the other direction, expanding its net of regulation to basically all persons who solicit another to enter into a new business. There will be no more $500 minimum payment requirements to trigger application of the rule.

    For the complete article click or copy and paste:

    http://www.mlmlegal.com/FTC%20Business%20Opportunity%20Rule/FTCProposed.html
  18. sashawk

    sashawk New Member

    I agree that the company's front men are too far in backdrop for me to have any confidence in the longevity of this. It's definitely a viable model though.

    Sasha
  19. Robinator

    Robinator New Member

    Update:
    My friend Derek has been in STE for 7 weeks and has made over $4000.00, yes I verified and he really make 4k. As all of you know, I have been saying that the FTC is definitely going to be looking into STE and after speaking with Derek today I am even more convinced. He is a newbie to this industry and when I explained to him about the FTC regulations on what is considered an illegal pyramid scheme and what is not, he turned white! I'm not kidding; he told me that he did not make any money at all from selling product, because he sold NOTHING!!!!! So that income was solely made from recruiting!!!! Now he is nervous because he has friends and family that joined up based on his recommendation because they trust him!!!
  20. sashawk

    sashawk New Member

    Yeah, I like the "no friends, no family" rule when it comes to MLM, for both the growth of the company and the reason you described Robinator.

    But this guy must have a pretty huge extended family to have hit $4000 that way.

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