DonatePays is a matrix cycler MLM opportunity based around a cash gifting premise where new affiliates provide payouts for sponsors.
What Is DonatePays?
The company behind DonatePays is purportedly known as Goldfix11 LLC and is run by four individuals identified only as Dan, Carol, Randy and Kenny. Together these four individuals have a combined 40 years of experience in online businesses, according to the DonatePays FAQ section.
Additionally, the site claims that the business is headquartered in Canada.
The DonatePays website was registered in September of 2016. The registrant's address is hidden behind an anonymous registration service, making it impossible to verify DonatePays' claim that it is run by Goldfix11 LLC.
Additionally, all research into a Canadian company by that name has not borne any fruit. Ultimately, this means the company behind DonatePays is unverifiable and unknown.
There is no true product associated with DonatePays. Instead, the company provides opportunities for affiliates to sell memberships in exchange for guaranteed payments.
Members who do purchase paid memberships are entitled to advertise on the DonatePays website, ostensibly to drive higher levels of traffic to their own marketing or ecommerce sites.
DonatePays works around a cash gifting matrix. This provides for a steady flow of money up the line; new affiliates can buy into the program with a $34 gift, which gets kicked up to their sponsor.
This also places new members at the top of a new 2×3 matrix; a new affiliate must recruit two individuals, who then recruit two individuals of their own, before the matrix cycle is complete. This results in a $140 payout for a $34 cash outlay.
Finishing one matrix then opens up a deeper “cycle,” where an affiliate can buy in with a larger fee for the chance to receive an additional, larger payout. The entire system is 5 cycles deep, with the 5th providing as much as $700 in payouts on a $170 fee for a fully completed cycle.
DonatePays also offers commission earnings up to three levels deep. Commissions on 1st-level referrals is 10%, 2nd-level referrals net 20%, and 3rd-level referrals provide 5% additional earnings.
Membership in DonatePays is free. However, this only entitles users to earn referral commission income. In order to participate in their first matrix cycle, members must pay the initial $34 fee.
DonatePays, like all other cash gifting schemes, works only until it doesn't.
Such programs often pay very well at first, especially for individuals up at the top of the pyramid; however, for a third-level recruit that is having trouble filling his or her own matrix, it is often the case that those $34 buy-ins are just gone without any sign of any return on investment, despite the fact that DonatePays “guarantees” donations.
In other words, it's only in the constant recruiting of new affiliates that older ones will be able to profit from DonatePays. Once the stream of interested affiliates dries up, so will the income opportunity – and that means DonatePays is almost certainly doomed to eventual failure.
Even the fact that members are entitled to free advertising space on the DonatePays website does little to delay the inevitable.
If there was some certainty that these ads were being used to generate income in some way – or if they were being run on social media sites instead of just the closed system of the DonatePays website – perhaps the moribund cash gifting scheme would be able to last a bit longer based on outside contributions not sourced from a constant stream of affiliates from lower down the totem pole.
Alas, this is not the case. The advertising space is likely a fig leaf to conceal the otherwise obvious snake-eating-its-own-tail nature of the DonatePays system.
Unless you're already involved with DonatePays at the very top of the pyramid – or you know several people that are credulous enough for you to recruit under you – it's advisable to avoid this scheme if you want to hold on to your money.