affiliate program without ads or products

Hello everybody!

I was thinking about making an affiliate program that uses neither ads nor products to earn money.

The idea is very simple, a member signs up and pays a one-time fee, then for every new member he refers, he gets paid. let's say membership costs $2, and then for every new referral he gets $1. OR a monthly fee of $2 and he get $1/referral/month

The system is very clear, no products and no ads to click.

The problem is that I'm confused whether this would be considered as ponzi or pyramid scheme, or just something else. and IS THIS LEGAL? especially when declaring the rules and when all members accept the ToS.

There are many sites out there, and one site that is very close to my idea is http://www.savingfive.com/
I don't know if this site is legal (I mean legal in terms of business type and not if they are honest or not)

So
1 - what type of site is that?
2 - is it legal to do such a site?
3 - is this considered ponzi, hyip or pyramid? if yes, is it legal?

Thank you

 

1. AffiliatePonzi
2. NO! Definitely not.
3. It will be considered ponzi and it's illegal.

 

Thanks for your reply thop. so you think this would cause some trouble and legal action or the site will just lose reputation?

 

You could end up sharing a cell with Bernie Madoff. Of course, it'll give you a lot of time to learn a few tips and tricks from the man himself!

 

don;t even try this , No scope now in these kind of business.

 

This type of business does not generate anything. It only gets money by getting people to pay for what is essentially nothing. It's very much like those chain letter things that people were warned about years ago. Its a far better business model to create something of value, and then let people pay a fair price for it. In the long run you'll do far better.

 

thanks for the advice but the problem is that I got nearly 5 years of php, mysql, html, css and javascript, and I didn't get a single penny, that's why I wanted to do such business, as I'm in Tunisia where you can't get money out to pay for hosting outside Tunisia while all of the Tunisian ISPs really suck. so I just want to make some cash fast. I'm also tired of those affiliate and PTC programs where I'm already losing money renting referrals that click once a week. the problem is that I want some cash in paypal or alertpay. I can afford the sum in tunisian dinars, but I can't get it in paypal or alertpay. That's my problem.

 

FREELANCE! (sorry about all caps)
With 5 years of php, mysql, html, css and javascript skills, you can actually make quite a lot of bank if you go to some freelance websites and do some jobs their, you can even build a reputation on the site and up your pay rate. You should even PM, I might even hire you.

 

Go register on odesk mate, hell i might even have a job or two for you, message me

 

Hello ,
The idea is very simple, a member signs up and pays a one-time fee, then for every new member he refers, he gets paid. let’s say membership costs $2, and then for every new referral he gets $1. OR a monthly fee of $2 and he get $1/referral/month
The system is very clear, no products and no ads to click.
Thanxs...