CoopBusiness is a business that published its website without mentioning its founders or top executives. The private registration for the domain name “coopbusiness.com” was last updated on November 11th, 2022. The domain was registered in late 2022, based on the fact that CoopBusiness’ website became live in early 2023.
However, On the organization’s official YouTube channel, David T. Rosen, claiming to be the creator of the company, appears in promotional films. Rosen’s prior participation in the PIE 24/7 pyramid scheme, which came to light in 2015, raises questions about his reliability, though.
With the introduction of Cooperative Crowdfunding in 2018, 50/50 Crowdfunding later that year, and the following relaunch of 50/50 Crowdfunding as CoopCrowd in 2019, Rosen has a history of launching a variety of pyramid schemes. Rosen launched Coop5050 in late 2020 when CoopCrowd failed, and in reaction to Coop5050’s difficulties in the second half of 2021, he declared a CoopCrowd rebirth.
Early in 2022, CoopCrowd 2022 became operational, however, the scam scheme’s demise coincided with the removal of its official Facebook page in July of the same year. The CoopCrowd 2022 website is not currently being followed by SimilarWeb.
What is a pyramid scheme, and why is it prohibited?
A pyramid scheme is a dishonest method of making money that relies on enlisting a rising number of “investors.” Investors are attracted by the original promoters, who then bring in other investors, and so on. The system is known as a “pyramid” because more investors are added at each level.
Rosen has a track record of creating pyramid schemes, therefore the mention of the company for 2023 raises questions about the organization’s credibility and goals. Concerns are exacerbated by the website’s lack of openness regarding ownership or executive information. When deciding whether to get involved with the company in any way, use caution and conduct extensive study.
Products from CoopBusiness
- No retailable goods or services are offered by the company.
- Only the CoopBusiness affiliate membership itself may be promoted by affiliates.
Compensation Plan for CoopBusiness
CoopBusiness operates an affiliate program where affiliates pay an upfront fee of $38 and then $28 every 28 days. There is also a higher tier available where affiliates pay $280 every 28 days. Affiliates earn commissions when they recruit new members who pay the affiliate membership fees.
The company utilizes a 310-matrix structure to distribute recruiting commissions. The matrix begins with the affiliate at the top and three slots immediately below them.
Each of these three slots can be further divided into three positions, creating two levels.
The matrix continues to expand from levels three to ten, with each level containing three times as many spots as the previous one. As affiliates are added to the matrix, both directly and indirectly with the company pays out recruiting commissions.
It is important to note that the company does not specify the specific fee rates for their program.
Enrolling in CoopBusiness
CoopBusiness first cost $99, then increased to $28 each month.
This decreased to $38 in May 2023 and then to $28 each month after that.
CoopBusiness membership
According to CoopBusiness, the initial monthly rates were $99 before they were lowered to $28. The cost was reduced again in May 2023 to $38, and it ultimately came down to $28 per month. The originator, David T. Rosen, is known to have been open about commission rates in his prior schemes but refrains from doing so with the company. Instead, the business spends $10 million a month on expensive marketing strategies.
The report also claims that CoopBusiness is only a new incarnation of the pyramid scam Rosen has been running under various identities for more than ten years. Also mentioned is the tendency for shorter pyramid systems. According to SimilarWeb statistics as of June 2023, the company website has just moderate traffic.
As a result, as affiliate recruitment declines, the recruiting incentives in pyramid schemes like CoopBusiness vanish. It comes to the conclusion that, contrary to the profits promised, the majority of participants actually lose money as a result of the erroneous mathematics CoopBusiness used in its marketing.
The Bottom Line
CoopBusiness is a company that didn’t reveal the names of its founders or senior executives when it opened its website. The “coopbusiness.com” domain registration was last updated in November 2022, and the website launched in early 2023. However, in advertisements posted on the company’s YouTube channel, David T. Rosen, who has a history of taking part in pyramid schemes, purports to be the inventor of CoopBusiness. Concerns regarding Rosen’s dependability and the validity of CoopBusiness are raised by his earlier involvement in the PIE 24/7 pyramid scam and his history of founding many pyramid schemes, including Cooperative Crowdfunding and CoopCrowd.
Since affiliates may only advertise their affiliate membership, CoopBusiness’s absence of retail goods or services is another concern. In terms of ownership or leadership information, the company’s website also offers minimal transparency.
In view of Rosen’s past, the company’s lack of openness, and the faulty math used in its promotion, do your homework before getting involved with CoopBusiness. Due to the nature of pyramid schemes, it is more probable that most participants would experience financial loss than they will realize the anticipated gains.
