Is Teamwork Revolution Power System TWRPS a Scam ? A Review
Teamwork Revolution Power System TWRPS is a spin off of the original Teamwork Revolution. It promised to “revolutionize” the online marketing industry. I’m not quite sure if it has, but it certainly is one of the best programs out there.
Teamwork Revolution (original) was a $10 per month 5×6 forced matrix. It was doing quite well since its launch in the Spring of 2009. I joined it at around the launch time but left a few months later after giving it a good go and not succeeding. You can read more about my Teamwork Revolution experience on this site. It seems this original Teamwork Revolution has now been closed down, perhaps because the owner James Al-oboudi wanted to focus on this new Teamwork Revolution Power System.
A few months later this new version deemed “Power System” came out. I wasn’t in the mood for trying out anymore monthly payment matrices but this one looked promising. It was a 2×8 forced matrix. I had always dreamed about a matrix that had a width of 2 and how it would perform. So mainly out of pure curiousity I joined to see how things would go.
Joining was easy as during pre-launch it was free to join. Those 2 months proved very interesting as my downline grew to about 150 with the most of those being spillover. I had never seen such huge amounts of spillover and I started to believe that this was finally the online program I was looking for. I was certain with spillover rates like this that I was in a good position in the matrix and that people would all join this program because of it’s great spillover rate.
But then of course reality hit when it came time to pay. The price tag was a bit hefty at $29.95 + $3 alertpay fee. But I decided to give it a go based on how good everything was going up until that point. I didn’t expect all 150 people to pay their fee and stick around but I was quite shocked when only about 10 (less than 10%) decided to pay and stick around.
Things didn’t get much better from there. The following month had more people drop out without any new people joining so I decided it was time to cut my losses and bail ship as the future didn’t look promising for me and this program.
The product is web hosting with an auto-responder. Auto responders can run you about $30/month alone so TWRPS is trying their best to provide value for the $30 per month. The thing is, most people who join have no idea what an auto responder is never mind how to use it. People join these things in hopes of making money, preferably from doing nothing and just getting spillover.
I got paid the 2 months I was with the program on time as promised. So I would by no means label TWRPS as a scam at this point. Of course no one knows what the future holds, but at least your losses are maxed out at about $33. So if you are thinking of giving it a go by all means do so. But keep in mind the original Teamwork Revolution was supposed to “revolutionize” the online marketing industry but it was abandoned for this program. What about all those people who had a successful $10 per month business in the old TWR ? They were either abandoned or expected to join this program at 3 times the price. So it goes to show that despite what they claim about caring about the “little guy” when it comes to increasing their profits, the “little guy” takes 2nd place. Perhaps in the future TWRPS will also close down for whatever reason. The fact is there is no stability in any of these online MLMs except perhaps for GDI since it has been around for so long and is a publicly traded company.
Let me talk about some of the claims that TWRPS makes that aren’t true. Maybe they believe it to be true but unfortunately their math skills leave much to be desired.
First of all their site says and I quote :
“You are given a mathematically impossible to beat rate of spillover, a mathematically impossible to beat break-even point, and an industry leading 96.8% payout”
The first part about mathematically impossible to beat rate of spillover is undeniably true, it’s one of the great benefits to this program. But I doubt it is the ONLY program out there with a matrix width of 2. The second part however is completely false because Infinity Downline allow you to break even with just 1 referral. Further the $29.95 fee has an alertpay fee of $3 (at least that was what the fee was when I was a member – it could easily change) and 2 recruits are worth $30 per month. So although the program itself only costs $29.95, the member is still out of pocket $32.95. With 2 referrals/recruits giving an income of $30, that’s actually a $2.95 loss, not profit, not break even – am I right ?
Finally the 96.8% payout is also ridiculous. What really annoys me is that I mentioned this once to James Al-oboudi in an email a while ago when I was with the old Teamwork Revolution (now closed or dissolved or whatever) warning him that he was making a claim (at that time he claimed the original TWR had a 90% payout rate - again not entirely true) that was mathematically impossible and possibly setting himself up for humiliation and possible reasons for people to call him a scammer (something he takes very personally. His reputation is very important to him as it should be to anyone) when they figure out the math to be incorrect . He didn’t believe me and even when I said I could show him how his figures were wrong he didn’t care. So I guess I will just explain to everyone here why that number is mathematically incorrect and maybe one day James will stumble upon this site and read for himself and correct his mathematical error. This isn’t intended to be some expose of a scammer, this mathematical mistake is easily made by anybody, and in fact the same mistake is made by lots of programs who use this type of matrix structure and the same method of calculating their payout rate.
First I need to explain to everyone the method they (and pretty much every other MLM program) use to come up with the “96.8%” figure in the first place. Remember the fee is $29.95 and you get $15 for anyone in your second line, lines 2-6 are worht $1 each and the final 8th line is worth $8. So $15 + 1 + 1 + 1 + 1 + 1 + 1 +8 = $29 payout. 29/29.95 = 96.8%
What he is claiming is that 96.8% of everyone’s fee is used to pay the members of the program, not the owner (i.e. him). He makes it appear that he only earns $0.95 per person in the program. His whole sales pitch is about how greedy other programs are in that they only pay out 50% (ie GDI – again that figure not entirely correct). I will admit that he IS indeed paying out a higher percentage of the revenue to the members compared to most other programs, but he is by NO means using 96.8% of every single persons membership fee to pay commissions with.
This is because he isn’t taking into account the profit he is making with the people who are at the top of the matrix. The 96.8% phenomenon only occurs with members who are on the 8th level or lower from the very top of the matrix. Think about the marketers who are at the very very top of the matrix paying their $29.95 fee. Where does that fee go ? 100% of the $29.95 goes into the company’s pocket. Not a single penny of that $29.95 is used to pay any of the members. Now what about the people in the 2nd line of the matrix ? They are all paying $29.95 per month but $15 of that must be used to pay the person above them leaving $14.95 in profit for the company. So for the members in the second row, roughly 50% of their fee is used to pay the members and the rest is profit. for the company. NO WHERE NEAR THE 96.8% claim they are making.
What happens is as the matrix grows the % of total income the company turns over that is used to pay members slowly increases. However, it can never in a million years reach the 96.8% they claim. Even if they had millions of members they would be paying out somewhere between 90%-96.7% (im not going to waste any time getting the exact figure) at the most. It’s mathematically impossible for it to reach 96.8%. In reality though, as you can see from above, the company is very profitable, as it makes most of it’s money from the members near the top. They could change their site to say “we pay UP TO 96.8% of your membership fee to other members” – that would be a true statement because depending on where you are in the matrix the % of your fee that is paid back to members changes. 96.8 % of SOME (ie all the members 8 levels down or lower from the top) of the member’s fee is used for commissions.
Another claim on their site that annoys me is :
You are entering the most advanced and mathematically superior home-based business in history, allowing you to earn 450% more money than the owner of the company.
He is again making another mathematical error here. I’m not going to say he is doing this on purpose to mislead you and make himself and his program to look better than it actually is, but the nice this about math is that it doesn’t lie. So I am not giving my opinion here but merely showing you the truth.
His “450%” comes from the fact that in a full matrix you earn $2330 which is a full matrix of 510 people. That’s an average income of $4.56 per person. He claims he only makes $0.95 per person in your matrix giving you 450% more profit than him. Once again this is only true for people who are in the 8th line or lower in the matrix. If you are close to the top of the matrix this statement is totally false. The closer you are to the top of the matrix the more money he makes from you. It’s impossible to know, who or how many people are close to the top of the matrix, but I am pretty sure he has his best hand picked marketers at the top ensuring maximum profits for him.
Hopefully I haven’t lost you in the math there but the simple fact is the 96.8% figure is completely impossible. and the 450% figure only applies to certain members. In saying that I’m not saying that this program is a scam by any means. You can certainly make money from it as many people have. I am just trying to shed some truthful light on the subject where I can so no one who tries this program can call it a scam. I think it’s unfair to call a program a scam when it isn’t. TWRPS isn’t a scam, it’s just an online money making scheme. It’s one of the many ways to make money online. There are TONS of these programs out there all trying to out do one another. This is definitely one of the better ones (comparitively speaking) however keep in mind there is absolutely no stability in these programs. They can close overnight and there’s nothing you can do about it. I have seen it so many times before, even with James Al-oboudi himself. He used to have a $10/month program called Teamwork Revolution (TWR) (http://www.teamworkrevolution.com) but that website has been down for the past few months so I can only assume he closed that program to concentrate on this new one. However the old TWR was a great rival for Global Domains International which is also $10 per month and hugely successful. So all those original TWR people who worked their butts off for few months to build a successful business lost it all because James decided this TWRPS was better. In some ways TWRPS is of course better, but the $10/mo original TWR was great for competing with GDI at the same price point.
So, who’s to say James Al-oboudi doesn’t have some other plan in the pipeline and he will close down this TWRPS because he has found something else better again. There’s absolutely no way you can guarantee all your blood and sweat and hard work won’t just crumble over night because James Al-oboudi becomes sick or bored of this program. He get’s a lot of flack from people out there in the market who are jealous of his success and maybe one day once he has amassed enough fortune he will just sell TWRPS or walk away or decide to pursue some other opportunity. Unless it becomes a publicly traded company like GDI you are building your business on quicksand. This principle applies to all online MLMs, even the 4×1 Fortune program that I recommended below to get your feet wet.
This is the reason I don’t do these programs anymore as they can’t be trusted to stay around for the long haul. I prefer to build something I know will last for many years to come and I’m not convinced this will, but of course I could be wrong. But if the past is anything to go by I will be right eventually.
So if you were thinking of giving this ago why not give it a try ? The worst you can lose is $29.95 + alertpay fee right ? If you aren’t sure of your ability to be successful why not try something a little easier first like 4×1 Fortune. It’s a one time payment of $11 unlike the monthly commitment of $29.95 with TWRPS. Something else to think about is if you recruit 6 people into TWRPS your profit is about $5/mo whereas with 4×1 Fortune 6 recruits will earn you a one time $30 (i.e a $19 profit). Futher it doesn’t matter how long it takes you to get those 6, your profit will always be $19. If you don’t get at least 6 in TWRPS in your 1st month you will end up losing money ( and for newbies this is a highly likely phenomenon). If you can make a success of this easy program (4×1 Fortune) than you might be successful with TWRPS. But jumping straight into TWRPS is a pretty big online program to try for the first time. You may be biting off more than you can chew. So it might be better to get your feet wet with 4×1 Fortune and prove to yourself (without a monthly fee) that you’ve got what it takes to be successful at this online marketing stuff.
So the choice is yours. You will make money at any program so long as you promote and get people to join. No need to be afraid that it is a scam. But don’t expect the company to last forever, just enjoy the ride while you can if you can.
If you are afraid of risking money, even $11 or $29.95 you need to remember this. Many of the most successful people in the world are the ones who have had the most failures. You could also so say success is based on the foundation of 1 or many failures. This has been so true for me. From this site you can see that I failed at many of these programs, however those failures were stepping stones and part of the journey that got me to my successful online business which you can read about here : Affiliate Niche Marketing – No Fee – No Recruiting – Actual Legit Work From Home for Free Business.
Nothing ventured nothing gained – is the motto for business.
I don’t bother anymore with the online MLMs. But for a hobby I still like to check them out and see what new scheme someone has dreamed up and how it compares to the others. It’s fun!
If you have any info to report about TWRPS please post it below. Please don’t post affiliate links, just truthful information about your experience, good or bad, with TWRPS. I’m sure others would love to hear the real life experiences of others with this program.
I started with TWRPS 12 days ago. I might receive spillover already or it is just result of my online work.
TWRPS is great. It has great products and also the possibility for everyone is to have hosting, autoresponder and all features free very quick. And also to earn.
In first 12 days I made for myself to use it FREE. Because I done my work.
But as in every other business, also here I do not expect to get rich over night but with constant work I can build much stronger and much more stabile organization as in other programs.
On my websites and blogs I write a lot about home based business – how to start and how to continue … so if you wish, you might visit it.
I wish all a great day!
Mateo Murs
Mateo – thats great news for you. Im glad you are in a profitable situation in only 12 days that’s great. I would love for you to come back and keep us updated on your progress as my experience was it went great for a couple of months and then collapsed as people gave up and dropped out. I hope that won’t be the case for you but we would still all love to know.
James,
I received e-mail today from you to post another reply on my TWRPS.
Teamwork Revolution Power System still works for me very well. Of course many that signed up directly or indirectly in my organization vanished already … probably because they joined just because they wanted to become rich over night without doing their work that needed to be done.
I use TWRPS products and I will continue to use it. Everyone in my organization who signed up in first place to use TWRPS products (and to use it FREE just with a little work of promotion) also still use them.
I also promote it to many companies: “Quality hosting package you can use even for FREE” and in next weeks new permanent customers / referrals are going to sign up and use the products. With this new already signed up business partners will have the possibility to use products for FREE – products that they already use. And all of these because of my continues work …
But this does not happen over night … I use TWRPS for less than 6 month … so, I do not expect to earn 30,000$ each month from it :-) till now …
So, if everyone want to use products very quick for FREE and then also start profiting from it … it is good solution.
Enjoy!
Mateo Murs
Thanks for your update Mateo. All the best with TWRPS. By the way has James mentioned anything about why the old TWR is no longer in business ? I’m curious…