Trijo News has previously written about Swedish-led Crowd1. It is a company that promises its members big profits, but authorities in several different countries are warning people about it.
The company is led by Swedish celebrity entrepreneur Johan Staël von Holstein, and on social media it boasts that it has over seven million members.
MLM or pyramid scheme?
Crowd1 is a so-called multi-level marketing (MLM) company. In short, this means that members make money by recruiting new members to the company.
The business model is also called network marketing and is not illegal in itself. Several large companies, such as Herbalife and Mary Kay, are MLM companies. However, in addition to the membership acquisition, these companies offer actual products intended for retail customers.
But if a company’s main business is the recruitment of new members who send money up the chain, that company is a pyramid scheme – something that is illegal in most countries.
So far, Crowd1’s only real product has been educational packages intended for new members – something that, according to, for example, current Swedish legislation, is not enough for a company not to be considered a pyramid scheme.
Launches new product – is also a network
However, this is about to change, at least if you believe Crowd1 themselves, Swedish tech site Breakit reports.
At a digital event that the company organized last Saturday, a travel booking site called Lifetrnds was presented.
According to Crowd1 itself, it is a collaboration, but no information is given about what Lifetrnds was before starting its “collaboration” with Crowd1.
Lifetrnds, which at the event was presented as a competitor to Expedia and Booking.com, will, like Crowd1, function as a network. Members who recruit people and get them to book trips make money from it.
Loreen and Sarah Dawn Finer performed
During the same event, where major Swedish artists such as Eurovision winner Loreen and schlager icon Sarah Dawn Finer performed, a security app was also launched for the company’s South African customers, as well as a lifestyle app for the Nigerian market, Breakit reports.
Whether any of these products will actually launch is unclear – and the warnings directed at Crowd1 from several countries remain.
