Pipz Review: Compensation Plan Overview

Pipz Review
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Pipz Review:

I decided to review and have a closer look at Pipz MLM Company due to the on-going buzz that is going around on the internet about the same.

Pipz Review

Pipz Review

So if you are here to gather some information about Pipz, you are at the right place to know a bit more about this.

I wanted to research more about this opportunity personally as well. I wanted to know what type of company this is, what kind of work it does, and if it is merely another Ponzi or Pyramid scheme that pops up frequently.

I am going to research the information about the opportunity, its products, how this company works, and its compensation plan to see if this company is worth it or not.

After finally going through all the research, I will share my thoughts and recommendation on whether Pipz is something you can rely upon or not. So, please fasten your seatbelts and go through the complete article to conclude.

With all this said, let’s go ahead and start understanding Pipz MLM Company in detail.

Company Overview: 

Pipz’s website does not provide any information about the company’s owners. After not finding any details on the company’s website, I decided to have a closer look at the pipz.com.br domain information.

The Pipz domain is registered back in the year 2015 and is currently owned by the infamous scammer Carlos Costa of TelexFree Ponzi. Even though Costa does not feature in the Pipz’s official website, he hosts multiple Facebook marketing videos on their page.

Carlos Costa has been previously accused of money laundering during his TelexFree days. There are multiple regulatory investigations and evidence US regulators were closing in; Costa continued to pump out “TelexFree isn’t a scam” themed videos on YouTube.

The status of multiple pending criminal cases against Costa remains a mystery.

Pipz’s Products: Pipz Review

Pipz advertises a “discount club,” which gives access to “Numerous benefits, loyalty program, exclusive discounts, and many more!”

The loyalty side of the Pipz platform is tracked through “PZ” points. PZ points are redeemed within the discount club network. The primary access to Pipz’s discount club as a non-affiliate is free.

There is a paid R$99 and then R$49.9 a month option.

There are two ways to earn PZ points.

  • Through purchasing from the physical and online partners. ($1=1PZ)
  • Through recruiting new paid Pipz club members.

Compensation Plan

Pipz club members pay a fee and get paid when they recruit new paid club members. Position in the Pipz club can be filled directly or indirectly by Pipz affiliates.

The commissions are paid out, as positions in the matrix are filled.

Pipz does not provide payments for all of their affiliate kits, only Gold:

  • Joining of a Gold Kit affiliate on level 1 of the matrix = R$100
  • Joining of a Gold Kit affiliate on level 2 of the matrix = R$60
  • Joining of a Gold Kit affiliate on levels 3 and 4 of the matrix = R$64
  • Joining of a Gold Kit affiliate on level 5 of the matrix = R$212

Assuming the linear structure of the commission payout for the bronze and silver kits, the estimate will be:

  • level 1 – 10%
  • level 2 – 6%
  • levels 3 and 4 – 6.4%
  • level 5 – 21.2%

Pipz follows a 5×5 matrix compensation plan, where one affiliate is at the top of the matrix, and five positions are directly below them. This creates the first level.  These five positions are further divided into another five positions below them and go on to the lowest level.

Cost to Join Pipz: Pipz Review

There are three levels of Pipz Membership plan.

  1. Bronze Kit – $250
  2. Silver Kit – $R600
  3. Gold Kit – $1000

All Pipz members pay a monthly fee of R$49.90. In exchange for this fee, the affiliates receive 2000 PZ points.

Final Verdict: Pipz Review

So is Pipz a scam?

The Pipz market themselves as “the best loyalty and direct marketing platform in Brazil.” The only thing that I don’t get is it doesn’t make much financial sense to the merchants. Pipz collects fees and spins out vouchers; those vouchers can be used in participating merchants, begging the question of what do merchants get out of it?

Showcasing without sales is costly, and I can see product merchants getting screwed over. Unless, of course, the use of Pipz’s vouchers is heavily restricted, thus making them mostly worthless.

It looks like the redeemable points are exchangeable for real money via some internal exchange. The MLM side mostly focuses on pyramid recruitment. Retail might crossover with the voucher structure, but seeing as only affiliates are recruited into the structure, I don’t understand how.

That leaves both matrices within Pipz’s compensation plan tied to recruitment. Similar to all recruitment-driven schemes, once recruitment stops Pipz will collapse.

Even if you’re trying to look past that, getting involved in any MLM company associated with Carlos Costa seems like a risky move. I believe you have all the information about this opportunity, and the Pipz Company required making an educated decision on whether to invest in this opportunity or not. You being the owner of your money, you would be the best person to make a wise decision on whether you will invest your hard-earned money in this opportunity.

If you ask me about this, I would say “no” I would not have joined this MLM Company. Any business Carlos Costa is involved in should be approached with extreme caution.

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