Is Zarfund a Scam? An Honest Review
Recently I have an invitation to join Zarfund. Review is definitely what I’m going to do here. I will not join something that I have not researched and reviewed. So let’s see if Zarfund is a scam or not. Is wealth really predictable?
I already encountered this kind of “charity” many years ago in Indonesia. People will leave a leaflet inside ATM booths. They will tell you that you need to donate some money to the people on the list. There will be 5 people there. After you donated, you need to change the list. Erase the person on the top list and put your name at the bottom of the list. Copy as much as you can and put them again in the ATM Booth. This list will contain money transfer details. (And you have an ATM booth filled with junk leaflets)
What is Zarfund?
Zarfund claims that they can help you finance your big idea. No..not like KickStarter. Zarfund relies on their members to help you get the finance. It comes from donations.
Yes. Donations. Even though Zarfund is not a charity, they use the term donation. A bit fishy, I will say.
Since it is a donation, you don’t need to have a big business proposal. Well, you don’t need any business proposal. You just have to receive big enough donations until you reach your maximum limits at level 6 downlines.
Yes. Downlines. We will discuss this at how Zarfund works below. But first, who is behind Zarfund.
Who is Behind Zarfund?
His name is Hannes Jordaan. He is a guy from South Africa. From his About Us page, he claimed that he had been doing RevShares, Stokvels, GH/PH programs, Affiliate Marketing, Online Shops, Forex, Binary Options, Selling online, and a host of other different ventures and opportunities.
Well, if he had done all of that, he shouldn’t create Zarfund. Do you know why? Let’s see how Zarfund works.
How does Zarfund work?
Zarfund uses a binary MLM level. Sure. He is not saying that. He even denied that Zarfund uses a pyramid scheme. But we know better, don’t we?
You can join Zarfund as a member through an upline. At this level 1, you must set up monthly donation to your upline. It is as small as 0.03 Bitcoin per month. This will qualify you to receive your donation from your downlines. 2 Level 1 downlines will give you 2 x 0.03 Bitcoin.
Each month you will have a 0.03 Bitcoin profit.
If you already have two Level 1 downlines, Zarfund will recommend you to immediately upgrade to Level 2. This can be accomplished by increasing your donation by 0.05 Bitcoin. This increase is to pay your Level 2 upline. So, in this month you donate 0.08 Bitcoin in total.
In Level 2, you will receive donation from your downlines for a total of 0.2 Bitcoin (4 person x 0.05 Bitcoin). But I wouldn’t count on that. Why? This number is assuming that all your downlines have upgraded to a Level 2 membership. The more realistic number is you have 2 Level 2 downlines and 4 more Level 1 downlines. Confusing?
You will only receive 2 x 0.03 Bitcoin. It is because you have 4 Level 1 downlines that only pay their Level 1 upline. NOT you. You have to wait for them to upgrade to Level 2 before upgrading to a Level 3 if you want to have a profitable group. This is a lot of ifs.
So your total income for Level 2 is 0.06 Bitcoin. This is from your direct downline (Level 1 Downline). You will not receive any donation from your Level 2 Downline because they are still a Level 1 members.
At this point you are already (?) making a profit 0.06 btc – 0.05 btc = 0.01 btc.
I think you already get the picture from the Level 2 illustration. But I will give you another picture from a Level 3 profit scheme. You have to have a group that is willing to part from their money in exchange for a HOPE that they will have the same result or better.
Here we go. Let’s assume that you are willing to upgrade to a Level 3. You have to donate a total of 0.18 Bitcoin per month. You will pay 0.03 Bitcoin to your Level 1 Upline, 0.05 Bitcoin to Level 2 upline, and 0.1 Bitcoin to your Level 3 upline.
The Bitcoin that you will receive:
- Level 1 Downline (Direct Downline) : 2 x 0.03 Bitcoin = 0.06 Bitcoin
- Level 2 Downline (assuming they are now Level 2 members) : 4 x 0.05 Bitcoin = 0.2 Bitcoin
- Level 3 Downline : None. Because they are still Level 1 members. They only need to donate to their upline (your level 2 Downline).
So the total is 0.26 Bitcoin per month. At this level, your supposed profit will be 0.26 btc – 0.18 btc = 0.08 btc per month.
I will not discuss Level 4 to Level 6. Why? Because the numbers will be too staggering. You will drool at how big the numbers are. Of course, the perfect condition has to be made for it to happen.
What If My Downline Goes Above My Current Level?
It is too bad for you, then. Your downline monthly payment will be skipped up to your upline with the matching donation level. You will forfeit your bonus. That’s why Zarfund is “upselling” you the upper level.
I suspect if, in your group that doesn’t have a higher level upline, the payment will go to Hannes Jordaan as the ultimate upline. That is 2 Bitcoin per month per member.
Why Use Bitcoin?
I am not against Bitcoin per se. It is just how people use it. It is a perfect payment solution for most scammers out there.
Bitcoin itself is accepted by many as a legal payment method. Sadly, Bitcoin does not employ a strict regulation for its use. They are still at an early stage in the marketing process. They still need to be accepted by major financial institutes. That’s why they just push their products to be used by many, including scammers.
I like to use PayPal. They do regulate the use of their service. PayPal has been known to reject pyramid scheme companies. They do not want to be associated with trickery or shoddy businesses.
BTW, do you know the currency rate for Bitcoin? You don’t know, right? It is still in its infant stage that so many people never heard of Bitcoin, less its currency rate. For your information, per October 2016, 1 Bitcoin is equal to USD 686.46. That’s a lot of money to donate monthly.
Final Thoughts – Is Zarfund a Scam?
I will definitely say this system is not self-sustainable. It will collapse like many other “mutual help” system. Especially, a binary pyramid scheme.
Of course, Hannes Jordaan will insist that this is not a pyramid scheme. How Zarfund works will tell you otherwise. You will need to keep recruiting members to form your own Level 6 group.
In a perfect world, this will be a big community that helps each other and everybody will be rich. Assuming there will be enough people born to fill the pyramid scheme. And you will be making 164.26 BTC ( = USD 112,757.92) per month. Phew!!
I rather build a sustainable online business and learn it the right way.