Cashflow 101 System: It’s An Illegal Pyramid Scheme [Review]

The internet is absolutely riddled with make money opportunities that promise a rags to riches story.

However, if you’ve been in this “make money online” business for awhile, you will know the vast amount of scams out there.

While I’ve been a victim to these scams more times than I can remember, I finally found something that actually works and makes me money online (you know, the laptop lifestyle that most of us dream of).

If you manage to sift through the scams long enough, you’ll eventually find something legit that can finally make you money.

Unfortunately these “legit systems” are few and far between.

Luckily for you I have found a system that allowed me to break free from them typical 9 -5 status quo, and instead work from home, on my own terms.

But I’ll talk about that later.

First I want to talk about the Cashflow 101 System because it seems to be making the rounds on social media. I decided to see what it was all about.

So What is the Cashflow 101 System?

The Cashflow 101 System is an illegal pyramid scheme disguised as network marketing program.

You’re basically inviting people to the same system you just joined in order to sell an “opportunity to make money”, just so others can recruit people the way you did, and everyone can get paid.

They claim on the sales page that it’s NOT an MLM program, you won’t have do any selling, and you won’t have to chase your friends and family.

They say all you have to do is send hundreds of people to your personalized website, which is just a fancy word for an affiliate link (so you get paid for your efforts).

They then go on to say that people from all walks of life have only recruited one person and now they get thousands of dollars delivered to their doorstep on a daily and weekly basis.

Now I don’t know about you, but this definitely sounds too good to be true.

How Does Cashflow 101 System Work?

Cashflow 101 System 1-UP Plan

On the sales page they advertise this program as this “new and improved way of making money online”.

But this is just a marketing tactic you hear literally on all make money online programs.

It is nothing more than a network marketing scheme that uses a “1-Up Payment Structure”.

The 1-up payment structure is actually quite powerful, and can earn you many commissions from your downline if you can get many to sign up under you.

It goes like this:

When you recruit your first paying customer, the commission goes straight to your upline. However, now you’re qualified to start earning your own commissions.

From here, every person you recruit into the system earns you commissions. Then every person they recruit earns you a commission as well.

Now your downlines are qualified to earn their own commissions.

This allows you to earn commissions 2 levels down. The more people you can recruit, the more money you can possibly make.

If you’re shaking your head right now and all you’re thinking is “pyramid scheme”, then you’ll be absolutely correct.

This program doesn’t offer any products, services, or courses, you’re just told to join, pay the price tag, and recruit others to do the same.

And that’s not even the worst part. The worst part is that they want thousands of dollars from you. But before we talk about that, lets dive into the problems.

The Problems With Cashflow 101 System (There’s a Lot of Them)

Anonymous Owner

The man behind this program is nowhere to be seen, and there’s one reason why.

They don’t want to show their face on something that they know is illegal.

Not disclosing their identity also allows them to use the same website with a new domain name, while changing a few things around to make it look new and improved.

When all along it’s the exact same program, just designed to rope more and newer people inside.

Lies, Lies and More Lies

As I was watching the sales pitch, I couldn’t help but notice the vast amount of lies that they’re telling everyone.

They say that 90% of people that purchase this program buys the $6500 membership, which is a complete and utter lie.

90% of people will actually buy the lowest level membership for the simple reason that most people are likely to play the safe route.

This is just to get more people to buy the more costly membership, as your upline will make more money that way.

Recruiting is a Difficult Ball Game

If you’ve tried to recruit people online before, then you would already know how difficult this is.

They make it sound SO easy on the official sales page, just to rope people in and make them seem like they’ll be making thousands of dollars within their first 24 – 48 hours.

They even say that on the sales page.

However, recruiting is far from easy.

Now that everyone’s an “influencer” these days, more and more people are wary on who they listen to and who they give their hard-earned money to.

The fact of the matter is, trying to recruit people through social media is nearly impossible for the average person.

You need sales experience, which takes years and years to learn.

If you think that you’ll be inviting your friends and family and raking in the moolah in the next 48 hours (like they claim), then I have some very bad news for you. You won’t make a dime.

It’s an Illegal Scheme

Alright, so they claim it’s not a pyramid because the 1-up payment structure is not shaped like a pyramid.

And they would be correct, but that doesn’t stop it from being illegal.

It’s like saying Jordan Belfort, the Wolf of Wall Street, wasn’t scamming people with his penny stocks because stock trading is legit.

But it was the fact that the things he was doing behind the scenes was illegal, and that’s exactly how the Cashflow 101 System works.

They may not be running a pyramid scheme, but it’s basically the same thing.

You’re not selling any products or anything of value, just offering a make money opportunity, taking their money, and telling them to do the exact same thing.

Hefty Price Tag

Cashflow 101 Payment Plans

If that wasn’t enough, the hefty price tag is what makes this scheme an absolute nightmare, especially for the average person who might come across this program and got roped in with the catchy headlines and false promises.

The prices are as follows:

Level 1 – $1500

Level 2 – $3,500

Level 3 – $6,500

Level 4 – $9,500

This means that the average person is losing at least $1,500 and not getting any of that money back, because as I said earlier, recruiting is much more difficult than they make it sound.

How this Scheme REALLY Works

I’m no stranger to pyramid schemes, or 1-up payment structures, whatever you want to call them, they’re all the same thing.

And I can guarantee that the owner is making the bulk of the money.

You have to remember that every single person that join hands their money to the owner, and then their first commission goes to their upline.

That’s two payments gone to people above you before you even qualify to earn commissions.

I would even bet my bottom dollar that most people that join do not get more than 1 level deep due to the current the state of recruiting and social media right now.

No one wants to join other peoples programs because they’ve got their own going on, they want you to join theirs instead.

How Are They Able to Get Away With This?

You might be wondering how people like this are able to run these types of scams for so long without being caught?

The simple answer is that there are so many of them and they’re been reported every single day, however, the Better Business Bureau and FTC can only investigate so much at a time.

The people running the scams simply hide their identity so they can never be found, while creating duplicate programs with a new domain name to stay 2 steps ahead, keeping them out of legal trouble while laughing all the way to the bank.

Is Cashflow 101 Legit or a Scam?

As you know by now, the Cashflow 101 System does pay and it’s possible to earn real money, but that doesn’t mean it’s legit.

A scam is a dishonest scheme and that’s exactly what Cashflow 101 is.

Even though it’s possible to make money, there’s a much higher chance to lose money as most people do not have thousands of dollars to join under you.

Verdict: Dishonest, illegal scheme, most people will lose money, not recommended.

Can You Make Money with Cashflow 101 System?

Yes, it’s still possible to make money as they do pay you your commissions.

But as I mentioned throughout this article, the chances of making money are next-to-none, especially for the average person.

Also making money doesn’t mean it’s legal or morally right.

If you want to know how to recruit people the right way, you can check out this article.

Otherwise if you don’t want to recruit people, keep reading for my recommendation.

What’s a Real Way to Make Money Online?

I know what it’s like to hand over thousands of dollars to someone that promises a way out of the rat race, only to be let down and scammed from someone with no morals.

But if you know me, you know I’m not a fan of recruiting, sales, or dealing with social media nonsense.

In fact what I do has nothing to do with social media or pestering friends and family to join your latest and greatest shiny object.

You’ve probably heard about blogging for a living, which is exactly how I make all of my money online.

What you’ll be doing is creating a blog about your passion and selling affiliate products.

So you’re not actually selling, you’re just reviewing products and recommending your favorite ones.

For example:

If you love golf, you can write helpful articles about golfing and recommend products or services that you like as well.

When someone buys something you recommend, you earn a commission.

That’s the concept of affiliate marketing. I have done a full review on Wealthy Affiliate here (highly recommended).


That concludes this review on the Cashflow 101 System.

Please let me know in the comments below if you’ve tried this program for yourself and what your thoughts are.

Otherwise thanks for reading and have a great day.

My name is Brandon and this is my website. I'm just a normal guy that had dreams, dreams that would keep me up at night because I wanted them so badly. Now I'm living my dreams of being an influencer and making a good living doing so. Broke Influencers is another of my creations where I teach people how to get rich being an online influencer, or die trying. There is no in between.

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