Kula Brands Review – Huge Scam Or Legit System?

Kula Brands ReviewIf you’ve been paying attention lately, you’ll notice that Kula Brands has been getting a lot of hype.

Because it’s new, it’s getting a lot of buzz and if you’re in an online business, I am sure someone will push it on you at some point.

It’s especially popular on social media at the moment.

I do want to let yo know that I am NOT affiliated with Kula Brands as a member or distributor.

My goal is to gather all the facts in one place for you so you can do your research – and it’s all here in my Kula Brands Review.

Is KulaBrands a legit business, or is it a complete scam?

Will I be able to build a business with it?

I tell you all about it in my Review of Kula Brands.

Read below to find out more.

Please also check out my review video.

Watch my Kula Brands Review video on YouTube

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What Is Kula Brands?

There is a webinar page for KulaBrands that has two images, one of Peter Ganter and the other of Doug Kyle, however it is not disclosed what their roles are in the company.

A little bit of research reveals that Gantner cites himself as the CEO of KulaShare Inc on his LinkedIn page, which I am assuming is the parent company of KulaBrands.

Gantner has also been previously involved with Visalus (2008-2012) and Lyoness (2012-2013).

According to a marketing video uploaded to YouTube on February 22, 2016, up until very recently, Kannaway is what Gantner was promoting, although it wasn’t clear if he was still promoting it.

Doug Kyle is listed as the owner of the KulaBrands web domain, www.kulabrands.com, which was registered on September 4, 2015, with an address in Arizona, United States, provided.

In late 2015, Kyle tried to fund the development for “Fuel Matrix” on KickStarter.

“Fuel Matrix is a breakthrough technology that will help you mitigate your personal impact on the environment from driving.

Fuel Matrix bonds oxygen to gas or diesel at the molecular level. This helps your car engine burn cleaner, resulting in an up to 50% reduction in harmful emissions.

Moreover, it saves you money by improving your gas mileage up to 20%.”

The goal of this project was to raise $50,000, but as of January 2016, only $10,312 had been pledged.

Kula Brands Scam

What Products Are Being Sold?

Currently, KulaBrands offers no retail products or services, with affiliates only able to market KulaBrands membership.

Third-party merchants are permitted to use the Kula Brands crowd-sharing platform, which allows them to market products and services to KulaBrands affiliates.

KulaBrands affiliates then vote on which products and services to support based on voting, and pledging to pre-purchase the products.

Once the target is reached, the product is then listed on a third-party crowdfunding platform such as Kickstarter or IndieGogo. KulaBrands affiliates who pledged to pre-purchase the products then donate to the project in the hopes it will attract non-KulaBrands affiliate interest.

If the product goes on to be developed, KulaBrands will run a replicated storefront where affiliate can market and sell developed products.

Info On The Kula Brands Comp Plan

On the off chance that an outsider vendor chooses to utilize the KulaBrands stage, will organize a royalty charge that is paid out when sales are made. If we assume that a project is fully funded and product are made for sale, Kula Brands then takes a cuy of the royalty fees, and splits the remainder with their affiliates.

There are three pools into which royalty fees are placed:

  • Founder’s Pool
  • Branding-Marketing Pool
  • Direct-Online Pool

These pools are paid out using a “points” system, with affiliates generating points for each pool based on the follow:

Founders Pool

Each time a KulaBrands affiliate pledges an amount to a project, they will earn a point in the Founder’s Pool.

Branding-Marketing Pool

This marketing pool sees affiliates rewarded for spamming links on social media that advertise KulaBrands crowd-funding projects.

These are tracked through an in-house system that affiliate utilize to publish unsolicited advertising to social networks.

Direct-Online Pool

Points are earned through the Direct-Online Pool by affiliates making sales through their replicated storefronts.

Partial Points

KulaBrands awards Partial Points when a downline qualifies for points in any three of the regular pools.

This is tracked through KulaBrands unilevel compensation structure, the depth of which is not disclosed. It is also not specified how many pointed can be generated by downline activity.

What Will It Cost Me To Join Kula Brands?

Joining KulaBrands costs $199 for an affiliate membership. This may or may not be raised to $299 at a later date, as per the KulaBrands marketing materials.

Affiliates who signed up for KulaBrands prior to March 14, 2016 paid $150 only.

Any Truth To The Kula Brands Rumours?

Any time a new business opportunity launches, you will always hear rumours about them being scams – so is Kula Brands a scam?

From reading above, you might already be thinking Kula Brands is a scam.

So, is it?

Is there a Kula Brands scam, or is it legit?

To be honest, Kula Brands isn’t a complete scam.

However, there are some red flags to be worried about, which I discuss in the conclusion. It’s vital for opportunities to have a proper product and this is where a lot fall down. Like recently, I looked at THW Global which raises tonnes of red flags and absolutely no retail activity.

See my tips below for helping to make money.

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And Now, My Kula Brands Conclusion

First, let’s put aside the obviously questionable ethics of people manipulating crowd-funding because of a financial incentive.

Let’s start with the compliance issue. The first project that KulaBrands crowdfunded was… KulaBrands?

Really, this isn’t a joke. Affiliate who pledged money were offered a quarterly share of 8% of the total revenue raised by the company.

This puts it into securities territory, and the third-party merchant offerings aren’t much better:

We’re going to do the research on the marketplace, that we’re going to provide to you – so you understand what the potential is for that product or service in the marketplace.

What is the potential that product can sell (at), so if you make a decision to get involved in that project and support it, that you know what the potential is that you can get from that.

We’re gunna let you know the numbers, soy you’re going to know what the reverse royalty percentage is. So it’s going to say, “Hey, this project is willing to pay four, six percent royalties to the community.”

And then we’re going to explain how you participate and how you get your share in that reverse royalty.

We’re gunna give you sales projections and what this (product or service) has the potential to do.

So we’re gunna give you the data and the information. Once you have that data and information and you’ve analyzed it, then you’re gunna do step 2.”

Step 2 is where an affiliate votes on a project or not.

This is a problem, because affiliates are voting with a passive financial return in the backs of their minds.

This is quite similar to all the other crowd-funding sites out there, except for this financial incentive.

This isn’t really the public pledging to fund a cause, and receiving that product in exchange. This is providing investor information, and pledgers decide based on the potential ROI.

This makes it securities, and in order to offer securities, you must be registered with the SEC. However, nowhere on the site or in their marketing does KulaBrands mention it is offering securities.

Going back to the ethics piece, crowd-funding is supposed to fail or succeed based on public interest. Ideally, crappy ideas don’t get funded.

However, KulaBrands allows crappy ideas to get developed based on projected ROIs, rather than the actual merits of the project.

The idea is that the immediate interest in the projects will create a group mentality of interest.

Which is fine, except for the financial incentive. So is it really ethical to let the general public thing a project has a high level of interest that is infact artificial?

I don’t believe that it is.

I hope you have gained value from my Kula Brands Review.

I have put all the details you need to know here, because all other reviews of Kula Brands have been fairly limited with details.

If you do decide to proceed with Kula Brands or any business, you’ll find my free training helpful – I will show you how to make money online.

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