Ominto Review – Legit Or Scam?

Ominto ReviewHas one of your friends talked to you lately about joining Ominto?

It has been gaining a lot of hype lately, and a lot of network marketers were pushing it frequently.

However, Ominto has been getting some really bad press lately – did you know?

So what exactly is Ominto? Why are people saying negative things about it?

Let me tell you in my Review of Ominto.

Read on more to learn about it.

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What Can You Tell Me About Ominto?

One multi-level marketing company that’s made quite a name for itself so far in 2016 is that of Ominto. And, unfortunately, it isn’t for good reasons at all.

Here’s the deal. Ominto suffered a total loss of $24.5 million over the course of both 2014 and 2015. That’s an absurd amount of money to lose during just two years of operation, and so far, in 2016, those losses don’t seem to be stopping anytime soon.

According to a 10-Q filing that the company recently published, it looks like Ominto’s huge losses won’t be stopping anytime soon. According to this filing, Ominto will be suffering a loss of $1.9 million in just the third quarter of 2016.

Ominto Scam

June 30th of this year marked the 9-month goal in Ominto’s fiscal year, and if we look at 2016 as a whole for them, we’re met with a total earnings loss of a whopping $6.9 million. If we look at where the company was this time last year, they were met with a loss of $4.7 million. So, despite the company making efforts to halt these earnings, they’ve done nothing but lose even more.

According to an official report, Ominto said that “We have incurred substantial losses from inception through June 30, 2016.”

Because of the activities that are taking place within the company, Ominto has also reported that they have suffered negative net cash flows of around $5.9 million due to these activities. And, on top of that, an extra $2.5 million that the company lost on June 30th in 2015.

With so much money being lost, we have to look into how Ominto was making the majority of its money.
In the world of multi-level marketing, companies usually go about this through a couple of different ways – retail sales and by membership fees/investments.

Retail sales are obviously the smarter way to go, as your company’s lifeline doesn’t rely entirely on the act of getting more and more people to join.

Unfortunately, in the case of Ominto, their primary source of income was coming directly from “Membership subscription fees” and “commission income.” As a whole, the company earned around $3.9 million. From the above “fees” and “income”, they generated $3.2 million out of that $3.9 million on their own.

So, saying that they were the company’s primary source of income is a very great underestimate.

Further investigation into the company reveals that an additional $4.2 million came from what the Ominto is calling “selling, general and administrative expenses.”

And, on top of that, an additional $1.9 million was taken away from the company because of a “loss from operations.”

The trend to take away so far, is that Ominto has a pretty hard time when it comes down to holding onto their cash.

In fact, those selling expenses that we just talked about have proven to be a pretty serious issue for Ominto for quite a number of years.

Because of these expenses, Ominto was able to generated a total deficit of $56.3 million since they first launched. And, as a result of these expenses and losses, the company is now looking at a capital deficit of around $10.3 million.

Although it goes without saying, these numbers raise great concern when looking at Ominto’s potential to continue to survive. The losses that the company is currently going through is unlike anything we’ve seen in quite some time, and if it keeps up, it’s very likely that Ominto will cease to exist rather quickly.
Losses are an expected part of any company, but the amount that Ominto is losing is absolutely monstrous. The company is making next to nothing in regards to their income, yet they’re losing practically everything.

If this is a trend that continues to go throughout Ominto, it won’t be long before they’ll have to shut down for good.

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