Traffic Monsoon Shut Down By SEC – Full Info

Traffic Monsoon ScamHas someone approached you lately about joining Traffic Monsoon?

This doesn’t surprise me – it’s been getting a lot of hype recently with people pitching it all the time.

Unfortunately, it is currently on the verge of being shutdown.

Read on more to learn about it.

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What The Heck Is/Was Traffic Monsoon?

If you follow the world of multi-level marketing, chances are you’re pretty familiar with the whole Traffic Monsoon business that turned out to be nothing more than your typical Ponzi scam.

Traffic Monsoon was founded by Charles Scoville, and it was just recently announced that he received a TRO against his business. The SEC supplied fully detailed documentation as to why the TRO was granted, but the final page count is 31 pages in length.

Since 31 pages of business documentation is a pain for just about anyone to read, we’ve taken all of the main points and broken them down into easy-to-read sections below. All of the information is categorized into related headings, and we hope this makes the information a bit friendlier on the eyes.

Traffic Monsoon Shut Down Review

 

Traffic Monsoon was a $207 Million Ponzi Scheme

We’ve seen Ponzi schemes time and time again in the multi-level marketing field, and one of our main goals here is to help you identify companies that are legit, and those that you are better off staying away from.

Unfortunately, Traffic Monsoon was one of those companies that people were better off keeping their distance from, but a great number of people did the exact opposite. Prior to the company receiving the TRO, over $207 million was invested into Traffic Monsoon over an investor count of well over 160,000.

Of that $207 million that was invested, $60 million was traced into what’s being called “accounts located in the United States, Canada and the United Kingdom”. During the past few months of its operation, Traffic Monsoon was adding approximately 175,000 additionally affiliates every single month.

The scheme worked by having funds from new investors pay out all returns that were due to affiliates that has invested earlier on. It was found that, out of all Traffic Monsoon’s traffic, over 90% of it was based outside of the United States.

While on the subject of Traffic Monsoon’s traffic, it is reported that the company’s targeted countries were among some of the poorest on the planet. No Ponzi scheme is good news, but it’s always even more disheartening to see one become so popular in these countries that don’t have a lot of wealth.

More specifically, the biggest sources of traffic for the company’s site are as follows –

  • In Bangladesh, Traffic Monsoon’s website was the 385th most frequently visited site in all of the country.
  • In Venezuela, Traffic Monsoon’s website was the 366th most frequently visited site in all of the county.
  • In Morocco, Traffic Monsoon’s website was the 517th most frequently visited site in all of the country.

As you would expect with such high amounts of traffic, a great deal of money was being invested into Traffic Monsoon at an incredible rate. In fact, the company saw just about $1 million each day being invested in the later part of 2015.

When you dig a bit deeper, it becomes even more apparent as to just how much money was being invested into these scheme. December, 2015 saw $28.94 million invested during the month, and $26.26 million was invested during the next month, January, 2016.

Traffic Monsoon Could Not Meet It’s ROI Obligations

We already talked about how much money was invested into Traffic Monsoon, but what about actual revenue? During its time of operation, Traffic Monsoon was able to generate $738.5 million in its total revenue count.

With all of that taken into consideration, it can be determined that Traffic Monsoon had return on investment liabilities of over $812.35 million. The company owed that much, yet they only earned $207 million in investments. With that in mind, it becomes clear to see that the company never really had any real way of paying back those ROIs.

Traffic Monsoon’s AdPacks Accounts for over 99% Of Revenue

Just like with similar Ponzi schemes, Traffic Monson offered a fair variety of different items that it was selling. However, it’s primary item that accounted for 99% of its total revenue came in the form of the company’s Banner AdPack.

Owners of Traffic Monsoon’s AdPack were promised exchange credits, clicks for their own website, and even a chance to get some shares in the company’s profits. If you wanted to purchase this, you had to shell out a whopping $50.

If you were someone that purchased one of these AdPacks, you supposedly should have earned a commission in the form of small increments that would eventually total up to $55. If you want to get really specific, that equals out to an ROI of just 10% on your initial investment of $50.

Now, as for how quickly you got that ROI, it was incredibly slow. To make a 10 return on investment, you’d have to wait 55 days as the AdPack earned its investors $1 each and every day that it was active.

This is where we really start to see the scheme of the whole process shine through. Since any returns that investors saw were funded by the means of new investors, we are met with a recipe for a classic Ponzi scheme. It’s unfortunate for sure, but it’s undeniably true.

I do agree with business opportunities, but only when a proper product is in place and there is some sort of retail going on. For example, with Vida Divina (which I recently looked at here), they at least have products (albeit the same as TLC).

PayPal Froze $61 Million Of Invested Traffic Monsoon Funds

When it comes to handling and sending money online, it’s no surprise that PayPal is one of the most popular services out there. The quick and easy nature of the service makes it incredibly easy to use, and Traffic Monsoon was previously using PayPal to handle all funds that were both coming in and out.

Since there were millions of dollars going in and out within Traffic Monsoon, PayPal quickly took notice of how quickly the program was growing, how much money was being moved, and froze the company’s account of just about $61 million at the time.

Charles Scoville attempted to manipulate Traffic Monsoon’s Alexa rank

To understand how Scoville went about manipulating his site’s rank on Alexa, we first need to have a deeper understanding of just how his scheme was being run.

Traffic Monsoon set up an environment where users could look up and browse the websites of other users on that were invested in this setup. It was essentially a common pay-per-click system, as users were being paid so much money to click on and view the banner ads for the sites of other users.

At first, Traffic Monsoon required its affiliates to view these ads for a total of 5 seconds to qualify for their daily return on investment. However, in an attempt to increase his site’s ranking on Alexa, the requirement was changed so that affiliates had to view 10 ads per day for a total length of 20 seconds per site.

What’s My Thoughts On Traffic Monsoon Being Shut Down?

All in all, the whole setup that Traffic Monsoon had going on was nothing more than your traditional Ponzi scheme. Between the AdPacks offering literally nothing of value, investors paying for each other’s profits, Scoville trying to manipulate his Alexa ranking, and so much more, there was nothing wholesome at all going on with Traffic Monsoon.

As for any next steps, there is a preliminary injunction hearing that is currently set to be held on the 5th of August. As for now, it’s just a matter of waiting before we learn what will happen next.

What’s the best way to move on from this.

Promoting business opportunities are fine but you do need to make sure you have proper products.

My FREE training can help you find a safe and reliable online business. On top of that, I also recommend joining a company with proper produc

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