FunkyShark.com is launching soon, and like Zeekler’s ZeekRewards (which has since been shut down by the Securities and Exchange Commissioned and deemed a ponzi scheme operation), FunkyShark has an added multi-level/network marketing component. 
According to a network marketer Greg Swift on YouTube, the founder is Scott Walker who has launched 11 “successful network marketing businesses and has homes all over the world” What they’re doing is calling for “1,000 founders” to be apart of the company. The catch is each founding member has to pay $1,000 to be a founding member, that’s $1,000,000 to FunkyShark. Then there’s a set-up fee of $14.95 a month to buy in to the MLM program. The marketer, who is obviously a founding member states that the business is a legitimate penny auction, YET the site has not even opened or ran any penny auctions yet! Does Greg Swift disclose the fact that he’ll receive $500 per each founding member referred? He’s already had over 20k views on his FunkyShark video.
FunkyShark’s founder Scott Walker has stated, “After eleven years of creating nine MLM and affiliate marketing companies, I’ve decided to let other people get a taste for what it’s like to own a multi-million dollar online business.”
The FunkyShark.com has been registered by a domain privacy service:
Registration Service Provided By: Namecheap.com
Contact:
Visit: http://namecheap.com
Domain name: funkyshark.com
Administrative Contact:
Namecheap.com
Namecheap.com Namecheap.com ()
+1.6613102107
Fax: +1.5555555555
8939 S. Sepulveda Blvd. #110 – 732
Westchester, CA 90045
US”
In the promotional video for the FunkyShark rewards program Scott Walker claims to be selling “stocks, or shares so to speak” in Funky Shark. Hmm?
BehindMLM’s has observed, “Funky Shark’s Founder program pays out like a pyramid scheme, costing $1000 a position and paying out $500 per new founder member recruited. Founders also earn ‘a share of the monthly membership fees (Funky Shark) collect worldwide‘.”
From the FunkyShark marketing page, NOTE that it is not always possible to win an iPad for as little as $14! I hope they are not going to mislead consumers and MLM marketers by promising savings when penny auctions do involve risk and there are no guarantees.
If you’re the marketer who referred Mary who “won the iPad for $14” how will you get paid $250? Because she didn’t really win it for $1400, maybe she paid $750 in bids to win it for the end price of $14.
From FunkyShark’s rewards program page:
- “50% of Profits Paid DAILY!
- Recruiting option pays BIG!
- Collect Your $10 FREE GIFT!”
According to the FunkyShark Facebook Page, they do have a MLM attorney they work with, “Kevin has a substantial reputation in the world of MLM and he has also created a solid reputation in the penny auction arena as well. Considering that Funky Shark is both an MLM and a Penny Auction we felt there was no need to look any further than Kevin Thompson.”
Network Marketing Blog BehindMLM.com states that FunkyShark, with it’s $1,000 founding member fee and paying out $500 per new founder member recruited” pays out like a PYRAMID SCHEME. The site has also made the following notable observations:
“On Funky Shark’s capture page describes the Funky Shark as an income opportunity where no “selling, recruiting or sponsoring” is required. Funky Shark do however claim that they “handsomely reward” affiliates who recruit new members.
The company claims the “backbone” of Funky Shark is a penny auction, however the company does not diclose the name of their penny auction or a launch date. They do state however that won auction items will be drop shipped from ‘Amazon, NewEgg, Overstock, Lowes & more‘.
Bids are advertised as costing between 70 cents and $1 with commissions being paid out to affiliates via two primary methods.
The first is a ‘Retail Value Bonus’, which is a commission paid out to the affiliate who referred an auction winner. Funky Shark claim that this bonus ‘can be up to 100% of the retail value of the product being auctioned‘.
There is also a matching bonus component of the Retail Value Bonus, which Funky Shark state pays out ‘five levels deep‘.
The second commission payout is a “Global Profit Share Pool”, which Funky Shark claim is a cut of company-wide profits, resdistributed between company affiliates (including affiliate bid purchases and membership fees).
One red flag I noticed is the mention of Zeek Reward’s infamous Mustang car auction, which Funky Shark claims netted Zeekler $350,000 in profit.
This claim is misleading at best, given that the liabilities against each bid actually used in the auction resulted in a net loss upon consideration of the Zeek Rewards compensation plan. This plan paid out >100% of the bid price to affiliates over time and was a key mechanic in determining whether or not Zeek Rewards’ business model was a Ponzi scheme.
Yet Funky Shark appear to be advertising this as a selling point.”-Source http://behindmlm.com/companies/mlm-penny-auction-opportunity-prelaunch-roundup/
FunkyShark Advertises “Global Profit Share Pools’ with the following “trickle-down” structure:
- “Global Profit Share Pool commissions are calculated and paid at the end of each month. Pools are reset to zero at the beginning of each month.
- Continuing with our example from the Retail Value Bonus, the remaining $1,000 in Available Auction Commissions would be allocated to the Global Profit Share Pools as such:
Alpha Pool – $200 (20%)
Bronze Pool – $400 (40%)
Silver Pool – $200 (20%)
Gold Pool – $100 (10%)
Platinum Pool – $50 (5%)
Diamond Pool – $25.00 (2.5%)
Double Diamond Pool – $25.00 (2.5%)
Total Addition to Global Profit Share Pools = $1,000″ Pyramid scheme?
We’ve already received a number of new member registrations on the Penny Auction Watch Forum by FunkyShark marketers trying to spam our forum and violate our referral rules. If you try to do this your post will be deleted.
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Rob VP October 22, 2012, 4:03 pm
You may think this is a biased comment but I feel strongly that Funky Shark is by far different than the rest. First off it is not a Pyramid Scheme. A Pyramid Scheme is designed for the top people to get paid off new paying members, and doesn’t have an actual product to sell. People confuse network marketing and pyramids because how the organization chart appears. Yes it looks like a pyramid.. it’s only a shape! Almost every company’s organizational chart has a pyramid shape. The whole Funky Shark concept is very simple. They combined penny auctions, with network marketing. Both industries are 100% legal and compliant with all laws and regulations. As you stated Funky Shark went out and got the top MLM Attorney in the industry. I love when people ask me questions about this industry. I’ve been in it for a while and I carefully explain the facts from the myths. I invite anybody that has an open mind and would like to hear more to get a hold of me either by email or visiting my page. Go Funky Shark! 🙂