Seven Stars Group provides no (accurate) information on their website about who owns or runs the company.
The Seven Stars Group website domain (“sevenstars.group”) was privately registered on June 15th, 2018.
Despite existing for barely a few months, Seven Stars Group claims it was “founded in 2010” by Mario Rossi, a fictional “American forex trader”.
In an attempt to feign legitimacy, a UK incorporation certificate for “Seven Stars Group LTD” is provided.
UK incorporation is dirt cheap and for the most part unregulated. It is a favorite for scammers looking to incorporate dodgy companies.
It instead far more likely Seven Stars Group is being operated from Russia.
Supporting this are Russian language blog posts and social media updates, the presence of a corporate vK social media profile and Alexa citing Russia as the largest source of traffic to the Seven Stars Group website (33%).
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Seven Stars Group Products
Seven Stars Group has no retailable products or services, with affiliates only able to market Seven Stars Group affiliate membership itself.
The Seven Stars Group Compensation Plan
Seven Stars Group affiliates invest funds on the promise of an advertised ROI:
- Octans – invest $10 or more and receive a 126% ROI after 20 days
- Centaurus – invest $1000 or more and receive a 180% ROI after 40 days
- Pegasus – invest $5000 or more and receive a 268% ROI after 60 days
- Eridanus – invest $20,000 or more and receive a 412% ROI after 80 days
Seven Stars Group pay referral commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Seven Stars Group cap payable unilevel team levels at seven.
Referral commissions are paid out as a percentage of funds invested across these seven levels as follows:
- level 1 (personally recruited affiliates) – 7%
- level 2 – 3%
- level 4 – 2%
- levels 4 to 7 – 1%
Seven Stars Group affiliates receive cash bonuses when accumulated unilevel team investment reaches certain milestones:
- convince others to invest $10,000 and receive a $300 bonus
- convince others to invest $25,000 and receive a $2000 bonus
- convince others to invest $50,000 and receive a $5000 bonus
- convince others to invest $100,000 and receive a $7500 bonus
- convince others to invest $200,000 and receive a $10,000 bonus
- convince others to invest $500,000 and receive a $20,000 bonus
- convince others to invest $1,000,000 and receive a $50,000 bonus
Joining Seven Stars Group
Seven Stars Group affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the Seven Stars Group income opportunity requires a minimum $10 investment.
Seven Stars Group claim to generate ROI revenue through forex trading.
The only support Seven Stars Group provide to back this up is a baloney story about being founded by an American forex trader ten years ago.
The company provides no evidence of forex trading taking place and/or being used to pay affiliates.
That leaves new investment as Seven Stars Group’s sole verifiable source of revenue.
Using newly invested funds to pay existing affiliates a ROI makes Seven Stars Group a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will invested funds.
This will starve Seven Stars Group of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of investors lose money.