In my daily browsing in Work from home related Facebook groups, I’ve noticed that myEcon is often mentioned as one of the best options to make money online with low cost and unlimited earnings potential. Is myEcon legit or scam? I had to do the full research to find out the truth.
Now you have all the facts before you before you make a decision to join.
In this review, I’ll try to answer all the possible questions you might have about this website, including pros and cons, ways to earn and payment options.
||Multi Level Marketing focused on Personal Finance and Credit Score|
|Rating||🙂 3 out of 10.|
||$34.95 monthly membership fee. Additional cost for any product|
||♥ Products might help to improve the credit score and financial discipline|
|Cons|| ♠ Too many elements of a pyramid scheme
♠ No really unique products. All by third parties and mostly overpriced
♠ No transparency, compensation information is not publicly available
What is myEcon About?
myEcon positions itself as the ultimate solution for Personal Financial Success.
Based on the “About Us” section at the company’s website, it was founded in 2005 by a small group of entrepreneurs (who are not mentioned on the website). The company’s name stands for My Economy, as its declared vision is to empower individuals to achieve financial success.
By digging through the internet, I found that the owners are Ivey Stokes and Alvin Curry, former Chairman and CEO of Maxxis Group Inc. This MLM style company declared bankruptcy in 2003. Larry Gates, the CEO/COO of myEcon was involved in Maxxis as well.
Here are Stokes and Curry LinkedIn profile pictures.
I’m a bit skeptical about the company’s success, as their flag promo video, the Opportunity video, on the myEcon.net homepage is of poor quality and dated as of 2015.
All the other information on the home page is the exact transcript of the video mentioned above. I’ll save you the reading time with a quick summary:
myEcon’s Personal Financial Success System offers three Cash Flow Strategies:
- Minimize taxes by correcting W-4 tax form and maximize business tax deductions via home-based business.
- Generate business income by promoting myEcon membership and products.
- Accumulate assets by investing the profits in various passive income streams, such as real estate, stocks, bonds and more.
myEcon Product Lines
myEcon’s website offers multiple products: identity theft protection, credit improvement system, cash flow manager software, travel booking, health and nutrition, coffees, cash back shopping mall, road assistance, and credit monitoring.
When I look at this list, I wonder what does cash flow management have to do with multi-vitamins? Why are coffee products sold by a company striving to help people to improve their finances?
It seems like this list was compiled by some Jack-of-all-trades, attempting to include different items under the same roof.
I’ll talk about specific product categories in more details later on. But first things first.
How Does myEcon Work?
There is no information about the membership costs and the compensation plan on myEcon’s website. Only when you start the registration process, you’ll see what the monthly fee is, but still will have no clue about the compensation.
I had to contact a myEcon’s member to get hold of the full compensation plan and member’s benefits details. She was very patient and answered all my questions. I really appreciate her help, though I’m not going to join.
As part of the sign-up process you are asked to provide your Social Security number but looks like it’s not a mandatory field (I hope so).
MyEcon Membership Cost And Benefits
To become myEcon Affiliate you are required to pay a minimum $34.95 per month.
What would you get for this monthly fee?
- The title of “Marketing Director” to begin recruiting.
- Your personal cookie cut website with the address like <your-user-name>.myEcon.net. The only difference between this personalized website and the company’s main site is a small box at the bottom with Associate’s picture and email address. Some members also have an affiliate page on myEconleads.com. Mrs.X’s page has only 4 videos there, one of them broken, one is the same video from the company’s home page, and two testimonials.
- Unlimited training weekly and even daily. Take into account that the training is only related to promoting myEcon and its products. Not too much to take with you if you leave the service.
- Team support, if you sign up through an existing member. The quality of this support may vary from team to team. Some teams have closed Facebook groups and hold weekly webinars on different topics related to myEcon.
MyEcon compensation plan
Check the complete plan below, with all the definitions on the second page. I wonder how long you’ll have to stare at it to finally give up any attempt to comprehend the real meaning. One question that comes to mind with all the clutter of details presented, is what does this company trying to hide?
My instinct told me to run away after I saw this plan, as I prefer simple commission structures.
In general, for the first two direct referrals, you’ll get $10, for all others $35 and additional commissions for their sales. If your direct referral signs up someone else, you get $25 for two “second generation” referrals.
I don’t see the point in explaining it in more details here, as you can see it yourself from the table above. You have to pay a monthly fee and consistently bring new referrals to build substantial income, as the referral commision is not recurring.
Here is a short video demonstrating the idea:
My main conclusion from looking at this multi-level table is that the company’s flag product is its referral program with way overcomplicated compensation plan. In my opinion, this is an amber sign of a pyramid scheme scam. You can read more about scam alerts in my post “Seven ways to avoid online scam”.
Do you want to check out my top recommendation for starting a new business? Not a “get rich quick” scheme, but proven way with step by step training to make profits in any niche. Start as a free member and check it out.
myEcon Network Marketing Products Review
There are nine main product lines, represented on this picture from the homepage:
Product #1 – myEcon Cashback Mall
To get access to myEcon’s cashback mall, you have to pay a yearly membership fee of $12.95. This is an absolute RIP OFF, as there are so many free cashback websites that offer much better cashback rates and even sign up bonus.
Here is a small comparison table of the cashback rates from similar websites:
|The Body Shop||4%||8%||4%|
You can see how much better the FREE sites are. If you didn’t do it yet, join TopCashback or read my full review for more details. Ebates is also a legit website, although the cashback rates are lower.
The real question here is why such a huge difference?
The retailers are willing to pay to various cashback malls pretty much the same commission for bringing in traffic. The malls pass part of this commission to the customers and keep the rest. For example, TopCashback promises to pass ALL the amount to the customer and you can see that their rates are the best. In case of myEcon’s Cashback Mall, the lion’s share of the commission is kept by the owners and only small part passed to the members. Plus myEcon charges a yearly fee for this service.
Product # 2 – myEcon ID Defender Service
The price of the package is $8.99 per individual or $14.95 per family (up to 5 members). As a comparison, my family has got identity theft insurance with Geico for about $80 per year.
Legal services are provided by Legal Club of America. This might be a valuable product, though there are many similar programs and you need to check if any participating attorney is available in your area.
Product #3 – myEcon Smart Credit System
Actually, there are two sub products in the Smart Credit System: 750 CreditPlan and Income Shifting.
The price is $99 one-time payment.
750 Credit Plan
750 CreditPlan promises to improve your credit score using step by step videos, dispute letter templates, and other little-known sources. This service can benefit members with low credit score who wouldn’t take any action to fix it without an external help.
Anyone can and should download the credit reports from three main credit bureaus for free once a year at Annual Credit Report https://www.annualcreditreport.com/index.action
There are many free resources on the web for credit monitoring and improvement. Amazon offers a good selection of books on credit repair in the $9-$18 range. The templates of relevant documents are available as well. For example, about a month ago I’ve downloaded 4 escalation letters from the web for free.
If I was looking to improve my credit score, I would use the free and low-cost resources first.
There is no additional information on the website about the Income Shifting tool, but according to Mrs. X. it helps to learn how to correctly fill a W-4 form, manage expenses and invest money.
W-4 form update
When you start a new job, you are required to fill a W-4 form (Employee’s Withholding Allowance Certificate) that determines tax withholding based on the claimed allowances, such as the number of dependents one has.
Well, you know that the IRS looks at our taxes annually, so you can’t really save any taxes by filling W-4 with more credits. You’ll be able to earn something from it only if you invest the monthly difference in short-term instruments (till the annual tax return payment).
On myEcon website, they mention a $500 monthly shift in taxes. It means $6,000 annually. To be able to shift this amount, you will need to have a big income, to begin with.
Next, myEcon’s presentation mentions an investment at 8% rate of return. Well, there is no such risk-free return in the US now, especially not in the short term. You can get up to 2% if you use a high yield saving account outside of your bank. A quick calculation tells me that you might make about $60 from the extra $500 cash flow per month. It’s worth less than 2 months of membership in myEcon.
The timing of the tax payments is the only major difference. What’s better? Smaller monthly income and big tax return or bigger monthly cash flow and no tax return or even having to pay the IRS at year’s end? The answer might be different for different people. Some would spend the money if it comes monthly, but save the tax return.
Additional tax deductions
That’s right, you can deduct various expenses as a business owner, but there are many tax rules to consider. One of the ideas raised in the myEcon video is to employ your kids and pay deductible wages.
Maybe you’ll be able to deduct, but the child will have to pay income taxes. Here is a quote from the IRS website:
Taxes might be much more complicated if you have more than just the W-2 to report. I would not rush to declare myself as a business owner and report additional deductibles without consulting with a certified accountant. As your taxes become more complex, you probably won’t be able to file them using a simple software like Turbotax. You’ll have to pay several hundreds of dollars to a CPA.
As there is no free trial, I didn’t have the option to fully test the product and had to guess what it means. Looks like a calculator that predicts the value of an investment after a certain period based on several parameters like initial amount, estimated return, inflation etc.
There are plenty of similar calculators available on the web. Here is one example from the official Investor.gov site: https://www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator
I wouldn’t pay money for this type of service. If you feel that you need financial advice, ask your banker first or hire a licensed professional financial advisor who would take into account all the details of your personal situation before providing any recommendation. An automated calculator might miss important aspects of your financial realm and lead you to a bad decision.
Product #4 – myEcon Credit monitoring
In addition to 750 CreditPlan, there is the “750 Monitoring” product, offered at $23.95 bi-annual (every 6 months) price.
The subscription includes continuous Credit monitoring for Experian (only one of three major credit bureaus), report for any adjustments, score tracking history (during the subscription lifetime), additional credit reports (for $4 per report).
This is not a bad service, but you can get a FREE credit monitoring covering two bureaus, TransUnion and Equifax, from Credit Karma, which is considered one of the best credit monitoring options on the market.
Another free option is Credit Sesame.
Product #5 – myEcon Cashflow manager
The product is an online software that helps to organize and store financial transactions. There are two versions: simple version for $10.95 per month and a pro version for $19.95 per month. This is the only myEcon product that offers a 7 days free trial, but you need to pay for the first month anyway and then request a refund if you are not satisfied. I’d prefer the free trial without a credit card number required for the trial period.
The simple version has the following features:
The Pro version has the additional features:
The system might be useful for disorganized business owners without basic Excel skills, whose business involves various expenses. The problem is the cost.
There are many options for FREE financial software that provide the same functionality. To name a few – GnuCash, Buddi, AceMoney Lite, HomeBank, and Buxfer.
Product #6 – Book Travel
Well, I’m not sure that this is a product at all. When you click on the Book Travel square on myEcon’s homepage you are simply redirected to Priceline website. I couldn’t find any special discount for myEcon’s members.
Product #7 – Health and Nutrition
Under this category, there are 2 product lines from Body One brand: Vitamins and MSM (Methylsulfonylmethane) supplements. This is an obscure brand and I couldn’t find any references to it anywhere else. I’m not going to get into prolonged analysis about the efficiency of these supplements. Let’s just check the prices.
MyEcon sells 32 fl oz bottle for $36.95, or 3 bottles for $89.95, making it around $1 per daily serving.
You can find hundreds of multivitamin products on Amazon for $0.10-$0.25 per daily serving.
MSM is a sulfur found in body cells. It is believed to play an important role in the immune system. There are two products in the MSM category: capsules and lotion.
Capsules are sold in bottles of 90 capsules each for $19.95 per bottle (there are also discounted options for 3 or 12 bottles). The price is about 22c per capsule. A comparable product from Kala Health is sold on Amazon for $24.95 for 250 capsules (about 10c per capsule) – about half of the price of the product on myEcon.
Product #8 – myEcon Coffees
There are two products in this category:
- Aloe Gano (Black Arabica Coffee with Aloe Vera Extract) – 20 stick packs for $16.49. Aloe Gano was offered at Amazon in the past, but not anymore. About 50 reviews of the product were deleted
- NuviaTrim (a coffee with weight optimizing herbal extracts) – 30 sachets for $19.99. NuviaTrim can be bought on Amazon for $19. It has 3.5 stars rating with many complaints about watery taste.
I’m not an expert in weight optimizing coffee, therefore I can’t opine on the quality of these products. Pricewise, there is nothing special compared to Amazon.
Product #9 – Road Assistance
This product offers the standard package of towing, battery jump start, flat tire change, lockout service, gas delivery, winching, and dispatch service. The cost is $7.99 per month.
As with other products, the service is provided by a third party vendor, United States Auto Club, Motoring Division, Inc.(USAC/MD). You can get exactly the same price by enrolling directly on their website. https://enrollanddrivetoday.com/about-us/
But first, check your existing car insurance. These services might be included in your policy.
Who Is The Right Audience For myEcon?
There are millions of people in the US who neglect their personal finances and have no clue about the cash flow management and the correct way to file taxes. These people won’t search Google for free cash flow or credit monitoring tools, not being aware that they need them. Signing up with myEcon might help them raise the attention level they pay to their finances, save money, improve credit score and do better financially.
People with broader financial knowledge and discipline will find out quickly that there is no unique value in myEcon’s products. with little searching effort, same or similar products can be found for less if not for free.
Is myEcon A Pyramid Scheme?
Well, this is in kind of a grey area. It’s not a pure Ponzi scheme, as the company does offer some real products, but as I said above, the main feature is the referral program itself. All the other products are offered by third party vendors and are either overpriced or quite standard. You actually don’t have to be myEcon’s member to buy any of these products.
In this case, what is the monthly fee paid for? Looks like only for the opportunity to be part of the referral pyramid and bring in new members.
Can I Make Money With myEcon?
Yes, you can, if you feel comfortable participating in a lookalike pyramid scheme and selling overpriced products to people in financial distress. It may even feel good to help someone improve their credit score or sort out the expenses. But be aware that you make them pay for it much more than they could by using alternative products.
In order to get new referrals, you’ll have to chase potential prospects, be it your friends, colleagues or complete strangers on social media.
Even though myEcon can be a legitimate company, I don’t recommend joining this program, as it has too many elements reminiscent of a pyramid scheme:
- Overcomplicated 6+ generations referral program plan with different seniority levels that is not openly available on the company’s website.
- No free trial, only a promise of immediate cancellation upon request.
- Weird mix of unrelated, ordinary and overpriced products. All the products are available for non-members as well.
- Membership fee only allows joining the pyramid and getting training on how to attract others to do the same.
- Paid Cashback mall offers ridiculously low cash back rates for an annual fee, providing an insight into the quality of the program as a whole.
- The main focus is on taxes and financial advisory. I’d prefer to consult with a licensed financial professional who knows my personal situation. Misinformed tax advice can get you owing taxes at the end of the year. In the worst case, it can end up with an IRS investigation and penalties attached.
- The owners have a history of bankruptcy with a similar company in the past. myEcon could be shut down in a similar fashion at some point as well.
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What is your experience with myEcon? Share it with me in the Comments below.