GrooveFunnels – Is it really a pyramid scheme?

Have you been reading around that GrooveFunnels might be a pyramid scheme? Are you unsure of purchasing the software because you don’t want to get caught up in something that is going to drain you of your money? 

Well, in this article I am going to explore all these options and put these rumors to rest. Once you are done reading this article, you will have your answer for whether or not you should be purchasing or promoting GrooveFunnels. 

Let me just add in before we continue:

Since GrooveFunnels launched, I have been using the software to run my website. And I should say right from the get-go that I think GrooveFunnels is one of the better software to come out in the recent past. 

Many SAAS (Software as a service) companies tend to be one-hit wonders or will be around only for a very short period of time. Therefore, even if you pay for software, you will stop receiving updates after a while when that software company closes up. Therefore, it is nice to come across software like GrooveFunnels who seems to be in it for the long-haul.

What consists of a pyramid scheme?

Before we begin, let me explain what a pyramid scheme is for those of you who don’t know. It is a type of business model that is focused more on recruiting more people to sell than the actual selling of products. You will bring more people into the business with monetary incentives.

For example, you hire 10 recruiters to join your company and sell your products. These recruiters will have to buy the product off of you before they sell it to others and earn a commission. Another way for them to earn money is to recruit others into the business. So when they recruit more people, they will earn a percentage of their recruits’ sales too. 

Therefore, they are bringing people in with the promise of money, but the new recruits will first need to pay a joining fee as well as the cost of the products they are going to sell. The only ones who will be making the most out of this would be the original company and not the recruits.

Here are some things to look out for to know it is a pyramid scheme:

  • Are they promoting recruiting affiliates more than they are promoting their products?
  • Is there actual value in the product/service they are supposed to be selling?
  • Does the website have a refund or return policy? Most schemes don’t.

When a company has a commission structure that involves being paid for sales, paid for your recruits’ sales, and being paid for the recruits of your recruits’ sales, that’s when you know that this is a pyramid scheme. 

What is GrooveFunnels?

GrooveFunnels is a comprehensive digital marketing software that encompasses creating and running a website while also being able to handle all your marketing efforts from the same platform. 

They have a whole range of tools (over 10) that will help you with landing page creation, creating a sales funnel, email marketing, creating an affiliate program, and so much more. 

Could you call GrooveFunnels a pyramid scheme?

Right off the bat, I would have to say that the fact that they have this many products/services is a sign that they are not a pyramid scheme. A lot of their focus is on their products.

As a customer, you know the price of the product and you will receive exactly what you asked for when you pay for the software. On top of that, they don’t have a lot of focus on hiring more and more affiliates to do their selling for them. 

Yes, they do have an affiliate system in place, but it doesn’t go deep and doesn’t involve a lot of the factors that a pyramid scheme usually would consist of. 

Also, if you were to take a look through their website, you will find all the essential pages (privacy policy, refunds, etc) and they are not hidden as they would be in a pyramid scheme’s page. 

Finally, Mike Filsaime, who is the CEO of this software plus his team, GrooveDigital, is known amongst the online digital marketing community. They are names behind another successful software company called Kartra which has been active for the past few years. Therefore, we can trust that these people are genuine and that there is a real team behind the production of this software.

What about the affiliates?

Let me tell you this. Most of the time, when questions such as is “GrooveFunnels a pyramid scheme” pops up, it is because people have found a software/service that claims to help you make more money and they become instantly skeptical. This is because the number of companies that have come up offering these types of services is prevalent and many people have gotten caught to them over the years.

I have noticed that for the most part, these rumors come regarding services that are involved with affiliate marketing because that has some ties to how a pyramid scheme is run – with affiliates.

There are many affiliates on different platforms such as YouTube and Forums, that have gone around promoting GrooveFunnels to people. They do this because GrooveFunnels has an affiliate marketing program and you can make money by promoting the software and getting people to purchase the software. 

This is what makes this different from a pyramid scheme:

  • This a genuine product that offers a ton of value for the money you are spending. A pyramid scheme is usually a product/service that only looks good on the surface but offers no value.
  • Most pyramid schemes seem like a get-rich-quick deal and give you offers that you almost can’t refuse. There is no beating around the bush with GrooveFunnels, you need to put in some hard work to start earning money through GrooveFunnels. 
  • They don’t promote you to recruit others to come and become an affiliate for GrooveFunnels. Yes, they will promote to you themselves to join as an affiliate and sell the GrooveFunnels platform to others, but they won’t ask you to find new recruits. This itself is completely different from a pyramid scheme.

What’s the verdict?

I think I have made it clear so far that I don’t think that GrooveFunnels is a pyramid scheme and the thought has never crossed my mind. In my time of researching different software, I have come across many different potential pyramid schemes and you can always tell that they are one after a bit of research and practice into it. 

By doing a bit of research you can find a lot of information about GrooveFunnels. They have an actual CEO and team who are real people and not made up (which is usually how it would be in a pyramid scheme), you don’t make money by recruiting people but rather by being a normal affiliate for the business, and there is only a commission rate for actual sales.

You have a lot of earning potential being an affiliate for GrooveFunnels as they are software that is blowing up and so is easy to sell once you find the right target market. Also, if you want to purchase the software then you should know that they are set to becoming one of the leading marketing software by the year 2023. As such, there is no way that GrooveFunnels is part of a pyramid scheme.