Five Dollar Funnel Review – Five Dollars to Millions?

Five Dollar Funnel – Is it a Scam?

Note: We have no relationship with Five Dollar Funnel

If you’ve been paying attention in the world of Internet marketing lately, you’ve probably heard about a hot new product called Five Dollar Funnel.  According to the creators, the site offers the opportunity to “build a business only $5.”  You’ll learn about lead systems, social marketing and more at Five Dollar Funnel, and all for $5.  In their promotional videos, they also mention that you can “potentially” to earn a whopping $146,213.10 per month.  That sounds impressive, but is it possible, or is Five Dollar Funnel a scam?  Read on for our full Five Dollar Funnel review.

Five Dollar Funnel Overview

five dollar funnel review logoOn the surface, Five Dollar Funnel is a training course that claims it will show you how to make marketing videos, write “hypnotic” ad copy and learn to use social media to market your products.  The site has testimonials from people who talk about how much they’ve learned as members of Five Dollar Funnel.  Of course, the promotional video also talks about how you can earn a lot of money by spending only $5.  How much money?  How about $1,754,557.20 per year?  That’s a lot of money, especially since you’re only investing $5 in Five Dollar Funnel.  Who wouldn’t want to participate in something like that?

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Obviously, building a business that generates that kind of money for only a $5 investment is a pretty bold promise.  How, exactly does Five Dollar Funnel work?  According to the video, Five Dollar Funnel is not a pyramid scheme and you’ll actually be selling the training products within the site that teach people how to learn about Internet marketing.  OK, but where do you sell these products?  Do you build a Website to promote them as affiliates, just as you would promote Amazon or Clickbank products?

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No, you do not.  The products are on the Five Dollar Funnel Website, and they’re only accessible to members.  “Selling” these products actually involves recruiting new Five Dollar Funnel members and persuading them to pay $5 to join.  It’s at this point that we should point out that your investment is not $5, but is instead $5 per month.  OK, that’s still a modest investment for the millions that Five Dollar Funnel says is possible.  Well, it’s actually more involved than that, but you probably saw that coming.

five dollar funnel scamYour $5 per month enrolls you into something called the Kickstarter Matrix.  They’ll show you a graphic that well, resembles a pyramid.  The Kickstarter Matrix represents you and the next 362 people you recruit into the program.  Assuming you persuaded 362 other people to pay $5, you’ll earn $221 per month.  Once you’ve filled the matrix, you’ll be enrolled in the Builder Matrix, which costs you (and everyone you persuade to enroll) $20 per month.  If you manage to persuade 362 people to participate in that, you’ll receive $1443 per month.  If you manage to fill that one, you’ll be entered in the Leader Matrix for $99 per month and if you fill that, you’ll be enrolled in the Mogul Matrix, which costs $297 per month.  If you manage to fill that, you’ll be earning the $1.7 million they mentioned in the video.

Well, that sounds promising – just get some people to pay $5 and you’ll make millions.  The problem is that in order to earn that kind of money, you must first persuade more than seven thousand people to join the system and more importantly, all of those people must be paying the $5, $20, $99, and $297 monthly fees to keep these matrices (the proper plural of “matrix”, by the way.  The Five Dollar Funnel team keeps calling them “matrixes” in their video) active.  If people drop out, then you’ll have to replace them.

five dollar funnelOf course, everyone you recruit into the system is faced with the same burden – finding thousands of people to sign up.  If you sign up Bill, then he also needs to sign up 7000 people.  If he talks Mary into joining, she needs to sign up 7000 people.  Unless you live in New York City, Shanghai, or Mexico City, you and your friends are likely to run out of potential recruits really quickly.   And when people start dropping out, you stop getting paid.  Yes, the Five Dollar Funnel team says something about compression and how people automatically move up with others drop out, but in the end, the Five Dollar Funnel system is one that requires an exponentially increasing number of members in order for anyone to survive.

Surely, some people are making money with Five Dollar Funnel, right?  Yes, some people are likely making money with it – the handful of people who either created Five Dollar Funnel or those who signed up immediately below them.  We found some stats pages on the Five Dollar Funnel Website and we were able to see accounts for some of the members.  Many of them had no more than two or three people signed up below them, which means that they’re earning pretty much nothing from their $5 per month investment in Five Dollar Funnel.

five dollar funnel pyramidThe narrator of the Five Dollar Funnel promotional video emphasizes that you’re going to be selling “products” and that Five Dollar Funnel is not a pyramid scheme.  That’s a dodge.  After all, they couldn’t exactly advertise that they’re running a pyramid scheme, even if they were running one.  Who would voluntarily sign up to join a pyramid scheme?  Nobody.  They may call Five Dollar Funnel whatever they like, but any program where you make money by recruiting people, rather than by selling actual products to people who are not members of the program, sure looks like a pyramid scheme to me.

Five Dollar Funnel Summary

5 dollar funnel - thumbs downThere are some great courses out there that will teach you how to sell things online, and most of them will show you how to sell things in general, rather than selling one specific product to people you’re trying to recruit.  A good example of that would be Wealthy Affiliate.  That’s a better approach than joining a membership site that won’t pay you if you can’t persuade thousands of other people to join.

Since Five Dollar Funnel is more about recruiting new members than actually selling anything, I can’t recommend it.  There are better options to help you work online from home.

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