HotNews No. 133: ShoppyShop – Problematic $9.95 Monthly MLM

by | Sep 5, 2025 | Hot News | 0 comments

Dear Clients,

Another “membership” MLM scheme carrying significant risks has emerged with ShoppyShop. The platform launched in July 2025, but its ownership and executive structure remain intentionally opaque, raising immediate red flags.

Unknown Ownership and Problematic CEO
Although the website features an “About Us” section, it serves only to market the business model rather than provide transparency about owners or executives. Promoters cite Kauri Thompson as CEO, confirmed via his personal social media profiles. His history shows repeated involvement in MLM companies that later collapsed, indicating a pattern of high-risk ventures.

Products and Memberships
ShoppyShop members pay $9.95 per month for access to:

  • “Warehouse deals” – non-refundable products from undisclosed third-party networks
  • K-Glow nighttime skin cream
  • Access to a cashback platform run from Dubai (SaversApp)
    An additional $30 monthly fee provides access to an undisclosed third-party discount travel platform.

Compensation Plan and Commission Structure
ShoppyShop combines product sales, memberships, and promoter recruitment:

  • Membership commissions are paid through a binary structure, with residuals calculated on the weaker side of the team.
  • Product sales commissions are paid via a unilevel structure up to four levels.
  • Bonus pools depend on recruiting new promoters and achieving specified volume, emphasizing recruitment over actual retail sales.

Key Issue – Pyramid-Like Nature
ShoppyShop, similar to LiveGood, Save Club, and Cforth, exhibits classic MLM pyramid characteristics: more promoter memberships than retail customers. Red flags include:

  1. Does the company publish the ratio of retail members to promoters?
  2. Are commissions based on actual product sales to retail customers?

For ShoppyShop, the answer is no – commissions rely primarily on recruiting new promoters. This indicates a predominantly pyramid scheme model, posing a high risk of financial loss for most participants.

Conclusion and Recommendation
ShoppyShop is another example of a “membership” MLM that depends on continuous recruitment. While presented as access to discounts and products, the underlying structure is pyramid-like and highly risky. We strongly advise caution and thorough research before paying any membership fees or joining the program.

Your DefendMe Team