Independent Review of PAS

As far as I am aware, this is the only independent review of Prosperity Automated System - in other words, I do not have an affiliate link and you won't be asked for your email address to read my review.  I am not trying to sell PAS.

Introductory Notes

1. All figures quoted are accurate as at March 28, 2006 and are subject to change.  You must do your own up-to-date research using the tools provided.
2. The analysis is not exhaustive, and there are many more areas you should research on your own.  I have purely provided a starting point.
3. I am not currently, nor have I ever been a member of PAS.  All comments are purely my own opinion, based only on information available in public domain and from the PAS sales website.
4. I am aware of the impact this review may have on existing PAS members.  I am not trying to knock their honest efforts at running a business, nor am I commenting on their business ethics - not everyone in Enron was unethical, for example.  I am purely presenting facts as I am able to ascertain for the benefit of those considering joining PAS.
5. The site requires an Affiliate Code to access any of their content.  For ease of use I have used a randomly selected code from websites found doing a Google Search.  Feel free to substitute this numeric code for any 3- or 4-digit number that works for you.

Summary of PAS

What Is It?:  A Membership Site offering access to an automated follow-up system which will advertise your PAS site or a product of your choosing.  Revenue is earned from each PAS system you sell.

Cost: 36-month Premier Membership at $3,895 plus $300 to renew every 3 years    OR    12-month Basic Membership at $1,995 plus $300 to renew every year.

Optional Additional Costs:   $190 per month for traffic packs (not charged in month 1).

Additional Note On Costs:  The site's main page at megawealthy.com mentions the following right at the bottom: "PAS will generate for yourself a bare minimum passive hands-free income of $504,000 over the next 12 months."  According to the site's FAQ's, this requires the purchase of an additional 7 Traffic Packs per month.  To achieve this will require the following annual investment:

• Initial Purchase Cost of $3,895
• 7 Traffic Packs at $1,330 per month for 11 months plus 5 Traffic Packs for first month
• Since you may only purchase 5 Traffic Packs per PAS position, you would have to purchase another position at $3,895.
• This equates to (3895x2)+(1330x11)+(5x190) = $23,370 or an average of almost $2,000 per month.

Commission for Premier:  Each Premier Sale:  $3,000;  Each Basic Sale: $1,100.

Commission for Basic:  Each Premier Sale:  $1,100;  Each Basic Sale: $1,100.

Guarantee:  "If you do not earn back at least your initial purchase amount ($3,895 or $1,995) plus 11 months of the $190 opt-in subscription price within 12 months of your purchase date, the Prosperity Network will pay you the difference between that amount and what you actually earned plus $500".  This implies that if you do not purchase at least one Traffic Pack per month the guarantee is not valid.  (Total annual cost: $5,985 or $4,085)  It also means that you cannot claim against the guarantee until after 12 months.

Misleading Statements

1. The index page - megawealthy.com - starts by saying: "The revolutionary (non-MLM)...".  Much of the introductory information confirms PAS is in fact a Multi-Level Marketing Organization.  Their referral structure is referred to as One-Up, confirming the concept of payment levels within PAS.
2. Just above the email address capture block on the index page it says: "PAS will generate for yourself a bare minimum passive hands-free income of $504,000 over the next 12 months."  Use of the words 'bare minimum' imply that this is available to everyone, without additional purchase.  The additional purchase, however, is significant and is not clearly explained on the site. (See Additional Note on Costs above).
3. At the bottom of the index page where the visitor is invited to leave their email address to access the site, it says the following, in yellow highlighting: "* The timeless classic "The Master Key System" (by Charles Haanel) is currently being sold by various companies, and in various formats, at up to $1,395. This is the exact same full unabridged 24 part course we will provide you with upon receipt of your details. It will be yours to keep, treasure and benefit from totally irrespective of whether you proceed further with the PAS business."  This 'gift' is not delivered 'upon receipt of your details' (in the first email).  It is also available elsewhere online at no cost.  In fact, I cannot find any site selling this ebook for $1,395, or anywhere close to this amount.

Other Observations

Detailed Assessment

Using my proprietary method of Assessing Online Products, here are my detailed comments about Prosperity Automated System.

1. Does the Product Promise a 'Free Lunch'?

In the company's own words:

NO prospecting,
NO advertising,
NO selling,
NO answering questions,
NO speaking to prospects,
NO telephone Calling / 3-ways...
• Totally passive income,
• Instant payment,
• Earn THOUSANDS weekly,
• Expert back-up & support,
• 100% Money Back guaranteed,
• ALL the hard work done for you,
• Achieve financial independence ...
We do it all for you! ...

There is NO such thing as a free lunch.  What specific skills is the prospective PAS Member supposed to infuse to make their PAS business a success?  If it is totally up to the PAS organization, you are leaving yourself highly exposed, since you have no solid evidence of their performance abilities.

2. Does the Product Promise Overnight (or Rapid) Success?

"PAS will generate for yourself a bare minimum passive hands-free income of $504,000 over the next 12 months."

To their credit, the company does warn not to expect immediate results (within the first 3 months).  However, the statement above implies an average monthly earning of $42,000 per month in the first year.  I do not believe this is reasonable for the level of investment required, since the company is generating no real value apart from new membership fees.

3. Does the Product Guarantee Specific Results in a Specific Time?

"PAS will generate for yourself a bare minimum passive hands-free income of $504,000 over the next 12 months."

4. Is the Product Part of a Pyramid Scheme (or Ponzi Scheme, or MLM)?

The Incredible PAS "1-Up" Compensation Plan on this page: megawealthy.com, makes it clear that PAS is a pyramid structure.

In addition, the 12-month enforced wait before the guarantee can be claimed is a strong indication of a Ponzi scheme.

5. Does the Offering Encourage You to Purchase Additional Products to Maximize Your Income?

From the Frequently Asked Questions:

Q: Is it compulsory that I have to purchase a PAS Traffic Pack (or packs)?
No it is not compulsory, but we strongly advise it for maximum income generation from your PAS business.

It also appears that if you have not purchased traffic packs during the first 11 months, the guarantee is no longer valid.

My Recommendation

The lengthy period before one can claim against the Prosperity Automated System's (PAS) guarantee is it's downfall, and the opportunity smacks of a Ponzi Scheme (a fraudulent investment operation that involves paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business.)  If the claim period were shortened to 3 months, this would show that the originators of the service believe in the success of their product, and can demonstrate it within 3 months.  12 months is far too long to wait, and appears to have been implemented purely to build a capital base from which to honor refunds.

My advice - steer clear.

If you are already a Member, you must do everything you can to at least earn back your initial investment plus advertising costs before the company goes belly up*.  I expect this will be as soon as a significant number of unsuccessful members start claiming a refund on their guarantee, which could be as soon as May 2006.  The originators will not want their sizeable capital base eroded and may disappear before too many claims are made.

I hope I am proven wrong.

* Note:  To make your investment back will mean selling at least 2 PAS systems to 2 unsuspecting wealth seekers.  Only you can decide whether this is an ethical course of action for you.  Since the website is registered in England, you may instead wish to contact the Financial Services Authority or Department of Trade and Industry (see Question 4).  They may be able to confirm whether PAS is a reputable firm to do business with.