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Is PHP Agency A Scam? Possible Insurance Pyramid Scheme! 

 March 16, 2020

By  Dylan

Are you being approached to join PHP Agency and want to know if this company is a scam or not?

If so, this post is for you.

Below you'll find everything you need to know about PHP including background information, price to join, compensation plan breakdown, pros, cons and more.

You'll be fully informed after reading this review.

Ready?

PHP Agency Summary

Company: PHP Agency

Price to join: $600+

Rating: 30/100

Do I recommend? No!

Summary: PHP Agency is a Multi-Level Marketing company that sells third party insurance and financial products.

There's a lot to dislike about PHP Agency.

They're very sketchy on the details of the costs of joining PHP and the costs it will take to be a successful affiliate.

Additionally, they require affiliates to buy an insurance policy which more than likely makes this company a pyramid scheme (I'll explain why later in the post).

Definitely avoid. 

Better opportunity: If want to make money online for practically free, click the button below. There you'll see how I make 6 figures on the internet without any special skills:

PHP Agency FAQ's

1) What is PHP Agency? PHP Agency (People Helping People) is a Multi-Level Marketing company in the insurance and finance niche. 

PHP was founded in 2009 and currently has 11,000 licensed agents. The CEO and founder is Patrick Bet-David.

Patrick Bet-David runs a very popular Youtube channel called Valuetainment. He does interviews with people much like Joe Rogan does:

I've actually watched a bunch of Patrick Bet-David videos in the past on this channel and had no clue he ran PHP. 

2) How do you make money here? Because PHP is a MLM that means you sign up for a fee and you're able to sell the services provided by PHP for commissions to customers.

Additionally, you get rewarded for building a downline and recruiting. There's various bonuses you can earn as well which we'll be getting into later.

3) Are there any red flags here? There's a couple red flags here. The first one is PHP seems like they're actively hiding important details about joining the company.

This includes how much it costs to become an affiliate and the costs it'll take to run your PHP business. 

Another major red flag is the requirement for new affiliates to buy an insurance policy and there being no incentive to make retail sales. 

This means a pyramid scheme can easily take place.

4) Are there any similar MLM companies? There's many MLM's companies like this and that includes FES, MWR Life, ACN, etc. 

Is PHP Agency A Pyramid Scheme?

On PHP's website they try to dismiss pyramid scheme accusations by saying pyramid schemes don't have products.

While some pyramid schemes don't have products, you can have a pyramid scheme take place with products.

In fact, most pyramid schemes HAVE products.

A pyramid scheme can take place in a MLM when most of the revenue and sales are coming from affiliates and not retail customers.

There's a STRONG likelihood this is what's happening at PHP.

When you sign up you have to get an insurance policy offered by PHP.

Also, there isn't a single incentive in the compensation plan to make retail sales and the only thing that is incentivized is recruiting.

My guess is most affiliates will only be looking to recruit people to be in their downline instead of trying to make retail sales.

The only way to really know is to ask the person recruiting you how much of their revenue is from affiliates buying insurance policies and how many are from retail sales.

If retail sales are less than 50% of revenue, you're in a pyramid scheme. 

Success Will Be Rare Here

There's a little secret in the MLM world that the person recruiting will never tell you - 99% of the people that join a MLM will lose money.

And the people that do make money tend to only make a few hundred dollars a month tops.

Only a small minority of extremely aggressive (and probably moral-less) people make money with MLM's. 

This horrible success rate usually comes down to two reasons:

  1. Products are overpriced
  2. Recruiting is very, very difficult

Almost every MLM that I review (I've reviewed hundreds) have products that are way too overpriced. Sometimes they're 4 times the price of competitors and this makes retail sales tough.

Even tougher is recruiting, though. In order to be successful with PHP you'll need to recruit HUNDREDS of people into your downline.

How many people do you realistically believe you can pitch this to? 5? 10? Can you even recruit that many?

This is something most people don't consider before joining a MLM.

Here's some even more eye opening MLM stats you should consider:

As you can see the MLM business model is just very flawed. 

This is why I do affiliate marketing. With Affiliate marketing there's low costs and no need to sell expensive products or recruit. 

How Much To Join?

PHP is not upfront about the cost to join on their website or anywhere else really.

From what I've gathered it costs around $600 to get started with PHP. 

PHP Compensation Plan

Like most MLM compensation plans, PHP's compensation plan is very difficult to decode if you're not familiar with MLM jargon and terms.

I'm going to summarize the main parts so you can understand everything. 

Affiliate Ranks

At PHP there's 11 ranks you can reach and you go from one rank to another by hitting recruitment goals and group sales goals.

You get different bonuses for going from one rank to another as well (mainly higher commissions on sales).

Here's the following ranks you can achieve at PHP:

  • Trainee
  • Associate
  • Field Associate
  • Director
  • Marketing Director
  • Senior Marketing Director
  • Executive Marketing Director
  • Senior Vice President
  • Executive Vice President
  • President's Council
  • Chairman's Council

To get to the last rank you'd have to recruit 600 affiliates with at least 12 being Marketing Directors and generate 1,200,000 GV (Group Sales) a month. 

Retail Commissions

How much you make on your retail sales relies on your affiliates rank.

Here's the commission rate you earn at every rank:

  • Trainees get 30% commissions
  • Associates get 40% commissions
  • Field Associates get 50% commissions
  • Directors get 60% commissions
  • Marketing Directors get 75% commissions
  • Senior Marketing Directors get 77% commissions
  • Executive Marketing Directors get 78% commissions
  • Senior Vice Presidents get 79% commissions
  • Executive Vice Presidents get 80% commissions
  • President's Council get 81% commissions
  • Chairman's Council get 82% commissions

Direct Commission Bonus

This is a bonus you can get for recruiting a certain amount of people and generating enough GV sales. 

You can earn an extra 5% to 40% from these bonuses.

Generation Bonus

The Generation Bonus is the money you earn from your downline and the payout is a unilevel compensation structure.

It looks like the following:

Here's the percent you can earn from the levels below you:

  • 10% on Level 1 (personal recruits) 
  • 5% on level 2
  • 4% on level 3
  • 3% on level 4
  • 1% on levels 4 to 7

If you personally recruit 5 affiliates and generate 25,000 GV per month you get an additional 5% bonus on level 1 recruits. 

PHP Products

PHP sells various third party insurance and financial products.

Here's what they sell:

  • Term life insurance
  • Return of Premium term insurance policy
  • Indexed universal life insurance
  • No-medical exam life insurance
  • Fixed indexed annuity

The provider of these services are Foresters Financial, AIG, National Life Group, Nationwide, National Western, American National, and Allianz. 

You are going to need to get an insurance license as well. I actually sold insurance in the past and you need to take classes and pass a state exam to become certified.

I had to get it done fast and was able to pass the test after a month of really hard studying. 

There's a lot of different fees involved with getting your license as well.

What I Like About PHP

There's nothing I really like here.

What I Don't Like About PHP

There's a lot to not like here and the main things I dislike are:

PHP is sketch on details

It should raise some red flags that PHP isn't upfront about everything on their website or marketing materials.

One of the biggest things they hide is the price to join.

From research I've been able to conclude it costs around $600 to get started and PHP should just have this on their website.

Will have to pass license test

MLM's suck to begin with but a MLM you'll also have to pass a test for? That's EXTRA bad.

I had to take the insurance test in 2015 and it's not really that easy. 

I studied my ass off for it for a month straight and just barely passed (I believe I got a 72 and needed a 70 to pass).

I'm a good test taker too. 

You'll also have to pay for classes and put in a certain amount of hours in class too. 

Low success rate

MLM's have about a 99% failure rate and the people that do make money tend to make a couple hundred tops.

Only a lucky few make a full time living from a MLM.

This will be the case with PHP Agency. Most people that join will just lose money.

No retail incentive

Despite what it says on PHP's website you can absolutely have a pyramid scheme happen even if you're selling products.

In fact, there's more product based pyramid schemes than non-product pyramid schemes.

Product based pyramid schemes happen when affiliates make up the majority of sales with a MLM.

This is exactly what's happening here. The compensation plan makes affiliates buy an insurance package and there's zero incentive to make retail sales.

This will lead to the majority of affiliates looking to recruit only. When this happens you get a pyramid scheme. 

Is PHP Agency A Scam?

Kind of.

I actually used to watch Patrick Bet-David Youtube videos and thought they were pretty decent.

Now that I know he's the head of PHP I kind of lost respect for him.

There's just too many red flags here for me to say it's a legitimate business you have an actual chance at making money with. 

Also, there's a chance this is a pyramid scheme as well.

To really know just ask the person recruiting you how much of their sales come from retail and how much come from new recruits buying insurance policies.

If retail sales is less than half you're in a pyramid scheme!

Here's Better Opportunity

Hopefully by now you see PHP Agency for what it is.

If you're still interested in making money from home and online, check out Wealthy Affiliate.

Wealthy Affiliate is the single best place to learn how to create a home based business and it's where I learned how to make 6 figures on the internet.

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To learn more, click below:

Dylan


Creator of The Affiliate Doctor. I earn a full time income online and love teaching people to do the same!

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