This is my honest review of Racksterli, an investment program in Nigeria that is currently trending.
Racksterli is one of the most popular investment programs in Nigeria right now.
I didn’t quite hear about them early enough. But these days, cyberspace has been filled with so much noise about Racksterli.
Go to Facebook groups, Facebook timeline, Twitter, Whatsapp groups, Telegram, and even our own dear Nairaland.
You’ll see so many of the Racksterli brigade army telling you to join Racksterli today, right now, or you will never have the opportunity to earn passive income again.
Everywhere I look, people are always talking about Racksterli, so I decided to check the program to see if it’s worth the hype.
I wanted to xray the investment program to see what they are really about and if they were really what they claimed to be.
Here are my findings:
So, What is Racksterli
Racksterli claims to be an affiliate program where you earn income by posting adverts on your facebook page.
So, in essence, companies pay Racksterli to have access to their brigade of affiliates, who would then post that advert on each of their Facebook timeline.
So, does this model work? I have my doubt.
Racksterli currently claims to have over 130k affiliate members. What happens when all those members post the same advert link on Facebook at once?
Facebook does have the capability to flag down a link if so many people are posting it at once. It is regarded as spamming, and facebook is so effective at blocking spam links.
If that is the case, it is either that Racksterli advertisers do not care if their link gets blocked on facebook as long as some people are able to view it before it gets blocked by Facebook, or that Racksterli is using the advert placement model as a front to legitimize a ponzi scheme.
Either way, it seems fishy.
But one thing I’ve discovered from Racksterli is that there are not too many advertisers on their platform.
So, racksterli sometimes advertises their own investment program in place of advertisers’ adverts.
Since most of the time, the advertiser is Racksterli themselves, this proves that most affiliates or members join the program to make money by promoting the program.
This is one of the characteristics of a Ponzi scheme.
How Can You Make Money on Racksterli?
Racksterli claims that you can make money in two ways:
- By posting Racksterli adverts on Facebook
- By Referring people to join Racksterli
To join Racksterli, you have to choose from one of its 9 packages.
Each package has a different registration fee, a different earning amount per facebook advert share and a different amount per referral you convince to join Racksterli.
Here are registration fees per month for each package:
- Standard package for 14000 Naira/month
- Premium package for 28000 Naira/month
- Platinum package for 56000 Naira/month
- Gold package for 112000 Naira/month
- Diamond package for 280,000 Naira/month
- Ruby package for 560,000 Naira/month
- Emerald package for 1,120,000 Naira/month
- Pearl package for 2,800,000 Naira/month
- Jasper package for 5,000,000 Naira/month
Here is the earning formula for each package:
- Standard Package: $1.9 for every Facebook Advert share, $3 for every referral
- Premium Package: $3.9 for every Facebook Advert share, $8 for every referral
- Platinum Package: $7.8 for every Facebook Advert share, $10.53 for every referral
- Gold Package: $15.6 for every Facebook Advert share, $11.85 for every referral
- Diamond package: $39 for every Facebook Advert share, $13.16 for every referral
- Ruby package: $74.42 for every Facebook Advert share, $15.7 for every referral
- Emerald package: $148.25 for every Facebook Advert share, $18.4 for every referral
- Pearl package: $366.45 for every Facebook Advert share, $22.3 for every referral
- Jasper: $647.36 for every Facebook Advert share, $27.5 for every referral
Let’s do some maths. Let’s say you join Racksterli at the Standard Package, how much would you earn?
Since on Racksterli, referral is not a must and doesn’t affect your earnings and withdrawal, we would assume that you only promote their adverts on facebook.
If it’s possible to advertise Racksterli adverts on Facebook everyday (Which I’m not sure is possible), then we would have approximately 30 days to earn $1.9. That gives you $57 per month as a Racksterli affiliate on the standard package.
Using a modest exchange rate of 460 Naira per dollar, $57 per month equals 26,220 Naira per month. Subtract your monthly subscription of 14,000 Naira and you’ll get a profit of 12,220 per month.
Racksterli claims that you can earn more than that if you actively promote the program and get referrals to join.
You get to withdraw your earnings at the end of your 30 day subscription.
How Does Racksterli Make Money?
Racksterli makes money when you join the program at any of its 9 packages. The company also claims to make money when advertisers advertise through their affiliate platform.
So, when you join Racksterli, they make money even before you’ve earned a dime. They make money at the beginning of your 30-day subscription, while you make money at the end of your 30-day subscription.
The company claims that the money it makes from advertisers who advertise on its platform is shared with its active affiliates.
What I Hate About Racksterli
Registration Fees:
Since Racksterli claims to be an Affiliate marketing platform, I expected that at least it should be free.
Most affiliate marketing platforms in the world are free to sign up to as long as you have a legitimate platform to market their products.
To me, the registration fee is a barrier to many people who would have loved to try out the platform. Maybe, they should consider a free plan with the option to upgrade after one week.
Posting on Facebook:
I hate the fact that I have to be posting adverts on my facebook timeline even if I don’t believe in the advert.
It seems spammy and may draw resentment from friends. I prefer to post something for sale and get a commission for each sale.
Long Withdrawal Period:
I hate the fact that I have to wait for 30 days to be able to withdraw my earnings. If it was possible to withdraw weekly, that would be better.
At least, you get to eat the fruit of your labour earlier. What happens if you work for 20 days and the platform crashes? Hmmm…Food for thought.
What I Like About Racksterli
High Earnings:
I like that you can almost double your registration fee even at the standard package.
If the company actually pays, you get to earn even more if you subscribe to higher packages. But there is always an if.
Referral Not Compulsory:
Most of the platforms similar to Racksterli make referral compulsory. You cannot withdraw your earnings if you don’t refer someone.
But Racksterli makes referral not compulsory, but an added incentive to earn more on the platform.
So, Should You Invest In Racksterli?
Here is the koko. Is Racksterli worth investing in?
I can’t make a decision for anyone, but I can say that there are indeed some pros that you can consider worthwhile with Racksterli.
If the negatives I’ve listed above such as registration fees, posting on your facebook timeline, and the long withdrawal period doesn’t sound too bad to you, and you have 14k Naira that you can afford to lose, then you can invest at your own risk.
I consider the risk/reward ratio to be somewhat encouraging. If you are a risk taker, you can move in, make your money, and move out.
Conclusion
As for me, I won’t consider investing in Racksterli.
It doesn’t suit the kind of investment I trust with my money. To me, it reeks of Ponzi, and it’s definitely a HYIP, which are notorious as fly-by-night companies. You can invest today and wake up tomorrow to see that the company is gone.
The 30-day holding period of Racksterli is definitely a deal breaker for me. I only invest in portfolios with 30-day tenure if they are registered and recognized by a financial regulatory authority.
If they don’t have such, then I can’t trust them with my money for 30 days, else I won’t sleep well at night.
Instead of investing in Racksterli that claims to be an affiliate program, I would find a real affiliate program like Jumia, Konga, or Amazon that sells real products and join them for free.
The 14k I would have paid into Racksterli would be used to advertise products for any of these Affiliate programs that I join.