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Shanell Binedall
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What initially seemed like a promising way to earn money online is often just a recycled referral model. On platforms like TikTok, several content creators have begun promoting a $100 (R1 817,50) “Freedom Formula Blueprint” and a $39 (R708.82) website fee, which they claim will lead to full-profit digital earnings — without the buyer needing any prior experience or technical skill.
These creators label themselves as “business owners” and build nearly identical websites, each featuring slogans like:
“Discover how to earn 100% profit online using a proven blueprint! This step-by-step system has already helped thousands generate daily income—without tech skills, a big following, or even their own product!”
But a closer look reveals that what’s really being sold isn’t a product or service — it’s the system itself.
Key Warning Signs
One creator, who remains unnamed for privacy reasons, is now promoting “faceless marketing,” encouraging others to join without ever revealing their identity. In a contradictory video, the same creator downplays the cost of joining, claiming “you don’t have to pay $100,” before later stating that, “it is only $100 with an additional $39 fee.”
An analysis of her personal site revealed that the biography section was copied and pasted from an AI tool. In one case, the second paragraph — an editing placeholder — was mistakenly left in, confirming it had not been personally written.
Upon review of the downloadable Freedom Formula Blueprint PDF, multiple red flags associated with pyramid schemes were found:
The blueprint claims users can earn full profit from a ready-made business with little work involved. Such claims are unrealistic and are often used in scams. Genuine businesses do not guarantee effortless returns.
The entire system is built around reselling the same digital kit to others. While vague mentions of digital products like templates or eBooks are included, these are generic. The focus is not on solving a problem or providing a unique offering — it’s simply about getting others to join.
The primary income opportunity lies in recruiting others into the program. Bonuses and commissions are given for each successful referral. This is a fundamental characteristic of a pyramid scheme.
Phrases like “Your journey to freedom begins now” and “Ready to take control of your life?” are used to emotionally pressure users. These vague promises often aim to bypass rational decision-making.
The system requires an upfront investment without a clear explanation of what you’re actually paying for. Pressure to “join now” without time to research or evaluate is a typical sales tactic in recruitment-based models.
Legal Implications in South Africa
South African law clearly prohibits such schemes. Section 43(2)(b) and (d) of the Consumer Protection Act (CPA), No. 68 of 2008 makes it illegal to promote, join, or encourage participation in any pyramid scheme.
Violators may face serious consequences. Section 111(1)(b) of the CPA states that anyone found guilty can be fined, sentenced to up to 12 months in prison, or both. These are considered white-collar crimes and are taken seriously by authorities.
Eight Signs of a Pyramid Scheme
According to Joblist, the following are common indicators that an opportunity may be fraudulent:
Think Before You Sign Up
Before joining any “digital opportunity,” students are advised to:
If the main way to earn income is by recruiting others — instead of selling a valuable product or service — it is not a business. It is a scam, and it is illegal.
A TikTok post advertising a free Freedom Formula Blueprint pdf (Source: TikTok)
Edited by Mignon Walters and Mhlengi Khumalo
Written by: Wapad
todaySeptember 29, 2025 51 6
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