There is currently some buzz around the Kickstarter project “Ashes of Creation“. The game has already raised a lot of money, and accusations of a “pyramid scheme” have emerged. The MMORPG employs a referral system. Those who refer new players earn real money from them.
Ashes of Creation is an MMORPG that is currently raising a lot of money on Kickstarter and stirring up controversy. The game relies on fresh ideas in game design, as well as in marketing. However, these have not been received well by some fans.
to finance their subscription costs for Ashes of Creation,
to purchase items in the game’s shop
to cash out the money. And this is exactly where the catch lies
Accusations of a Pyramid Scheme
This is particularly interesting because the CEO of the company behind Ashes of Creation, Steven Sharif, previously worked for a so-called “multi-level marketing” company. These companies are accused of operating on a pyramid scheme.
This is a system that is structured like a pyramid.
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Pyramid schemes operate in such a way that one finds subcontractors who buy products and licenses and then resell these to their own subcontractors. One is then involved in their profits. This continues as long as new “licensees” can be found.
If you are at the top of the pyramid, you can make a lot of money. If you are on the lower rung of the pyramid, it does not work so well. The system continually needs new participants; otherwise, it collapses.
There are horror stories of people who lose a lot of money this way. Families and friendships break under the pressure that the system creates. The products involved often have little value.
Some fans of Ashes of Creation are now worried that such a “pyramid scheme” could also operate at Ashes of Creation.
The CEO was previously a top seller of juices and vitamins in a “multi-level marketing” company
Sharif himself explains in a post on reddit that he previously sold juices and vitamins for the company Xango. At 20, he was one of the top sellers in the company. However, that was 7 years ago; at 24 he got into investments. Sharif says that such “multi-level marketing” companies have a bad reputation, but there are also good ones.
Ashes of Creation has nothing to do with that. He wakes up in the morning and thinks only of the game. His whole passion is devoted to it.
Referral needed because media only want money
The referral system at Ashes of Creation is not a “multi-level marketing” scheme, as it only has one level. It is essentially like an affiliate program, which is also used by Amazon. The system is good for the game. They decided to do this because it strengthens the social nature and growth of the game.
Otherwise, they would have to spend millions of dollars to promote the game through advertising, Facebook, or emails. This would mean throwing money into the mouths of corporations. Because media are not interested in such games, but only in money and their revenue.
Referral Systems for Cash – Hm
Mein-MMO believes: We do not think that Ashes of Creation is based on a pyramid scheme. However: It is certainly reaching a new level of aggressive marketing.
Other games also utilize such “referral” systems. Even Blizzard tempts players with rewards when others register and calls it “Refer-a-Friend”. However: It is about “virtual rewards”, not cash like at Ashes of Creation.
This type of referral system “motivates” many players to promote the game – even those who have nothing to do with the game. They are not motivated by passion, but by the desire to make some cash.
We have also received invitations anonymously from Portuguese individuals via Facebook who wanted to get us to invest in Ashes of Creation.
Those who offer bounties for new players do not necessarily attract a “passionate community”, but rather mercenaries.
It is a popular accusation in the tin-foil-hat community that the media only report on a game if the game spends vast sums on advertising on their site. In the case of Ashes of Creation, however, this is demonstrably false. International MMO sites have already extensively covered the game during its founding phase without any advertising, simply because it is an interesting game.
But if someone has gotten rich selling vitamins and juices in a pyramid system multi-level marketing system, they surely have their own view of the world.
Currently, Ashes of Creation is just under 2 million US dollars on Kickstarter.
Ashes of Creation is a sandbox fantasy online role-playing game developed by Intrepid Studios. The studio is home to many former developers of the canceled Ever...
