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Was Wake Up Now a Scam Multi-level Marketing Company?
Was Wake Up Now a Scam Multi-level Marketing Company?

WakeUpNow (WUN) was a notorious multi-level marketing (MLM) company that officially shut down its U.S. operations on February 16, 2015, following widespread accusations that it operated as a pyramid scheme.

Summary of the Venture

  • The Products: The company charged monthly subscription fees for a random assortment of software, including tax calculators, language-learning programs, and vacation discounts.
  • The Business Model: It heavily focused on recruiting new members rather than selling actual products, which is the textbook definition of a pyramid scheme.
  • The Cult Culture: Promoters used aggressive social media campaigns—showing off luxury cars, beach vacations, and stacks of cash—to lure in young adults and college students.
  • The Collapse: WakeUpNow permanently folded after facing extreme financial trouble, internal corporate lawsuits, and accusations of gross mismanagement against its former CEO.

Why People Called It a Scam

  1. Recruitment-Driven Profit: Members earned money primarily by convincing others to pay the monthly membership fee, not from external product sales.
  2. Low Success Rate: According to the company's own income disclosure statements during its operation, over 95% of independent distributors failed to make a profit or lost money.
  3. Overpriced Services: Most of the digital products offered in their subscription package could be found online for free or at a fraction of the cost.

If you are currently being targeted by a similar scheme promising fast wealth through recruitment, it is best to immediately cut off communication and protect your financial information.

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