Varolo Scam- Can You Really Earn Money Watching Ads?

From April 2011 to the end of June 2011, Varolo went from a creative idea to a powerhouse Internet innovation. They are now ranked the 18,892 most popular website around the world and the 4,639th most popular in the United States. Is this just a Varolo scam to hurry up and attract people like us? Will they have any leveraging power in the future?

Major companies around the world spend billions of dollars per year on advertising. Whether we see them on television, hear them on the radio, or find ads in newspapers; the return from their expense costs isn't as beneficial as five years ago.

The Internet has created mainstream advertising through channels like Facebook, Twitter, and YouTube. There are also complex options like pay-per-click advertising through Google Adwords, taking advantage of advertising space on countless websites, as well as several other avenues.

Super Bowl Commercials

One of the most notable changes in the last 5 years has been watching companies make Super Bowl commercials, but placing them on YouTube as opposed to spending millions of dollars for a 30-second ad on television. Why? Well, the advertising platform for commercials is shifting more and more towards the Internet every single day.

Even if you don't understand how they do it (mainly through keywords and the viral effect), it's happening right in front of us.

Enter Varolo

This company has been created and developed a system specifically designed for large and small businesses who want to target a broad audience or a narrowed down version. These companies create commercials and then setup their campaigns through Varolo.

In return, Varolo compensates people who have team members watching ads. The money used to compensate someone like you comes from what the advertisers are willing to pay per view. It's a "win-win-win" situation for all three parties; or is it?

The Varolo Scam

Let's say you just signed up for Varolo as a "user." You've gone through the 2-minute video on how it works, confirmed your email address, and covered everything in the orientation (lasts about 10 minutes total). Now it's time to watch videos.

While you think you're watching videos for money, you're actually only gaining entries to their weekly jackpots. So is it a Varolo scam because you haven't even earned a penny? Well, not necessarily. If you went through the orientation or the "User Tour" video, it's easy to understand that you DO NOT get paid to watch advertisements.

The only way you make money with Varolo is either by winning the weekly jackpots (July 2nd will be $700), one of your team members wins the jackpot (you earn 10%) or by your team watching commercials. The company clearly states this throughout their website, but the misconception comes from the actual marketers.

Marketing Mistakes become Misleading

A Varolo scam would only be present if the company was misleading people. However, the majority of the people who join are not considered "affiliate marketers." They are individuals like you who get up, go to work, and come home.

So a lot of individuals are actually promoting the company like you can watch commercials and make money. You will find them on Craigslist, in forums, on Facebook and Twitter, as well as several other places on the Internet.

What it comes down to is you won't earn money watching ads yourself. Instead it's all about getting others to sign up on your team. When they watch commercials you get paid a percentage of what the advertiser spent. You earn an 8% commission for every ad watched by your initial team members (level 1).

How much money can you make?

Since everything is dependent on the amount of people on your team; it's really up to you. It also depends on how active everyone is within the Varolo community. The point is; the more people on your team the better. However, Varolo has a clever way to keep individuals coming back week in and week out.

Let's say you made .50 cents your initial week because you only had your mom, dad, and sibling on your team. In order for you to receive this money you would have to watch commercials as well. This is what Varolo calls; "Claiming Your Earnings."

A person can reach 100% claiming status by watching 140 commercials a week. It sounds like a lot when you first think about it, but we're talking 20 commercials a day. The majority of them (99%) last 30-seconds or less, which translates into about 10 to 15 minutes of your time.

Currently advertisers are charged one penny per 30-second commercial and two pennies for a 60-second commercial. This doesn't seem like much to us considering we would receive an 8% commission of a penny or two, but try thinking big picture.

You sign up your mom, dad, and one sibling. They turn around and sign up 3 of their closest friends or relatives. All of the sudden you are earning 8% from your initial 3 sign-ups, 6% from their 3 sign-ups, 4% from their 3 sign-ups, and 2% from their 3 signups.

Varolo needs more "Value"

Since the site is only 3 months at the time of this article, the overall value is small. While there are companies like Subway, McDonald's, Snickers, Dish Network, Lexus, Old Spice, Droid, Nixon, Activia, and Bridgestone on their almost every day, their advertising client base is still extremely small.

This means the amount of money made right now isn't going to yield high returns. However, building a team in the beginning stages will provide several rewards down the road. Eventually advertisers will be paying .3 cents, .5 cents, or even more per view.

Conclusion

Others have tried to create platforms like this, but have failed miserably. They were never able to get those "big name" companies under their belt that would produce a viral effect for all the other companies to jump in as well. Varolo has been able to do this in 3 short months.

In the end, if you hear negative rumors out there that someone is dealing with a Varolo scam; remember the information here today. Knowledge is power and without it those negative comments can easily become believable.