You’re not seriously considering dropping $2900 into the Reverse Funnel System (RFS), are you?

You might say, “2,900? I thought it was $50!” You’d be wrong. $50 is just the “application” fee to see if you’re really serious. To see if you’re a “true entrepreneur.” To hear RFS’ promoters tell it, the $50 separates the men from the boys. $50 gets you to the cool kids’ table, but to really be in the club, you’ll have to fork over $2,900, and that’s just the beginning.

What is the RFS?
It’s an internet marketing system originally designed to sell vacation time through “Global Resorts Network.” RFS is supposed to make it easy, even for internet marketing newbies, to funnel lots of prequalified traffic to your own website. The system will teach you how to advertise all over the Net, at the most reliable locations, sending constant streams of traffic to your own site, where you will make the sale. Your site will be designed after one of tens of thousands of similar RFS sites, and the conversion rate (the percentage of visitors who buy your product) is supposed to be astronomical. You’re supposed to make at least $1,000 commission per sale. And you build a downline and make a commission on their sales, too.

That doesn’t sound so bad
$1,000 per sale? I’d recoup my money after three sales! Not so fast. Your first sale doesn’t count because it “qualifies” you, whatever that means. But even more problematic is this: You’ll be told that in order to really make the big money, you need to sell—wait for it—the RFS. Yeah, you can sell some vacation shares along the way, but the real winners will sell the business opportunity! Don’t you want financial freedom? Look at these fancy houses and cars! If the dream is big enough you can work your way to $35,000 per month!

Want more money?
This video will show you the simplest and fastest way to make money online today. Watch it for free right now.

In other words, you just bought a business opportunity in which you make money by selling the same business opportunity to as many dupes as you can.

All of this sounds very familiar
I don’t like to admit it, but I was in Amway back before it reinvented itself as Quixtar. Believe me, the business was not about selling Amway products. It was ALL about selling the “business opportunity” to others, building your downline, who would then sell it to others, and so on until you get a Ferrari and a pony that poops gold.

It’s the same concept at work in the RFS. Yes, there is a legitimate product—the Global Resorts Network vacation products. But that product is used primarily to grant legitimacy to the RFS “business opportunity” and helps defend it against those who would call it an illegal pyramid.

You said, “That’s just the beginning.”
That’s right. $2,900 will get you in the door, but then there’s a monthly charge of about $300 to access the magical kingdom system to help you build your business. And you’ll also have to do some paid advertising. Maybe a lot of it.

But enough from me. I’ve Tried That is late to this party, so let’s hear from folks who have really tried it. Gatorbyte was one of the early naysayers regarding the reverse funnel system when it exploded onto the scene in the fall of 2007. Go read his review and the incredibly informative discussion that follows it. Here are just a few excerpts:

I was in the RFS for 2 months and spent about 8k total, probably a little more….and what do you think I got out of it? Creditors calling me because I have no $$$$ left to pay my bills. … All they want you to do is buy leads from their sources and half the time the system doesn’t work properly. Instances of emails not being sent and even links being redirected to other members. Yes…thats very tricky huh, “place your banner here you silly fool while we recode to someone elses page”

It’s a complete scam. I speak from experience. I bought in, dropped probably $8k, got 17 paid $50 leads in maybe 5 or 6 weeks but none of them came through except 1, then I found out you don’t get paid on your first one because it qualifies your downline. … these guys won’t allow anything “negative” on the phone calls, they’re all a bunch of law-of-attraction marketers spewing from the empty into the void, not acknowledging the fact that they’re profiting off of other’s naivete. I got burned but I learned a good lesson — I will never do anything like this again.

I did a search on “reverse funnel system” on Google… And what I found amusing was that the first whole page or so of entries were all “shills” for them. They used several different domains to create “review” sites that give an opinion on the RFS and they always conclude (quite objectively!) that the RFS is wonderful and you should try it! And several of the sites used the same cut and paste text. If that doesn’t scream scam I don’t know what does. Trying to block as many of the sites with actual opinions as possible with their own BS ones. Hilarious.

From October 22nd through today (Feb 02, 2008), I have spent 10 plus hours, 7 days a week placing free ads and paid ads where the gurus “Say to do it”. I have invested my last $9,000 trying to achieve the sales claims that RFS presents. Every Friday morning I would listen to the call where some reps would say on air that they are making $60k + per month. Again, it would hook the anchor in and I would get in a frenzy putting more ads out that ever before. I have had over 13,000 people visit my site, and I have had over 1300 people opt in for more information.

I started in October 2007 by giving them $50. Then they wanted another $2995. Two weeks later another $299 and so on and so on and so on. I was layed off from my job at the end of October, so I took a chance and invested in RSF and the GRN. I had no idea how much it would cost to get started. It is now March 2008 and I have yet to make a dime. I am so far into this, I don’t know what to do. I want to bail, but then I lose it all and theres always that chance someone will buy into this….. I got involved in this knowing nothing and I was told there would be help. Well the person that got my commission keeps telling me I’m not working hard enough at advertising. I HAVE NO MORE MONEY…HOW CAN I ADVERTISE!

There’s a LOT more over at Gator’s blog, so if you want more information (including the good things about RFS as explained by one of its happy users), click over there to read it all.

Based on what we’ve learned, our conclusion and opinion is that, unless you have $5,000 you don’t know what to do with, stay far away from the reverse funnel system. I wouldn’t call it a scam, but uses misleading advertising and one of the oldest tricks in the book: the “opportunity” you just bought consists of selling the opportunity to someone else.

READ THIS NEXT: How to build a full-time income online with no experience

Join the Discussion

  • kabita

    thanks to Joe for providing your experience with “Funnel system” i just signed up yesterday but could smell the rat..
    you saved me, innocent & sometime really needy people join with a expectations & believe that “This one could be right” but BIG NO–no internet business anymore..
    we all should be careful.

  • Sher

    Thank you so much for your review. I have a great product called Prepaid legal and thought about doing the RFS, but after reading this, I believe with studying and taking time to learn how to advertise on the internet, I don’t need the scam.

    Thank you again for the warning,

  • WWu777

    Finally, an honest review that tells the truth. I had to search the 5th or 6th page of google results to find this article. All the ones before were shills for RFS.

    If you can’t get rich quick, you can also move abroad like I did, where you can live on a few hundred a month in foreign countries where cost of living is much lower and people are much friendlier.

    To learn more.

  • Michael C.
    Michael C.

    No, it’s not $2995 to get started. It’s $3018.95. Just seeing the pic of Ty sitting half naked near his beach house tells the story….YOU PUT HIM THERE!

  • The Man
    The Man

    Like many online business it can be hard to tell the real from the fake. What people must understand is that all these online systems are not free and easy ways to make money. It’s a business and you have to treat it like such. Everyone expects it to be instant overnight success just because it’s online. No matter how pretty they package the system you have to step lightly.

    Do and can these systems work? YES! but you have to really dive into them and do research on how to make your marketing better. Internet Marketing isn’t something that you pick up in a day. If you just half ass your way through owning a business then it’s going to give you half assed results.

    Truth is, these system are not for everyone. It doesn’t matter what the system is and what they sell, it’s all about the person running it. Most of these systems have support and assistance but if you don’t ask then you’ll never get anywhere. So is RFS, Amway, Carbon Copy Pro, or the countless others out there all scams? NO. And I know that RFS isn’t, I’ve spent time looking into it. I understand why they do the $50, I understand why they have GRN as a partner, and I understand how their business model works. The fact is most people are really quick to jump on the “it’s illegal” or “it’s a scam” side because they don’t know better. I am not an active member with RFS nor have I ever been, WHY? Because I don’t have the time to dedicate to a business like this.

    Choose wisely and if you do get into an online business, treat it like a business not a hobby OR it will cost you like a hobby does.

    – THE MAN

  • Jimmy

    I just stopped by to tell everyone that I lost $50 to this idiotic RFS but the most important part is that the pain of 50 dollars saved me a potential $6000 so stay away from Ty and the RFS

  • Tarik

    Nice review. I had some advertisers pushing Ty’s site on my financial blog about a year ago. They were pumping out $100+ per month to host his ugly banners on my site. After 2 months, I cancelled the deal because I learned more about the nature of the scam.

    There are plenty of ways to make money online. You need to provide some value, tell people about it, then you can find a way to make money.

    Providing VALUE doesn’t have to cost a dime! People would be much better off creating a simple blog on their favorite hobby then starting from there.

    Training newbies to buy advertising while ripping them off at the same time is definitely not the way to make money online

  • prithi gurung
    prithi gurung

    thanks guys for your suggestion ,i did not try this system .but i made the initial payment of $50 .do you guys have any idea how can i get my $50 back…

  • John Merendino
    John Merendino

    P/S I Just Wrote something on reverse funnel system. I do have something else to say. I am not in the reverse funnel system anymore but I am in Global Resorts Network. It is a Great opportunity. I found that the best way to promote this business is to go on the vacations, stay at the $298 a week places and let the people that are staying there about your savings. They always want more info. Give them your website and that is it. You get better responce that way. here is a website to check out.

  • John Merendino
    John Merendino

    Good Report, I was in reverse funnel system for 2 months and didn’t make a penny. Only made Tye richer. If you are interested you better think again. John Merendino

  • Laurie

    I’ve spent the last 7 years researching home based businesses. Okay, actually getting taken by every scam on the internet. All I wanted was to find a way to earn money from home. After losing so much I try to warn others so they don’t fall prey, too. I invested $25 here and $349 there. All together I wasted about $20,000 and earned about $4000I finally found something that worked and has multiple income streams and residual income. It won’t make you rich overnight and needs about 5 hours a week, but I earned $126.10 in the first 24 hours.

  • Steve


    Not only is that a scam, but it’s also very illegal. Read our review here:

  • Mario Brock
    Mario Brock

    “Toto…Toto….what are you doing”? “Don’t pay attention to that man behind the curtain…blahhh..blahhhh.” So, the Wizard is not so big after all.

    Thanks for the info…after reading for a while, my gut told me something is not right with this. Where are the “live” events where you can meet the people, founders, etc. who are making “incredible income”

    I kept searching, and found a guy who quit the system…and started something else..another potential scam at

    I sent questions to the FTC…we will see what comes back.

  • Ken A
    Ken A

    I hear the “50K a month” and similar get-rich-easily scams on some of my favorite talk shows (Medved & others), where I expect to hear sound insights and good free-market economic advice. I appreciate their support for these shows, but wish Medved, Limbaugh et al. could turn down some of these scammers, (and slimy plaintiff lawyers) or at least say “I do not endorse…” or “and now a note from our scam artist…”.
    eHarmony and DirectBuy are other heavy advertisers that have disappointed many.

  • Chris

    Listen the RFS is just a system to sell Global Resorts Network. The RFS takes tens of thousands of hits a day to get results. It preys on laziness and usually is followed by major buyers remorse.

    It is a shame because GRN is a top notch direct sales business. The product is rock solid, the company itself is above board, and the product has tremendous value. Yes other knock offs have come out but GRN is still the grand daddy of them all.

    Unfortunately many come into GRN the wrong way via the RFS. We actually teach people how to market this amazing GRN business simply. We use the grn system and YES shocking the phone. We can teach anyone how to do it. Feel free to watch the youtube video in my sig.

    GRN is great just make sure you do your due diligence and figure out whether the RFS is all its cracked up to be or whether your better off learning real world sales tactics to earn $1000 per sale.


  • Alpha Q
    Alpha Q

    My momma always says, “If it is too good to be true, then it is too good to be true.” What’s wrong with everyone? Why are we in a hurry to make money out of nothing at all? The simple law is the only law, i.e. one must work hard to earn money. It doesn’t say that one must shell out hard earned money in order to get hundred folds more money in no time.
    There are 7 deadly sins. Avarice (greedy) is one of them.

  • Cam

    thanks for this post. it’s good that i’ve searched through google before i actually joined this.

  • Will

    Just like Branson, I live in So. Cali and hear the same ad.. I looked it up and now know enough that RFS is definitely too risky to put that kind of money in.

  • Branson

    I’ve been hearing Ty’s ad on a conservative talk radio station here in So Cal for months. I decided to check out the website, and after reviewing it, I went straight to They had no info on this scam. Shame. The 50k website alone smells of a scam. If anyone requires money from you (in this case $50.00) up front, just to find out what they are about, “run away!” Why is it that you can never find out about the actual product being sold without fronting some money?

    BTW, Ty is appealing now to young college students. He sounds so cool and informal in his radio ads. Very inticing for anyone who may not know any better. The radio station should be ashamed for allowing him to advertise. Don’t they have a choice in the matter?

  • Gail

    Thank you so much, I have been out of work for four months…. heard the commercial on KFI a very popular radio station and thought… wow if they can advertise on there they must have a good reputation….

    Thank you soooooooooooooooo much. I can’t stress that enough.. I could have been on a bridge to nowhere.

  • Not Ty Coughlin
    Not Ty Coughlin

    I wrote about RFS being a scheme almost one year ago and some of you might find the comment thread on the blog post quite interesting. Fortunately, a number of people were saved from losing their money thanks to people like Joe, the author here and myself who are not inclined to clam up about our personal opinions.

    Incedentally, did any of you know that Ty Coughlin was once the singer for a failed punk rock band ??

  • Jim

    Sounds like there a whole bunch of these systems on line. Are people trying to sell their own systems and talking the RFS down? Has anyone made money off this system?

    Tell me more.

  • Bob

    I came across the RFS a few weeks ago. I was thinking of joining but I decided to do some reserch online. It appears you just saved me from another creditcard debt. Thank you.

  • LisaLing

    Thanks so much for this just saved me $2999.00 and my sense of dignity?

  • Stephen

    Thank you Joe for explaining the downside of this system.

    It is not so easy to see the scam for what it is. Please keep up the good work. You are helping to save a lot of folks a lot of money they can ill afford.


  • bob

    Some months ago, I was deciding on this RFS thing and something in me said… “C’mon how different can this get from the rest? If it’s a real business then a transaction has to take place for some income to be generated.. meaning someone has to find customers/members/downlines… some product needs to be sold.. someone’s gotta do the marketing/selling or someone’s gotta pay someone to do it… if you don’t need that many customers then the product needs to be highly priced or the margin’s gotta be big per transaction etc.. else, if there is no need for all these, then there must be some scammy, con element in it. These fundamentals have never changed in commerce… And I sense none of these business/investment elements in the information provided.”… So, against my pressing curiosity and excitement for seemingly to have ‘found’ something new, I decided against it.

  • Joe

    @ Gator Byte: You’re the man. The firstest and the bestest.

    @ Michael: Is that the Michael Dillon? Sheriff Michael Dillon? Thanks, man. We’ve been called many things, but your analogy is my favorite by far.

    @ Cougars: *psst!* I’ll write up an “objective” review of your Snake Oil for a share in the profits. Whatddya say? It works for RFS, why not for us?

  • cougars

    Hey…I got some bottles of “Snake Oil” to sell…It is the Cure All of Cure All’s…let ya have it for $2,998…per bottle. No hiding fees and I will even through in free shipping if you pay cash.

  • Michael Dillon
    Michael Dillon

    Just wanted to let you two know what a terrific service you are
    providing for those of us anxious to avoid work scams on the internet. In my mind’s eye, from an old western movie I saw when I was a kid, you are like the two cowboys huddled behind their dead horses on a treeless western plain, with only their rifles, side arms and 100 bullets, waiting for the approach of a huge warparty of mounted indians just coming over a rise 1000 yards away. You could use some help! Have you thought of applying for grant funding to expand your operation and help clean out this internet scam Rot? Just a thought. Best and thanks for the good work. Mike Dillon

  • Gator Byte
    Gator Byte

    Awesome, thanks for that excellent write up!

    I originally wrote my nay-saying post back when some RFSer was running campaigns on a pay-to-blog system I work for. I could have made $50 or so by writing one of those shill ads but instead I chose to do my own post, for free. I hope I’ve helped at least a few people save some money because of it.

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