Is OnPassive a Legit MLM or Scam? [Review]

OnPassive is a tech company in Dubai. They make AI-powered marketing tools, CRM software, and other business solutions. Most of the people who work with OnPassive are thought to be from India or the US.

You might have heard about OnPassive from someone you know, like a friend or family member. A lot of people nowadays are looking for ways to make extra money, and you might be one of them.

Now, the important question: Is OnPassive a legitimate MLM or is it a pyramid scheme? We’ll talk about that. And don’t worry, we’ll also tell you about a better way to earn money from home.

Who Am I?

Hey there! I’m Benjamin, the person behind MLM Scam Insider. I used to be a sales rep at an MLM company, so I’ve seen both the good and bad sides of the MLM world.

After college, I joined HSBC as a relationship manager. Unfortunately, I got laid off due to some silly mistakes, and I felt pretty hopeless. During this tough time, a friend suggested I join his team.

He flaunted his success on Instagram with a Lamborghini (later, I discovered he had just rented it), so I believed I could attain the same. I purchased a starter kit from him and became a distributor. However, being a sales representative at an MLM company wasn’t what I had anticipated – it felt like a pyramid scheme. Uncomfortable with the idea of pitching to my friends and family, I only managed to sell a few starter kits.

Fortunately, I discovered how to make money blogging during Covid. So I soon quit my job as a sales rep and focused on my blog about budgeting, later selling it for $170k. Now, I’m a full-time internet entrepreneur running several blogs, including this one.

My goal is to provide you with honest reviews of various MLM companies, using my personal experiences to help you understand what’s really happening. I have connections with friends in the network marketing industry, and my team and I have spoken with different MLM distributors to give you the inside scoop.

What is OnPassive?

OnPassive is a technology company located in Dubai. They provide marketing solutions, customer relationship management (CRM) software, and other similar tools powered by artificial intelligence (AI).

The company’s main office is in the Burj Khalifa building in Dubai, and they also have offices in the United States, India, Singapore, Bangladesh, and Egypt.

However, the U.S. Securities and Exchange Commission (SEC) filed a claim against OnPassive, Ashraf Mufareh (the company’s founder), and his wife Asmahan Mufareh.

The SEC accused the company of operating as a pyramid scheme, masquerading as a multi-level marketing organization without offering any real products. According to the SEC, Ashraf had complete control over the company’s operations, and Asmahan was implicated as a recipient of improper funds.


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Is Ash Mufareh a Scam?

Yes, Ash Mufareh is a scam. He is presented as the founder of OnPassive in a video on the GoFounders prelaunch website.

OnPassive is currently being promoted through a “GoFounders” prelaunch website.

Ash Mufareh

On Facebook, Mufareh identifies himself as the CEO and founder of GFI Fusion, a marketing team within Global Domains International.

Back around 2010, Mufareh launched AshMax, which operated as a recruitment-based matrix scheme. Nowadays, Mufareh promotes various “passive income” schemes to a select group of investors who follow him from one scheme to another.

I was able to link Mufareh to two Ponzi schemes, including TelexFree and PayDiamond. TelexFree, launched in 2012, was a Ponzi scheme.

In a marketing video uploaded to YouTube in 2013, Mufareh downplayed TelexFree’s legal issues in Brazil.

As of now, TelexFree has made many mistakes, not one or two, many mistakes in Brazil…

…however past doesn’t mean the future. Brazil doesn’t mean the United States or the world.

Anyone who experienced what happened in Brazil (who had a position in TelexFree), they would definitely become more protected in the United States.

Because we know they (TelexFree) have a strong will to survive and stay in the market for a very long time. Years to come.

That said they (TelexFree) have to take extra measures to be protected in the United States as there is a very clear constitution and law that doesn’t change as frequent(ly), and to mention a solid law.

I can’t accuse anybody or any government of having some maybe gaps or, you know what I’m talking about. But this is a lot more reliable in terms of business in the United States.

TelexFree got shut down by the SEC in 2014. A court-appointed Trustee’s investigation later found that TelexFree investors lost over $3 billion.

BehindMLM looked into PayDiamond in early 2017 and determined it was a Ponzi scheme based on its business model.

PayDiamond fell apart in mid-2018, not long after which Ash Mufareh started setting up OnPassive.

Does OnPassive Offer Any Products?

OnPassive seems to have introduced some basic products, but they’re only accessible if you join their program.

  • O-Connect: Similar to Zoom or Google Meets, it’s a video conferencing tool. However, there’s nothing unique about it.
  • O-Mail: OnPassive’s version of Gmail, it’s just an email service.
  • O-Net: OnPassive’s social media platform, likely limited to members only. It’s unlikely to compete with established platforms like Twitter or Facebook.
  • OES: Described as “digital solutions” available through a software subscription. It’s unclear what exactly it offers.
  • O-Trim: A tool to shorten URLs for easier sharing. That’s about it. It seems like they were just trying to create any product.

In one word, OnPassive affiliates can only offer access to the membership circle, which is a concerning sign.

Such companies tend to fail when there are no new recruits, as the business model isn’t sustainable without actual products to generate income.

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OnPassive Compensation Plan

In the OnPassive compensation plan, affiliates buy positions in up to four 3×10 matrices.

Commissions are earned when affiliates recruit others to do the same.

Here’s how it works:

  • A 3×10 matrix starts with an affiliate at the top, with three positions directly under them.
  • These three positions form the first level. The second level is created by splitting these positions into three each (totaling 9 positions).
  • This pattern continues for levels three to ten, with each level having three times as many positions as the previous one.

Commissions are paid as positions in the matrix are filled through direct and indirect recruitment.

Here are the commission rates for each of OnPassive’s four matrix tiers:

$25 Matrix (positions cost $25)

  • $2 on level 1 per filled position
  • $3 on level 2 per filled position
  • $2 on level 3 per filled position
  • $1 on levels 4 to 8 per filled position
  • $2 on level 9 per filled position
  • $1 on level 10 per filled position

$125 Matrix (positions cost $125)

  • Commission rates vary from $2 to $15 per filled position across different levels.

$250 Matrix (positions cost $250)

  • Commission rates vary from $7 to $25 per filled position across different levels.

$500 Matrix (positions cost $500)

  • Commission rates vary from $10 to $30 per filled position across different levels.

Note that matrix position costs are monthly recurring, meaning the above commission amounts are also monthly recurring for as long as recruited OnPassive affiliates continue to pay fees.

How Much Does It Cost to Join OnPassive?

Currently, Ash Mufareh is selling “GoFounders” positions in OnPassive for $97. This likely includes a position in each of OnPassive’s four matrix tiers.

When OnPassive officially launches, affiliate membership will require purchasing positions in the matrices, ranging from $25 to $500.

According to the OnPassive compensation plan, matrix position fees are monthly recurring.

So, to fully participate in OnPassive, it will cost $900 per month.

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Is OnPassive A Pyramid Scheme?

Yes, OnPassive is a pyramid scheme.

A pyramid scheme is a business model where members are recruited with promises of payments or services for bringing in others, rather than through investments or product sales. As recruitment grows, it becomes harder for members to profit, and eventually, it collapses, leaving most participants unable to earn money. Pyramid schemes are often illegal and unsustainable.

OnPassive doesn’t offer any products or services that affiliates can sell directly to customers. Instead, they can only market OnPassive membership itself. Their supposed products are only accessible after joining their programs.

OnPassive membership provides access to adcredits and a “marketing automation” platform, but these are not retailable products or services.

Was OnPassive Sued?

Yes, OnPassive was sued by the U.S. Securities and Exchange Commission (SEC) in August 2023.

The SEC accused the company of offering investors unregistered securities and running an illegal pyramid scheme.

OnPassive allegedly sold positions in a multi-level marketing arrangement for $97, promising investors passive income from subscription fees paid by later investors.

The SEC also claimed that OnPassive made false statements about product launches, potential profits, and the legality of its operations.

Despite this, as of June 2023, OnPassive had not launched any commercial applications or started paying commissions.

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Other MLM Opportunities

Here are the other MLM companies we have reviewed:


Amway (Full Review)


Market America (Full Review)


Primerica (Full Review)


Herbalife (Full Review)


Mary Kay (Full Review)


Vector Marketing (Full Review)


Enagic (Full Review)


World Financial Group (Full Review)


Nu Skin (Full Review)


Q Sciences (Full Review)

See our list of the best MLM Companies.

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