Beware of Kindred Hearts- Review

Kindred Hearts gives no information on its website on the company’s ownership or management.

In 2009, the Kindred Hearts website domain (“kindredheartsteam.com”) was registered. The last change to the private registration was made on June 9, 2021.

Kindred Heart’s website contains login/join buttons along with the phrase “US RESIDENTS ONLY.”

We are aware that this was not always the case. Kindred Hearts was brought to my attention when I published BehindMLM’s Gift Of Legacy review.

After being fired from Kindred Hearts, a group of unhappy South African Kindred Hearts affiliates formed their clone operation.

Chris Hattingh, the founder of Gift of Legacy, asserts that Kindred Hearts is managed by an unidentified eighty-three-year-old American woman.

Kindred Hearts’ ownership is obscured by the existence of other firms with the same name.

Michigan is home to an Australian fashion firm and a Kindred Hearts gift shop.

If an MLM firm is not transparent about who runs or controls it, you should always think twice before joining and/or contributing money.

Kindred Hearts’ Merchandisepositions
Kindred Hearts does not provide any items or services for sale.

Affiliates may only promote affiliate membership with Kindred Hearts.

Plan for Kindred Hearts’ Compensation
Affiliates of Kindred Hearts engage in a four-tier, $100 donation cycle.

Kindred Hearts monitors gift payments using a 23 matrix.

A 23 matrix places one affiliate at the top, followed by two spots straight below.

These two locations comprise the matrix’s initial level:

The second level of the matrix is formed by dividing each of the initial two positions into two additional positions (four position).

Level three is similarly produced and contains eight places.

A freshly joined Kindred Hearts affiliate donates $100 to the one who recruited them.

This positions them at the top of their own $100 23 matrices on the first tier.

The positions in the matrix are filled with successive $100 gifting payments made by both directly and indirectly recruited affiliates.

Each Kindred Hearts affiliate must personally recruit two other affiliates to qualify for gifting payments.

A “cycle” is initiated when all eight layers of the matrix are populated.

This leads to:

a $300 payment
$100 was utilized to create a new first-tier position for presenting $100; and
$400 was utilized to advance to the second gifting tier.
After this initial cycle, no new positions for the second giving tier will be created. This causes the following cycles to generate $750 in retained giving payments.

The remaining three Kindred Hearts giving tiers function identically.

$400 second-tier cycle – keep $1800, $400 used to generate a fresh second-tier gifting position, and $1000 used to generate a third-tier gifting position (during the second and future cycles, you keep $2800 because no fourth-tier gifting position is generated).
$1000 third-tier cycle – keep $5000, $1000 used to generate a fresh third-tier gifting position, and $2000 used to generate a fourth-tier gifting position (during the second and future cycles, you retain $7000 because no fourth-tier gifting position is formed).
$2000 fourth-tier cycle – retain $14,000, $2000 is utilized to create a new fourth-tier gifting position.
Connecting Loving Hearts
Affiliate membership in Kindred Hearts is contingent on a $100 donation contribution.

Similar Hearts Concluding
Kindred Hearts is an unlawful gifting program that uses the same cliched marketing falsehoods as all other giving schemes.

The primary rationale is the U.S. tax law regarding monetary gifts:

It should be clear that this does not apply to business opportunity gifts.

Ironically, the same Kindred Hearts presentation from which the preceding slide was obtained goes on to describe who is subject to US taxes laws:

In unlawful giving schemes such as Kindred Hearts, individuals make gift payments to receive gifting payments from other participants.

This is essential for distinguishing between a present with no strings attached and an illicit giving scheme.

Notably, rejecting the anticipation of gifting payments does not affect this reality. Be careful of anyone who claims to have joined Kindred Hearts for reasons other than financial gain.

Tier 1 of Kindred Hearts – Donate $100 and Receive $300/$700 from Other Participants
Tier 2 of Kindred Hearts – provide $400 and receive $1800/$2800 from other participants
Kindred Hearts Tier 3 – Donate $1,000 and Receive $5,000/$7,000 from Other Contributors
Kindred Hearts Tier 4 – provide $2,000 and receive $14,000 from other contributors
That is the business strategy of Kindred Hearts, period.

So why is it prohibited?

Pyramid schemes characterize MLM gifting systems. They need continuous donation contributions of $100 to keep the matrices churning.

If recruiting declines and fresh $100 donation payments decrease or cease, the entire operation will collapse.

The fact that payments are made between participants distinguishes a gifting pyramid scheme from a typical MLM pyramid scam.

This is academic and has no bearing on the scheme’s validity.

As with all pyramid schemes, the majority of gifting program members lose money.

This is a result of early adopters advancing to the top levels, where the majority of given cash is allocated.

Contact the FTC for clarification on the legality of gifting schemes in the United States (they are banned in most jurisdictions).

Either describe Kindred Hearts’ business approach or offer them this evaluation.

And if that is too much work, as Kindred Hearts proponents have recommended, contact an accountant and run this business plan by them.

As a last point of interest, the website traffic of Kindred Hearts is declining:

This results in a drop in recruitment, which, as we’ve discussed previously, indicates the end of an MLM gifting program.

Unless foolish new members are discovered, Kindred Hearts is on the verge of collapse.

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