Insights into the Bux Model – Why Do Bux Sites Fail?

In this article we will try to explain what are “Bux” sites, how do they work and why we don’t recommend or review new sites based on the Bux model.

Types of PTC Sites – Real PTC vs Bux Sites

In general, there are two types of PTC sites, Real PTC sites and Bux sites. Real PTC sites are those that mainly focus towards advertisers, they act as middlemen between the advertisers and the members, the advertiser pays the site to display their ads, and a part of this payment goes to the viewer when he views the advertisement. Advertisements availability depends on advertisers, if there are no advertisers, there will be no ads to click. That means the number of ads on real PTC sites is not guaranteed. For real PTC sites, the main income stream is selling ads. Real PTC sites offer relatively cheap yearly premium memberships, usually with a purpose to provide the advertisers an option to target their advertisements to users with proven purchasing power. Real PTC sites don’t have limits on the number of direct referrals you can have, you will get credited for all ads clicked by your direct referrals, you are not ‘forced’ to click in order to earn from your referrals the next day and there are no rented referrals provided by the site. Real PTC sites generally have positive cash flow from advertising alone, because they focus 100% on selling advertising and they do not have to rely on selling upgrades or renting referrals in order to sustain.

On the other hand, Bux sites are completely different than the original PTC model. Bux sites are those that are mainly focused towards members investments instead of advertising income. Bux sites are displaying guaranteed number of self-sponsored ads (admin ads) with higher click-rate such as $0.01, on daily basis, rather than displaying ads from genuine advertisers. Bux sites are not self sufficient on advertising income alone and rely heavily on other income streams. Bux sites offer expensive upgrades, rent out referrals and have very low limit on the number of direct referrals you can have. Lets take a closer look on how a bux site operate.

What are Self-Sponsored Ads?

Self-sponsored ads are those guaranteed ads which the Bux site shows to their members. Since Bux sites lack of advertisers that are willing to pay the price for these ads, the admin have to place his own self sponsored ads. Bux sites are displaying guaranteed number of self-sponsored admin’s ads on daily basis, usually 4x$0.01 but it varies, sometimes you can see 4x$0.005 or 4x$0.0025. Those ads are not from external advertisers that purchased advertising at the site, just the admin is promoting his affiliate links for other sites/products, usually Etoro, Empire Option, Binary Option ads, Clickbank products or ads for other PTC sites.

Why Self-Sponsored Ads Are Bad?

The problem with the self-sponsored ads is that the site does not make any money when the viewer click the ads, as no one paid the site to display these ads. They make money/commissions only if the viewer buy the promoted product and that means the site need to make enough sales to cover the cost for showing these self-sponsored ads. Since Bux sites force members to visit the guaranteed self-sponsored ads in order to earn from their referrals, members actually are not really interested in visiting the websites or purchasing the products, they are just clicking for money (to earn their penny and to earn from their referrals the next day). That means quality of the traffic is low, members do not have interest in purchasing the advertised product and that is constantly increasing the site’s debt as members view the same self-sponsored ads each day without purchasing the advertised products/services. Basically the Bux site is showing these ads for ‘free’. That means the admin will have to pay you from his own pocket for viewing these ads, but that is not likely to happen, unless the admin is a millionaire willing to spend a lot of money to keep his site members happy by showing them guaranteed number of penny ads daily.

As it happens, the vast majority of Bux sites don’t even have a budget for self-sponsored ads or proper back up funds. The concept of self-sponsoring is bad as there is no other income source, the site entirely depends on outside sales/conversions to earn commissions in order to pay members for viewing these ads. It’s dangerous and risky when new sales are not generated, that means there won’t be any money to pay you for viewing the ads. The point is that Bux sites cannot survive because they don’t make enough money by showing guaranteed self-sponsored ads and they can’t cover the expenses for showing these ads. Actually they lose money by showing these ads. And it’s a bad idea to get involved into ‘PTC’ sites that depend primarily on sales of outside products, rather than onsite sales to genuine advertisers.

How Do Bux Sites Make Money?

Since most Bux sites have negative advertising cash flow, how do they make money then? This is the part where the ponzi nature of Bux sites comes into play. Bux sites generate money by selling expensive upgrades (up to few hundreds/thousands of dollars per membership) and renting out referrals. Those are the main income streams for Bux sites, rather than actual advertising income. Bux sites heavily relies on you paying for expensive upgrades or renting referrals and extending them up to 240 days or more. That’s how they make money and use this money to pay other members. That’s why they are able to pay in their beginnings. The income that comes from investments by members (upgrades, renting, recycling and extending referrals) is used to pay other members.

This is why Bux sites are ponzi schemes disguised as PTC. At first, Bux sites will pay ‘without’ issues, as long as members feed them by investing into memberships and renting referrals. The Bux site is basically borrowing money from its users and at some point will have to repay it back plus some bonus. Usually after few months investors will start making profits and cashing out big earnings, and this is the time when the Bux site will have to repay the investments back to the investors. When members start making profits and cashing out their earnings without reinvesting back into the system, the money generated from earlier investments starts to dry out, while the flow of new investments is not sufficient because there will be fewer new investors than before and that means there will be not enough money in the system to pay all members. This leads to payout delays and selective payments and the site must wait for additional investments that come from upgrades and rented referrals before they can make payouts. However, as already seen on thousands of Bux sites, that is not going to happen and the site will not be able to sustain.

The whole point is that Bux sites are basically ponzi schemes that depend on the incoming funds generated by new investors to pay earlier investors. And ponzi schemes are destined for a failure. They require consistent cash flow from new investors to pay earlier investors. When the flow of new funds starts to dry out the site will not be able to pay anymore and that would be their end, the whole program will collapse when large number of investors ask to cashout but there will be no enough incoming funds from new investors to pay the earlier investors. Ponzi schemes can’t be legit, ponzi schemes will not last forever, sooner or later they will fail.

Rented Referrals – Are They Worth the Gamble?

All bux sites offer referrals for rent. Almost all of them rent out bots instead of human referrals with a purpose to manipulate their ‘activity’ and to have control on how much money members make or lose from their rented referrals. The rented referrals click rates are up to 10 times higher than the direct referrals click rate. Bux sites would not offer rented referrals with up to 10 times higher click rates than direct referrals click rate if they didn’t have control on their activity. You may have noticed after upgrading on a Bux site how all of a sudden your rented referrals average will drop down barely above your break event point. Is it possible that half of your rented referrals went to a vacation the very same day when you upgraded your account? Or did they lose interest and left the site? No, it is not possible, bots can’t lose interest, bots don’t go on vacation. Bots are ‘doing’ what the admin is ‘telling’ them to do, since your premium membership has better referral click rates, your RR average must drop down because if it remains the same you will make much more profit and that’s bad for the Bux site.

Or lets take another example, most Bux sites offer auto-recycle feature, replacing a rented referral for free after certain period of inactivity. For example if your rented referral didn’t click for 14 days straight he will be automatically replaced with a new one for free. So you have a rented referral that didn’t click for 13 days straight, on the the 14th day when he should be automatically replaced by the site free of charge, all of a sudden he ‘logs in’ and click just one advertisement! And that prevents the auto-recycle, then the same referral will go back to ‘sleep’ and you will have to pay a fee to recycle this bot referral. But since half of the rent time has already passed, you will be in loss from this referral, regardless if you recycle. Even if you recycle this particular referral, don’t have high expectations, most likely you will receive just another bot with the same ‘behavior’ as your previous bot.

It is a well known fact that almost all bux sites use bots instead of real members. Most admins will never admit that they use bots, they will give you ridiculous excuses and will try to convince you otherwise. Many members don’t care if their rented referrals are bots, as long as they make profit. But since the RR performance is controlled by the site admin, profit may easily turn into loss tomorrow. The way the RR system works, it will give you impression that you are making money, but eventually most members will lose. Not everyone is going to lose money on rented referrals, but the majority will lose, either because they are not managing their RR correctly, or because the site is not letting them to make profits, regardless of the member strategy.

Tricks That Makes You Pour Money Into the System

Bux sites have implemented few tricks to lure you in and make you spend money to feed their big ponzi mouth. Let’s mention a few. On most Bux sites the direct referrals limit for free members is very low. Actually Bux sites don’t want free members to bring many members to the site, instead they prefer you to buy upgrade and spend money on renting their bots. And they will offer favorable click rates for rented referrals. Because they generate money when you rent bot referrals and use that money to pay other members. Moreover they can’t control (not yet) the clicks of your direct referrals like they control the rented referrals. Since the referral limits are low – if you want to have more direct referrals you will have to upgrade to paid memberships which have higher referral limits.

Upgrades are expensive, from few hundreds of dollars up to few thousands of dollars on some sites. Since upgrades are not worthwhile if you don’t have any referrals, the site will offer you favorable click rates for rented referrals. Because they prefer you spending few hundred dollars more on rented referrals instead of bringing direct referrals to the site. Bux sites would not offer rented referrals if it was not profitable for them to do so. And if it is profitable for the sites, someone must lose money, in this case obviously the members. Not all, but most will lose and in the long run the site will be in profit from RR, in general.

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At their beginnings, Bux sites will set high average on the bot rented referrals and will give you the impression of big earnings. This is just a trick to lure you in and to make you rent even more referrals. They can afford to set high RR average because usually at the beginning they have positive cash flow, since members are investing into memberships and rented referrals and it will take few months for them to reach return of investment. As time goes on, after these first few months, people will start making profits and cashing out their earnings, but since there is not enough incoming funds from new investors to maintain the high RR average, the admin will lower the RR bots average considerably to the point where you can barely make any profit from your RR.

Now you may wonder what happened? Your RR were super active, you used to make profit with them, and now all of a sudden they are not active anymore, they barely clicks 2-3 ads per week? The answer is simple, the Bux site must control your RR activity in order to control the cashflow. But it doesn’t end here, the Bux site will offer you to extend your referrals to up to 240 days, to get up to 30% discount of the regular price. That should increase your odds of making some profit. This is a big advance for the Bux admin. You are paying upfront for your referrals for 8 months, that money will be used to pay other members and you can just hope that the site will be still there after 7-8 months when you should receive the returns from your RR investment. This is a big gamble. Reality is, most Bux sites will vanish within half a year of their launch.

What if you can’t afford to extend your referrals long term? How to increase your odds of making profit form your RR? Bux sites have solution for you again – you can recycle your inactive referrals. With recycling you are replacing your inactive referrals with new ones by paying a fee, usually it 30% off the regular RR price. With recycling, you pour money back into the system. This is one more reason why the site need to control your RR activity. By giving you bad RR average and inactive referrals, your are ‘forced’ to recycle your referrals to receive new active ones, but usually that won’t happen, no matter how many times you recycle, your RR average won’t change much, since your RR average is ‘set in stone’ by the admin. End result is, you throw money back into the system, your RR average didn’t change, you lost money and the site made money out of your pocket.

Most bux sites have very low direct referrals limit. On some Bux sites, after reaching your direct referrals limit if you want to delete your inactive direct referrals to make room for new ones – you will have to pay a fee. Same for your rented referrals, if you let them expire, a fee will be automatically deducted from your balance for each expired referral. This again pour money back into the system. Just another tricks to ‘force’ you to extend your rented referrals and prevent you from deleting your inactive direct referrals.

Bux (Ponzi) Networks – 3, 4, 5 or More Sites From the Same Owner

Since Bux sites run on a failed business model and they cannot sustain, many times you will notice Bux admins will open new Bux sites shortly after their first site. Since their first site cannot survive alone, they will open new sites, one after another within short period of time. The reason is simple – due to lack of funds, the admin must find additional income streams, and the easiest solution for the admin is to open new Bux sites. Members will start investing into these new sites, and the incoming funds from these sites will be used to pay debt on the older sites. Not hard to guess, this is another ponzi trick. Since ponzi schemes are doomed to fail, it will not be long before the whole network collapses.

General Conclusion – Bux Sites Are Not Worth the Hassle

Bux sites run on a failed business model, they are designed to operate like a ponzi. The Bux model is unsustainable business model that relies on members investments instead of providing real PTC service. The Bux model cannot sustain in the long run and they have the highest failure rate in this industry. There is not a single legit long-standing Bux site out there. Only NeoBux managed to operate as a pure Bux sites for 3 years, and they had to change in order to sustain, now NeoBux is a hybrid between a Bux, Real PTC and GPT. On the other hand there are thousands of failed Bux sites. Most Bux sites do not last more than half a year, but this will vary from site to site, some sites will use dirty scamming tactics that will keep them longer in the business. Due to all these reasons, we’ll no longer review any new Bux sites. Bux sites are destined for a failure, sooner or later they will be gone, and this has been proved by thousands of failed and closed scam Bux sites. We’ll not review Bux sites just to wait for them to stop paying then to move them to the Sites to the Avoid list. Bux sites are scams in the making since the start, there is no point to review them. We’ll not monitor new Bux sites anymore, and we’ll not provide information whether a particular Bux site is still paying or not, whether it is ‘scam or legit’ etc. It has been already stated Bux sites are scams in the making since they run on a failed business model. We would not recommend any new Bux site, but the choice is yours and it is up to you to make decisions for yourself, whether to use Bux sites or to keep away from them. If you decide to use them, the best advice we could give you is Never Invest More Than You Can Afford to Lose and do you own due diligence before throwing your money into a Bux site. Just keep in mind, the odds are not in your favor.

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37 comments on “Insights into the Bux Model – Why Do Bux Sites Fail?

  1. Kashif Hussain

    Hey man, great article. I thought there was something off about my RR activities which is why I came looking for this article. Thank you so much for clearing my doubts. Also, I have another query. If this is true, do traffic exchanges that provide Random Referrals, are giving out bots as well?