Is Fetch Rewards a Pyramid Scheme?
Posted 06/08/2022 in Couponing

Is Fetch Rewards a Pyramid Scheme?

Is Fetch Rewards a Pyramid Scheme?

Is Fetch Rewards a Pyramid Scheme?

Is fetch rewards a pyramid scheme?  Officially, no.  But yes, some people treat Fetch Rewards like it could be a pyramid scheme.  Let me explain.


Fetch Rewards is a Legit Rebate App

First, Fetch Rewards is not a pyramid scheme.  Fetch rewards is a rebate app that provides money back when consumers purchase specific products from specific retailers.  The main purposes are to save consumers money while creating brand awareness for specific brands.  In fact, really it’s more about data collection for their partner brands—saving you money is just a payment for letting Fetch collect your data.  Fetch is a legitimate business with millions of users.  

Personally, I have used the Fetch Rebate app for over a year and gone through the points redemption process, so I have personal knowledge that it is a real rebate app.   Like other apps, I’ve had ups and downs with it, but nothing sketchy or illegal.  

Fetch Rewards is not a Pyramid Scheme per Definition

Second, a pyramid scheme is defined as a situation where recruits transfer money to the original person sitting on top of the pyramid, and later recruits also transfer money up the pyramid, so the person on top benefits as people on the lower layers recruit more participants.  Fetch Rewards is not a pyramid scheme because it only rewards members for their own recruits.   There is no multi-level aspect to Fetch Rewards.

If it bothers you that someone gets paid a referral fee for you joining, you can skip the referral code and join on your own.  But—sometimes using a referral code benefits both you and your friend.  

Why Did You Think Fetch Rewards is a Pyramid Scheme?

However, there are people who focus on the money Fetch Rewards pays for referrals, promoting it so hard that they make more money on referral fees than they would otherwise on the app.  The constant barrage of requests to use other people’s referral codes can give the misleading impression that there’s a scam in the works.  

And once you joined Fetch, you may have joined into a social group, allowing Fetch to view your contacts and create offers that caused more social pressure—like if you and your friend both bought a specific brand of chips, you both got a bonus. Just seeing a business mention your friends and contacts might have felt a little overwhelming.  It can start a person thinking, “Did I give Fetch permission to use my contacts?”  “Do I even know that person?”  “Why would Fetch pair my plumber and me for the chips deal?”  Once you open up your contacts to a business or app, it might make “connections” that don’t make sense to you at all.  For many people, that generates some discomfort.

Discomfort leads to concerns something might be a scam.  That’s probably what brought you to this article in the first place.  So, please rest assured you can “turn off” the social aspect of Fetch Rewards.  And yes, it’s a legit rebate app.

Whether you joined a social group or not, you probably still receive requests from friends and social media groups asking you to join Fetch, even after you already joined.  Why do you see so many requests for you to use someone’s referral code and join the Fetch Rewards rebate app?  For some people, it’s easier to make money with the referrals than with the coupons offered on the Fetch app.  For example, Fetch Rewards once reimbursed me for three ice cream cakes, about $21, but those were probably my most noteworthy Fetch transactions.  Most weeks, I get a few points for scanning receipts but I don’t use most of the offers on Fetch’s app.  So it’s a slow earning rebate app for me.  Someone recruiting new members can make much more.

Fetch Rewards is fully aware some people make more money recruiting than on the app’s rebates.   That’s fine.   This is a normal business practice, using social connections to spread the word about a company in hopes of gaining more members.  Many other rebate apps also pay referral fees to encourage membership growth.  It’s legit.

And, let’s be completely honest.  Even if someone pushed you to join Fetch simply so they could get referral bonuses, chances are they used an enticing offer to get you there.  For some people, it’s a great way to save money.  This is especially true if you are brand loyal to the brands Fetch Rewards has as partners.  If you buy a lot of Huggies, Kodiak, Pillsbury, L’Oreal, Maybelline, Coor’s, Miller, Unilever, Pepsi, or other products from their many different partner brands, you can use the rebates much more actively than someone who, for example, prefers a different brand or opts for store brands.  If you are a loyal Huggies/ Maybelline/ Unilever/ Pepsi buyer, the savings add up and you should be thrilled some friend encourage you to join Fetch Rewards.  

Conclusion: Fetch Rewards is Not a Pyramid Scheme

In conclusion, Fetch Rewards is not a pyramid scheme.  While they pay referral fees, it is a single transaction between two people without any upstream or downstream pyramid-like activity.  For additional information about Fetch Rewards and ethical concerns, we recommend the article Fetch Rewards: Ethical Concerns (see below for link).

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