Ominto Review – Is This A Good Opportunity Or Big Scam?
You may have noticed that Ominto is getting a lot of hype and attention these days.
You might have had some friends in Network Marketing approach you about Ominto, or you may have seen it on social media.
I want to let you know, first of all, that I am NOT promoting Ominto as my own business opportunity. I am not an affiliate or distributor.
I have gathered here all the facts about Ominto in my Ominto Review – now you can learn all you need to know about it.
Have you been hearing rumours about Ominto being a scam?
Wondering what that’s all about?
Read on to find out.
Exactly What Is Ominto?
If the name Ominto sounds familiar, that shouldn’t come as a big surprise. Ominto is one of the most talked about companies in the world of multi-level marketing right now, and not for a very good reason either.
It’s not uncommon for a new MLM opportunity to lose a rather large deal of money. In fact, it’s quite common for a lot of different ones out there – especially when they’re operating as some sort of Ponzi or pyramid scheme.
Losing money is a fact of life when dealing with MLM, and Ominto is one of the many opportunities out there that’s losing out. However, the amount of money that they’re losing at a whole is quite shocking. In fact, it’s making headlines all across the Internet.
You see, over the course of 2014 and 2015, Ominto lost a combined total of a whopping $24.5 million over those two years.
That’s an absolutely enormous amount of cash, and those losses don’t look to be slowing down anytime soon at all for the company.
Looking at 2016 so far and into the rest of the year, it would appear that those losses are going to keep on a coming without any slowing down.
Thanks to the recent filing of the company’s 10-Q report, it would appear that Ominto has lost a total of $1.9 million in just their third quarter.
June 30th, 2016, is the official mark of Ominto’s 9-month target for their fiscal year. So far in 2016, it looks like the company has lost a grand total of $6.9 million. And, if we look back at where the company was last year in 2015, we can see that they’re losses were at around $4.7 million this exact same time.
It’s obvious that the company’s losses are only getting bigger and bigger as time goes on, and that’s honestly the last thing that the company needs right now.
In an official statement that Ominto released, the company said that “We experienced negative net cash flows from our operating activities of approximately $5.9 million and $2.5 million for the nine (9) months ended June 30, 2016 and 2015, respectively.”
All of this is resulting in bigger and bigger losses for Ominto in a year-over-year period, and those are all losses the company really can’t afford right now. The money they were losing in 2015 was bad enough, and the fact that those numbers are going up in 2016 just spells for even more bad news as time goes on.
Also from the company’s 10-Q filing that was released, we can see that the primary source of income the company was making was coming from “Membership subscription fees”, as well as “commission income.”
Just how much was that making Ominto?
Out of the company’s total profit of $3.9 million, those things accounted for $3.2 million of it.
So, it would make sense that as those numbers decreased, so too would the majority of the little money that is keeping Ominto afloat.
Unfortunately, we’re far from the only aspects that are causing Ominto to lose money. Because of things that the company is calling “selling, general and administrative expenses”, $4.2 million was spent. And, as a result of this spending, and additional $1.9 million was lost. Ominto is titling this money as a “loss from operations”, but they don’t go into any more detail as to what that actually entails.
And, actually, those selling expenses have been one of the main reasons as to why Ominto’s revenue has been in such dire trouble. It’s something that’s been going on pretty much since the company’s inception, and it has done nothing but hurt the company since it’s been around.
Thanks to an official statement directly from Ominto, the company said that “We had an accumulated deficit for the period rom out inception through June 30, 2016 of approximately $56.3 million.”
As a result of this deficit, the company’s working capital deficit is sitting at around $10.3 million – as of June 30, 2016.
Because of all these losses, the future for Ominto is dangerously shady. No company can survive with millions of dollars being lost all the time, and that’s exactly what’s taking place with Ominto. If these losses continue and the company doesn’t make some major change to turn thing around, we wouldn’t be surprised to see the company come to a collapse sooner rather than later.
Is Ominto A Scam?
If you have heard that Ominto is a scam, then you’ve come to the right place to find out the truth.
What’s the truth – is Ominto a scam?
You will only be successful by recognizing the weaknesses and finding a way to move past them.
Conclusion For My Ominto Review
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I definitely hope you have found value in my Review of Ominto.
I went into a lot of detail so that you can make a proper decision about whether you want to join or not.
If you do decide to proceed with Ominto, make sure you take the time to learn how to market yourself!
My training below can help you with that.