As you probably know, Agloco has 5 referral levels. That means you get rewarded for people you refer - you get a percentage of their surfing hours (of course, they don't loose anything either). You also get rewards for the referrals of your referrals, and so on - 5 levels "deep". What makes it a bit confusing at first is that Agloco adds up all your referrals from levels 2 to 5 and shows them as "extended" referrals. So, you'll see "direct" and "extended", while there in fact are 5 levels of them.

Does that make Agloco a pyramid scheme?
While it's true that Agloco has 5 referral levels, it can't be called a pyramid scheme for the simple fact that you don't have to pay anything to join. You don't have to pay anything to make money, either. In addition, it doesn't matter when you join. You can start building your referral network at any time. However, I have to agree that users who joined earlier have better chances to get more referrals. Also, it's very likely that users without any referrals won't make much money. To conclude, there are some similarities, but the main point is that Agloco is free, so you can't loose anything.


Too many levels?
Referral system is a good thing; when you refer someone to Agloco, everyone wins. It makes sense that you get rewarded for the people you refer. It also makes sense that you get rewarded for the second level. After all, you are communicating with your direct referrals and helping them build their own downlines. However, you have very little control on the third level, and next to none on the 4th and 5th. You can't even track them on your Agloco account, because all you see is a total number of your "extended" referrals. Does it make sense that you get rewarded for the work of people that signed up through a chain of 4 other members? Theoretically, you could have 1 referral on each level, and 100 on the 5th, and still make the same amount of money like if you had referred that 100 people by yourself. And the problem here is that more money is needed to pay the referral rewards, and less money is avalaible for surfing rewards.

I realize that a lot of people will disagree, but I would be happy if Agloco had just 1 or 2 referral levels. This way you'd be rewarded for your own efforts. I also believe a bigger emphasis should be put on rewarding your surfing activity.

Those are not my only concerns with Agloco's referral system, however. Take a look at this official information about Agloco:
"You can only get credit referral hours up to the amount you directly surf (meaning if you surf 3 hours but a referral surfs 4, you will only get credit for the first 3 of your referral's 4 hours)."
This part of their membership agreement is important as well:
"Monthly Time Limit May Change. The amount of time that will be credited to your account for You, Your Referrals, and Extended Referrals is limited by applicable Monthly Time Limits, and You agree that AGLOCO™ may change (decrease or increase) the Monthly Time Limit at any time for any country or countries effective as of the posting of the new limit on the page setting forth the Monthly Time Limits <...>."

If Agloco would apply different monthly time limits for different countries, this would hurt not only your personal earnings, but the earnings from your referrals as well (since you wouldn't be able to surf as much as they do). Now, I don't mind getting paid less for my hours because I'm from Lithuania. Being realistic, I understand that more advertisers want to promote their business to someone from US than someone from my country. However, applying different time limit is another matter. I have referrals from all over the world and limiting my surfing hours would limit my earnings from my downline as well. I hope it won't come to this. Read more on my Agloco blog.