AdvanX3 Review: A $10 a month “investment”?
There is no information on the AdvanX3 website indicating who owns or runs the business, with the company only providing the following vague statement:
AdvanX3 was recently established by four executive professionals with a combined experience of over 60 years in the direct sales industry.
AdvanX3 does provide a company address in the US state of Washington, however the company’s website domain registration is set to private (registered 25th April, 2012).
A “Loren Taylor” is named as company President, with Advanx3 claiming that Taylor has ‘vast experience in sales via technologically advanced Internet marketing‘ and ‘has created and managed over 35 companies that have been successful in reaping the benefits of marketing via the Internet‘.
AdvanX3 does not clarify whether or not Taylor is one of the “four executive professionals” they cite as being the co-founders of the company.
Additionally, despite the claims made by AdvanX3 above I wasn’t able to find much of an online MLM history on Taylor.
At the end of an eZineArticles article written by Taylor in June 2012 he cites himself as a “writer” of the “NetworkMarketingElite” blog:
There is no information on the NetworkMarketingElite website indicating who owns the site (domain registration also set to private), with the site appearing to be not much more than marketing spam targeting various MLM company names and the word “scam”.
One particular entry for EPXBody however does include affiliate links for a “taylor” (credited as an anonymous “team leader”):
Meanwhile on the main homepage of the NetworkMarketingElite blog, this huge ad for something called “TenDollarCar” caught my eye:
Noting that it sounded an awful like what I’d read thus far on Advanx3 itself and with the ad claiming the TenDollarCar opportunity was “launching now”, I clicked through, only to be hit with the same welcome video that appears on the AdvanX3 website:
Also note the worrying “you will earn $500 a month within 6 months” guarantee offered on the top right of the site.
Why the AdvanX3 promotional video is playing on the TenDollarCar website I have no idea, but I can tell you that the TenDollarCar domain was registered on the 23rd of August 2011.
And the owner?
None other than Loren Taylor, with the exact same Washington address provided as that given on the AdvanX3 website as their corporate headquarters.
Putting all of the above information together, TenDollarCar was launched in 2011 by Loren Taylor and after that crashed and burned he then joined EPXBody at some point (that was the only MLM company link I found, although I didn’t look very hard). Taylor promoted his EPXBody business and TenDollarCar (or tried to) via the NetworkMarketingElite blog.
Now it appears Taylor is back and is trying to relaunch the $10 a month concept he started with TenDollarCar, only without the raffle ticket scheme.
Call me cynical but I’m going to go out on a limb here and suggest that Taylor himself is the owner of AdvanX3. Whether the “four executive professionals” AdvanX3 cite exist (or three if Taylor is one of them) remains to be seen.
Read on for a full review of the AdvanX3 MLM business opportunity.
The AdvanX3 Product Line
AdvanX3 has no retailable products or services with members only able to market membership to the company itself.
Bundled with AdvanX3 membership is the appetite suppressant chewing gum, “GumPlus Hoodia”.
AdvanX3 do not disclose on their website how much of the GumPlus product is bundled with their monthly membership.
The AdvanX3 Compensation Plan
The AdvanX3 compensation plan revolves around the recruitment of new AdvanX3 members and their continued payment of monthly membership fees.
Commissions in AdvanX3 are paid via a 3×7 matrix compensation structure. A 3×7 matrix structure places an affiliate at the top of the structure with three legs branching out directly under them (representing three member positions):
These three legs (level 1) in turn branch out into another three legs (level 2) and so on and so forth down 7 levels (for a total of 29,523 member positions).
These positions are filled via direct recruitment or the recruitment efforts of an affiliate’s up and downlines. With each position filled a commission is then paid out each month, with how much being paid out dependent on what level of the matrix a position falls on:
- Levels 1 and 2 – 2.5%
- Levels 3 to 5 – 5%
- Levels 6 to 8 – 6%
- Level 9 – 7%
AdvanX3 don’t clarify exactly what these percentages are, but given the only revenue the company generates is from membership fees one would assume they are percentages of the monthly membership fee paid by members.
Matrix Level Qualification
As a base level member (no recruitment) AdvanX3 members can earn commissions on levels 1 to 5 of their matrix.
By recruiting new members into the company however, commissions can be extended to all seven levels of the matrix:
- Level 6 – recruit 2 new members
- Level 7 – recruit 4 new members
- Level 8 – recruit 6 new members
- Level 9 – recruit 6 new members and pay $20 a month for membership
Note that recruited members only count if they are “active” (paying their monthly membership fees). As such if members drop out of the company new ones will have to be recruited to maintain the recruitment quotas above.
Extra Matrix Positions
For every four new members recruited, Advanx3 reward members with an extra matrix position.
This position is placed in the first available spot of an AdvanX3 member’s matrix and effectively allows them to double up on commissions earnt (via overlap).
Note that each matrix position operates independently, meaning qualification requirements cannot be spread out across multiple positions.
Basic membership to AdvanX3 is $10 a month. If a member wishes to unlock level 9 commissions on their matrix this fee is raised to $20 a month.
As far as red flags go, one of the first things prospective members see when they visit the AdvanX3 website is a short embedded YouTube video. This marketing video does a pretty good job of raising the apparent red flags with AdvanX3 all on its own.
AdvanX3 is a company that helps you build your own legitimate business by just paying $10 per month. [00:51]
What if you spent $10 as an investment each month, that can earn an income for you month, after month, after month! [1:08]
Here’s how it works. We offer a unique way to earn income by simply sharing this business opportunity with others. [1:38]
The more people you involve, the more money you can make on referrals! [1:57]
If you promote this opportunity to three of your friends, and they promote it to three of their friends and this pattern continues for 9 generations, your potential commissions will be tens of thousands each month – from your $10 investment! [2:18]
Despite the gum products bundled with AdvanX3 membership, this is clearly a monthly investment of $10, with commissions paid out tied to the number of people you can also convince to pay $10 a month for membership.
The more you recruit, the more your downlines recruit and the more your uplines recruit the more money you make.
Despite the obvious pyramid scheme nature of the AdvanX3 opportunity, the company claims that their compensation plan is ‘a unique way to earn income‘.
You know how these play out folks. The admin(s) place themselves at the top of the pyramid, start their marketing campaigns and the recruitment begins.
Eventually nobody can find anyone new to recruit and once this happens those at the bottom of the pyramid stop paying their $10 (or $20) a month.
No longer earning commissions off these payments, those above them also quit and so on and so forth until the entire scheme collapses.