Make no mistake, the premise of a one time investment of ten dollars potentially turning into nearly two hundred thousand is an attractive proposition.
Legalities and scams aside, the claim itself is definitely more than enough to warrant a closer look by someone and that’s exactly what AutoXTen are counting on to spread the word.
Turn $10 into $199,240… sounds simple enough, but what exactly do you have to do to earn it? And more importantly, is the AutoXTen MLM business opportunity legit?
Let’s find out.
AutoXTen the company
AutoXTen is apparently headed up by Scott Chandler, Brett Robinson and Jeff Long. Each have a history in MLM and affiliate marketing and in the past seem to have marketed various opportunities here and there.
Interestingly enough though you won’t find this on the official AutoXTen website. Infact, as far as company websites go, AutoXTen ranks pretty abysmally in terms of company information.
Infact, without being referred by an existing member, you can’t even view what basic information there is on the official AutoXTen website.
The lack of information available about AutoXTen doesn’t appear to be deterring the masses though. Currently AutoXTen are reporting that they’ve signed on over 33,000 members.
Keep in mind though that as AutoXTen is in prelaunch, that these are free members merely ‘locking in’ in a no obligation spot. Come AutoXTen’s launch date, they’ll need to pay up to participate in the company’s compensation plan.
The AutoXTen product line
With founders Scott Chandler, Brett Robinson and Jeff Long all having a history in internet marketing, AutoXTen’s products thus seem to be self authored and geared towards marketing the AutoXTen opportunity itself.
In other words, the only people who are going to get any value out of AutoXTen’s product line are those trying to market the business themselves. Despite the claims by AutoXTen that their training and tools can ‘assist with any business’, it’d be foolish to accept that they weren’t specifically tailored to marketing the AutoXTen business.
This in itself isn’t a bad thing (well it is when it’s your sole product line), but in a day and age of such varied and unique business opportunities, MLM or otherwise, I’m extremely weary of any marketing offering that presents itself as a blanket solution to market all businesses.
Currently, only details about the first round of AutoXTen’s product line have been released. In the first component of the compensation plan, on offer are four books and from the looks of it, accompanying DVDs.
Covering ‘internet marketing’, ‘offline marketing’, ‘social network marketing’ and ‘advanced internet marketing’, in total you’re looking at an alleged combined retail value of $150.
These products are dispersed throughout the various levels of the 4×4 matrix utilised in the compensation plan.
Basically, as you fill each level of your matrix (I’ll go into the matrices in the compensation plan section below), you’re required to purchase one of AutoXGen’s products. This happens automatically and the money to fund the product purchase is taken directly from your level commission.
As of yet the Phase 2 matrix and beyond (apparently you get different products each time when you re-enter the matrices over and over again) product line hasn’t been released but presumably will be soon (most likely when the company founders have finished authoring them).
The AutoXTen Compensation Plan
The AutoXTen compensation plan primarily revolves around two 4×4 forced matrices. That is to say with you at the top, you have four people under you, four people under each of them and then a further four people under them.
All up your looking at a 340 member requirement to fill up one of these matrices. As this happens you as an AutoXTen member get paid commissions.
Here’s a closer look at the various components of the AutoXTen compensaton plan;
The Phase 1 Matrix
The Phase 1 matrix is what all members start off in when they join AutoXTen. After paying your joining fee you’re placed at the top of your own 4X4 matrix and in order to get paid must recruit others to fill up the spots below you.
Here’s how it looks visually;
In the Phase 1 matrix, commissions are paid out on a ‘per recruitment’ basis. That is to say each time you recruit someone to your matrix, or someone above you fills a spot in your matrix via overspill, you are awarded a commission payout – you don’t need to wait until the entire matrix is filled.
The reason for this are the inbuilt product purchases. AutoXTen claim anyone can get started with just a one time $10 investment. Now obviously this isn’t going to cover the mandatory product purchases at each level so this money has to come from somewhere, namely your commissions.
The commission payouts for the Phase 1 matrix are as follows;
- Level 1 – 4 members paying out $10 each (total $40 with $20 set aside for level 2 entry)
- Level 2 – 16 members paying out $10 each (total $160 with $40 set aside for level 3 entry)
- Level 3 – 64 members paying out $20 each (total $1280 with $80 set aside for level 4 entry)
- Level 4 – 256 members paying out $40 each (total $10,240 with $170 set aside for entry in the Phase 2 matrix and re-entry into a Phase 1 matrix respectively)
The Phase 2 Matrix
Entry into the Phase 2 matrix is where the real money starts to happen in AutoXTen but it isn’t as simple as a $160 entry fee. Unlike the Phase 1 matrix, to gain entry into Phase 2, at least four of your Phase 1 matrix levels on level 4 fill their own matrices up to level 4.
That is to say, at least four people on your own Phase 1 matrix must recruit enough people to advance to level 4 on their own matrices.
Once this happens, along with the $160 entry fee, you’re then given your very own Phase 2 matrix.
The Phase 2 matrix operates in much the same manner as the Phase 1 matrix. Commissions are paid out as people join the matrix and as you fill each level a certain amount of your commissions are set aside to pay the entry fee for the next level.
The commission payouts for the Phase 2 matrix are as follows;
- Level 1 – 4 members paying out $160 each (total $320 with $160 set aside for level 2 entry)
- Level 2 – 16 members paying out $160 each (total $2560 with $320 set aside for level 3 entry)
- Level 3 – 64 members paying out $320 each (total $20480 with $640 set aside for level 4 entry)
- Level 4 – 256 members paying out $640 each (total $163840 with $160 set aside for re-entry into another Phase 2 matrix)
Along with the matrix commissions, there’s also a matching bonus commission offered to AutoXTen members.
Designed to encourage members to directly recruit members and not just sit around waiting for others to do it, the matching bonus pays out 50% of the matrix earnings of those members you directly sponsor.
Additionally you’ll also earn another 50% matching bonus on those your directly sponsored members sponsor too.
In other words, AutoXTen pay a 50% matching bonus 2 levels deep but only on those directly sponsored.
Note that in order to be eligible for commissions, AutoXTen members must be at the same level or above in their own matrix, as those they are receiving commissions from.
If this is not the case, the commission is rolled up through the upline until a suitable qualified AutoXTen member is found.
As mentioned earlier, one of the biggest drawcards of AutoXTen is the heavily advertised concept of investing $10 and turning it into thousands over and over again.
The only drawback with the $10 joining option however is that there is a waiting period whilst you qualify yourself on the various levels of your Phase 1 matrix.
Anyone who surpasses you in level on these matrix will have their commissions automatically rolled to your upline (or whoever is above them and suitable qualified).
The alternative to this is a $150 joining option which automatically qualifies you on all levels of your Phase 1 matrix. The idea here is that instead of relying on your commissions (other people’s joining fees), you yourself outright pay into all levels of the matrix, including product purchases.
It’s pretty easy to see that the entire nature of the AutoXTen business revolves around the key point that there’ll always be enough new people being brought into the business to cover the commission payouts.
Usually this is done taking the matrix as a whole but with AutoXTen they’ve managed to size this down so that as each members joins commissions are paid out.
I guess they figure that once the money is in it’s not going anywhere so why make people wait. It’s the whole carrot and stick idea, if you will.
Product wise there’s really no retail value as all they’re really there for is to add legality to the business opportunity and encourage people to continue to market the AutoXTen opportunity itself to new recruits.
What founders Chandler Robinson and Long are going to do after they’ve exhausted ‘internet marketing 101′ I’ve got no idea but they have promised to continue to keep offering new products and training to people each and every time they re-enter either of the matrices.
I imagine if AutoXTen is successful and people start re-entering 10-20 times we’re going to see a lot of outsources low quality training guides and products. Let’s be honest, at that stage nobody really cares about the product line – it’s just there to keep the regulators happy.
All in all I’d classify the AutoXTen MLM business opportunity as pretty high risk. The whole thing relies on the membership fees of new recruits outweighing the commissions being paid to members.
Eventually mathematically this is going to reach a critical point where there will simply be too many existing members demanding commissions and not enough new people entering the company and paying costs.
With no repeat consumable products and no chance of a pure retail side of the business, I see AutoXTen collapsing shortly after it gains any momentum.
Currently AutoXTen is in pre-launch with an expected launch date of July 13th if I’ve done my maths right (the countdown on the official website states there’s 19 days to go till launch from today, June 24th).