5-dollar-gem-logoThere is no information on the 5 Dollar Gem website indicating who owns or runs the business.

The 5 Dollar Gem website domain (“5dollargem.com”) was registered on the 7th of July 2015, however the domain registration is set to private.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

The 5 Dollar Gem Product Line

5 Dollar Gem has no retailable products or services, with affiliates only able to market 5 Dollar Gem affiliate membership itself.

The 5 Dollar Gem Compensation Plan

The 5 Dollar Gem compensation plan sees affiliates purchase positions in a three-tier matrix system.

The matrix size used in 5 Dollar Gem is a 4×7, starting off with four positions on the first level:

autoxten-4x4-matrix

The second level of the matrix is generated by splitting each of the four level 1 positions into four new positions each.

The third level of the matrix is generated by splitting each of the second level positions in the same manner, with each level holding four times the number of positions as the previous level.

This process continues down until seven levels have been generated, with each 4×7 matrix containing a total 21,844 positions.

Positions in the matrices are filled via the direct and indirect recruitment of new affiliates, who buy into each matrix tier.

Each level of the three matrix tiers requires payment of a participation fee, which qualifies an affiliate to receive payments from subsequently recruited affiliates as follows:

Matrix 1

  • Tier 1 ($5 fee) –  $15 commission once all four positions are filled
  • Tier 2 ($10 fee) – $148 commission once all sixteen positions are filled
  • Tier 3 ($20 fee) – $1255 commission once all sixty-four positions are filled
  • Tier 4 ($40 fee) – $10,190 commission once all two hundred and fifty-six positions are filled
  • Tier 5 ($80 fee) – $81,820 commission once all one thousand and twenty-four positions are filled
  • Tier 6 ($160 fee) – $655,160 commission once all four thousand and ninety-six positions are filled
  • Tier 7 ($320 fee) – $5,242,480 commission once all sixteen thousand three hundred and eighty-four positions are filled

Matrix 2

  • Tier 1 ($50 fee) –  $150 commission once all four positions are filled
  • Tier 2 ($100 fee) – $1480 commission once all sixteen positions are filled
  • Tier 3 ($200 fee) – $12,550 commission once all sixty-four positions are filled
  • Tier 4 ($400 fee) – $101,900 commission once all two hundred and fifty-six positions are filled
  • Tier 5 ($800 fee) – $818,200 commission once all one thousand and twenty-four positions are filled
  • Tier 6 ($1600 fee) – $6,551,600 commission once all four thousand and ninety-six positions are filled
  • Tier 7 ($3200 fee) – $52,424,800 commission once all sixteen thousand three hundred and eighty-four positions are filled

Matrix 3

  • Tier 1 ($100 fee) –  $300 commission once all four positions are filled
  • Tier 2 ($200 fee) – $2960 commission once all sixteen positions are filled
  • Tier 3 ($400 fee) – $25,100 commission once all sixty-four positions are filled
  • Tier 4 ($800 fee) – $203,800 commission once all two hundred and fifty-six positions are filled
  • Tier 5 ($1600 fee) – $1,636,400 commission once all one thousand and twenty-four positions are filled
  • Tier 6 ($3200 fee) – $13,103,200 commission once all four thousand and ninety-six positions are filled
  • Tier 7 ($6400 fee) – $104,849,600 commission once all sixteen thousand three hundred and eighty-four positions are filled

Matching Bonus

A matching bonus of up to 15% is available on matrix commissions earned by personally recruited affiliates.

Specific details of matching bonus percentage payouts however are not provided.

Joining 5 Dollar Gem

Affiliate membership with 5 Dollar Gem is tied to the position of at least one $5 matrix position.

Conclusion

Under the guise of fundraising through crowdfunding, 5 Dollar Gem offer up a relatively straight forward cash gifting scheme.

Obviously aware of the nature of the scam they are running, the 5 Dollar Gem offers up the following:

This is not a business or income opportunity. Our Contribution Formula is purely based on Crowd Funding and we make no claims or guarantees of contributions that your project will receive.

The combination of a crowdfunding ruse to justify cash gifting is well-worn in MLM underbelly circles. The differentiation between legitimate crowdfunding and cash gifting is that crowdfunding donors are not buying into an income opportunity.

In cash gifting, a payment qualifies a participant to receive funds from subsequent participants. A quick look at 5 Dollar Gem’s compensation plan reveals that is exactly what is going on here.

On the math side of things the amount of $5 payments required for just one complete matrix cycle payout is ridiculous.

Across all three matrix tiers, 5 Dollar Gem affiliates are looking at a total $185.7 million dollar payout.

This requires 37.1 million $5 payments being fed in through the first tier of Matrix 1.

Are 37.1 million people going to be purchasing $5 positions in $5 Dollar Gem?

Yeah, my money’s on “no”.

Furthermore, just one level of recruitment then requires 1.3 quadrillion $5 payments. That’s 1,379,722,913,807,187.

Sure not everyone is going to max out the compensation plan, but when you’re touting million dollar payments you should at least be upfront about the ridiculous math behind them.

As is typcial of such schemes, the anonymous admins behind 5 Dollar Gem have likely preloaded the scheme to buggery. Thus ensuring that they and they alone will receive the lion’s share of funds deposited into the scheme.

Everybody else dumps their $5 on hope, realizing all to late that nobody is going to be placed into the matrix after them.