Passive Profit Magnet Review: $10 adpack Ponzi scheme
There is no information on the Passive Profit Magnet website domain indicating who owns or runs the business.
The Passive Profit Magnet website domain (“passiveprofitmagnet.com”) was registered on the 27th of November 2015, however the domain registration is currently set to private.
Up until recently, the Passive Profit Magnet domain was registered to “Kent Rainer Buenaventura” of “Revshare Income”. An address in Quezon City, Philippines was also provided.
The address Buenaventura used to register the Passive Profit Magnet domain matches the address provided on the Passive Profit Magnet Facebook page.
According to Buenaventura’s own Facebook profile, he is currently employed as a delivery driver.
Read on for a full review of the Passive Profit Magnet MLM business opportunity.
The Passive Profit Magnet Product Line
Passive Profit Magnet has no retailable products or services, with affiliates only able to market Passive Profit Magnet affiliate membership itself.
Once signed up, Passive Profit Magnet affiliates can make $10 deposits with the company.
Bundled with each $10 deposit are a series of advertising credits, which can be used to display advertising on the Passive Profit Magnet website.
The Passive Profit Magnet Compensation Plan
Passive Profit Magnet sees affiliates invest $10 on the promise of an advertised $15 ROI.
Referral commissions on $10 investments are paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Passive Profit Magnet cap payable unilevel levels at three, with referral commissions paid out as follows:
- level 1 (personally recruited affiliates) – 6%
- level 2 – 3%
- level 3 – 1%
Joining Passive Profit Magnet
Affiliate membership with Passive Profit Magnet is free, however affiliates must invest a minimum $10 in order to participate in the MLM income opportunity.
Conclusion
As per the Passive Profit Magnet FAQ;
Passive Profit Magnet is an Online Advertising and Revenue Sharing program.
We offer our members a fixed 5% daily rebate for 30 days from adpack purchases.
Passive Profit Magnet do little to mask the fact that they are running a cookie-cutter ad-credit Ponzi scheme.
Affiliates invest $10 on the promise of an advertised $15 ROI, paid out of newly invested affiliate funds. This defines Passive Profit Magnet as a Ponzi scheme, with referral commissions adding an additional pyramid layer to the scheme.
Passive Profit Magnet will continue to do profit sharing with you as long as people keep on investing in the system, either through reinvestment of their earned money, or by buying new ad packages.
As with all Ponzi schemes, once newly invested funds dry up Passive Profit Magnet will find itself unable to meet its ROI liabilities.
We are not liable for any lost monies due to slowing of the influx of new members.
Once that happens Passive Profit Magnet will collapse from the bottom-up, leaving the majority of investors out of pocket.
Is there some way to calculate how much the admin keeps of the funds if for example he had only 5000 paid members?
Not really, it depends on how many preloaded positions they give themselves.
Nope. As Oz said, there’s no way to know how many of those “paid members” are real and how many are shill.
With so many of these type popping up I think it would be interesting to know how much gets trapped in the system vs being paid out.
The same people keep starting new ones with a history of failed ones.
I’m sure we’d LOVE to see some real numbers from real MLM companies… over these dime-a-dozen HYIP ponzis.