Cycler Passive Review: $10 dual Ponzi investment
There is no information on the Cycler Passive website indicating who owns or runs the business.
The Cycler Passive domain (“cyclerpassive.com”) was registered on the 18th of October and lists a “Roy Robertson” as the domain owner. An address in Australian state of Western Australia is also provided.
I was unable to find any further information on Roy Roberston’s involvement in the MLM industry, either at an affiliate or coporate level. As it stands, whether or not Robertson has launched any other MLM opportunities in the past is unclear.
Read on for a full review of the Cycler Passive MLM business opportunity.
The Cycler Passive Product Line
Cycler Passive has no retailable products or services, with affiliates being only able to market affiliate membership to the company itself.
Once an new Cycler Passive affiliate has signed up, they are then able to purchase “upgrades”, which are effectively positions within Cycler Passive’s compensation plan.
The Cycler Passive Compensation Plan
The Cycler Passive compensation plan revolves around affiliates signing up and purchasing positions in one of three compensation plan components.
Ad Pack ROIs
Cycler Passive offer affiliates three levels of investment: Silver, Gold and Platinum. With each deposit made Cycler Passive promises a ROI paid out between 50 to 60 days.
How much of a ROI is paid out depends on how much money an affiliate invests:
- Silver ($10) – 2.5% daily for 60 days (150% ROI)
- Gold ($80) – 3% daily for 55 days (165% ROI)
- Platinum ($250) – 3.5% for 50 days (175% ROI)
Advertising credits are bundled with each investment, which can be used to display advertising on the Cycler Passive website.
Cycler Passive offer affiliates participation in a series of ten straight-line cyclers. The basic premise of a straight-line cycler is that affiliates purchase a position in a queue, with a portion of the funds from each position being sent up to the first position in the queue.
When this first position has accrued a predetermined balance, it cycles out and all positions in the queue move up a space – at which point the process repeats itself (new position purchases contribute to the new top position).
Using the above system, affiliates buy into Cycler Passive’s cyclers at $10 a position. Each of these positions expires out once it hits $30, at which point the position pays out $10 and “cycles out” into the next cycler (Cycler 2).
The next nine cycler queues function in the same manner as the first, with all new positions adding to the balance of the top positions until it expires.
For simplicity’s sake, I’ve included below only the commission paid out at each cycler level:
- Cycler 1 (position cost is $10) – $10, position in Cycler 2
- Cycler 2 – $20, position in Cycler 3
- Cycler 3 – $40, position in Cycler 4
- Cycler 4 – $80, position in Cycler 5
- Cycler 5 – $160, position in Cycler 6
- Cycler 6 – $320, position in Cycler 7
- Cycler 7 – $670, position in Cycler 8
- Cycler 8 – $1250, position in Cycler 9
- Cycler 9 – $2500, position in Cycler 10
- Cycler 10 – $15,000, position expires permanently
Referral commissions are also paid out from the Cycler 5 queue onwards. This means that if a personally recruited affiliate has a position which cycles out of a Cycler 5 or higher queue, the affiliate who recruited them is paid a commission.
- Cycler 5 – $16
- Cycler 6 – $32
- Cycler 7 – $64
- Cycler 8 – $125
- Cycler 9 – $250
- Cycler 10 – $500
Note that these referral commissions are only paid out if the upline affiliate has an active position in the Cycler queue (at the respective level being cycled out of) at the time.
Cycler Passive pay out 12% referral commission on all investments or cycle positions purchased by personally recruited affiliates.
Joining Cycler Passive
Affiliate membership to Cycler Passive is free, however affiliates must purchases positions in the compensation plan if they wish to generate either investment ROI or cycler commissions.
Referral commissions do not require a deposit by free affiliates.
Cycler Passive operates as a money game in the truest sense of the word. Affiliates pump money into the scheme either by way of investment or the purchase of cycler positions.
All commissions paid out are sourced from new affiliate funds, with nothing being sold to non-participants of the income opportunity.
Despite this, Cycler Passive argue that the bundling of advertising credits ‘makes system (sic) 100% legal‘. Regardless of what is bundled with either the investments or cycler positions however, the fact remains that any commissions paid are the result of a new injection of funds by participants (either new or existing).
This equates Cycler Passive to a dual Ponzi scheme business model.
Every time a new (cycler) position is bought in a line a fraction of the cost of that position is added to the top position. When that top position reaches its maximum value, it is then full and cycles out.
The $10 passive investment is self-explanatory, with the cyclers (as above) requiring constant new investment at the Cycler 1 level to push positions up the ten queues and generate the ROIs promised.
In both instances if affiliates stop investing there is no money to pay out, at which point and as with all Ponzi schemes, the Cycler Passive opportunity collapses.