MaxeniumAds Review: $25 “advertising packages”

MaxeniumAds officially launched on July 1st 2013 after a brief prelaunch period throughout June. The company is headed up by CEO and co-founder Ranjit Kaur Cooner.

Provided on the MaxeniumAds website is a “certificate of incorporation of a private limited company”, granted to a “Max Xenium Pool LTD” in the UK.

British Certificates of Incorpation are available online for as little as £15.00, with “same day service” available for an additional fee.

MaxeniumAds provide the company number “8406931” on their website, which reveals an address in Birmingham in the UK. Also revealed in the listing is MaxeniumAds previous name, “EVERY HOUR INCOME LIMITED” (name changed on the 4th of April, 2013).

Every Hour Income Limited appears to be a previous venture of Cooner’s, using the now defunct domain name “everyhourincome.biz” (which expired in June 2013).

The only information I was able to find on Every Hour Income Limited is that it appears to be the brand Cooner used to market an income opportunity, something to do with recruiting affiliates under the guise of generating blog subscribers (affiliate ID: “rcooner”):

Whenever you refer someone to the system – they are offered a few upgrades that can get them up to 3000 instant subscribers!!

And if they take up that option – You get paid!!

But here is the best part…  You then get paid if that person brings in other members…

In her MaxeniumAds corporate bio, the company claims Cooner has ‘extensive experience in the mobile industry, internet marketing and advertising‘.

The only MLM company I found Cooner connected to was participation in That Free Thing as an affiliate (“free stuff” based MLM company that launched in 2011):

Other than whatever Every Hour Income Limited was, MaxeniumAds appears to be Cooner’s first MLM venture.

Read on for a full review of the MaxeniumAds MLM business opportunity.

The MaxeniumAds Product Line

MaxeniumAds has no retailable products or services. Affiliates sign up to the company and then purchase “advertising packages” for $25 each.

Each advertising package is bundled with a series of advertising credits, which an affiliate is able to use to display advertising on the MaxeniumAds website.

The MaxeniumAds Compensation Plan

MaxeniumAds affiliates purchase advertising packages for $25 each. When an affiliate deposits $25 into MaxeniumAds, two things happen – a cycler and  “adpack” position are created.

The adpack position pays out an advertised “up to” 2% a day for 100 days. 60% of every advertising package purchased by affiliates ($15 per position) is split between adpack positions qualifying for a daily ROI.

30% of the daily ROI paid out on adpack positions must be re-invested back into more advertising packages.

The cycler position generates a small amount of revenue everytime a new advertising package is purchased by an affiliate, maturing once it reaches a 250% value.

All cycler positions are placed into a queue, with the position at the top of the queue receiving $9 everytime an affiliate purchasing an advertising package. Once a position reaches a $22.50 balance it cycles out and the next position in line takes its place.

A matching bonus is paid when recruited affiliate’s positions cycle out, paid out down three levels of recruitment:

• Level 1 – 3%
• Levels 2 and 3 – 1%

Finally all affiliates are also charged a monthly membership fee of $10, which the company pays out referral commissions on down three levels of recruitment:

• Level 1 (personal recruits) – 25% ($2.50)
• Level 2 – 15% ($1.50)
• Level 3 –  10% ($1)

Joining MaxeniumAds

Affiliate membership to MaxeniumAds is $10 a month.

Conclusion

With all revenue generated by affiliates and distributed amongst affiliates who have already paid into the scheme, MaxeniumAds operates a combination pyramid and Ponzi scheme hybrid.

On the pyramid scheme side of things, the charging of monthly affiliate fees which are then distributed amongst affiliates who recruit incentivizes the recruitment of new affiliates.

Effectively the more affiliates an affiliate recruits, the higher their monthly membership fee commission is.

The Ponzi scheme component kicks in with both the adpack and cycler positions. Both packs take new affiliate investments and redistribute them between affiliates who have already invested in the scheme (up to 200% and 250% respectively).

Taking new affiliate investments, and using it to pay off existing affiliates in the form of a ROI dependent on continued new investment by affiliates squarely fits the definition of a Ponzi scheme.

The mandatory 30% re-investment of the daily ROI MaxeniumAds pay out will prolong the scheme a bit longer than a scheme without mandatory re-investment, however once recruitment slows down and new affiliate money stop flowing in, as with all Ponzi schemes MaxeniumAds will still collapse.

The idea being that, long before that happens, Ranjit Cooner and friends have gathered enough $1 fees from every $25 investment made by affiliates to cut their losses and disappear.