MyNyloxin Review: Cobra venom and revenue-sharing
Nyloxin is a product of Nutra Pharma Corporation. MyNyloxin is an MLM business opportunity that was attached to the Nyloxin product, circa 2012.
In a press release dated October 2013, Nutra Pharma Corporation reveal that they essentially outsource the MLM marketing for Nyloxin to the True Cash Network (formerly the Text Cash Network).
October 8, 2013 – Nutra Pharma Corp. is providing updates on the sales and marketing activities of TCN, a distributor of Nutra Pharma’s over-the-counter (OTC) pain reliever, Nyloxin
In September 2012, Nutra Pharma announced the beginning of distribution efforts by the TCN group of direct distributors. Since that time, TCN has worked diligently to introduce Nyloxin to approximately 40,000 distributors in the United States and almost 400,000 distributors globally.
In August 2013, TCN re-launched their company as the “True Cash Network” and have subsequently expanded their internet presence.
They have been working to overhaul their product offerings and have allowed their distributors personal websites under their MyNyloxin.com portal. Additionally, TCN has scheduled marketing efforts in the US that will include internet, radio and television.
Text Cash Network are a long running matrix-based scheme who appear to have gone through as many product changes as they have management.
I first reviewed Text Cash Network back in 2011, when the company initially attached itself to a voucher/savings network. Affiliates weren’t charged to join, but had to watch 5 SMS ads a day to maintain their account.
If they recruited any new affiliates, they were paid $1.50. Advertising commissions were also touted, but at the time of launch there were no specifics provided.
Initially not disclosed on their website, it was later revealed the Brett Hudson was running things as President of the company.
By 2012 the savings/coupon site idea was dead, and as per the Nutra Pharma Corp press-release above, TCN was marketing Nyloxin through their opportunity.
Management seems to have changed by that point too, with the Nutra Pharma Corp release citing a Dalton Johnson as CEO:
The Nyloxin products continue to represent a wonderful opportunity for our distributors,” commented Dalton Johnson, CEO of TCN.
In the same year the MLM opportunity Noca Now appeared. This company initially looked to be a standlone but analysis of the compensation plan made multiple references to TCN.
Noca Cola and Tea were the products behind the Noca Now opportunity, having been merged with TCN’s compensation plan in the same manner Nyloxin was.
The Noca Now website still exists, however the opportunity itself appears to be all but dead.
Again, as per the Nutra Pharma release, TCN renamed itself to True Cash Network in 2013 and continued to market Nyloxin.
Today the MyNyloxin website credits Steve Gewecke (right) as the President of the company, indicating yet another change of management at TCN.
Exactly how many products TCN have attached themselves to over the years is unclear. They still maintain a website over at “truecashnetwork.com”, however the website only mentions affiliates being able to join “many TCN Opportunities”.
No specifics on the current management structure of the company are provided either.
If you find all of this as confusing as I do, a major contributing factor is that all of TCN’s incarnations are a result of serial-scammer Phil Piccolo (aliases Felice Angelo and Felix Angelo Piccolo) running TCN without actually putting his name to anything.
Earlier this year Rod Cook over at MLM Watchdog reported,
Phil is back under the name: Felice Angelo at MyNyloxin.com. If you get on their webinars you can see him under felice. Rik Dietch, the waiora scientiest (sic) is behind it as well.
They say the product is good, But, phil is selling his stock to individuals and giving it away as incentives under the table illegally and running $500 co-ops scamming people out of their money.They only have 300 members.Stop him before it becomes 3,000 or 30,000 scammed, please!
Patrick Pretty then wrote a followup piece on Nyloxin and Piccolo, observing
Piccolo is known as “the one-man Internet crime wave.” If there’s a Piccolo signature, it’s his ability largely (though not exclusively) to remain in the shadows while engineering scams within scams or within dubious “opportunities” in which an affiliate’s success chances are exceptionally low going in.
Piccolo appears to be particularly keen on “programs” ostensibly in the health-maintenance and electronic-technology fields. The “programs” may remain in “prelaunch” phase virtually indefinitely while gathering cash and gaining a head of steam.
Another part of Piccolo’s MO includes suggestions that “opportunities” he pitches soon will “go public” or already are part of public companies. In the TextCashNetwork scheme, for instance, the Piccolo group suggested that TCN was part of Johnson & Johnson, the famous pharmaceutical company.
Both articles are worth a read in their entirety.
Meanwhile I’m left slightly confused over the recent emergence of MyNyoloxin. As per the Nutra Pharma press-release, TCN began marketing Nyloxin back in 2012.
Yet is it only recently that traffic to the MyNyoloxin domain took off:
What the story is there I have no idea, but mid-July is also around the time MyNyloxin review requests trickled in.
In any event, read on for a full review of the MyNyloxin MLM business opportunity.
The MyNyloxin Product Line
MyNyloxin (TCN) serve as a network marketing arm for Nutra Pharma Corporation’s Nyloxin product.
As per the Nyloxin website (“nyloxin.net”), Nyloxin is a cobra venom based product that is
primarily aimed at treating moderate to severe chronic pain.
Using a pain scale of 1 to 10, Nyloxin may be used to treat pain in the range of 2-6. Nyloxin Extra Strength is recommended for people experiencing severe pain, usually above a threshold of 6.
Nyloxin is specifically indicated to treat back pain, neck pain, headaches, joint pain, migraines, neuralgia, arthritis pain and pain from repetitive stress. Clinical experience shows that Nyloxin may also provide relief from other forms of pain such as pain associated with cancer.
Through MyNyloxin, Nyloxin is available as
- an oral spray ($29.95 regular, $49.95 extra strength)
- a topical roll-on ($29.95 regular, $49.95 extra strength)
- a topical gel ($29.95 regular, $49.95 extra strength)
- a large bottle of regular topical gel for $89.95 (8 fl oz)
The difference between regular and extra strength Nyloxin is the amount of venom present in the product. Extra strength Nyloxin contains double the venom present in the regular varieties.
Regular Nyloxin contains 70 mcg/ml in the spray and 30 mcg/ml in the roll-on and gel. Extra strength doubles that to 140 mcg/ml in the oral spray and 60 mcg/ml in the roll-on and gel.
For what it’s worth, the Wikipedia entry on “snake venom” reads:
The analgesic (pain-killing) activity of many snake venom proteins has been long known.
The main challenge, however, is to deliver protein to the nerve cells as proteins usually are not applicable as pills.
Presumably the oral and topical delivery of Nyloxin is designed to maximize the absorption of cobra venom proteins.
The MyNyloxin Compensation Plan
The MyNyloxin compensation plan sees affiliates pay initial fees to maximize their income earning potential. This can then be further maximized via affiliate recruitment and investment into “media units”.
MyNyloxin offers retail commissions to all affiliates on the sale of Nyloxin to retail customers.
How much of a retail commission is paid out is determined by what is being purchased, as well as the amount of money the affiliate who makes the sale spent when they joined the company.
- Nyloxin regular spray, roll-on and gel = $2
- Nyloxin extra strength spray, roll-on and gel = $4
- large bottle of regular Nyloxin gel = $6
- regular Nyloxin sample pack (1 gel, spray and roll-on) = $4
- extra strength Nyloxin sample pack (1 extra strength gel, spray and roll-on) – $4
- complete sample pack (regular and extra strength gel, spray and roll-on) – $8
- Nyloxin regular spray, roll-on and gel = $3
- Nyloxin extra strength spray, roll-on and gel = $6
- large bottle of regular Nyloxin gel = $8
- regular Nyloxin sample pack (1 gel, spray and roll-on) = $7
- extra strength Nyloxin sample pack (1 extra strength gel, spray and roll-on) – $10
- complete sample pack (regular and extra strength gel, spray and roll-on) – $17
- Nyloxin regular spray, roll-on and gel = $4
- Nyloxin extra strength spray, roll-on and gel = $8
- large bottle of regular Nyloxin gel = $12
- regular Nyloxin sample pack (1 gel, spray and roll-on) = $10
- extra strength Nyloxin sample pack (1 extra strength gel, spray and roll-on) – $16
- complete sample pack (regular and extra strength gel, spray and roll-on) – $26
- Nyloxin regular spray, roll-on and gel = $6
- Nyloxin extra strength spray, roll-on and gel = $12
- large bottle of regular Nyloxin gel = $26
- regular Nyloxin sample pack (1 gel, spray and roll-on) = $16
- extra strength Nyloxin sample pack (1 extra strength gel, spray and roll-on) – $28
- complete sample pack (regular and extra strength gel, spray and roll-on) – $44
A residual retail commission is also offered, paying out 10% of the wholesale price of any Nyloxin retail sales made by personally recruited affiliates.
For each MyNyloxin affiliate who joins with an affiliate pack, the company pays out a recruitment commission.
How much of a recruitment commission is paid is determined by how much a newly recruited MyNyloxin affiliate pays to join the company, as well as how much the recruiting affiliate spent:
Bronze ($300) and Silver ($750)
- recruit a Bronze affiliate = $30
- recruit a Silver affiliate = $75
- recruit a Gold affiliate = $150
- recruit a Bronze affiliate = $90
- recruit a Silver affiliate = $225
- recruit a Gold affiliate = $450
Residual Matrix Commissions
Residual commissions in MyNyloxin are paid out using a 4×4 matrix compensation structure.
A 4×4 matrix places an affiliate a the top of a matrix, with four positions directly under them (level 1):
In turn, these four positions branch out into another four positions each (level 2) and so on and so forth down a total of four levels.
Positions in the matrix represent recruited affiliates paying $99 a month. These affiliates can be directly or indirectly recruited by an affiliate’s up and downlines.
Commissions are paid out on the monthly fee charged affiliates, with how much of a commission paid out determined by what level a recruited affiliate placed in the matrix:
- level 1 – $10 per affiliate (4 positions, total payout: $40)
- level 2 – $10 per affiliate (16 positions, total payout: $160)
- level 3 – $10 per affiliate (64 positions, total payout: $640)
- level 4 – $20 per affiliate (256 positions, total payout: $5120)
Matching Matrix Bonus
MyNyloxin affiliates who buy in at the Bronze, Silver or Gold level are eligible to receive up to 40% of the matrix commissions earnt by their personally referred affiliates.
How much of a matching bonus is earned depends on how much a MyNyloxin affiliate spent on their membership:
- Bronze affiliates receive a 10% matching bonus
- Silver affiliates receive a 20% matching bonus
- Gold affiliates receive a 40% matching bonus
Additional Matrix Positions
If a MyNyloxin affiliate recruits four affiliates and one of those affiliates recruits at least three affiliates, the recruiting affiliate qualifies for another matrix position in their own matrix.
This qualification is repeatable (with each new matrix required to meet the recruitment qualification to generate a new matrix position), with there appearing to be no limit on how many new matrices an affiliate can create.
Note that in addition to the above recruitment requirements, only Gold MyNyloxin affiliates ($1500) can qualify for additional matrix positions.
Residual Unilevel Commissions
The second residual commission offered by MyNyloxin is 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 of these level 1 affiliates go on to recruit new affiliates of their own, 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.
MyNyloxin cap payable unilevel levels at ten, with how many levels an affiliate is able to earn on tied into their MyNyloxin affiliate membership rank:
- Active Affiliate (maintain 50 PV a month) – 2% on levels 1 to 3
- Ruby (maintain 50 PV a month and recruit 3 affiliates who maintain 50 PV a month (must be in separate unilevel legs)) – 2% on levels 1 to 4
- Emerald (maintain 50 PV a month and recruit 3 affiliates who maintain Ruby rank (must be in separate unilevel legs)) – 2% on levels 1 to 5
- Diamond (maintain 100 PV a month and recruit 3 affiliates who maintain Emerald rank (must be in separate unilevel legs)) – 2% on levels 1 to 6
- Black Diamond (maintain 100 PV a month and recruit 3 affiliates who maintain Diamond rank (must be in separate unilevel legs)) – 2% on levels 1 to 7
- Blue Diamond (maintain 200 PV a month and recruit 3 affiliates who maintain Black Diamond rank (must be in separate unilevel legs)) – 2% on levels 1 to 8
- Yellow Diamond (maintain 200 PV a month and recruit 3 affiliates who maintain Blue Diamond rank (must be in separate unilevel legs)) – 2% on levels 1 to 9
- Red Diamond (maintain 300 PV a month and recruit 3 affiliates who maintain Yellow Diamond rank (must be in separate unilevel legs)) – 2% on levels 1 to 10
PV stands for “Personal Volume” and is product sales volume generated by an affiliate’s own purchase of Nyloxin or retail customers.
At the Diamond affiliate rank, a 10% matching bonus is also offered on unilevel commission earned by personally recruited affiliates:
- Diamond – 10% on levels 1 and 2
- Black Diamond – 10% on levels 1 to 4
- Blue Diamond – 10% on levels 1 to 6
- Yellow Diamond – 10% on levels 1 to 8
- Red Diamond – 10% on levels 1 to 10
Media Unit Investment
MyNyloxin offer affiliates “media unit” investment positions. Each position costs $50 and correlates to a purported televised advertising campaign.
As per an official MyNyloxin video presentation:
[22:06] What are we doing here? We’re allowing people like you and me to buy media units for $50 a piece. You can buy anywhere from one to two hundred at a time… you can’t buy more than $10,000 media units at one given time.
[22:32] Why are we um, allowing you to buy media units? Because you’re funding, you and I are actually funding these infomercials. We’ll actually be paying for airtime.
So, it just makes sense that we would actually get commissions back from that.
[22:54] So let’s talk about how I got started here. I came in (and) I purchased $5000. We’ve had people buy $20,000, $40,000, $50,000 worth.
I started off with $5000 and I earned a daily profit share of $75.
As many of these units as you purchase, you’re going to earn a profit-share for a 90 day period if you’re a gold, for 85 days if you’re a Silver, for 80 days if you’re a Bronze and for 75 days if you just come in as an MIE (affiliate).
As above, affiliates invest in media units, with MyNyloxin paying them out a ROI over 75 to 90 days.
The more an affiliate spends when they join the company (on membership), the longer the ROI payout.
Referral commissions are paid out on all media unit investments, paying out up to 8% on a personally recruited affiliate’s investment, and up to 2% down an additional five levels of recruitment.
How much of a referral percentage is paid out depends on how much an affiliate spends when they join the company (Bronze, Silver or Gold).
No specifics about MyNyloxin’s performance bonuses are presented in their compensation plan, with the company only stating that
bonuses will included luxury travel to exotic destinations, such as the Caribbean, Ireland or Hawaii; valuable prizes, including cars; and even thousands of dollars in extra cash!
Basic affiliate membership to MyNyloxin is $1.
Various components of the MyNyloxin compensation plan require Silver to Gold status however, meaning most if not all MyNyloxin affiliates will be spending $300 to $1500 on affiliate membership:
- Bronze – $300
- Silver – $750
- Gold – $1500
A regular affiliate can also qualify at these ranks by acquiring retail customers on monthly autoship:
- Bronze – have 15 retail customers on monthly autoship for at least 3 months
- Silver – have 30 retail customers on monthly autoship for at least 3 months
- Gold – have 50 retail customers on monthly autoship for at least 3 months
It should be noted though that likelihood of these qualifications being met is unlikely. The alternative qualifications above would exist solely so that MyNyloxin can claim the $300 to $1500 fee alternative as “optional” (psuedo-compliance).
The reality is that most, if not all MyNyloxin affiliates will spend $300 to $1500 when they join.
After analysing the MyNyloxin compensation plan as presented on the company website, I after reaching the vague performance bonus spiel I thought I was done.
It was only through chance that I saw a screenshot of a YouTube video in a MyNyloxin affiliate’s backoffice that I thought to search YouTube for an official MyNyloxin corporate channel.
Upon finding one, it was only then that I discovered the whole Media Unit Ponzi scheme the company has going.
What I will give MyNyloxin credit for is originality. I for one certainly haven’t seen infomercials used as Ponzi bait before, and what’s presented in the backoffice certainly allures to some shred of legitimacy being behind the scheme.
The reality however is that behind the smoke and mirrors MyNyloxin is just another $50 a pop fraudulent Ponzi investment scheme.
The notion that infomercials might deliver a consistent ROI, or even one that might cover a $50 investment over a minimum 75 days is ridiculous. Money in equaling a fixed ROI out is not how advertising works on any platform, let along televised infomercials.
Yet here we have MyNyloxin claiming that should an affiliate spend $50, an infomercial will be aired that will fund a guaranteed $50 minimum ROI over 75 days.
MyNyloxin corporate and affiliate investors would of course be quick to point out that nothing is guaranteed, but quite obviously nobody is invested in media units without the expectation of a >100% ROI paid out over 75 days.
It’s an implied ROI guarantee.
Given that we know the infomercials themselves having nothing to do with the revenue generated to pay the ROI, it begs the question as to where the ROI money is coming from.
An infomercial might certainly generate brand and product awareness that in turn might lead to an increase in sales. But it’s a far cry from the explicit >$50 ROI MyNyloxin tout over 75 days.
Retail product sales don’t account for the ROI funds either, as they are certainly not reliable. Ditto affiliate autoship purchases (a whole separate issue), which are used to fund matrix and unilevel commissions.
Any way you cut it, the only revenue left to share is that affiliate are pumping into the scheme by way of media unit investment.
Sharing that out of course makes MyNyloxin your run-of-the-mill Ponzi investment scheme. And even should the hardest of Ponzi fraud supporters continue to suspend belief, at the very least MyNyloxin are engaging in the sale of unregistered securities.
As for the rest of the MyNyloxin compensation plan, it’s what you’d expect for something that now exists solely to act as a facade for the backend Ponzi scheme.
MyNyloxin marketing material urges affiliates to buy in at the Gold level at every given opportunity. Hardly surprising when this offers the longest media unit ROI, unilevel and matrix commission payouts and matching bonus rates.
On the membership packages alone MyNyloxin falls foul of running a pay to play scheme. And the matrix commissions in particular stand out, with MyNyloxin charging a separate $99 a month participation fee (which is quite obviously used to fund commissions paid out).
As to the commissions themselves, autoship is touted as an optional requirement to meet monthly sales quotas – but in reality is going to be a defacto participation fee.
Why? Ponzi affiliate investors aren’t interested in selling products to retail customers. They join schemes like MyNyloxin to passively invest.
Something MyNyloxin readily permits them to do.
Pay your $1500 entrance fee, invest in media units and collect a 90 day >100% ROI. So long as you pay your monthly autoship fees, nothing need be sold to retail customers.
As I do with all BehindMLM reviews, I wrote the introduction to this review after I’d finished conducting background research into the company but before I’d gone over the compensation plan.
To recap, here’s what I wrote at the start of this review:
Meanwhile I’m left slightly confused over the recent emergence of MyNyoloxin. As per the Nutra Pharma press-release, TCN began marketing Nyloxin back in 2012.
Yet is it only recently that traffic to the MyNyoloxin domain took off:
Having now gone over the MyNyloxin compensation plan I’m no longer confused about the above spike in traffic.
For two years TCN marketed MyNyloxin without so much as generating even the tiniest of blips on the website traffic radar. Care to guess when they introduced media unit investment?
MyNyloxin.com, a new company that has the exclusive rights to market and distribute Nutra Pharma’s over-the-counter (OTC) pain reliever, Nyloxin®, has signed contracts to begin airing television commercials beginning June 23rd.
The advertisements focus on the benefits of Nyloxin®. The first contract includes over 30,000 spots to run throughout the Southeast Region from Comcast and AT&T U-Verse Cable providers.
Putting aside the fact that Nutra Pharma Corp refer to MyNyloxin as new, despite it being two years old, does anyone think the purported contracts between MyNyloixin and Comcast and AT&T would have been signed if MyNyloxin didn’t
- have the commercials ready to air and
- have the funds to pay for the airing of them?
Asking affiliates to pay for what has already been paid for makes little sense. Well, unless you’re using new affiliates payments to pay out implied >100% returns over 70 days…
What with publicly traded Nutra Pharma Corp. indirectly promoting MyNyloxin (there has to be a deeper link somewhere between the two companies) and television stations potentially being paid Ponzi funds – MyNyloxin certainly has the potential to turn into a right royal regulatory mess.
Speaking of Nutra Pharma Corp. being publicly traded, their quarterly report for Q1 2014 reveals why they might be turning a blind-eye to MyNyloxin’s obvious Ponzi business model:
Our condensed consolidated unaudited financial statements are presented on a going concern basis, which contemplate the realization of assets and satisfaction of liabilities in the normal course of business.
We have experienced recurring, significant losses from operations, and have an accumulated deficit of $ 42,193,729 at March 31, 2014. In addition, we had respective working capital and stockholders’ deficits at March 31, 2014 of $ 3,980,007 and $ 3,973,263, respectively.
There is substantial doubt regarding our ability to continue as a going concern which is contingent upon our ability to secure additional financing, increase ownership equity and attain profitable operations.
In addition, our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered in established markets and the competitive environment in which we operate.
As of March 31, 2014, we do not have sufficient cash to sustain our operations for the next year and will require additional financing in order to execute our operating plan and continue as a going concern.
Since our sales are not currently adequate to fund our operations, we continue to rely principally on debt and equity funding; however proceeds from such funding have not been sufficient to execute our business plan.
Not that you’d expect anything less of course from Phil Piccolo and the rest of the guys who brought you Text Cash Network and its various incarnations…