Penny Auction Profit Review: $25 ad pack scheme
There is no information on the Penny Auction Profit website indicating who owns or runs the business. The company does however claim to be based out of the Cayman Islands (a known tax haven):
Our firm consists of a team of individuals, well established in the Cayman Islands, with different backgrounds in term of nationality and work experience.
The Penny Auction Profit website domain (“pennyauctionprofit.com”) was registered on the 16th of July 2013, 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 Penny Auction Profit Product Line
Penny Auction Profit has no retailable products or services, with affiliates only able to market membership to the income opportunity itself.
Featured on the Penny Auction Profit is a penny auction platform, however this appears to have nothing to do with the MLM side of Penny Auction Profit.
At the time of publication, the only item available to bid on in the Penny Auction Profit auctions are positions in the company’s compensation plan.
The Penny Auction Profit Compensation Plan
The Penny Auction Profit compensation plan revolves around affiliates joining the company and then investing in $25 “ad packs”.
For each ad pack purchased by affiliates, Penny Auction Profit guarantee a 2% daily ROI over 75 days, equating to a 150% total ROI.
Referral commissions are also offered on ad pack investment, paying out $2.50 per ad pack invested in.
Each ad pack investment also creates a position in a 2×1 matrix, which pays out $2.50 whenever the two positions under the top position in the matrix are filled (via ad pack investment).
Referral commissions are also paid out on matrix cycling, tracked 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 one of these level 1 affiliates go on to recruit new affiliates of their own, they are then 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.
Using the above unilevel compensation structure, Penny Auction Profit pay out referral commissions on matrix cycles down 5 levels of recruitment. Each time a recruited affiliate in a unilevel team cycles out of a 2×1 matrix, the affiliate whose unilevel team they are in earns a 50 cent commission.
Using the same unilevel compensation structure outlined above, Penny Auction Profit also pay recruitment fees down ten levels of recruitment. Recruitment fees are paid out of the monthly $5 affiliate membership fee charged, and pay out 50 cents per recruited affiliate in a unilevel team.
Joining Penny Auction Profit
Penny Auction Profit affiliate membership is $5 a month.
With the retail side of MLM penny auctions proven time and time again to not be feasible, what’s left of the niche are money game schemes like Penny Auction Profit.
P.A.P (PennyAuctionProfit) is an international investment company specializing in delivering the best investing services and trading strategies for online investors.
Penny Auction Profit openly acknowledge they are operating an investment scheme, with affiliates buying in at $25 a pop on the expectation of a 150% ROI.
Where does the ROI money come from?
Newly invested affiliate money.
As such, Penny Auction Profit squarely fits the definition of a Ponzi scheme, with affiliate ROIs only payable as long as new affiliate money is invested and re-invested into the scheme.
The offering of investment positions via a penny auction platform is something different, however ultimately does nothing to change the fact that Penny Auction affiliates are paid guaranteed ROIs out of newly invested affiliate money.
It should go without saying that the retail viability of penny auctions auctioning off compensation plan positions is zero.
At 2% a day it should be fairly obvious to participating affiliate investors when Penny Auction Profit’s ROI liabilities exceed new money coming in, as the daily ROIs will simply stop altogether.
What happens then?
We have the right to suspend or terminate your account at any time, for any reason and without warning or notice.