QLXchange Review: A shady investment group feeder?
For those interested in it, good solid investment advice is infinitely valuable and for many leads to sustainable riches and fortune.
Just as prosperous as good investment advice can be however, the same can be said for bad investment advice. Only the results of this are far more financially devastating.
Good or bad though, you’d have to be a complete moron to take investment advice seriously from someone you knew nothing about right?
Well, that’s kind of exactly what QLXChange want you to do. Read on for a full review of the QLXchange business opportunity.
Like its feeder program OneX, little is known about QLXchange’s ownership. I’d strongly advise you read my OneX review and pay particular attention to ‘The Company’ section of the review (especially the audio recording where ‘JC’ pretty much tells people he’s got better things to do with his time than deal with members of the company).
As always, I caution people against getting involved in any MLM opportunity that is not upfront about who is running or owns the opportunity.
QLXChange is doubly suspicious in this regard as they are effectively asking you trust their financial advice, whilst at the same time having no idea who they are or what their credentials or possible ulterior motives are.
Update August 16th, 2012 – “JC” has been identified by public prosecutors involved in the Ad Surf Daily Ponzi scheme case as a one Mr. James C. Hill. /end update
The QLXchange Product Line
QLXchange claim they have a core product which is the investment of silver and effectively operates outside of the QLXchange MLM side of the business.
Basically you invest in silver through QLXchange, and if and when you wish to convert your investment into actual silver, the company charges you a variable 2-10% ‘premium fee’ based on your membership rank.
The company also offers a 2-8% discount on the initial investment price depending on a QLXchange member’s membership rank.
There is no option to invest through QLXchange on a retail level as investment is only made available to QLXchange members. You need to join the company in order to purchase (invest in) the product.
QLXchange also offer a weekly ‘educational reports‘ called ‘Investment Insights’ to all paid members of the company. These reports
cover a wide spectrum of investment topics (including) analysis of current market trends, the effects of Geo-political issues on world markets, influence of short/long-term interest rates and the importance of appropriate asset allocation based on individual investor goals/objectives.
Beyond that, QLXchange don’t offer up any more specifics. They don’t even tell you who is behind the investment advice they are giving beyond stating that the company has
a staff member who is an active investor in the International Equity, Fixed Income, Real Estate and Forex markets.
He has over twenty years of experience as a Registered Investment Advisor for several Wall Street firms and recently has been providing advice to large institutional investors.
Essentially QLXchange expect you to be happy taking investment advice from a mystery man.
The QLXchange Compensation Plan
QLXchange’s compensation plan revolves around an initial 3×9 matrix. With you starting at the top, this matrix branches off into three legs, which in turn themselves branch into three legs and so on and so forth down nine levels.
As you begin to fill your QLXchange matrix, it will start to look something like this:
QLXChange Membership Ranks
Within the QLXChange compensation plan are five base membership ranks which dictate how much in commissions QLXchange members earn with the company.
Here are the five membership ranks along with their qualification requirements (note that an ‘active member’ refers to a QLXchange member of at least SG-1 rank).
- SG Cadet is the starting membership rank within QLXChange. A SG Cadet rank is free and carries with it a $1 monthly membership fee.
- SG1 membership is $11 a month
- SG2 membership is $22 a month or $11 + the recruitment of one active member
- SG3 membership is $33 a month or $11 + the recruitment of two active members
- SG4 membership is $44 a month or $11 + the recruitment of three active members
Everyone who joins QLXchange starts off with this 3×9 matrix and is paid a commission on the monthly subscription fees SG1 and above ranked members pay the company.
The 100% commission rate (SG4) of the four different monthly subscription options are $0.50 ($11 subscription), $1.00 ($22 subscription), $1.50 ($33 subscription) and $2.00 ($44 subscription)
There are five basic levels of membership open to QLXchange members and they each earn a percentage of the above base commission rates.
- SG Cadet members – 10%
- SG1 members – 25%
- SG2 members – 50%
- SG3 members – 75%
- SG4 members – 100%
All SG4 members are able to expand their matrix by becoming a ‘Star Leader’. For each star level a Star Leader achieves (1-5) they are entitled to another leg on their 3×9 matrix.
This additional leg operates in the same manner as the original three legs in that it conforms to the original 3×9 leg structuring (the top layer branches out into three, which branch out into three etc.)
Star Leaders earn what is called a ‘Leader Bonus’ on these additional legs which is equivalent to the 100% recruitment commission earnt by SG4 members on their original 3×9 matrix.
There are 5 Star Leader ranks and these are their qualifications;
- 1 Star Leader – Have 5 SG4 active members in their matrix
- 2 Star Leader – Have 5 Star Leaders (any star rank) in their matrix
- 3 Star Leader – Have 10 Star Leaders in their matrix
- 4 Star Leader – Have 15 Star Leaders in their matrix
- 5 Star Leader – Have 20 Star Leaders in their matrix
Note that if you drop below your ranked star qualifications, you lose your Leadership Bonus paid out on any additional legs you have for that pay cycle.
QLXchange offers two Matching Bonuses to their members.
SG2, SG3 and SG4 members earn a 50% matching bonus for all matrix commissions paid out to members they personally recruit into QLXchange.
SG3 and SG4 members receive an additional 50% matching bonus on all members (personally recruited or not) on the fourth row of their original 3×9 matrix (this row accommodates 81 members).
Everyone who joins QLXchange does so at the SG Cadet level, which costs nothing to signup with but carries a $1 membership fee after 30 days (or if you upgrade before 30 days).
After signing up as a SG Cadet, QLXchange members are free at any time to upgrade their membership to one of the paid SG1 to SG4 options.
The most legally questionable component of the QLXchange MLM opportunity isn’t the fact that the compensation plan is completely disconnected from their core product and is not available at a retail level, it’s not that they expect you to take investment advice without telling you who they are and it’s not even the fact that the compensation plan is just one giant recruitment game.
No, the most legally questionable component of QLXchange is what they hope you’ll do with the money you make from their recruitment scam… and it’s not investing in silver.
Not officially part of the QLXchange compensation plan are what the company calls ‘investment groups’. Stressing that they ‘will not accept a single dollar for investment’ in thee groups as they ‘are not licensed, so it is not legal‘.
QLXchange do reassure you though that they trust these ‘investment groups’ enough though that they themselves ‘will be investing much of our own company profits‘ with the groups.
Membership to these shady groups will set QLXchange members back $100 for each group that they join, but membership isn’t open to everyone.
Introduction to the private investment groups will be by personal invitation only (one-to-one communication).
There will be a strictly enforced non-discloser (sic) agreement and any violation will be cause for immediate removal from the groups.
A personal invitation process and they want you to sign a non-disclosure agreement…? Sounds to me like they’re screening out anyone who might think of reporting them!
Most likely QLXchange themselves have an unofficial hand in the running of these groups as firstly the company stresses that the groups must not be ‘may not be advertised nor used for marketing in any way‘ and secondly QLXchange provides up to 100% off the $100 joining fee to its members (SG4 members can join these groups for free).
Oh and despite clearly advertising these dodgy sounding investment groups on their website, QLXchange assure you that they ‘are not marketing it‘.
Run for the hills folks, QLXchange is one particular MLM opportunity with waaaaay too much dodgy attached to it.