Race Cycler Review: $230 cycler pyramid scheme
There is no information on the Race Cycler website indicating who owns or runs the business.
The Race Cycler website domain was registered on the 24th of June, however the domain registration is set to private.
Research into the company reveals affiliates naming a “Kent Brown” as the owner of Race Cycler in their marketing presentations. Brown (right) can also be heard hosting several Race Cycler affiliate update calls, so this seems to fit.
Brown appears to be no stranger to the MLM “cycler” niche, mentioning he’s been in “some other programs in the past” on a Race Cycler affiliate call ([1:17], July 31st).
One example appears to be TNT Rotator, for which Brown left a glowing testimonial on the company website:
TNT Rotator is a matrix-based opportunity that uses 2×2 and 2×3 matrices. Under the guise of selling “text-ads and software”, affiliates pay $89.97 and are then paid to recruit new affiliates into the scheme.
A Facebook account that appears to be run by Brown shows his progression datewise from TNT to Race Cycler:
Whether Brown is still involved with TNT Rotator is unclear, but his participation in the scheme (and other “programs”) has likely influenced the setting up of Race Cycler.
Read on for a full review of the Race Cycler MLM opportunity.
The Race Cycler Product Line
Race Cycler has no retailable products or services. Affiliates join Race Cycler for $230 and recruit new affiliates into the scheme who do the same.
The Race Cycler Compensation Plan
Like TNT Rotator, the Race Cycler compensation revolves around the filling of two 2×2 reverse matrices.
A 2×2 matrix has seven positions in total, one at the top (the pay position), two below them and then four below those positions:
New affiliate recruits are fed into the bottom of the matrix and once all positions are filled, the top position cycles out and is paid a commission.
In turn, the matrix “splits” into two additional matrices (the two positions previously under the pay position become pay positions in two new matrices), and four new empty positions are added to the bottom of each new matrix.
The process repeats itself again, with the matrix filling once the four empty positions at the third level have been filled.
As mentioned earlier, there are two 2×3 matrices used by Race Cycler.
The first matrix is called the National Board. All newly recruited affiliates are placed in the bottom of a National Board matrix.
Progression up the matrix is achieved via the cycling out of the top position (required three times for a position in the third level to advance to the pay position).
Once an affiliate holds the pay position, they are then paid per position filled on the third level.
How much is paid out per position filled depends on how many new affiliates the affiliate holding the pay position has recruited:
- no recruits – $10 per position filled ($40 total)
- 1 affiliate recruited – $25 per position filled ($100 total)
- 2 affiliates recruited – $50 per position filled ($200 total)
Once a pay position in a National Board has paid out on all four third level matrix positions, it cycles out and is positioned at the bottom of a Grand National Board matrix.
Grand National Board
The Grand National Board matrix functions in the exact same manner as the National Board matrices, however affiliates can only enter it via cycled positions on National Boards.
Once an affiliate’s positions reaches the top, payment is once again made per third level position filled in the matrix:
- no recruits – $50 per position filled ($200 total)
- 1 affiliate recruited – $100 per position filled ($400 total)
- 2 affiliates recruited – $500 per position filled ($2000 total)
One a pay position is cycled out of a Grand National Board, they are then re-entered into the bottom of an existing National Board (typically following a position of the affiliate who recruited them).
This results in a $230 fee, which is subtracted from the Grand National Board cycling payout.
Joining Race Cycler
Race Cycler affiliate membership (positions in a National Board matrix) cost $230.
I’ve made more money with cash cyclers than I made in sixteen years as a real-estate developer.
-Kent Brown, Race Cycler admin ([4:17], July 29th)
For those unfamiliar with how matrix cyclers work, they enter prelaunch and begin the hype-train. When the doors open, those who get in first receive money from those who joined after them – usually posting ridiculous commission payouts to lure new members in.
Shortly after that, once all the new money has been transferred to those who got in early (the people trying to recruit you now), the scheme collapses.
Think of it as your typical pyramid scheme set to fast forward.
As with all pyramid schemes, the inevitable collapse comes about once the matrices stall (new recruitment stops). Positions from Grand National Board will churn the National Board along through re-entry, but ultimately this only happens when new positions are purchased at the bottom of National Board.
You have to have these new positions being bought or trickling all the way up to the pay position in the Grand National Boards, nobody is going to cycle.
I have read something about “robot positions” being created to counter matrix stalling, but all they will do is speed up the collapse.
Robot positions (otherwise known as fake positions) don’t inject any new funds into the scheme. Cycling matrices without injecting new funds into the scheme doesn’t exempt a matrix cycler from the basic laws of mathematics, you can’t pay out more than your affiliates are pumping into the scheme.
This stalling effect is why admin Kent Brown mentions he’s been in multiple “programs” on some Race Cycler affiliate calls. All pyramid schemes and matrix cyclers stall, and when they do, one of two things tends to happen:
- you have serial-admins who shut up shop, wait a bit and launch new schemes or
- as is case with Race Cycler, participants in previous schemes realize they need to get in earlier (nobody gets in earlier than the owner of a matrix cycler), to maximize the ripping off of suckers who join after them
That’s the hard truth behind matrix cyclers. And sadly is what’s responsible for laughable Race Cycler affiliate updates like this (sent out less than 24 hrs ago):
We are so close to launch on Race Cycler it’s almost scary! I can’t guarantee you the sun will rise tomorrow, but I can tell you we are ready.
The numbers we are hearing are staggering. Again I can’t promise anything, but we’e (sic) hearing numbers in excess of 200,000 based on “verbal commitments”.
For many of you, this will be the last rodeo. IF you do this right, it can build so fast for you, it is mind boggling.
“Last rodeo”? Right. Just don’t ask what ultimately happened to TNT Rotator then…
Update 28th January 2017 – The SEC has revealed Race Cycler was a $1.32 million dollar Ponzi scheme. Herman Ronnie Young has settled with the SEC and will pay $342,510 in disgorgement.