Residual Cash Ads Review: 2 level $9 Ponzi scheme
There is no information on the Residual Cash Ads website indicating who owns or runs the business.
The Residual Cash Ads website domain (“residualcashads.com”) was registered on the 24th of December 2012 and names a “Katie Buchanan” as the domain owner.
An address in the US state of Alaska is also provided:
New York, Alaska 10016
However this appears to be fake. New York and Alaska are both US states with the provided postcode being in New York. New York most certainly isn’t in Alaska.
As such I’m going to go out on a limb here and suggest that “Katie Buchnanan” in all likelihood doesn’t exist either.
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 Residual Cash Ads Product Line
Residual Cash Ads has no retailable products or services. Instead, upon joining the company members simply buy “positions” in the compensation plan.
Bundled with each of these positions are a series of advertising credits, which Residual Cash Ads members can optionally use to advertise on the Residual Cash Ads website itself.
The Residual Cash Ads Compensation Plan
Members join Residual Cash Ads and are then able to purchase $9 matrix positions. These matrices are 2×1 meaning that when another two positions are purchased in that matrix, the original positions cycles paying out $5. The cycled position is then re-entered into an existing 2×1 matrix.
In addition to the cycle payout, the member that owns the position is also given a “rev share” position, which the company claims is “worth $2” and eventually pays out $3.
Referral commissions are paid out at a rate of $1 for each matrix position that cycles, bought by a member personally recruited into the scheme.
Rev share positions also pay out referral commissions when they reach $3 maturity, with personal recruits paying 5% (level 1), their recruits paying 3% (level 2) and their recruits paying 1% (level 3).
Joining Residual Cash Ads
Membership to Residual Cash Ads is free, however members must purchase matrix positions at $9 each if they wish to earn any money.
Free members can earn via referral commissions (both matrix and rev share), however they still need to purchase matrix positions themselves and participate in the compensation plan if they wish to withdraw their earnings.
With no retailable products or services and a compensation plan that relies on continued investment and re-investment by its members, Residual Cash Ads equates to nothing more than a $9 a pop Ponzi scheme.
The matrix positions are a simple money game, with $9 being invested and then $5 coming out the other end once two new investments have been made after it.
Due to these matrices being company wide, over time the number of matrices increases resulting in longer and longer wait times for them to individually cycle (unless members purchase positions in their own matrices).
The “rev share” (revenue share) is much more of a traditional Ponzi setup, with $2 of the $9 matrix position revenue being injected into the scheme, and $3 paid out once the admin has taken their share out and enough new investments have been made to cover the payout.
Or as Residual Cash Ads put it:
Q: How much does each ad package receive from revenue share daily?
A: We do not guarantee daily shares from our revenue.
How much revenue we have to share on a daily basis to share depends on how many ad package purchases and re-investments we receive on a daily basis.
This means that revenue share amounts will vary from day to day.
Given that members are infact purchasing matrix positions, the above pretty much spells out that revenue share positions will mature at a rate based on how much new and continued re-investment (repurchase of new matrix positions) is being made by members.
All in all Residual Cash Ads can be looked at as a simple 2 step Ponzi scheme. Members buy in for $9 and after two new investments have been made earn a partial ROI back, with the remaining $3 payable based on a floating ROI algorithm, dependent on the total amount of investment being made with the company by members.
Initially members only earn $8 back out of the $9 invested, with the scheme relying on either referral commissions to cover the difference or re-investment by participating members (each purchased matrix position generates a new unfunded position upon cycling).
Once members stop investing and cashing out, nobody is buying matrix positions which stalls the matrix cycling. So too will the revenue sharing positions stall as they also rely on matrix positions cycling to generate new $3 investment injections into the scheme.
Judging by the graphics used on the Residual Cash Ads website (snow and Christmas themed), even those running the site don’t expect this one to be around for long. No surprises there.