Rocket Cash Cycler Review: $315 recruitment scheme
There is no information on the Rocket Cash Cycler website indicating who owns or runs the business.
The Rocket Cash Cycler website domain (“rocketcashcycler.com”) was registered on the 12th of October 2012, however the domain registration is set to private. It’s additionally noted that the Rocket Cash Cycler website is hosted in Belize, a known tax haven.
Marketing videos on the Rocket Cash Cycler website were uploaded to a YouTube account owned by a “Daniel Butts”:
Butts isn’t credited as the owner of Rocket Cash Cycler anywhere on the company website, however another YouTube video names him as co-founder of the company:
Previously uploaded videos on Butts’ YouTube channel market another opportunity called “EZ Wealth Formula”. EZ Wealth Formula launched in mid 2012, costs $84 to join and pays affiliates to recruit new affiliates.
Butts’ videos appear on the official EZ Wealth Formula website, with the company’s domain (“ezwealthformula.com”) listing Daniel Butts as the domain owner. The EZ Wealth Formula domain registration also indicates Butts is operating out of British Columbia in Canada.
Read on for a full review of the Rocket Cash Cycler MLM opportunity.
The Rocket Cash Cycler Product Line
Rocket Cash Cycler has no retailable products or services, with affiliates only able to market affiliate membership to the company itself.
Affiliate membership is $315 and provides the affiliate with a position in the Rocket Cash Cycler compensation plan.
Bundled with Rocket Cash Cycler affiliate membership is xSky (contact list manager), Skype (Traffic) Ninja (list builder) and access to the “RCC Success Libary” (ebooks).
The Rocket Cash Cycler Compensation Plan
The Rocket Cash Cycler compensation plan primarily revolves around the recruitment of new affiliates to fill two matrices.
Note that before an affiliate can qualify for commissions they must recruit two new affiliates into the scheme.
After that they are entered into a 2×3 matrix. A 2×3 matrix places an affiliate at the top of structure with two legs directly under them (level 1). In turn two legs sprout out from each level 1 leg (level 2) and then two more again (level 3):
Each leg represents an affiliate position that is filled either by direct or indirect recruitment, or an existing Rocket Cash Cycler affiliate “cycling” out of another matrix.
“Cycling out” of a matrix occurs when the matrix is full and pays out the affiliate at the top of the matrix $300. An affiliate is then also provided with free re-entry into another 2×3 matrix as well as entry into a 2×2 matrix.
This 2×2 matrix is one less level than the 2×3 (containing only six affiliate positions), but the idea is the same. The matrix is filled via recruitment into the 2×3 matrix which cycles new members into the 2×2 matrices.
When an affiliate cycles out of a 2×2 matrix they earn $5000 and free re-entry into another 2×2 matrix.
Joining Rocket Cash Cycler
Affiliate membership to Rocket Cash Cycler is $315.
Conclusion
With Rocket Cash Cycler’s compensation plan relying on a constant stream of new affiliate recruits being fed into the company’s 2×2 matrices, at $315 a pop the company fits the definition of a pyramid scheme.
An interesting line in the Rocket Cash Cycler compensation plan reveals that
This compensation plan pays out an amazing 94.5% to the members!
On the surface this might sound wonderful but the reality is that it simultaneously destroys the argument that affiliates are buying products (just 5.5% of the money affiliates pump into the scheme is diverted out of the comp plan), and reveals that 94.5% of every $315 new affiliates bring into the scheme is simply distributed amongst existing affiliates already in the scheme.
Putting two and two together it would appear that Daniel Butts’ previous EZ Wealth Formula opportunity never really took off and he’s now trying a slightly different approach with a two tier matrix compensation plan.
As with all pyramid schemes, once newly recruited affiliates dry up and stop bringing $315 payments into the scheme the matrices start to stall and nobody gets paid.
With “free” accounts created everytime an affiliate cycles out of either matrix for the first time, typically the time it takes for a matrix-based pyramid scheme to collapse decreases exponentially over time.
EZ Wealth Formula appears to have had a shelf life of around 6 months before Butts got sick of it. I imagine Rocket Cash Cycler will have a similar lifespan.
Sounds to me that Mr.Butts needs some quick money. Guess he isn’t making as much as he would like from all the other failed schemes.
With all these recruiting sites coming and going, coming and going, you would figure that all these affiliates chasing the big bucks would eventually “WAKE UP” and realize they are only getting broke by the second.
The “ONLY” ones who make any quick money are those at the TOP. Before they launch any new program it is always arranged ahead of time who gets placed at the top of the scheme. All other fish can frenzy for scraps.
If you enjoy living on scraps as a bottom feeder, keep on doing so. Might as well pick another pocket or two.
Can you say “scam man Todd Hirsch”?
So Mr. Hirsch is doing this one too?
Something about “leopard and his spots” would apply here, I guess.
Yep, Todd’s involved. Check post 24 from the Cloud 2×2 thread here. I made mention of it a few posts later:
Todd Hirsch OWNS RCC.
faith Sloan
Todd also owns Cloud2x2.
Faith Sloan
These people make a living at scamming everyone. Pull out 3 or 4 scam biz’s a year and you could make a pretty darn good living.
Shame on Daniel Butts and Todd Hirsch and all the others pushing these ponzies.
Yes Todd Hirsch is the owner and that biz is being pushed all over the net. It’s amazing how fast these businesses that are scams go viral so fast.
Everyone has an opinion Without documentation…we are smoking at over 30k per month and doubling every month!
Getting paid daily while uninformed ignorance are making statements based on opinion, not research… This industry is full of dingdongs selling magic potions that i can definately live without!
Doc
@Doc
Here’s some research for you: based on the Rocket Cash Cycler Cash compensation plan documentation, the opportunity is nothing more than a recruitment driven pyramid scheme.
Whether you’re making $30,000 or $300,000 is irrelevant.
Pyramid schemes on the other hand… sorry what were you saying about opinions again?
@Doc This is part of the problem with all these crazy gifting schemes, The ones at top rake in all the dough at the expense of all who get involved.
How many people have you scammed to earn what you are claiming?
If it ain’t legal, then even if you do a billion it won’t matter. Zeek being a prime example.
There’s a good story on Wonkette about how spammers are using God to promote Rocket Cash Cycler…
http://wonkette.com/513872/the-end-is-near-time-running-out-to-join-amazing-jesus-pyramid-scheme
Here is an E-mail from Todd Hirsch regarding me questioning him about RCC:
Hirsch is angry that his Cloud2x2 matrix got a bad review here. 🙂 Read it and see how close it was to the various other “matrix” schemes (really mini pyramid schemes).
He doesn’t know what a MLM really is.
@Ed
You’ll note Hirsch doesn’t dismiss the fact that RCC is a recruitment driven pyramid scheme (let’s face it, facts are facts and he can’t).
That’s all that you should take from his email. The rest is just typical scammer whinging.
What you should know is that Hirsch gets involved in practically every shady deal that comes along. He has identified HIMSELF to be involved in Zeek, Bidify (self-proclaimed #4 earner), and several other matrix-type schemes, including his own Cloud2x2. And now, RocketCashCycler. He’s almost as bad as “Ken Russo”.
I should not even waste my time defending myself here.. I really have more important things to do…
But I will.. (If Oz posts it)
First of all…
MLM means Multi-level marketing
-from Wikipedia
RCC is a REAL MLM program with REAL products that are more than worth the cost to join.
There are thousands of VERY HAPPY members in RCC and a super low refund rate of less than 0.001%
The compensation plan really does pay out 94.5% and the breakage for the company is super low compared to other MLM companies. That means we pay more to the members.
Oz did not even get the comp plan right… you don’t start at the top and build down.. you start at the bottom and work your way up through the levels.
The plan is great for team builders and it does give the average network marketer a fighting chance to make really big money online, fast.
Of course the program needs new members to keep going just like Sony needs new sales to keep a profit margin.
If all the members just get 2 personal sign ups each then the program could last forever. There are also many members with more than one position in the program.
RCC is the best program I have ever helped develop and yes I will be around in this industry for a LOOONG time… so get used to me =) I have many really cool things coming for my Network Marketing friends and family online.
The RCC comp plan is 100% legal and it rewards hard workers. Those are the 2 FACTS you need to know.
(Ozedit: removed offtopic waffle)
Have a GREAT day, I am. =)
You and your schemes would fall under this category Todd.
See that last word? “Join”. There’s no retail (offered or practically), meaning RCC might very well be all of the above but on top of that it’s also a recruitment driven pyramid scheme.
If you’re going to insist on dragging legalities into it, RCC it’s not legal according to the FTC. It’s a pyramid scheme.
(and please tell me you didn’t try to equate recruiting to the retail sales of Sony… /facepalm)
Just like Zeek Rewards.
OOPS
Sony is LIKE Rocket Cash Cycler just as a Volkswagen is LIKE a Porsche
For starters, Sony doesn’t reward it’s sales force for endless chain recruiting.
You’re Todd Hirsch.
Are you really sure you want readers to start comparing RCC to other programs associated with Todd Hirsch ??
Just like the Zeek Rewards “comp plan” and the Bidify “comp plan” and the AdSurf Daily “comp plan”
OOPS
That’s the funny thing about the word LIKE as used by pseudo MLMers.
There are way more frauds which are LIKE the pseudo MLM than legitimate businesses.
Just the name “rocket cash cycler” should tell you there’s no retail. It’s clearly cash for “cycling”, which is just scam-speak for recruit enough people to fill the “matrix” and cycle you out, i.e. pyramid scheme.
Free advice: Don’t JOIN a scheme with a scammy name.
MLMWatchDog Rod Cook had already busted several cyclers…
http://www.mlmwatchdog.com/MLM_matrix_scam.html
We have a huge number of customers also that paid to join just for the products.
We are selling products and those products also comes along with an optional compensation plan and that makes us 100% legal.
I can prove that we do not fall under the “pyramid scheme” label because we are selling products and the compensation plan is just an option for the members that want to earn money. Cash Gifting is illegal and we are NOT a cash gifting program. We sell software.
A pyramid scheme does not sell valuable products and it is like cash gifting.
We are nothing like cash gifting and we are 100% legal according to my lawyers.
Do you have a law degree Oz??
No.. I didn’t think you did…
If not, you need to watch what you say is legal and not legal.
RCC has helped thousands of people make money online and it has provided valuable products to our thousands of customers.
Until next time… have fun in your soap box…
Peace and Love
Retail customers don’t join anything in MLM. You have no retail customers.
No you’re not, you’re selling positions in a cycler compensation plan.
“Our affiliates choose not to recruit” doesn’t make them retail customers. You have no retail product or retail customers.
I never mentioned legalities, you are the one running your mouth off about how legal RCC is.
Do you have a law degree?
Straight from the FTC:
http://business.ftc.gov/documents/inv08-bottom-line-about-multi-level-marketing-plans
Give it up Todd, you love the pyramid schemes. At least own it.
Don’t you just love the way the term “cycler” is thrown around by the get-rich-quick set as if it’s somehow a legitimate form of MLM ??
What would be really interesting is trying to find a “cycler” which ISN’T a barely disguised money game.
If you dont recruit you dont make any money (cycle). That is so not retail.
Todd, I thought you said before that cloud 2×2 was the best program with thousands of satisfied customers. What happened to it?
If one just does a simple google there are plenty of people pissed off at you calling it and you a scam.
I think you basically just are in love with yourself and just screw anyone who disagrees with you. As long as you make money you could care less
Now, now, Ed, it’s not illegal being a narcissistic ass****.
Is this true in all US states, and does Canada have similar regulations?
Last I checked the FTC has jurisdiction in all US states…
As for Canada, most of the world has outlawed pyramid schemes. If you’re in an MLM companyand not selling product to retail customers (non-affiliates) you’re in a scam.
I realize how stupid that question sounded 😐 Thanks for answering it anyway!
Wow!!! Seems like a lot of unhappy people or critic here… I’m a happy customer. I bought the programs for all the audio books and was not buying to to do the business.
I use those books everyday now and I’m very happy with it. I have other friends who also saw a different in my attitude and outlook… So they ask, and I show them where I got it from and they thought it was a real good deal for the price of $315…
They are happy with it, you can tell that they themselves are mentally different from before…
(Ozedit: removed offtopic spam)
I’m pretty sure those negative comment earlier, if Todd pay them $5k each… I’m pretty sure those negative comment would be like… “Todd is the best marketer…blah blah out there…”
Todd, you are doing a great job… I don’t care what these 2 person are saying… But what you and Daniel are doing have changed many people’s live… We are able to make ends meet, pay off some of those bills that have been adding up. Take our family out to a better restaurant instead of just McDonald…
No matter what you guys, (Todd & Daniel), do… You will never be able to help everyone… But I know you have helped many and one of those many is ‘ME’…. It felt really good to be able to hand my wife a $1000 pay check so she can enjoy herself for the day…
When I remember, both of us only have one pack of ramen noodle and 3 raw egg for food for 1 week… and we still have to feed our little baby girl who is 2 month old at the time…
TODD & DANIEL, YOU GUYS ROCK! IS ALL I GOT TO SAY!
“naabo” ? Are you a gamer ? =)
@Tony
Yes but you’re not a retail customer.
You’re an affiliate participating in a blatant recruitment driven pyramid scheme.
And therein lies the problem. You’re in bed with Todd somewhere at the top of his pyramid and seem quite happy to rip off those you recruit into the bottom of the pyramid.
I hope your daughter turns out better than you have.
Tony it’s not a pay cheque it’s a scam cheque!…I wonder if todd pays taxes on his scammings?
Oz,
You quoted something in one of your retorts about “compensation being based of sales you make to your recruits” or something to that effect. If I joined RCC at $315 and received the software and book library, what else would the person that brought me in have to “sale” me?
Also, may I ask you that if Sony stopped “selling” tomorrow, how long would they stay in business? Sony takes money from revenue from sales and money from people gambling on their stock to pay hundreds of millions annually for advertising to “recruit” new buyers that can never make a dime off of the $100 to $10,000 investment in that flat screen that is out of date by the time the customer gets it home.
I’m sorry Oz (or Jesus. I don’t know which to consider you) but you cannot save the world and just because you don’t like something does not make it illegal.
(Ozedit: derail attempt removed)
I did join RCC with some trepidation, but after it only took me 17 days to cycle off of the original 2X3 matirx (that I was not working on alone), I got my $300 back that I put in.
So now I’m recruiting on Tony’s dime and every additional person I sign up I have the ability to put them where I want to which means if I got a family member or a friend to join I can place my new people in their matrix to help them get their money back and move on to the 2X2.
It’s not for everyone. But if you can risk the money then don’t do it.
Irrelevant question, no matter what they sold to you you’d still be an affiliate and not a retail customer.
Sony is not an MLM company. Fail.
Like or don’t like has nothing to do with it. Facts are facts and Rocket Cash Cycler is a reruitment driven pyramid scheme.
All I heard was recruit, recruit, recruit.
Sony is not a MLM, correct. Do I also need to explain to you what an anology is? You know like you pretending to be a know it all expert on all that is MLM.
Let me ask you this, have you sent a complaint to the FTC in regards to RCC? If not, and they have not come back and said that it is, or is not, illegal, then you are the one talking out of the side of your neck.
All you heard was recruit, recruit, recruit… so be it. It’s also called working the pay plan. I joined to get paid (and I have) if that means recruit (or sell e-books, software, lipstick, toiletries, or vacations) then so be it… what is so wrong with that? I still don’t get it.
Kinda of ironic, but I just made my first $1,000 on the 2X2 about 30 mins after I posted. So now I have spent $330 and have made $1,300 in a little over three weeks. I guess if the FTC shuts RCC down tomorrow then I guess that’s fine too.
Thanks for looking out!
Perhaps you should read up on what constitutes a “false analogy” before you explain anything
“Several factors affect the strength of the argument from analogy:
The relevance of the known similarities to the similarity inferred in the conclusion.
The amount and variety of the examples in the analogy
The number of characteristics that the things being compared share.
An argument from analogy is weakened if it is inadequate in any of the above respects. The term “false analogy” comes from the philosopher John Stuart Mill, who was one of the first individuals to engage in a detailed examination of analogical reasoning.
One of Mill’s examples involved an inference that some person is lazy from the observation that his or her sibling is lazy. According to Mill, sharing parents is not all that relevant to the property of laziness”
Sony is as much “LIKE” Rocket Cash Cycler as a Volkswagen is “LIKE” a Porsche
Troy your mentality just said I don’t care if rcc shuts down I made my $$$.! What about those below you? Whom you cashed in on?
littleroundman,
If you don’t get it then there is not a lot of reason to try to explain. It seems like neither you nor Oz want to aknowledge the fact that I am not Tony and I am not one of the “originals” of this.
All I am saying is that regarless of what you want to label it, I have made more money in RCC in 3 weeks than I have made in all other mlm companies I have tried in the last 10 years.
You want to dit behind your computer and comment on things that you obviously have no interest in being in like you are the smartest person on the face of the earth. But what are YOU doing for me?
I’m 43 years old and back in school full time. I also work full time and needed a little extra cash on the side so that I could take a postion that did not require as many hours… What do you have for me? What solution are you offering?
Yo,
That comment was in refference to you negative nancies acting like no one other than the “originals” ever made any money of a “scheme” as you call it.
I have helped those some of those that I have brought in by placing others that I have broght in under them. I don’t expect this to last forever and I have no idea what the shelf life is… This is my first shot at this.
But, at this point I only have 3 people who are at risk of losing their money if something does happen. And I have personally guaranteed them that if they do what I ask and have not at the minimum got their $300 back in 30 days then I will purchase their postition back from them. That’s just me…
Which means what in the overall scheme of things ??
* The fact YOU have made money makes it legitimate ?
* The fact you have made bad choices in MLM companies over the last 10 years ?
* SOME people don’t “make money” in fraudulent schemes ?
It’s funny,
when I look at the blog heading, it says BEHINDMLM and not “Find Troy an opportunity”
If you want to ignore anything that’s being said, that’s fine, but that doesn’t give you or Rocket Cash Cycler a free pass to be able to run a barely disguised endless chain recruiting/pyramid/ponzi scheme and go unchallenged.
littleroundman,
I never called it legit or not. I am not a lawyer. “Some” people don’t make money in a whole lot of things. So you are correct, whether or not I make money does not make it leagal or illegal.
Also, I’m not “running” anything. But, in reference to your “barely disguised” comment (and remember that those are your words) , how is this for another false analogy:
Is “barely disguised” anything like “barely legal?” If the company is, in fact, leagal then it is legal regardless of your thoughts on the matter. And why do you feel the need to “challange” me? Wow! Speak your opinion and let it be…
@Troy
So don’t waste my time drawing irrelevant analogies.
What part of “Rocket Cash Cycler Review” is not clear to you?
From the FTC (Nov 2012):
http://business.ftc.gov/documents/inv08-bottom-line-about-multi-level-marketing-plans
Game over son. Rocket Cash Cycler is a pyramid scheme.
Nobody here gives a toss whether you made money or not. We’re analysing the Rocket Cash Cycler business model, which has nothing to do with your personal finances.
You’ll fare better dropping the whole “but RCC is not a pyramid scheme” facade and just opening with “I don’t care how many people I ripoff, so long as they join under me and I earn commissions”.
We always get there in the end…
That would be “barely disguised” to someone who has spent more than 5 minutes observing the world of “barely disguised” MLM opportunities but “very well disguised” from the average punter looking for a way to make some extra money by joining what has been made to look “LIKE” a legitimate MLM “opportunity”
To use a recent analogy that IS relevant:
Zeek Rewards was sufficiently “like” a legitimate MLM company to fool over 1 MILLION people but not regular BEHINDMLM contributors and certainly not Oz.
This like saying that the only people at risk for herpes are the three people you have given it to so far. What about the people these three friends of yours might infect? Will you be able cure them too?
Can you guarantee the return of original investment to the three people you hope your friends will recruit? How about the three after that and the three after that and on and on. No of course you can’t and won’t.
This is why your 30 day guarantee is nothing but a marketing gimmick to get your “friends” to work for you and for the scheme itself. Your self profession of good will and fair play (”That’s just me, “) is truly worrisome as it suggests you are naively unaware of what you are doing.
You should probably ask for your money back rather than use the same marketing gimmicks on your three friends that were used on you.
And people wonder why MLM has so many critics. Do you train your downline to dismiss the critics as Jesus wannabes?
You and your wife (and Todd Hirsch and all the matrix-cycler schemers) need to read “In the Matter of:
Kristopher K. Keeney” filed by the OREGON DEPARTMENT OF CONSUMER AND BUSINESS SERVICES DIVISION OF FINANCE AND CORPORATE SECURITIES.
http://googlesearch.cbs.state.or.us/search?q=Keeney&restrict=dfcsex&ie=&site=dfcsex&output=xml_no_dtd&client=dcbs&lr=&proxystylesheet=dcbs&oe=
Snippet:
Great. You’re guaranteeing an unregistered security you helped Todd Hirsch sell. And you’re positioning yourself as the arbiter of how best to sell unregistered securities for the most recent Todd Hirsch scam, given that your guarantee applies only “if they do what I ask.”
Not sure if you’re familiar with the Club Asteria MLM scam or the MPB Today MLM scam. But in both of those scams, members did the same thing you’re doing while selling unregistered securities for Todd Hirsch: lure people with the prospect of a money payment or implied guarantee you’ll fund yourself.
Club Asteria mysteriously stopped offering a payout — leaving all the members who’d offered a money inducement to fund their liabilities. And MPB Today ceased business altogether, leaving the members who offered “rebates” to lure prospects holding the bag for both the lost MPB Today “profits” AND their out-of-pocket expenses for offering a cash inducement or implied guarantee to join.
You are the best friend Todd Hirsch has: He screws up — and you pay to clean up his mess.
PPBlog
PPBlog,
Good info, thanks. At this point it is what it is. I cannot control the actions or intent of Hirsch or Kenny, and at this point the best I can hope for based on what you, OZ, and littleroundman have posted is to cycle these three out so that they get their money back, push back from the poker table, and call it a day. Thanks for your input.
What does “cycle them out” mean?
In matrix-subtype of pyramid schemes, when you complete your “matrix” (i..e a 2×3 forced matrix / pyramid scheme, which is a 1-2-4 pyramid, 2 subnodes, 3 levels) it’s considered a “cycle” as you can rejoin the scheme and start on a different matrix.
Hoss,
If you reference the diagram near the beginning of this thread, everyone comes in at the bottom right and pushed to the left where they then move to the nex line up to the far right.
When the whole matrix/pyramid is filled and you are pushed off the top (1) line then you have “cycled” and you get paid for that matrix.
Thank you
7/17 update. emailed you 2 weeks ago.
By the way, got a hold of todd hirsch & told him what i thought of his program and my plan of action. he refunded me the $315.
The scam is still going on but looks like they are reaching for the bottom of the barrel.
Found in Skype:
DO NOT JOIN THIS PYRAMID SCAM I REPEAT DO NOT!! THEY WONT REFUND MY PURCHASE AND CHARGED ME 333$ AND NOT THE 315$ ON TOP OF THAT THEY WONT EVEN GIVE ME THE SERIAL CODE TO SKYSCRAPER!!!! SO I WASTED MY MONEY! STRAIGHT SCAM!
It sure sounds like it. I hope you paid with a credit card. Maybe you can get the charges reversed.
RCC ALWAYS provides the products that the customers/members pay for. =) We over deliver!
@Colin put in a ticket at rccsupport.com
or go to the products tab in the back office and follow the directions in order to get your software key.
RCC is about to hit over $4 million USD paid out to the members in less than 7 months!
RCC is providing excellent value and changing lives!
Looks like things have slowed down on the recruitment front over at Rocket Cash Cycler. On August 9th Todd Hirsch (who credits himself as CEO) sent out the following to RCC affiliates:
Rocket Cash Cycler was an unsustainable recruitment scheme? Yeah ok maybe, but look over there! It’s the new and improved but still the same Rccv1!
This time…
You can paint **** with any color, but you can’t disguise the smell…
Todd is the tax man knocking at your door?
I always pay my taxes. 🙂
@yo
I love paying my taxes and not being a wage slave that just has taxes pulled from a weekly check…
I also educate people about owning a LLC and the tax advantages of owning your own business, also about setting up foundations and trusts.
What I think is that, once RCC has real products that they are selling there should not be any problem. Take it that the 315 dollars is for the purchasing of the products.
Now, RCC is giving everyone the opportunity to bring others to come and buy the products, and get paid for their service. Now, if you do not like that, and you like the products, you can just buy them and forget about recruiting people.
I do not see any problem with bringing in my friends to buy good products. If you do not make it to the top of the chart,remember that your money bought you good products.
You think wrong. RCC sell compensation plan permissions that qualify affiliates to recruit new affiliates. Bundled with each position are a series of front products.
“Forgetting about recruiting people” != retail. Choosing not to participate does not negate a pyramid scheme.
Once they realise they can’t earn anything unless they recruit people, soon to be ex-friends…
As someone with 32 years of experience in the network marketing industry, over half that time spent in the area of regulatory compliance working with 2 well known MLM industry attorneys (one a prominent former state Attorney General who was well known for shutting down illegal pyramid schemes), here’s my thoughts:
@Julius-“minting dollars” is irrelevant as to whether the program would be considered a legitimate network marketing opportunity or an illegal pyramid scheme. A lot of people were “minting dollars” in Zeek Rewards recently, and look what happened there! (Shut down by SEC in cooperation with a number of other U.S. agencies for being an illegal pyramid scheme.)
Furthermore, corporate officials and reps who are deemed to be “net winners” when a company is shut down for being an illegal pyramid scheme are subject to “clawbacks,” meaning you’ll be required to give back the amount of money the Court appointed Receiver determines you received in excess of the amount of money you spent. So, I wouldn’t go spending all that money you’re “minting!”
Second, regulators like to see some minimal monthly performance requirements (“triggers”)as a justification for you receiving commissions and bonuses on people below you, especially people you don’t know, hence the reason for monthly personal volume requirements and other criteria, which it sounds like you are complaining about.
Third, you are mistaken in your understanding of what an illegal pyramid scheme is. There are a number of criteria that requlators look at when evaluating a company and determining it to be a pyramid scheme. Here is an analysis of TelexFree International that you might want to review (the same legal criteria would apply to Rocket Cash Cycler): telexfreereport.the6parameters.com
Fourth, while I do not know Oz and Chang personally, they are most often correct in their reviews and analysis.
Fifth, programs that have a one time cost of entry, especially when the product is not retailable to the general public and/or a small amount of sales are being made to non-business participants, can NOT sustain themselves without bringing in new business participants!
Sixth, programs with 2×2 and 2×3 recyclers are considered gimmicky by regulators and most often associated with money games!
Seventh, historically I’m not aware of a single recycler deal that has ever lasted long term! You certainly can’t find one on the Direct Selling News list of top 100 MLM companies based on yearly sales!
Eighth, historically programs without either auto-ship or monthly minimum performance/volume requirements usually don’t survive long term.
Ninth, any program with “boards” that you move through is automatically deemed to be an illegal pyramid scheme by regulators. They are identical in nature to the “airplane rides” of the 1980’s where people bought positions and worked their way up through various titles in the scheme based on the number of people they recruited.
Tenth, the fact that you have to wait until all the spots are filled up before getting paid should be a huge red flag, and makes such a program a target for illegal pyramiding charges! The money to pay out isn’t coming from the sale of product packages to non-business participants, it’s coming from the new people coming in with $499, hence the reason for having to wait to cycle through until you get paid.
Eleventh: Any program that is new or fairly young, and claims to be “global” or operate in a number of foreign countries, is almost always illegally operating in every country they claim they’re in!
Have you done the regulatory compliance work needed to legally operate in a number of foreign countries? (Business registrations, licenses, have a physical presence, i.e., a company owned office or distribution point, a company bank account in that particular country, authorized company representative living in that country, posted any appropriate bonds, etc., that a number of countries require in order for you to legally operate in that country?)
Please don’t tell me you don’t have to because you’re headquartered in the Philippines! If you have people promoting your opportunity in a particular country, doing meetings, recruiting people, taking their money (and that money leaves the country), and you are sending money into the country in the form of commissions and bonuses, then you are operating as a network marketing company in that country! Where a company is based is IRRELEVANT!
I seriously doubt that you have done all of the regulatory compliance work needed to operate in a number of foreign countries! Not doing so AUTOMATICALLY means you are classified as an illegal pyramid scheme by the regulators, even if you were otherwise a legitimate program!
So, just because one has a product or a service, and just because a company pays people and has people making money, doesn’t exempt it from being charged as an illegal pyramid scheme for any number of reasons.
In fact, speaking of products/services, they’ll also not only look at is there an emphasis on selling the product/service to the general public and how much of the product/service is being sold to non-business participants, but whether they have “inherent value” or whether or not they have intrinsic value primarily to business participants only…as well as looking at the legitimate value of what is being sold and whether or not it is overpriced and simply being used merely as a means to create the appearance of legitimacy and to create bigger incomes.
Regulators have always had issues with software packages and digital products when it comes to their pricing and value! If you took away the opportunity to make money, would the general public still spend $499 on your package? I seriously doubt it!
Finally, twelth, new companies have a failure rate of 99% within the first 5 years.
So, there’s 12 good reasons why I wouldn’t get involved, and why I would not recommend Rocket Cash Cycler to anyone! Regulators in a number of countries would consider it to be an illegal pyramid scheme for a number of reasons.
Finally, here’s a few questions for Mr. Hirsch:
1) On your $499 package, what percentage is being sold to business participants and what percentage is being sold to customers (non-business participants)? This becomes more problematic in programs where there is a one time purchase-in traditional product driven programs, internal consumption is less of an issue.
2) What is your customer to distributor ratio?
3) On the commissions being paid out, what is the percentage of income being earned from recruiting vs. sales to non-business participants (customers)? Once again, this becomes more problematic for a company that has a one time sale and no repeat orders.
4) Of the revenue coming in to your company, how much of it is coming from the sale of the $499 packages to business participants vs. the sale of $499 packages to customers (non-business participants?)
5) What is the retail profit when a rep sells a $499 package to a customer i.e., non-business participant? How much do they earn when they sell a $499 package to a business participant?
6) What are the minimal performance requirements in order to get paid? (Do reps have to have a certain number of customers(non-business participants)each month? Do they have to have a certain number of “active” personally enrolled reps each month? In other words, what are the “triggers” for getting paid commissions and bonuses? Or, do they simply get paid when their “board” or matrix fills up?
Traditional MLM programs that involve a product/service that has mass market appeal, legitimate value, has repeat business, and that have monthly minimum performance requirements in order for distributors to earn commissions and bonuses are far easier to achieve regulatory compliance than programs with a one time cost of entry,where the perceived value is questionable, have no repeat business each month and no minimum monthly performance or qualification requirements in order to earn income.
As someone with an extensive background in regulatory compliance, and who has knowledge of and experience in dealing with regulatory agencies, and who knows what they look at when evaluating companies and opportunities, I don’t see how they would consider Rocket Cash Cycler to be anything more than a $499 money game/illegal pyramid scheme.
Only way they convince to me this isn’t a scam. They have pay for me to proof this not a scam. Then I’m right! This is a scam!
Only way convince to me they telling me the truth. They have pay for me! How I know they are lying to me?
(Ozedit: Offtopic derail attempts removed)
@Thomas
Whether you get paid or not is neither here nor there.
A business model determines if a company is a scam or not. All scams pay out initially, so whether you get paid personally is an irrelevant factor.