RonAdz Review: $37 advertising package positions
There is no information on the RonAdz website indicating who owns or runs the business.
The RonAdz website domain (“ronadz.com”) was registered on the 8th of May 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 RonAdz Product Line
RonAdz has no retailable products or services. RonAdz affiliates join the company and then purchase an “ad package” for $37.
Bundled with each ad package are a series of advertising credits which an affiliate can use to display advertising on the RonAdz website.
The RonAdz Compensation Plan
The RonAdz compensation plan revolves around affiliates purchasing ad packages, with the revenue generated redistributed amongst affiliates.
Each ad package purchased by an affiliate pays back a 125% ROI. There’s no daily guaranteed ROI, with the rate the total ROI is paid out dependent on how many ad packages affiliates buy each day.
A referral commission is paid to the affiliate who recruited the affiliate purchasing an ad package, paying out $3 per ad package purchased.
In addition to paying out a 125% ROI, each ad package purchase also creates a position at the top of a 2×2 matrix.
A 2×2 matrix places an affiliates position at the top of the matrix, with two positions directly under them.
These two positions then branch off into another two positions each making for a total of six positions. Matrix positions are filled via the purchase of ad packages by recruited affiliates, or an affiliates own ad package purchases.
Once an affiliate’s 2×2 matrix is full, $10 is paid to the affiliate “cycling” out of the matrix and $1 to the affiliate who recruited them. At this point a new 3×10 matrix is also created.
This matrix sits within a company-wide matrix and is filled via ad package purchases across the company. For each position filled in an affiliates 3×10 matrix, they are paid $2. The affiliate who recruited them earns a referral commissions and is also paid 50 cents.
Affiliate membership to RonAdz is free, however affiliates must invest in ad packages if they wish to earn any commissions.
Taken from the RonAdz compensation plan:
When you buy ad package you get a share in our revenue share system. Each share pays you 125% of your ad pack cost.
The more ad packs you buy the more share you get and the more you earn.
With no retailable products or services all revenue generated in RonAdz is sourced from affiliates. In promising a 125% ROI on all ad packages purchased, the company effectively operates an a Ponzi investment scheme.
Affiliates invest $37 in positions and are paid 125% out of affiliates new and re-investments.
The matrix side of the business serves as a recruitment tool, paying out an affiliate per affiliate recruited (subject to their first investment in an ad package) and then ongoing as more and more ad packages are purchased.
As with all Ponzi schemes, once affiliates stop investing in ad packages the ROIs will stall and the company runs out of money. When this happens RonAdz affiliates who have invested will find themselves out of pocket as the company is subsequently unable to pay them.