Ultamex Review: A world-wide recruitment scam
Ultamex set themselves some pretty steep goals and to state their company mission statement is ambitious is a bit of an understatement:
-eliminate world poverty
-create international aid
-create wealth for our members
Those are some pretty mighty claims so naturally the burning question is ‘do Ultamex deliver’?
Read on for a full review of the Ultamex MLM opportunity.
Apart from referring to themselves as ‘the Ultamex Team’, there is no information on the Ultamex website about who owns or is running the opportunity.
The domain registration information for Ultamex.com however reveals it is registered to a ‘Danny Gauthier’ operating out of Canada. Further research indicates that Gauthier is the owner and operator of Ultamex.
Gauthier’s previous MLM venture appears to be another matrix based opportunity called ‘WeNetProfits’. WeNetProfits seems to have started around 2009 and being a recruitment driven opportunity, has fizzled out and this appears to be the main reason behind the launch of Ultamex.
Looking back even further, Gauthier adminned ‘Seed2Wealth’ in 2007 and in 2006, ‘United TSI’. Yet again, both of these opportunities appear to be recruitment driven matrix companies.
Gauthier attempts to brush off the ultimate sustainability failure of his previous opportunities by stating they were simply ‘4 years of market and software testing‘, but it’s clear there’s a pattern in the successive launch of these programs.
The Ultamex Product Line
Ultamex have no retail product offering and instead provide members with access to “thousands” of digital downloads including e-books, blog themes, videos, software and clipart.
Most of these downloads appear to marketing orientated but there’s a few titles to suggest it’s not all internet marketing related (‘Jesus: The Gift of Life Everlasting’ and ‘Yoga for beginners’ are just two titles from the e-book section).
The Ultamex Compensation Plan
The Ultamex compensation plan involves a series of matrices that members are placed into after they’ve joined a company wide feeder queue.
The Feeder Queue
Upon paying a membership fee, Ultamex members are placed into a company-wide feeder queue. Entry into this queue is compulsory and members are only “fed” into the company’s matrix once there are three members under them.
These members can be direct recruits or new members recruited by other existing members of the company.
Once placed in the feeder queue, members are paid a $25 commission as soon as someone is placed under them (recruited).
Ultamex themselves also generate a dummy member position that takes up the fifth member position of the feeder queue. This dummy position will eventually push someone at the top of the feeder queue into your matrix and when this happens three times, you receive a re-entry position in the feeder queue.
Note that this re-entry mechanic (each 3 positions filled in your matrix = a new feeder queue position) works throughout all of the Ultamex matrices, not just the first one.
After the feeder queue, Ultamex members are placed into a bunch of matrix like systems that house 10 members each. Ultamex call these structures ‘Mex’ systems (Mex1, Mex2 etc.).
The mechanics of these Mex systems is simple, each houses ten members and once full you earn a commission and move up to a higher Mex system.
There are five Mex systems with each of them paying a different commission as follows:
- Mex1 – $350
- Mex2 – $1150
- Mex3 – $3550
- Mex4 – $7150
- Mex5 – $21,550
Ultamex offer members a 20% matching bonus on Mex1-4 system income and 30% on Mex5.
The Ultamex matching bonus is only applicable to members directly recruited by an Ultamex member.
Ultamex membership is a one time fee of $59.
I don’t know who came up with Ultamex’s mission statement, but it’s quite clear looking at the business plan that, fancy mechanics of the feeder queue aside (more on that later), the company is nothing more than a recruitment opportunity.
With no retail product offerings, 100% of Ultamex’s commissions are generated from the membership fees when new members join the company – and this is a huge red flag.
Looking at the mechanics of the compensation plan, with new feeder positions being created every 3 members that enter into a MEX system, that’s 15 new feeder positions created in just one Mex1-5 cycle.
With each of those fifteen feeder positions in turn creating another fifteen feeder positions each (225 member positions belonging to one member, with 1,125 MEX systems needing to be filled), it’s easy to see just how quickly the Ultamex compensation can quickly spiral out of control.
With a compensation plan like this and Danny Gauthier’s track record of matrix based MLM companies, when the new recruits dry and stop joining Ultamex is bust.
Not sure how long this will take with Ultamex but Gauthier’s current schedule appears to be roughly shy of two years before he decides it’s time to launch another matrix based opportunity.
Complex compensation plan mechanics aside, with Ultamex ultimately boiling down to be being nothing more than a recruitment scam – this is definitely one opportunity you’ll want to steer clear of.
It sounds like Danny Gauthier has been involved in some “Miss Canada” contest or something similar?
“What will you do if you win this contest?”
– and discover intelligent life in the Universe
Needs a link to HugeYield, now that we discovered Carl and Tatiana pushing both…
I would have thought Havaaldsen and Toganel pushing both was a strong enough link? 🙂
These two seem to be partner “designers” operating out of Canada…
Here’s a quote from an author of several books.
“The brain is fantastic. It starts to work immediately when you wake up in the morning, and it continues to work right until you’re sitting near the keyboard and starts typing.”
I believe K.Chang may have meant some other kind of link, more like a link to click on.
Is the mentioning of Havaaldsen ‘getting ready for the launch of Ultamex’ enough to assert he’s running it though?
The Ultamex domain is registered to Danny Gauthier, who probably not so co-incidentally listed an address in Canada (where Havaaldsen and Toganel reside).
Gauthier could just be another made up name like Larry Lawrence with Huge Yield, but I was able to trace back ownership of Gauthier’s various recruitment scams dating back to 2009.
The Danny Gauthier name or the listed Canadian address on the ultamex domain whois registry listing doesn’t appear to be associated (publicly at least) with Huge Yield or Carl Havaaldsen.
I don’t think he meant a logical link between these two schemes, but a link to click on. Like you use to do in other articles, posting a comment with a link to related articles.
“… it doesn’t stop working before you sit down near the keyboard, and starts to type.”
No I got that, but without a logical link – what’s the point of linking the two schemes together…?
That the same “top people” are pushing both? So that’s a common frame of reference?
Or is that so “common” to be not worth mentioning?
Top people isn’t ownership though, at least not concrete. You’d be surprised how many top people jump from company to company.
Havaaldsen and Toganel might very well be running Ultamex but I don’t think ‘getting ready for the launch’ is enough to prove it. For all we know they might have just joined Ultamex during pre-launch and then started promoting it.
Hi all, I am since december partner of Ultamex have 3 partners paid registered but still deserve a penny Who knows how this is? or is this the next air castle?? If anyone knows how this works I would like to hear this
Thanks in advance
All I know is that Ultamex compensation plan has been re-invented at least two times since conception-with new fast forwarding promises that I have not seen working for me.
Maybe this time instead of starting a new one, reinvention is the norm for Gauthier.