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.