YourNewEarnings Review: $1 micro Ponzi scheme
There is no information on the YourNewEarnings website indicating who owns or runs the business.
The company’s domain (yournewearnings.com) was registered on the 11th of August 2012, however the domain registration information is set to private.
I did note that at the bottom of the YourNewEarnings website the following message appears:
Created By C. Jansson
But I was unable to find any further information on this person and confirm whether or not they owned YourNewEarnings or merely designed the website (or both).
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 YourNewEarnings Product Line
YourNewEarnings has no retailable products or services. Instead, members join the company and purchase “positions” which the company then pays out a daily ROI on.
The YourNewEarnings Compensation Plan
Upon joining YourNewEarnings and purchasing a position, members earn 2 cents a day for up to 75 days (total ROI $1.50).
Upon 5 positions maturing, members are also given a position in a 2×3 matrix. A 2×3 matrix starts with a member at the top and branches out into 3 positions. In turn these three positions branch out into another 3 positions each for a total of 12 positions.
When all 12 matrix positions are filled, the member at the top of the matrix earns $7.50.
Note that in YourNewEarnings matrices can only be filled by members that are personally recruited (and only after they’ve had 5 position investments mature per position in a matrix).
Finally YourNewEarnings also offer referral commissions, paying out 5 cents per $1 position purchase made by any member personally referred.
Membership to YourNewEarnings is free, however members must purchase positions (invest) if they wish to earn any money.
With no products being sold in YourNewEarnings other than positions in the income opportunity, and with each position paying out a daily guaranteed ROI, quite obviously money being paid out as a daily ROI is sourced from new member investment.
Calling them “positions”, what effectively happens is members invest for $1 and earn a 150% ROI over 75 days, and as new members invest this money is then used to pay out returns owed to existing investors.
Or in other words, YourNewEarnings fits the definition of a Ponzi scheme.
As far as the matrix goes, this is just to encourage members to invest for a little extra money. With 12 positions to fill, members are looking at 60 new investments per matrix to fill up.
Curiously YourNewEarnings claim that their scheme is ” indefinitely sustainable” and claim so based on the fact that if they run out of new investment money, they collapse bought positions and pump them into the matrices. YourNewEarnings refer to this as “the C.A.P”.
C.A.P works by closing down all investment positions that are yet to generate at least 40 cents for their owner, and creating a bunch of matrix positions. This in turn cycles matrices with the idea being that members re-invest their matrix money into new positions and keep the scheme afloat that little bit longer.
In reality all this does is shuffle around existing money and does not address the fundamental sustainability flaw all Ponzi schemes suffer from, that being without new investment money coming in, the scheme falls apart.
Even with the C.A.P over time as the liabilities owed to members increases and new money coming into the scheme drops off, all that happens is the C.A.P will have to be used more and more frequently, resulting in a loss to existing investors as matrix positions created shrink with each C.A.P application (remember, 5 positions roll into one matrix position each time).
Marketed as a benefit to members, all the C.A.P really does is lock people’s money up in the scheme for longer, benefitting nobody but the admin(s) of the YourNewEarnings Ponzi scheme themselves.