3pexcel Review: Discount card cycler pyramid scheme
3pexcel provides no information on their website about who owns or runs the business.
The 3pexcel website domain (“3pexcel.com”) was privately registered on July 24th, 2017.
The footer of the 3pexcel website advises the company is ‘a member of Xeap Group Inc.‘
Xeap Group is incorporated in California in the US.
Upon visiting the 3pexcel website for the first time visitors are required to choose a country. Nigeria is provided at the top of the list and is separated from the other choices. A corporate address in Port Harcourt, Nigeria is also provided on the 3pexcel website.
Both suggest 3pexcel is being operated from Nigeria itself. As far as I can tell Xeap Group is nothing more than an offshore shell company.
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.
3pexcel has no retailable products or services, with affiliates only able to market 3pexcel affiliate membership itself.
3pexcel affiliates are given access to online discounts (e-commerce, flights, hotels, cell phone plans) and an offline discount card.
3pexcel state their loyalty card is a ‘customer or membership card that is used for identification purposes in partner stores‘.
The 3pexcel Compensation Plan
3pexcel affiliates pay N30,000 (~$82.50 USD) to join the company. Commissions are paid when they recruit others who do the same.
For each affiliate recruited, a 3pexcel affiliate earns N20,000 (~$55 USD).
Residual Recruitment Commissions
3pexcel pays residual recruitment commissions via a six-tier 2×2 matrix cycler.
A 2×2 matrix places a 3pexcel affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting these first two positions into another two positions each (4 positions).
Positions in the matrix are filled via direct and indirect recruitment of 3pexcel affiliates.
Once all six positions in a matrix are filled, a “cycle” occurs.
A cycle sees a cycle commission paid out and the position at the top of a matrix “cycling” into the next cycler tier.
Cycle commissions across 3pexcel’s six matrix cycler tiers are as follows:
- Stage 1 (positions cost N30,000) – N80,000 cycle commission ($220 USD) and cycles into Stage 2
- Stage 2 – N120,000 cycle commission ($330 USD) and cycles into Stage 3
- Stage 3 – N400,000 cycle commission ($1100 USD) and cycles into Stage 4
- Stage 4 – N2,000,000 cycle commission ($5502 USD) and cycles into Stage 5
- Stage 5 – N8,000,000 cycle commission (~$22,000 USD) and cycles into Stage 6
- Stage 6 – N20,000,000 cycle commission (~$55,000 USD)
Note that from Stage 3, 3pexcel affiliates can only advance if each of the six affiliates in previous tier matrix they cycled out of have also cycled into their current cycler tier.
I.e. Before a 3pexcel affiliate can cycle out of Stage 3, each of the six affiliates in their previous Stage 3 matrix must have also cycled into Stage 3.
Additional Cycle Bonuses
3pexcel reward affiliates with the following additional cycle bonuses from Stage 3:
- cycle out of Stage 3 and receive “electronics”
- cycle out of Stage 4 and receive an “international trip”
- cycle out of Stage 5 and receive a “sports utility vehicle”
- cycle out of Stage 6 and receive a “semi detached duplex”
3pexcel affiliate membership is N30,000 (~$82.50 USD).
Whatever legitimacy the discount side of 3pexcel has is undone by the company’s recruitment focused compensation plan.
Before we get into the compensation plan, I’ll note that the online discount services offered by 3pexcel appear to all be through third-parties.
The online shopping portal runs on PrestaShop, a freemium e-commerce platform. Items in the portal appear to be dropshipped.
The flights are handled through VacationsCMS, a European travel discount portal provider.
As 3pexcel themselves advise;
If you do not refer people, you do not earn.
The fraudulent nature of 3pexcel’s compensation plan is two-fold.
The first is pyramid recruitment. 3pexcel affiliates pay a fee and get paid to recruit others who do the same.
Nothing is marketed or sold to retail customers in the process, with 100% of MLM commissions paid out by 3pexcel tied to recruitment.
The second is a result of the matrix cycler model used.
In effect, 3pexcel affiliates invest N30,000 on the promise of an advertised ROI of up to N30,520,000 (all six cycler commissions).
The ROI is paid out of subsequently recruited funds, adding a Ponzi layer to the scheme.
Both components of 3pexcel rely on never-ending affiliate recruitment, which is unsustainable.
Once affiliate recruitment inevitably dies down, 3pexcel will collapse.
The math behind pyramid and Ponzi schemes guarantees that when they collapse, the majority of participants lose money.