AlterNet Review: Three-tier social network Ponzi pyramid hybrid
AlterNet provides no information on their website about who owns or runs the business.
The AlterNet website domain (“alternet.com”) was first registered in 2004. The registration was last updated back in February of this year, which is likely when the current owner(s) took possession of it.
Lloyd Elzy is listed as the current AlterNet domain owner, through a residential address in the US state of Nevada.
Given the use of a residential address and there being no external information available on Lloyd Elzy, it’s a safe bet AlterNet’s domain registration details are bogus.
Two other domains connected to AlterNet (“adblast.org” and “mineblast.online”), were both privately registered in the last six months.
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.
AlterNet has no retailable products or services, with affiliates only able to market AlterNet affiliate membership itself.
AlterNet affiliate membership provides access to the AlterNet social network.
Outside of showing ads by adpack investors, AlterNet’s social network serves no purpose.
The AlterNet Compensation Plan
Alternet’s compensation plan combines pyramid recruitment with two Ponzi components.
AlterNet affiliates invest $10 to $100 adpacks on the promise of an advertised ROI.
- invest in a $10 adpack and receive a $12 ROI in 100 days
- invest in a $50 adpack and receive a $60 ROI in 120 days
- invest in a $100 adpack and receive a $125 ROI in 130 days
Referral commissions on adpack investment by downline affiliates are tracked via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
AlterNet cap payable adpack referral commissions at five.
Adpack referral commissions are paid out as a percentage of funds invested across these five levels as follows:
- level 1 (personally recruited affiliates) – 10%
- levels 2 to 5 – 1%
AlterNet market MineBlast as a cryptocurrency cloud-mining opportunity.
Investments in MineBlast are made in various cryptocurrencies on the promise of a daily ROI for 720 days:
- bitcoin – invest $100 to $1000
- ethereum – invest $110 to $1000
- litecoin – invest $100 to $1000
- dash – invest $100 to $1000
3×10 Matrix Recruitment Commissions
AlterNet affiliates can purchase positions in a six-tier 3×10 matrix recruitment scheme.
A 3×10 matrix places an AlterNet affiliate at the top of a matrix, with three positions directly under them:
These three positions form the first level of the matrix. The second level of the matrix is generated by splitting these first three positions into another three positions each (9 positions).
Levels three to ten of the matrix are generated in the same manner, with each new level housing three times as many positions as the previous level.
Commissions are paid when newly recruited or existing AlterNet affiliates purchase positions in one of the six offered matrix tiers.
- Member – $10
- Basic – $25
- Gold – $50
- Exclusive – $100
- Sapphire – $500
- Royal – $1000
Positions in each matrix tier can be purchased sequentially or upfront ($1685).
AlterNet affiliates are paid 10% of position purchase fees paid by directly or indirectly recruited affiliates placed in their matrix.
Matrix Matching Bonus
AlterNet affiliates receive a Matching Bonus on matrix commissions earned by personally recruited affiliates.
How much of a Matching Bonus is received depends on which matrix tier downline earnings are paid on:
- Member matrix = 10% match
- Basic matrix = 20% match
- Gold matrix = 30% match
- Exclusive and higher matrices = 50% match
If AlterNet’s system automatically assigns a recruited affiliate under you, only a 5% match is earned on their matrix commissions (any tier).
The Leader Bonus is an additional bonus percentage match on all six tiers of the matrix.
- recruit at least six affiliates who in turn have recruited six affiliates and generate at least $2000 in matrix position sales = 1% Leader Bonus
- recruit at least three affiliates who qualify for a 1% Leader Bonus and generate at least $10,000 in matrix position sales = 2% Leader Bonus
- recruit at least three affiliates who qualify for a 2% Leader Bonus and generate at least $25,000 in matrix position sales = 3% Leader Bonus
- recruit at least three affiliates who qualify for a 3% Leader Bonus and generate at least $100,000 in matrix position sales = 4% Leader Bonus
- recruit at least three affiliates who qualify for a 4% Leader Bonus, generate at least $250,000 in matrix position sales and maintain $5000 a month in matrix position sales = 5% Leader Bonus
- recruit at least three affiliates who qualify for a 5% Leader Bonus, generate at least $500,000 in matrix position sales and maintain $15,000 a month in matrix position sales = 6% Leader Bonus
- recruit at least three affiliates who qualify for a 6% Leader Bonus, generate at least $1,000,000 in matrix position sales and maintain $25,000 a month in matrix position sales = 7% Leader Bonus
Note that the Leader Bonus is paid out on an AlterNet affiliate’s entire matrix (all six-tiers), irrespective of who recruited in the matrix.
Career Plan Bonuses
AlterNet reward affiliates for achieving specific milestones as follows:
- recruit at least five affiliates and generate $20,000 in downline volume = a “top smartphone”
- recruit at least three affiliates who’ve qualified for a smartphone and generate $50,000 in downline volume = a MacBook Pro
- recruit at least three affiliates who’ve qualified for a MacBook Pro and generate $150,000 in downline volume = an “exotic trip”
- recruit at least three affiliates who’ve qualified for an exotic trip and generate $1,000,000 in downline volume = a Mercedes-Benz C-Class car
- recruit at least three affiliates who’ve qualified for a Mercedes-Benz C-Class car and generate $1,300,00 in downline volume = Mercedes-Benz E-Class car
- recruit at least three affiliates who’ve qualified for a Mercedes-Benz E-Class car and generate $1,700,000 in downline volume = Mercedes-Benz S-Class car
- recruit at least three affiliates who’ve qualified for a Mercedes-Benz S-Class car and generate at least $3,000,000 in downline volume = Mercedes-Benz AMG GT car
AlterNet affiliate membership is free. Free affiliates however can only earn peanuts through the social network.
Participation in the attached AlterNet MLM opportunity is tied to
- a matrix position purchase ($10 to $1685)
- adpack investment (starts at $12) and/or
- MineBlast investment (investment amounts not disclosed)
AlterNet exemplifies the worst of the worst in the MLM cryptocurrency niche.
The use of cryptocurrency aside, AlterNet can be broken down into a pyramid scheme attached to two separate Ponzi schemes.
AlterNet’s matrix commissions are tied to recruitment and is a straight up pyramid scheme.
You sign up, pay a fee and commissions are received when others do the same.
AdBlast is a simple adcredit Ponzi model.
MineBlast is the crypto cloud-mining Ponzi model (pretty much every MLM crypto mining scheme).
Other than stating they have an “Iceland mining center”, AlterNet provide no evidence of mining operations or revenue raised by said operations being used to pay affiliates.
So to sum up AlterNet;
- matrix = commissions paid on fees paid by directly and indirectly recruited affiliates (pyramid)
- AdBlast = ROIs paid out of subsequently invested adpack funds (Ponzi)
- MineBlast = no verifiable source of ROI revenue other than new investment (Ponzi)
Three scams in one.
As for AlterNet’s social network, it’s neither here nor there. It exists and other than being a vehicle for adpack investors to spend their worthless adcredits through, won’t be used by anyone other than AlterNet affiliates.
Looking forward, AlterNet’s end-game appears to be the launch of an altcoin at some point (I know, I know… I rolled my eyes too).
We are working hard on original cryptocurrency exchange and decentralized cryptocurrency based on blockchain. Open source code, Whitepaper 2018, ICO 2019.
As ROI payments spiral out of control and recruitment inevitably slows down, AlterNet’s anonymous admins will launch an altcoin to exit-scam through.
Once launched, AlterNet will convert ROI liabilities to the worthless altcoin and after that, you’ll never hear from them again.
There is of course no timeline for this, as it depends on how many gullible schmucks AlterNet get to sign up and invest.
What we can guarantee you though is that the math behind a Ponzi scheme is zero-sum.
Meaning in order for AlterNet’s admins and top investors and recruiters to make money, the rest of the affiliate-base has to lose it.