AutoxAds Review: Five-tier matrix cycler Ponzi
There is no information on the AutoxAds website indicating who owns or runs the business.
The AutoxAds website domain (“autoxads.com”) was privately registered on October 28th, 2016.
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 AutoxAds Product Line
AutoxAds has no retailable products or services, with affiliates only able to market AutoxAds affiliate membership itself.
Once signed up, AutoxAds affiliates purchase positions in a matrix cycler.
Bundled with each cycler position purchase are ad credits. These ad credits can be used to display advertising on the AutoxAds website.
The AutoxAds Compensation Plan
The AutoxAds compensation plan sees affiliates purchase 25 cent daily positions in a five-tier 4×1 matrix cycler.
A 4×1 matrix places an affiliate at the top of a matrix, with four positions below them to fill.
Once all four positions are filled, a “cycle” is triggered and a commission paid out.
Positions in the matrix are filled via subsequent cycler position purchases by new and existing AutoxAds affiliates.
Commissions across AutoxAds’ four-tier cycler are as follows:
- Tier 1 (positions cost 25 cents) – 25 cent commission and cycles into Tier 2
- Tier 2 – 50 cent commission and cycles into Tier 3
- Tier 3 – $1 commission, generates one new Tier 1 position and cycles into Tier 4
- Tier 4 – $5 commission, generates four new Tier 1 positions and cycles into Tier 5
- Tier 5 – $35 commission and generates four new Tier 1 positions
A $1 matching bonus is also paid when personally recruited affiliates cycle out of cycler tiers 4 and 5.
Note that an AutoxAds affiliate must continue to fund their account to be able to purchase a new 25 cent cycler position each day.
Failure to maintain a daily 25 cent position purchase will result in forfeiture of all cycler positions held by that account.
AutoxAds affiliate membership is free, however free affiliates can only earn matching bonus commissions.
Full participation in the AutoxAds MLM opportunity requires a minimum $10 cycler position purchase.
The daily purchase of a 25 cent cycler position is an ongoing requirement. This roughly equates to $7.50 every month (30 days).
THIS IS NOT A GET RICH QUICK SCHEME OR INVESTMENT PROGRAM OR MATRIX PROGRAM OR MLM PROGRAM, BUT PURELY AN ADVERTISING PLATFORM WHERE MEMBERS ARE BUYING TRAFFIC TO PROMOTE THEIR PRODUCTS.
The above, taken from a “disclaimer” published on the AutoxAds website, is full of porky pies.
For starters, AutoxAds acknowledge the investment nature of their cycler positions in the official FAQ:
How Fast Will My Advertising Positions Mature?
A: We have no way of knowing how fast your positions will mature as this is based on the number of ad packages being purchased each day.
Purchases don’t mature, investments do.
Secondly the AutoxAds compensation plan is very much based on a matrix cycler, so the claim it’s not a “matrix program” is bogus too.
Not an MLM program? AutoxAds pays out across multiple levels through their cycler, so that’s another lie.
The “not a get rich quick scheme” is true though, as most participants in cycler scams lose money.
The bundled ad credits are neither here nor there, serving only as pseudo-compliance for what is otherwise financial fraud.
AutoxAds functions as a Ponzi scheme, whereby newly invested funds are used to pay off existing investors.
A single 25 cent investment results in an eventual $41.75 ROI payment.
On the raw numbers side of things, that’s at least 167 new 25 cent cycler position investments for a single ROI payout. More once the matching bonus is factored in.
Each full cycle also generates nine new Tier 1 positions, creating requiring a total of 1,503 position purchases to cycle out.
It only takes a few position cycles out of Tier 5 for AutoxAds to spiral out of control.
Realistically the only positions to cycle through the fifth tier are those pre-loaded by the anonymous AutoxAds admin, and perhaps a few belonging to early-adopters.
Whatever money might be made by everyone else is slowly drained via continious 25 cent position purchases.
The end result?
The majority of invested fund wind up with the AutoxAds admin and the vast majority of affiliates lose money.