Average Joe Profit System Review: $5 Ponzi gifting hybrid

There is no information on the Average Joe Profit System website stating who owns or runs the business.

The Average Joe Profit System website domain (“averagejoeprofitsystem.com”) was registered on the 30th of December 2013, however the domain registration is set to private.

Further research reveals the skye ID “products4uplus” provided as a support contact in the Average Joe Profit System FAQ:

This ID correspondes to a Twitter profile, bearing the name “Johnny Ganoza”. Ganoza is also one of the admins of the official Average Joe Profit System Facebook group:

This strongly suggests Ganoza is the owner and operator of the Average Joe Profit System.

Johnny Ganoza (right) first popped up on BehindMLM’s radar as the admin of Xtreme Pro System.

Xtreme Pro System, a $45 in, $300 out Ponzi scheme, was launched in late 2014. In early 2015 the SEC shutdown Achieve Community, a similar matrix-based Ponzi scheme.

The shutdown of Achieve Community was cited as a primary reason for Ganoza shutting down the Ponzi side of Xtreme Pro System.

Today Xtreme Pro System advertises a “blogging system”, which affiliates can earn $5 per sale of.

Read on for a full review of the Average Joe Profit System MLM business opportunity.

The Average Joe Profit System Product Line

The Average Joe Profit System has no retailable products or services, with affiliates only able to market Average Joe Profit System affiliate membership itself.

Once signed up, Average Joe Profit System affiliates can then purchase $5 matrix positions and participate in the Average Joe Profit System income opportunity.

Bundled with each of these matrix position purchases are a series of advertising credits, which can be used to display advertising on the Average Joe Profit System website itself.

The Average Joe Profit System Compensation Plan

The Average Joe Profit System sees affiliates gift $5 to the affiliate who recruited them.

This $5 payment also generates a matrix position, which is then pushed through a two-tier 3×4 matrix cycler.

A 3×4 matrix places an affiliate at the top of the matrix, with three positions directly under:

These three positions form the first level of the matrix, with the second level generated by splitting each of the first level positions into three each.

The third level of the matrix is generated by splitting second level positions into three each, with the fourth and final level generated in the same manner.

There are two matrices within the Average Joe Profit System cycler, with commissions paid out as positions in each level of the two matrices are filled.

How much of a commission is paid out is determined by what level of the matrix and tier an Average Joe Profit System affiliate’s matrix positions are cycling out of:

• Matrix 1, level 1 (3 positions) = pays $5 and cycles into Matrix 1, level 2
• Matrix 1, level 2 (9 positions) = pays $40 and cycles into Matrix 1, level 3
• Matrix 1, level 3 (27 positions) = pays $1250 and cycles into Matrix 1, level 4
• Matrix 1, level 4 (81 positions) = pays $7800 and cycles into Matrix 2, level 1
• Matrix 2, level 1 (3 positions) = pays $300 and cycles into Matrix 2, level 2
• Matrix 2, level 2 (9 positions) = pays $4500 and cycles into Matrix 2, level 3
• Matrix 2, level 3 (27 positions) = pays $21,800 and cycles into Matrix 2, level 4
• Matrix 2, level 4 (81 positions) = pays $202,500

Joining the Average Joe Profit System

Affiliate membership with the Average Joe Profit System is tied to the purchase of at least one $5 matrix position.

As such, the defacto minimum cost of Average Joe Profit System affiliate membership is $5 (the cost of one position).

Conclusion

With nothing being marketed or sold to retail customers, the Average Joe System Profit System uses a closed-loop of affiliate funds to pay commissions.

The Average Joe Profit System business model is such that affiliates directly gift eachother payments into the system:

Q: How much is it to join the Average Joe?

A: The cost to join the Average Joe is a one time payment of $5 directly paid to your sponsor or upline.

This qualifies the Average Joe Profit System as a cash gifting scheme, with the rest of the compensation plan then geared around recruiting other participants, and using funds paid into the scheme to advance through the two-tier matrix cycler.

In a nutshell you pay $5 to the affiliate who recruited you. You then recruit someone who pays you $5 and then two others. The rest of the compensation plan then sees you paid based on $5 payments made by hundreds of people.

In total, one pass through the Average Joe Profit System cycler ($238,195) requires 47,639 $5 payments entering the system.

In turn, these 47,639 payments require 47,639 payments to fully cycle – which is a staggering 2.2 billion positions.

Needless to say most people aren’t going to have their positions fully cycle, with most affiliates of the Average Joe Profit System guaranteed to lose money.

Of surprise is that Ganoza is up to his old matrix Ponzi ways, even though he acknowledged the Achieve shutdown was why he closed his own Xtreme Pro System scam:

We can no longer run the matrix side of things in Xtreme.

This past week we had people, members talk about the other programs that went down or was shut down.

As I mentioned, I did not want to shut down our business, but we had to change the foundation of our compensation plan.

The structure of our matrix is not good for business here in the US.

Even as the two owners of Achieve Community prepare for a criminal trial that will likely see them sent to jail, Ganoza has seemingly abandoned his previous reservations and launched a new Ponzi scam.

The thinking behind that? Who knows.

What we do know though is that, like all Ponzi schemes, once the recruitment of new affiliates dries up, so too will new funds entering the Average Joe Profit System.

This will first manifest itself with longer and long cycle times, before the scheme collapses entirely.

In addition to commissions paid out on the positions Ganoza has no doubt pre-loaded the Average Joe Profit System with, he also then keeps any affiliate funds still attached to uncycled positions.

As with Achieve Community and Xtreme Pro System, Ganoza’s investors meanwhile lose out.