Beep XCoin Review: Beep Xtra launches cryptocurrency mining
The concept flopped and in an attempt to reinvigorate the business, Beep Xtra began offering unregistered securities to affiliates in mid 2014.
That worked for a while, but by early 2016 Beep Xtra dwindled and all but collapsed.
Now hoping to cash in on the recent “failing business model + cryptocurrency = profit” MLM trend, Beep Xtra are launching their own Beep XCoin.
Beep XCoin Products
Beep XCoin market cryptocurrency mining packages:
- $500 package (2 year contract)
- $1199 package (2 year contract)
- $2299 package (2 year contract)
- $10,000+ package (negotiable period)
These mining packages purportedly mine established cryptocurrencies and Beep XCoin.
The more a retail customer or Beep XCoin affiliate pays, the more cryptocurrency and Beep XCoin they receive each month.
The Beep XCoin Compensation Plan
The Beep XCoin compensation plan is a combination of recruitment and mining package commissions.
Beep XCoin Affiliate Ranks
There are ten affiliate ranks within the Beep XCoin compensation plan.
Along with their respective qualification criteria, they are as follows:
- Marketing Executive – sign up as a Beep XCoin affiliate and recruit at least one affiliate who invests
- Area Sales Manager 1 Star – recruit at least eight investing affiliates
- Area Sales Manager 2 Star – recruit at least twenty investing affiliates
- Area Sales Manager 3 Star – maintain at least one personally recruited Area Sales Manager or higher ranked affiliate
- Regional Sales Manager 1 Star – maintain at least two personally recruited Area Sales Managers or higher ranked affiliates
- Regional Sales Manager 2 Star – maintain at least three personally recruited Area Sales Managers or higher ranked affiliates
- Regional Sales Manager 3 Star – maintain at least four personally recruited Area Sales Managers or higher ranked affiliates
- National Sales Director – maintain at least five personally recruited Area Sales Managers or higher ranked affiliates
- Continental Sales Consultant – maintain at least ten personally recruited Area Sales Managers or higher ranked affiliates
- Global Sales Consultant – maintain at least five personally recruited Continental Sales Consultant or higher ranked affiliates
Beep XCoin affiliates are paid a direct 7% to 20% recruitment commission when they recruit new affiliates.
- recruit 1 to 7 affiliates and receive a 7% commission
- recruit 8 to 19 affiliates and earn 14%
- recruit twenty or more affiliates and earn 20%
Recruitment commissions are paid out on both the initial $149 and ongoing $50 monthly Beep XCoin affiliate fee.
Retail Mining Contract Commissions
When a retail customer (non-affiliate) signs up for a Beep XCoin mining contract, a 7% commission is paid out to the affiliate who referred them.
Beep XCoin pay residual commissions via a 5×7 matrix.
A 5×7 matrix places a Beep XCoin affiliate at the top of a matrix, with five positions directly under them:
These five positions form the first level of the matrix. The second level of the matrix is generated by splitting these first five positions into another five positions each.
Levels three to seven of the matrix are generated in the same manner, with each new level housing five times as many positions as the previous level.
Positions in the matrix are filled via direct and indirect recruitment of Beep XCoin affiliates. A 7% commission is paid when affiliates recruited into the matrix invest in a mining contract.
How many matrix levels a Beep XCoin affiliate can earn on is determined by how many affiliates they’ve recruited:
- recruit two investing affiliates and earn on levels 1 to 3 of the matrix
- recruit four investing affiliates and earn on levels 1 to 4 of the matrix
- recruit eight investing affiliates and earn on all 7 levels of the matrix
Note that additional mining contract investment is paid out at a reduced 5% commission rate.
Rank Achievement Bonus
If a Beep XCoin affiliate qualifies for Area Sales Manager 1 Star ranks and higher within specific timeframes, the following Rank Achievement Bonuses are paid out:
- qualify as an Area Sales Manager 1 Star within two months and receive $200
- qualify as an Area Sales Manager 2 Star within three months and receive $300
- qualify as an Area Sales Manager 3 Star within three months and receive $400
- qualify as an Regional Sales Manager 1 Star within five months and receive $500
- qualify as an Regional Sales Manager 2 Star within six months and receive $600
- qualify as an Regional Sales Manager 3 Star within seven months and receive $750
- qualify as an National Sales Director within eight months and receive $1000
- qualify as a Continental Sales Consultant within ten months and receive $1250
- qualify as a Global Sales Consultant within twelve months and receive $1500
Joining Beep XCoin
Beep XCoin affiliate membership is $149 and then $50 a month.
Investment into a Beep XCoin mining contract adds an additional cost of at least $500.
There are multiple compliance issues with Beep Xtra’s latest offering. We’ll start with Beep XCoin itself.
Beep XCoin is not publicly tradeable and has been created to try and revive Beep Xtra’s all but collapsed e-commerce platform.
The platform itself already flopped, so how is adding an inhouse point-based currency going to make is successful.
From a merchant standpoint, if Beep Xtra wasn’t an attractive platform with real money, why would adding points controlled and valued by Beep Xtra make it any more viable?
There’s a huge risk for merchants taking on board a non-publicly tradeable cryptocurrency.
First of all to convert Beep XCoins into real money you have to go through Beep Xtra. Beep Xtra’s only identifiable sources of revenue are affiliate fees, mining contract fees and merchant fees.
Will that be enough to ensure every Beep XCoin is convertible into fiat currency?
Remember every Beep XCoin affiliate and customer are receiving Beep XCoins each month. Beep Xtra generate Beep XCoins at little to no cost and set the value themselves.
As a legitimate merchant this isn’t a system I’d touch with a ten foot pole.
If Beep Xtra decide after collecting thousands in mining and affiliate fees to close up shop, as a merchant all your money tied in Beep XCoins is lost.
If you were foolish enough to totally dive in, that might just be enough to sink your business.
With respect to the compensation plan, paying recruitment commissions in MLM makes Beep XCoin a pyramid scheme. And that’s on top of yet another Beep Xtra securities offering.
The whole “affiliate shares” scheme seems to have flopped, so here we are again with Beep Xtra soliciting investment from affiliates. Trouble is, as far as I can see, neither Beep Xtra or Beep XCoin are registered to offer securities in any jurisdiction.
Quite obviously affiliates and retail customers are investing on the promise of passively earning more than they initially invested over time. That’s a securities offering and Beep Xtra needs to be registered with the appropriate regulatory bodies in any jurisdiction they operate in.
Looking at the bigger picture, I suspect Beep XCoin is not much more than a gamble. The Beep Xtra e-commerce platform is already set up and adding an in-house point currency to it isn’t much work.
If it works it works, if it doesn’t Beep Xtra isn’t any worse off than before Beep XCoin was implemented.
Rather the core of the business is now going to be crypto mining, which again brings us back to the pyramid issue and unregistered securities offering.
I really don’t see retail customers signing up for Beep XCoin mining packages, seeing as the crypto mining appears to be handled by a third-party company anyway.
That leaves affiliates, which means Beep XCoin will collapse once affiliate recruitment dies down.
At $149 plus $50 a month plus a mining contract buy-in, that’s a lot of money to make back via pyramid recruitment in the meantime.