BonanzaU Review: $1000 investment packages
There is no information on the BonanzaU website indicating who owns or runs the business.
The BonanzaU website does have an “About Us” section, with vague marketing copy suggesting the company is headquartered in Hong Kong:
BONANZA SYSTEMS.LTD’s holding company PRIME MARKET SERVICE.LTD is established in Hong Kong.
If that is to be believed, then it’s likely that those running BonanzaU are from Hong Kong itself (Chinese).
The BonanzaU website domain (“bonanzau.com”) was registered on the 18th of July 2014, however the domain registration is set to private.
As always, if a 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 BonanzaU Product Line
BonanzaU has no retailable products or services, with affiliates only able to market affiliate membership to the opportunity itself ($50).
The BonanzaU Compensation Plan
The BonanzaU compensation plan revolves around affiliates signing up for $50 and then “immediately” investing in a $1000 “package”.
Investment into a package qualifies a BonanzaU affiliate to participate in the company’s compensation plan.
Note that 30% of any commissions paid out to affiliates must be reinvested back towards new position investment.
Recruitment commissions in BonanzaU are paid out on the recruitment of new affiliates, who also purchase $1000 packages.
This is tracked via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, capped at ten positions wide.
Each personally recruited affiliate (up to 10) is placed directly under the recruiting affiliate, making up level 1 of the affiliate’s unilevel team.
If any level 1 affiliates go on to recruit new affiliates of their own, 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.
Typically a unilevel can extend down a theoretical infinite number of levels, however as with the width capping, BonanazaU cap payable unilevels levels to three.
Personally recruited affiliates (level 1) pay out a 10% commission ($100). With a maximum of ten positions available per package, this equates to a total payout of $1000.
Level 2 (any affiliates recruited by level 1 affiliates) pays out 1% ($10) and level 3 0.5% ($5).
In order to generate additional commissions beyond an initial ten recruits, a BonanzaU affiliate must invest in additional $1000 positions.
BonanzaU’s Leadership Bonus uses a binary compensation structure to pay out on positions invested in by an affiliate’s downline.
A binary compensation structure places an affiliate at the top of a binary team, with two positions directly under them:
These two positions correspond to the first two affiliates recruited, with each position then branching out into another two positions under it.
This process repeats itself over and over again down a theoretical infinite depth.
Position investment is tracked on each side of the binary (left and right, as defined by the first two positions), with pairs of investments matched to generate commissions.
How much of a commission is paid out depends on how many investment pairs are matched daily:
- 1 Star (recruit 5 affiliates who invest in a package) – 5%
- 2 Star (have at least six 1-Star ranked affiliates in your binary, 3 on each side) – 10% ($100 per pair)
- 3 Star (have at least six 2-Star ranked affiliates in your binary, 3 on each side) – 15% ($150 per pair)
- 4 Star (have at least six 3-Star ranked affiliates in your binary, 3 on each side) – 20% ($200 per pair)
- 5 Star (have at least six 4-Star ranked affiliates in your binary, 3 on each side) – 25% ($250 per pair)
BonanzaU’s matrix commissions are paid out on the recruitment of new affiliates.
When an affiliate joins and pays their $50 fee, they are placed at the top of a 2×15 matrix.
A 2×15 matrix places an affiliate at the top of two positions, which in turn branch out into another two positions:
This process continues down for a total of 15 levels (65,518 positions), with each position in the matrix representing a recruited affiliate.
Positions in the matrix can be filled either via direct recruitment, or the recruiting efforts of an affiliate’s upline and downline.
Commissions are paid out based on filled positions in the matrix, paying out $30 per filled position (recruited affiliate).
BonanzaU share 5% of their global affiliate revenue with their top recruiters as follows:
- 1 Star affiliates – 1%
- 2 Star affiliates – 1%
- 3 Star affiliates – 1%
- 4 Star affiliates – 1%
- 5 Star affiliates – 1%
Each of these bonus pools is shared out equally among all BonanzaU affiliates of the applicable rank.
Affiliate membership with BonanzaU is $50.
Note that participation in the full BonanzaU compensation plan will also require a minimum $1000 package investment.
There’s mention of forex and some sort of “smart campus” program on the BonanzaU website, however these are poorly explained and appear to be unrelated to the compensation plan.
The core of the BonanzaU business is affiliate investment in $1000 packages, and the sharing of these funds among existing investors.
Recruitment incentives are paid out via the matrix and binary, with those that recruit more rewarded with higher binary percentage payouts.
Ditto the matrix, which pays out both on direct and indirect recruitment.
Meanwhile the packages themselves, through the three-level unilevel pay out, equate to a conditional ROI. $1000 investments are made, with a ROI paid out from subsequent investments, tied to the original investor via the recruitment of ten new investors.
As with all Ponzi schemes, when recruitment of new BonanazaU investors slows down (along with new investment funds), the system will slowly collapse.
Due to the conditional nature of BonanazaU’s ROIs, it’s unlikely that those investing will have any warning of this happening. By the time they realize what’s gone on, the anonymous admin(s) running BonanazaU will have likely fled back to China.
Your report is incomplete, in accurate on many areas and not trust worthy. For one thing, this company is global. The compensation plan is more than what you wrote. It also appeared you have no clue of the sites for the services they provide .
And what exactly does that mean?
They solicit investments globally?
They sure as hell can’t be headquartered globally.
ORLY? Such as…?
Does it matter? You invest $1000 on the expectation of an advertised >100% ROI. Anything else is irrelevant.
If they are not selling the “services they provide” they are not relevant.
A genuine business that sells services does not need your money then pay you back more money.
Straight out of ponzi defense playbook. Get people confused on small details while operating illegal business as long as possible.
I know it will not go anywhere, but please Devin provide us with your explanation on how this is not a ponzi.
Scammed by Bonanzau!
In December 2014, I paid $1,050 to Bonanzau and then recruited a new member who also paid $1,050.
Bonanzau promptly placed 9 additional “members” in my team, who supposedly also had paid $1,050.
It now appears that those 9 members were fictional dummies, because after six weeks not one of them has shown any activity.
My 3 emails to (Ozedit: removed) remain unanswered – con address?
It seems that better known marketers do get some REAL members placed in their team and this encourages them to promote Bonanzau. But Newbies get dummies and lose their money.
Final Score: Me and my recruit: Minus $2,100, Bonanzau: Plus $2,100
So I say: BEWARE OF BONANZAU!
Thanks for warning other people against it.
Bonanazau is a real real company with real support there will be always a negative person trying to look for fault infact this is the opposite it is very much a team building effort.
I support a great team here in Australia no sour grapes for us.
So the wise words I can give you is help your team care about the people you want to help and more importantly never be a blamer….wise words from Brene Brown…
^^ What does Brene Brown have to say about Ponzi investment schemes?
And yeah, as long as your stealing funds from later investors the grapes will be sweet. Watch the pitchforks come out once new investment dries up.
Funny, I’m pretty sure that’s what TVI Express Team Oz said about their scheme too, and look at what ACCC did to them.
To avoid any confusion, I never had a TVI Express team!
I had a team with BU. All those that recruited at least one person they either got back most or all their money. Those that recruited at least 2 reps got more than their money back. But then my team lost interest and momentum died off.
Can’t say I had any complaints, the team seemed quite happy with there commissions.
I imagine the same is not true of the people you and your team stole money from.
But so long as you got paid… right?
I wonder if post #7 is our beloved “Lynny let me get at my clients commission money and run Summers” at StockCourse. (See link below).
She must hold the worlds record for scamming people. She scammed nearly 400 people in G1E last year and then ran away to do BonanzaU and UFun. What a piece of work she is.
She is a fake like her trading results!!! I hope people do their homework as she obviously doesn’t!!!
Her StockCourse, Linkedin and Twitter websites are either down or closed for a while now.