Club9xAds Review: $3 revenue-sharing micro Ponzi
There is no information on the Club9xAds website indicating who owns or runs the business.
The Club9xAds website domain (“club9xads.com”) was registered on the 6th of April 2015, however the domain registration is set to private.
Further research reveals a “Rajiv Kathik” identifying himself as the admin of Club9xAds on social media:
I am Admin and owner of club9xads program.
if any one have a query & thinks it a scam can contact me on my facebook id & in group.where you can see my passport copy & all other legal documents…
Facebook Admin link:facebook.com/rajiv.khatik
A visit to this Facebook profile links to what appears to be an admin group for Club9xAds, with Khatik (right) actively promoting the opportunity within.
In his Facebook profile, Khatik claims to be living in Gujurat, India. This is likely where Club9xAds is being run out of.
Why none of this information is available on the Club9xAds website is a mystery.
Read on for a full review of the Club9xAds MLM business opportunity.
The Club9xAds Product Line
Club9xAds has no retailable products or services, with affiliates only able to advertise affiliate membership with the company itself.
Once signed up, Club9xAds can then invest funds in three packages. Bundled with each investment are a series of advertising credits, which can be used to display advertising on the Club9xAds website itself.
The Club9xAds Compensation Plan
The Club9xAds compensation plan sees affiliate invest in $3 “packages”.
Each investment has an advertised ROI attached to it, with how much of a ROI paid out depending on how much a Club9xAds affiliate spends on affiliate membership:
- Gold ($3) = 124% ROI ($3.72)
- Platinum ($6) = 130% ROI ($3.90)
- Diamond ($9) = 135% ROI ($4.05)
Referral commissions are paid out on investments made, tracked down two levels of recruitment (unilevel):
- 8% on level 1 (personally recruited affiliates) and
- 2% on level 2
Affiliate fees are also commissionable, with how much of a commission paid out once again determined by how much an affiliate spends on their membership:
- Gold – 5%
- Platinum – 8%
- Diamond – 10%
Finally, note that 72% of all ROIs paid out must be reinvested back into additional investment.
Affiliate membership with Club9xAds costs either $3 (Gold), $6 (Platinum) or $9 (Diamond).
An additional minimum $3 investment is also required to participate in the income opportunity.
The primary difference between the three affiliate memberships is income potential through the Club9xAds compensation plan.
Club9xAds operates as a straight-forward $3 micro Ponzi scheme. Affiliates sign up and pay a fee, with how much paid determining not only the ROI paid out on $3 investments, but also referral commissions paid out on recruitment of new affiliates.
I wasn’t able to track down an MLM history for admin Rajiv Khatik, but I imagine he’s invested in more than a few similar type “revenue sharing” opportunities.
As with all Ponzi schemes, once new affiliate investment dries up Club9xAds will find itself unable to meet its ROI obligations.
The mandatory 72% reinvestment rate will see the scheme trap more affiliate funds in the system for longer, but sooner or later those funds will still be paid out. And this will only get worse as the ROI liability grows over time.
Being a revenue-sharing type business model, Club9xAd affiliate investors aren’t going to see the collapse coming.
Two possible scenarios will play out, with the advertised ROIs paid out gradually declining before halting altogether, or Khatik simply deciding to stop paying out once he figures continuing Club9xAds isn’t worth his time (reserve drops too low).
Either way, those with funds still invested in the scheme at that point are screwed.