Cycles 24/7 Review: $10 and $50 straight-line Ponzi cycler
The Cycles 24/7 website domain (“cycles247.com”) was registered on the 19th of November 2014, however the domain registration is set to private.
Buried in the Cycles 24/7 FAQ is the claim that a “Richard Fleming” is the owner of the scheme.
I’m going to flag this is a likely fraudulent creation, based on the broken English used on the Cycles 24/7 website.
Here are just a few examples of the many grammatical errors that feature on the site:
We only charge a fee on withdrawals which is 5%.
If withdrawal went as pending please don’t panic.
We have set a daily withdrawal limit per payment processor once it reached all further withdrawal requests will become pending.
Experience would have me suggest the use of an Anglo-Saxon name and broken English indicates an Indian admin. These characteristics are typical of less than legitimate schemes operating out of India.
Alexa estimates that the top two countries traffic-wise to the Cycles 24/7 domain are the US (22.5%) and India (11.4%). I’d explain the US appearing first as it being a major source of promotion.
Note that an Indian admin is only a suggestion based on my experience having reviewed hundreds of MLM opportunities. What I am sure of however is that it’s more than likely “Richard Fleming”, as portrayed on the Cycles 24/7 website, doesn’t exist.
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 Cycles 24/7 Product Line
Cycles 24/7 has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.
Once joined, a Cycles 24/7 affiliate is able to purchase positions in one of two straight-line queues. Bundled with each of these positions are a series of advertising credits, which can be used to display advertising on the Cycles 24/7 website.
The Cycles 24/7 Compensation Plan
The Cycles 24/7 compensation plan revolves around affiliates signing up and investing in straight-line queue positions.
Two queues are offered:
3 Position Queue
Cycles 24/7’s 3 position queue requires three new positions to be purchased before the position at the top of the queue “cycles” out.
Positions in the 3 position queue cost $10, paying out $17 and a new position at the bottom of the queue.
A referral commission of $1 is also paid when personally recruited affiliates cycle positions out of the 3 position queue.
8 Position Queue
The 8 position queue operates in the same manner as the 3 position queue, however it requires 8 new positions to be purchased before the position at the top of the queue cycles out.
Positions in the 8 position queue cost $50 and pay out $300, plus one new position at the bottom of both the 3 and 8 position queues.
A referral commission of $5 is also paid when personally recruited affiliates cycle positions out of the 8 position queue.
Note that affiliates cannot invest in 8 position queue positions unless they have previously invested in positions in the 3 position queue.
Joining Cycles 24/7
Affiliate membership with Cycles 24/7 is free. Free affiliates can earn referral commissions by recruiting other affiliates and getting them to invest.
More than likely however an affiliate is going to invest themselves, raising the defacto cost of Cycles 24/7 affiliate membership to either $10 (a position in the 3 position queue) or $60 (a position in both queues).
With nothing being marketed or sold to retail customers, Cycles 24/7 simply recycle new affiliate funds to pay off existing investors.
This is reinforced in Cycles 24/7’s “no refunds” refund policy:
Do you offer refund?
As with all advertising credit based Ponzi schemes, the ruse is that affiliates are purchasing advertising. If that were the case though, should the credits be unused, an affiliate would be well within their rights to request a refund.
With Cycles 24/7 operating a Ponzi scheme and using new affiliate funds to pay off existing investors however, that is not possible – hence the lack of offered refunds.
Positions in Cycles 24/7’s queues double as securities, with Cycles 24/7 themselves advertising $30 and $400 ROIs on their website.
Aside from constituting the offering of an unregistered security (that Cycles 24/7 is not registered with the SEC goes without saying), this marketing is in itself disingenuous as affiliates in reality only receive a $17 and $300 ROI.
As with all Ponzi schemes, once new affiliate investment slows down so too will Cycles 24/7’s queues. ROI payouts will get slower and slower until the inevitable Ponzi collapse is triggered (nobody investing new funds into the scheme).
A quick look at the eight position queue reveals that each of the 8 positions required to cycle the position at the top in turn will need 8 positions each to cycle (64).
Mathematically it won’t take long for this queue to blow out. The 3 position queue uses the same mathematics, but with less money in play and positions required, will take a little long to completely blow out time wise.
One final note is the following item in Cycles 24/7’s Terms and Conditions:
Any public posting or expression of statements not in Cycles247’s best interest will result in termination of membership, without exception.
For the good of the entire membership and the well-being of the program, if any member mentions the words lawyer, attorney, attorney general, police, SEC, FTC, FBI or any other potential threats to Cycles247, management reserves the right to remove them from the program immediately and close their account without refund and without further negotiation.
One can only wonder why Cycles 24/7, at least on the surface, would wish to portray dealing with mention of US regulatory agencies by their investors in such a serious manner.