Donate Pays Review: Five-tier matrix cycler Ponzi
The Donate Pays website domain (“donatepays.com”) was privately registered on the 26th of September, 2016.
The company claims to be based out Canada and run by “Dan, Carol, Randy and Kenny”, who have a ‘total online biz experience of over 40 years.‘
No specific information is provided on any of these individuals.
The Donate Pays website advises the company is a division of Goldfix11 LLC, a company purportedly registered in Canada.
I myself was unable to find a corporate record for Goldfix11 LLC or the provided Canadian company number.
At the time of publication Alexa estimate that the top sources of traffic to the Donate Pays website are Nigeria (15%) and India (10%).
As always, if an 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 Donate Pays Product Line
Donate Pays has no retailable products or services, with affiliates only able to market Donate Pays affiliate membership itself.
Once signed up, Donate Pays affiliates purchase positions in a matrix cycler.
Bundled with each position purchase are ad credits, which can be used to display advertising on the Donate Pays website.
The Donate Pays Compensation Plan
The Donate Pays compensation plan sees affiliates invest $34 to $170 on a five-tier 2×3 matrix cycler.
A 2×3 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting each of these two positions into another two positions each (4 positions).
The third level of the matrix is generated in the same manner (8 positions), with a complete 2×3 matrix housing fourteen positions.
Donate Pays begin by purchasing one or more positions in the first cycler matrix. As positions in the matrix are filled, via purchases by newly recruited or existing Donate Pays affiliates, commissions are paid out.
Once the matrix is full, the position “cycles” into the next matrix tier as follows:
- Matrix 1 (positions cost $34) – pays a $140 commission and cycles into Matrix 2
- Matrix 2 – pays a $280 commission and cycles into Matrix 3
- Matrix 3 – pays a $420 commission and cycles into Matrix 4
- Matrix 4 – pays a $560 commission and cycles into Matrix 5
- Matrix 5 – pays a $700 commission
Referral commissions are available on position purchases by downline affiliates, paid out down three levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) – 10%
- level 2 – 20%
- level 3 – 5%
Joining Donate Pays
Donate Pays affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the Donate Pays MLM opportunity requires the purchase of at least one $35 matrix cycler position.
Donate Pays claim to be the
ONLY SITE ON THE PLANET WHERE YOU GET BACK 4X TIMES MORE THAN YOU DONATED!
The problem with this is donations don’t give donors back anything. If you’re donating to receive four times more than you’ve donated, you weren’t really donating in the first place.
Money wise, Donate Pays operates as a Ponzi scheme.
Affiliates invest $34 on the promise of an advertised $2100 ROI. The ROI is paid out of subsequently recruited funds, hence the Ponzi business model.
To put the $2100 ROI into perspective, that’s a minimum of sixty-two $34 position purchases for just one ROI. The actual figure is higher once referral commissions and admin fees are factored in.
Needless to say it only takes a few positions cycling into the upper cycler tiers before hundreds of position purchases are required to pay ROIs out.
Those positions then require thousands of position purchases, and that’s all it takes for a Ponzi cycler model to get out of control.
The initial cycling positions will have been preloaded by the Donate Pays admin(s). This is “Dan, Carol, Randy and Kenny” or whoever is actually running the scheme.
Some early-adopter affiliates might pick up a few scraps, but by and large the pass-up at each matrix tier will see the majority of invested funds paid out to the admin(s).
As with all Ponzi schemes, once new affiliate recruitment dies out so too will new funds entering Donate Pays.
All programs are based on new members, even if they have a great product. If nobody joins… nobody gets paid that’s just the truth!
Being a matrix cycler, this will see cycling stall before collapsing entirely.
In addition to whatever they’ve paid themselves via cycling, the Donate Pays admin(s) will also keep funds attached to uncycled positions.
This guarantees that the majority of Donate Pays affiliates will take a loss.