E-Cooperative Review: Two-tier matrix cash gifting
There is no information on the E-Cooperative website indicating who owns or runs the business.
The E-Cooperative website domain (“ecooperative.online”) was registered on October 25th, 2016. Christian Jombo of HeptaPixels INC is listed as the owner, with an address in Calabar, Nigeria also provided.
HeptaPixels appear to be a web hosting company based out of Nigeria. Christian Jombo is cited as the company’s CEO.
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 E-Cooperative Product Line
E-Cooperative has no retailable products or services, with affiliates only able to market E-Cooperative affiliate membership itself.
The E-Cooperative Compensation Plan
The E-Cooperative compensation plan sees affiliates purchase positions in a two-tier 4×4 matrix cash gifting scheme.
A 2×4 matrix places an affiliate at the top of a matrix, with four positions directly under them:
These four positions form the first level of the matrix. The second level of the matrix is generated by splitting each of the four positions into another four positions each (16 positions).
The third and fourth levels of the matrix are generated in the same manner, respectively housing sixty-four and two hundred and fifty-six positions each.
In total, a complete 4×4 matrix houses three hundred and forty positions.
An E-Cooperative affiliate begins by gifting ₦1000 ($3.17 USD) to the affiliate who recruited them.
This unlocks the first level of the matrix and qualifies them to receive ₦1000 from four subsequently recruited affiliates.
The second level of the matrix is unlocked by gifting ₦2500 ($7.94 USD) to the affiliate who recruited the affiliate who recruited you (2nd upline).
This payment qualifies an affiliate to receive ₦2500 from sixteen subsequently recruited affiliates.
Payments across the rest of E-Cooperative’s compensation plan operate in the same manner, the only difference being the amounts gifted and to who.
- Matrix 1, level 1 – gift ₦1000 ($3.17 USD) to the affiliate who recruited you and receive ₦1000 from four subsequently recruited affiliates
- Matrix 1, level 2 – gift ₦2500 ($7.94 USD) to your second upline and receive ₦2500 from sixteen affiliates
- Matrix 1, level 3 – gift ₦5000 ($15.87 USD) to your third upline and receive ₦5000 from sixty-four affiliates
- Matrix 1, level 4 – gift ₦10,000 ($31.75 USD) to your fourth upline and receive ₦10,000 from two hundred and fifty-six affiliates
- Matrix 2, level 1 – gift ₦25,000 ($79.37 USD) to the affiliate who recruited you and receive ₦25,000 from four affiliates
- Matrix 2, level 2 – gift ₦50,000 ($158.73 USD) to your second upline and receive ₦50,000 from sixteen affiliates
- Matrix 2, level 3 – gift ₦90,000 ($285.71 USD) to your third upline and receive ₦90,000 from sixty-four affiliates
- Matrix 2, level 4 – gift ₦175,000 ($555.56 USD) to your fourth upline and receive ₦175,000 from two hundred and fifty-six affiliates
E-Cooperative affiliate membership is free, however affiliates must purchase as least one ₦1000 ($3.17 USD) matrix position if they wish to participate in the attached income opportunity.
Full participation in the E-Cooperative MLM opportunity costs ₦358,500 ($1138 USD).
Here’s how E-Cooperative describe their business model on their website:
You have to invite four persons to join you in e-cooperative. Those four persons have to invite four persons each, making it 16.
The 16 persons have to invite 4 persons each summing up to 64. The resultant 64 have to invite 4 persons each, making 256.
If that sounds like a pyramid scheme to you, it’s because it is.
Payments made between E-Cooperative adds a gifting layer to the scheme, so what you end up with is just another matrix-based cash gifting scheme.
Likely owing to the popularity of offshore gifting schemes currently sweeping Nigeria, E-Cooperative appears to be a home-grown effort.
The business model however is the same as any other cash gifting scheme. You sign, pay money to whoever recruited you and then proceed to steal money from those who join after you.
The anonymous E-Cooperative admin preloads positions at the top of the company-wide matrix, ensuring they receive the majority of funds deposited (via pass-ups).
Early adopter affiliates will make a bit but when E-Cooperative inevitably collapses, the rest (and majority) of affiliates will take a loss.