Ennovx Review: $300 to $1400 Ponzi pyramid positions
Other than an address in Hong Kong, China, there is no information on the Ennovx website indicating who owns or runs the business.
Further research reveals the supplied Hong Kong address to belong to Regus, who rent out virtual office space.
As such it appears Ennovx have no actual physical presence in Hong Kong, with the company existing there in name only.
The Ennovx website domain (“ennovx.com”) was registered on the 4th of June 2015, however the domain registration is set to private.
Of note is that the Ennovx website domain uses the name-servers of “mlminfopages.com”.
The MLM InfoPages website domain was registered on the 11th of June 2010, with an “Abdu Gafoor KV” listed as the domain owner. An address in Kerala, India is also provided.
For the Ennovx website domain to be using the MLM Infopages name-servers, Gafoor KV must have admin rights to both domains.
Thus it follows that Abdu Gafoor KV owns both domains and is likely involved in the running of Ennovx from India.
Possibly due to language barriers, I was unable to find any additional information on Gafoor KV’s involvement in the MLM industry.
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 Ennovx Product Line
Ennovx has no retailable products or services, with affiliates only able to market Ennovx affiliate membership itself.
Signing up as an Ennovx affiliate requires an initial and ongoing monthly purchase of “advertising dealer packs”, which can be resold to third-party businesses who wish to advertise on the Ennovx website.
There is also mention of “apps” on the Ennovx website, however these appear to have nothing to do with the Ennovx MLM income opportunity.
The Ennovx Compensation Plan
The Ennovx compensation plan pays affiliates to sell third-party products and services through a replicated e-commerce platform.
Ennovx affiliates are also directly and residually paid to recruit new affiliates.
Royal Director Qualification
Royal Director ranked affiliates are paid the highest level of commissions in Ennovx.
In order to qualify at the Royal Director rank, an Ennovx affiliate must first sign up as an Executive Director ($1400) and then recruit ten other affiliates who do the same.
E-commerce Commissions
Each Ennovx affiliate is given their own replicated Ennovx e-commerce store.
Any items sold through these stores attracts a commission, which Ennovx share with the affiliate who owns the replicated store the purchase was made through.
Advertising Dealer Pack Commissions
Bundled with Ennovx affiliate packages are “advertising dealer packs”, which can be resold to third-party businesses.
If an Ennovx affiliate resells one of these packages to a third-party business, they receive a 50% commission.
How much an Advertising Dealer Pack is resold for is not disclosed in the Ennovx compensation plan material.
Recruitment Commissions
Ennovs affiliates are directly paid to recruit new Ennovx affiliates.
How much of a recruitment commission is paid out is tied to how much a newly recruited Ennovx affiliate spends on their membership:
- Director ($300) – $20 commission
- Senior Director ($600) – $80 commission
- Executive Director ($1400) – $150 commission
Royal Director ranked affiliates receive the following recruitment commissions:
- Director – $30
- Senior Director – $100
- Executive Director – $200
Weekly Profit Share
Based on how much an Ennovx affiliate spends when they join the company, a weekly profit-share is paid out as follows:
- Director ($300) – up to $20 a week
- Senior Director ($600) – up to $40 a week
- Executive Director Package ($1400) – up to $125 a week
- Royal Director Package – up to $200 a week
Daily Residual Commissions
Daily residual commissions in Ennovx are paid out via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
Positions in the binary team are filled via the direct and indirect recruitment of new Ennovx affiliates, with commissions paid out based on paired Senior Director affiliates on either side.
To generate a binary commission, newly recruited affiliates must be matched on either side of the binary (1:1 ratio).
How much an Ennovx affiliate earns per matched pair of newly recruited affiliates matched is determined by how much they spent on their affiliate memberships:
- pair of Director affiliates matched = $20 commission
- pair of Senior Director affiliates matched = $40 commission
- pair of Executive Director affiliates matched = $100 commission
Note that binary earnings are capped, based on how much an Ennovx affiliate spent on their own affiliate membership:
- Director affiliate ($300) – $500 daily binary earnings cap
- Senior Director affiliate ($600) – $3000 daily binary earnings cap
- Executive Director affiliate ($1400) – $15,000 daily binary earnings cap
Monthly Residual Commissions
Monthly residual commissions in Ennovx are paid out using a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
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 and so on and so forth down a theoretical infinite number of levels.
Ennovx cap payable unilevel levels at five, with a $1 commission paid out on the $20 a month Ennovx affiliate fee.
Joining Ennovx
Affiliate membership with Ennovx is $50.
An affiliate must also purchase one of the following three packages:
- Director Package – $300
- Senior Director Package – $600
- Executive Director Package – $1400
The primary difference between these affiliate packages is income potential through the Ennovx compensation plan.
Note that regardless of which package is initially purchased, all Ennovx affiliates must also pay a $20 a month fee.
Conclusion
Behind the ruse of online advertising and mobile apps, Ennovx presents itself as a Ponzi pyramid hybrid scheme.
The Ponzi element of the scheme is the reshuffling of “company revenue” to pay off existing affiliates, who have invested by way of affiliate membership.
Company revenue is code for newly invested funds, paid into the scheme by way of fees paid by newly recruited affiliates.
The pyramid scheme side of the business operates by way of direct recruitment and residual binary and unilevel commissions, which pay Ennovx affiliates to recruit new affiliates into the scheme.
A pay to play element also exists within the scheme, with Ennovx affiliates paid more if they spend (invest) more on affiliate membership.
The recruitment of top-tier Executive Director affiliates also triggers Royal Executive promotion, which in turn translates into higher commission payments.
The Advertising Dealer Packs are of little consequence, serving as no more than a ruse to cover affiliate investment into the scheme.
The market for advertising on the Ennovx website is non-existent, with there being little to no value derived from placing said advertisements.
Not that it matters, as it’s the injection of funds affiliates pump into Ennovx upon signing up that keeps the company afloat, rather than any incidental third-party advertising sales.
The replicated e-commerce platform serves a similar purpose, and has nothing to do with the Ennovx’s core affiliate investment focus.
As with all Ponzi pyramid hybrid schemes, once recruitment of new affiliates dries up the Ennovx will find itself starved of funds and unable to meet its monthly ROI liabilities.
Through the use of “up to” paid out each month, Ennovx can reduce monthly ROI payouts without raising eyebrows. Note that a reduction in payments however surely means Ennovx are running out of new funds to pay existing investors with.
At that point a collapse will be imminent, with any affiliates who have not recovered the initial and ongoing amount they have invested into Ennovx losing out.
Statistically in a Ponzi scheme this is the vast majority of participating investors.
