MyGenStart Cycler: Genusity now a $195 in, $10,330 out Ponzi
Genusity is an MLM company co-founded by Tim Sebert and Randy Thomas.
BehindMLM reviewed Genusity in late 2017. We noted an MLM opportunity built around the sale of bluetooth spam devices.
Today Genusity markets a bunch of white-label supplements…
…as well as a $195 in, $10,330 out Ponzi cycler.
Genusity is running its Ponzi cycler as “MyGenStart Cycler”. The Ponzi scheme can be accessed through Genusity’s backoffice, or the stand-alone domain “mygenstart.com”.
Genusity affiliates invest in a MyGenStart Cycler position for $195.
Genusity’s five-tier MyGenStart Cycler uses a 2×2 and 2×3 matrix.
A 2×2 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 these first two positions into another two positions each (four positions).
A 2×2 matrix houses a total of six positions.
A 2×3 matrix expands the concept with a third level, adding an additional eight positions to the matrix:
A 2×2 matrix houses a total of fourteen positions.
Positions in a cycler matrix are filled via subsequent position purchases made by new and existing Genusity affiliates.
When all positions in a matrix are filled, a “cycle” is triggered.
Payments across Genusity’s MyGenStart Cycler are as follows:
- first tier first cycle (first tier 2×2 matrix) – $30 cycle commission, GenCation product awarded and generates a new first tier second cycle and second tier first cycle position
- first tier second and subsequent cycles (first tier 2×2 matrix) – $90 cycle commission and generates a new first tier second cycle position
- second tier first cycle (second tier 2×2 matrix) – no commission, GenMink product awarded and generates a new second tier second cycle and third tier first cycle position
- second tier second and subsequent cycles (second tier 2×2 matrix) – $150 cycle commission and generates a new second tier second cycle position
- third tier first cycle (third tier 2×2 matrix) – no commission, GenBurn product awarded, IR rank qualification bonus and generates a new third tier second cycle and fourth tier first cycle position
- third tier second and subsequent cycles (third tier 2×2 matrix) – $400 cycle commission and generates a new third tier second cycle position
- fourth tier first cycle (fourth tier 2×3 matrix) – $300 commission and generates a new fourth tier second cycle and fifth tier first cycle position
- fourth tier second and subsequent cycles (fourth tier 2×3 matrix) – $2000 cycle commission and generates a new a new fifth tier first cycle position
- fifth tier first cycle (fifth tier 2×3 matrix) – $10,000 cycle commission and generates a new fifth tier first cycle position
A $20 referral commission is paid whenever a personally recruited affiliate cycles out of a third-tier matrix.
A Matching Bonus is also available whenever a personally recruited affiliates cycles out of a fifth tier matrix:
- IR ranked affiliates earn $500
- Gold ranked affiliates earn $1000
- Platinum and Diamond ranked affiliates earn $1500
Finally note that with respect to the “GenCation” product bundled with an affiliate’s first first-tier cycle, this product isn’t featured on Genusity’s website. I don’t know what it is.
The Ponzi aspect of Genusity’s MyGenStart Cycler is present by way of cycle commissions being paid out of subsequent position investment.
All Genusity are doing is shuffling newly paid in funds to pay returns to existing investors.
ROI math behind Genusity’s MyGenStart Cycler is $195 in and $10,330 out. Subsequent cycles across each tier add between $90 to $10,000 per cycle.
Genusity affiliates have reduced MyGenStart Cycler marketing to $195 in, $10,000 out.
Genusity, Tim Sebert and Randy Thomas are based out of North Carolina in the US. The majority of Genusity affiliates are also believed to be US residents.
MyGenStart Cycler constitutes a passive investment opportunity ($195 in, $10,000+ out), making it a securities offering.
Note that recruiting people into a Ponzi scheme does not change the fact that returns paid out are funded by other participants, making said returns passive in nature.
At time of publication neither Genusity, Sebert or Thomas are registered with the SEC.
This means Genusity, Sebert and Thomas are committing securities fraud. Running a Ponzi scheme in the US also carries with it wire fraud and money laundering charges.
Regulation aside, as with all MLM Ponzi schemes, once affiliate recruitment dries up, so too will cycle commissions.
Being a Ponzi cycler, in Genusity this will manifest itself by way of matrices stalling.
Once enough MyGenStart Cycler matrices stall, an irreversible collapse is triggered.
Math guarantees the majority of participants in Ponzi cyclers lose money.