Palonius Review: $25 nine-tier matrix cycler Ponzi
The only mention of the owner of Palonius is the following sentence that appears on the company’s website:
From the Desk of Mr.Alen, CEO PALONIUS
The Palonius domain meanwhile (“palonius.com”) was registered on the 15th of April 2015, however the domain registration is set to private.
“Mr. Alen” hey? Yeah, so I’m going to go ahead and flag that as just a little suspicious.
In all likelihood, Mr. Alen, as represented on the Palonius website, doesn’t exist.
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 Palonius Product Line
Palonius has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.
Once signed up, Palonius affiliates can then purchase $25 matrix positions and earn commissions.
Bundled with each $25 matrix position purchase are a series of advertising credits, which can be used to display advertising on the Palonius website itself.
The Palonius Compensation Plan
The Palonius compensation plan sees affiliates invest in $25 matrix positions.
Once purchased, these positions are pushed through a series of nine matrix cyclers, with commissions paid when all positions in each cycler are filled.
Palonius use a 2×2 matrix structure, meaning each cycler has a total of six positions required to be filled before a position “cycles” out and a commission is paid.
Below are the commission payouts for each of the Palonius matrix cyclers:
- Bronze (positions cost $25) – pays $50 and cycles into Silver
- Silver – pays $100 and cycles into Gold
- Gold – pays $150 and cycles into Pro
- Pro – pays $200 and cycles into Max
- Max – pays $300 and cycles into Elite
- Elite – pays $500 and cycles into Sky
- Sky – pays $800 and cycles into Star
- Star – pays $1400 and cycles into MaxMax
- MaxMax – pays $2000 and cycles back into Bronze
Referral commissions are paid when personally recruited affiliates cycle both into and out of the above cyclers as follows:
- Bronze – $5 when a personally recruited affiliate cycles in and $10 when they cycle out
- Silver – $5 when a personally recruited affiliate cycles in and $20 when they cycle out
- Gold and Pro – $5 when a personally recruited affiliate cycles in and $50 when they cycle out
- Max – $10 when a personally recruited affiliate cycles in and $75 when they cycle out
- Elite – $10 when a personally recruited affiliate cycles in and $100 when they cycle out
- Sky – $20 when a personally recruited affiliate cycles in and $200 when they cycle out
- Star – $20 when a personally recruited affiliate cycles in and $200 when they cycle out
- MaxMax – $50 when a personally recruited affiliate cycles in and $400 when they cycle out
Affiliate membership with Palonius is free, however an affiliate must purchase at least one matrix position in order to participate in the income opportunity.
As such, the defacto cost of Palonius affiliate membership is $25 (the cost of one matrix position).
Palonius offer up a simple $25 in $5500 out Ponzi scheme. There are no external sources of revenue (nothing is marketed or sold to retail customers), leaving 100% of the ROI paid out sourced from subsequently invested affiliate funds.
At its core the Palonius compensation plan requires a minimum 220 subsequent positions to be purchased for a single position to realize the full $5500 advertised ROI.
In reality this is actually higher, due to referral commissions paid out.
As such the Palonius admin is likely the only investor who stands to make any actual money, with the scheme likely heavily preloaded from the get-go.
You sign up as a new Palonius affiliate, you push the anonymous admin’s positions through and the admin withdraws your funds.
Your positions of course never cycle through fully, as 220 positions a pop for a single position to be pushed through means you might make it through a few of the early cycler levels at best.
Either way, Palonius collapses when new affiliate investment in positions dies down, with the admin keeping any funds still left trapped in the system (likely to be most of what initially pumped into position purchases).