Passive Wealth Booster Review: $50 two-tier cycler Ponzi
The Passive Wealth Booster website domain (“passivewealthbooster.com”) was registered on the 8th of May 2015, however the domain registration is set to private.
On their website however Passive Wealth Booster’s FAQ states:
Who Are the Owners?
Alex Robinson Online Network Marketer and Daniel Edwin SEO Expert are the owners. Bridget Fabian is Head Of support And FB Moderation.
Edwin and Robinson are purportedly based out of the US, Fabian is in the UK.
Daniel Edwin’s Facebook profile suggests he is a webmaster. It is highly likely that Edwin designed and maintains operation of the Passive Wealth Booster website.
Promotional material for Traffic Monsoon appears on Alex Robinson’s Facebook page.
Traffic Monsoon was a HYIP Ponzi scheme that collapsed a few months ago. Under the ruse of Paypal freezing millions of dollars, Traffic Monsoon investors continue to be strung along with promises of access to frozen funds at a later date.
As of February 2016, Bridget Fabian was promoting Empower Network on her Facebook page. Whether she is still actively promoting the opportunity is unclear.
In 2015 promotional material for Traffic Monsoon also appears on Fabian’s Facebook page.
Suggesting familiarity with the MLM underbelly, a few hours ago Fabian published the following to the official Passive Wealth Booster Facebook page:
If you are a member of X100k and other revshare/cycler websites, you will be seeing our mass promotion campaigns all over. This will give you an idea of how big we want Passive Wealth Booster to be.
X100K is a matrix-based pyramid scheme launched in 2015. Alexa statistics to the X100K website reveal a sharp decline from January 2016, likely driving the scheme towards collapse.
Whether Fabian, Edwin or Robinson were active in X100K is unclear.
Read on for a full review of the Passive Wealth Booster MLM opportunity.
The Passive Wealth Booster Product Line
Passive Wealth Booster has no retailable products or services, with affiliates only able to market Passive Wealth Booster affiliate membership itself.
Once signed up, Passive Wealth Booster affiliates purchase matrix positions to participate in the attached MLM income opportunity.
Bundled with each matrix position purchase are a series of advertising credits, which can be used to display advertising on the Passive Wealth Booster website.
The Passive Wealth Booster Compensation Plan
The Passive Wealth Booster compensation plan sees affiliates purchase $50 positions in a two-tier matrix cycler.
The size of the matrix used in the cycler is 5×1, requiring five positions to be filled before a cycle commission is paid out.
- Cycler 1 (positions cost $50) – $50 commission, re-entry into a new Cycler 1 matrix and position cycles into Cycler 2
- Cycler 2 – $250 commission and generates four new Cycler 1 positions
A matching bonus is paid out when recruited affiliate’s positions cycle out of Cycler 2 (unilevel):
- level 1 (personally recruited affiliates) – $25
- level 2 – $15
- level 3 – $10
A $5 referral commission is also paid out each time a personally recruited affiliate purchases a new $50 matrix position.
Joining Passive Wealth Booster
Affiliate membership with Passive Wealth Booster is $5.
Participation in the Passive Wealth Booster MLM opportunity requires at least one $50 matrix position purchase, bringing the total minimum cost of Passive Wealth Builder affiliate membership to $55.
Under the guise of selling advertising, Passive Wealth Booster operate a $50 in, $300 out two-tier Ponzi scheme.
Affiliates invest $50 and once enough subsequent $50 investments have been made, are paid $300 out of these invested funds.
The closed-loop nature of ROI investment revenue makes Passive Wealth Booster a Ponzi scheme.
Evidently the owner(s) of the scheme are aware of the financial fraud behind the scheme, with the Passive Wealth Booster FAQ stating
We are not an investment company, HYIP or Ponzi scheme. Upon joining, you will be purchasing advertising packages.
The obvious counter to this is that purchasing advertising does not pay a ROI, an investment does.
Secondly, the paragraph directly under the Ponzi disclaimer above reads as follows:
What is the cost of a position?
The cost of one position is $50.
“Cost of a position”? Hang on, I thought Passive Wealth Booster affiliate’s were “purchasing advertising packages”.
The final nail in the pseudo-compliance coffin is that if advertising was indeed being purchased, unused advertising credits would attract a refund.
Instead, as per the Passive Wealth Booster refund policy:
Do you offer refund?
The reason Passive Wealth Booster can’t offer refunds, is because in true Ponzi fashion they use newly invested funds to pay off existing investors. Clawing back ROI funds from paid investors would be a logistical nightmare.
As with all Ponzi schemes, once recruitment of new affiliates dies down so too will investment in new $50 matrix positions.
This will see both tiers of the cycler stall, along with ROI payments made to Passive Wealth Booster affiliates.
At that point the scheme collapses, with the Passive Wealth Booster admins making off with funds trapped in the cycler. And that’s in addition to any ROIs they’ve paid themselves on positions preloaded before Passive Wealth Booster was opened up to the public.
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