ProCyclerExtreme Review: $1 micro-Ponzi scheme
There is no information on the ProCyclerExtreme website indicating who owns or runs the business.
The ProCyclerExtreme website domain (“procyclerextreme.com”) was registered on the 12th of January 2015, listing a “Jansen Smith” as the owner. An address in the US state of Kentucky is also provided.
Further research reveals this address to be in the middle of a residential district.
As part of their marketing efforts, affiliates of IntellaShares are claiming, in addition to Smith having invested with IntellaShares, that he is also the owner of ProShareExtreme.
ProShareExtreme Owner – Jansen Smith is a registered Intellashares Member!
The above has been plastered all over the internet by IntellaShares affiliates.
Somewhat curiously, Smith (right) lists his location on his Facebook profile as Illinois. What the connection is between ProCyclerExtreme and Kentucky is unclear.
ProShareExtreme meanwhile launched in January 2015, with the scheme promising investors a $1.33 ROI on $1 investments.
A message on the ProShareExtreme website advises that the company claims to be the victim of recent DDOS attacks:
We will be back open Tuesday March 17th at 10:00 a.m est.
We were under a DDOS attack yesterday, we have added hardware to protect us from attacks again. The site is still propagating.
Thanks for your patience!!!
Typically schemes like Pro Share Extreme trot out the DDOS excuses when they begin to run out of newly invested funds.
ProCyclerExtreme launched around the same time as ProShareExtreme, with Smith likely hedging his bets against one of the opportunities taking off.
Read on for a full review of the ProCyclerExtreme MLM business opportunity.
The ProCyclerExtreme Product Line
ProCyclerExtreme has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.
Once signed up, a ProCyclerExtreme affiliate can purchase matrix positions from the company.
Each of these positions is bundled with “digital products”, which ProCyclerExtreme claim “are issued daily”.
The ProCyclerExtreme Compensation Plan
The ProCyclerExtreme compensation plan sees affiliates invest in $5 cycler positions on the promise of a $15 ROI.
The compensation plan model used is that of a straight-line cycler.
Every $5 position purchased is placed in a queue, and for every five new positions purchased the position at the top of the queue is paid $15.
This position then “cycles” out of the queue, whence the cycling process repeats itself (another five positions must be purchased in order for the top position to cycle).
Affiliate membership with ProCyclerExtreme is free, however affiliates must purchase positions in the compensation plan in order to earn commissions.
As such, the defacto minimum cost of ProCyclerExtreme affiliate membership is $5 (the cost of one position).
With noting being marketed or sold to retail customers, ProCyclerExtreme simply shuffle new position funds to pay the advertised $15 ROI on existing positions.
Mathematically $20 flows in for every $15 ROI paid out, with the $5 leftover from each cycle retained by the admin.
Amusingly, big text on the ProCyclerExtreme website advises “We are a reseller site not a cycler!”
Putting aside the fact that Smith called this particular opportunity ProCyclerExtreme, the company’s own FAQ betrays the true nature of the opportunity:
And even if it didn’t, there’s no denying that ProCyclerExtreme use a simple straight-line cycler compensation plan to pay commissions, thus very much making it a cycler.
As with all cyclers, once new affiliate investment dries up the queue will stall. This will manifest itself in slower and slower payments, compounded by the fact that each new position requires five more positions to be added to the scheme before a ROI is paid out.
Over time the queue blows out organically, speeding up the inevitable Ponzi collapse.
At that point, anyone with fund still trapped in the system loses their money.