Profit Alliance Club Review: Ten-tier cryptocurrency mining Ponzi
The Profit Alliance Club website identifies Diego Noriega (full name Diego King Noriega) as the founder of the company.
According to Noriega’s Facebook profile, he is based out of California in the US. It is assumed this is also where Profit Alliance Club is being operated from.
Noriega’s Facebook profile recently marketed a group he refers to as “the true revshare community”.
A “revshare” in the MLM underbelly refers to Ponzi schemes, in which revenue invested by new affiliates is “shared” with existing affiliates.
On the 27th of September Noriega confirmed on Facebook that Profit Alliance Club is his first “owned income opportunity program”.
Read on for a full review of the Profit Alliance Club MLM opportunity.
The Profit Alliance Club Product Line
Profit Alliance Club has no retailable products or services, with affiliates only able to market Profit Alliance Club affiliate membership itself.
Profit Alliance Club affiliate membership is bundled with access to “crypto-currency training and training materials”.
The Profit Alliance Club Compensation Plan
The Profit Alliance Club compensation plan sees affiliates invest between 50 cents and $1250, on the promise of an advertised daily ROI of up to 8.5%.
How much of a ROI is paid out is determined by how much a Profit Alliance Club affiliates invests:
- Associate – invest 50 cents and receive a 3% daily ROI up to 110%
- Bronze – invest $2.50 and receive a 3.5% daily ROI up to 115%
- Silver – invest $12.50 and receive a 4% daily ROI up to 120%
- Ruby – invest $62.50 and receive a 4.5% daily ROI up to 125%
- Gold – invest $312.50 and receive a 5% daily ROI up to 130%
- Platinum – invest $350 and receive a 5.5% daily ROI up to 135%
- Diamond – invest $500 and receive a 6% daily ROI up to 140%
- Elite – invest $750 and receive a 6.5% daily ROI up to 145%
- Royalty – invest $1000 and receive a 7% daily ROI up to 150%
- Presidential – invest $1250 and receive an 8.5% daily ROI up to 155%
Note that 40% of all ROI payouts must be reinvested.
Profit Alliance Club referral commissions are paid out via 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 recruit new affiliates, 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.
Referral commissions are paid out as percentage of funds invested by a Profit Alliance Club affiliate’s unilevel team.
How many levels an affiliate earns on is determined by how much they have personally invested:
- Associate – 3% on level (personally recruited affiliates) and 2% on level 2
- Bronze – 3% on level 1, 2% on level 2 and 1% on level 3
- Silver – 3% on level 1 and 2% on levels 2 and 3
- Ruby – 3% on level 1, 2% on levels 2 and 3 and 1% on level 4
- Gold – 3% on level 1 and 2% on levels 2 to 4
- Platinum 3% on level 1, 2% on levels 2 to 4 and 1% on level 5
- Diamond – 3% on level 1 and 2% on levels 2 to 5
- Elite – 3% on level 1, 2% on levels 2 to 5 and 1% on level 6
- Royalty – 3% on level 1 and 2% on levels 2 to 6
- Presidential – 3% on level 1, 2% on levels 2 to 6 and 1% on level 7
Joining Profit Alliance Club
Profit Alliance Club affiliate membership is tied to a minimum 50 cent investment.
$0.50 Pays You $0.55 => 110%
$2.50 Pays You $2.875 => 115%
$12.50 Pays You $15.00 => 120%
$62.50 Pays You $78.13 => 125%
$312.50 Pays You $406.25 => 130%
$350.00 Pays You $472.50 => 135%
$500.00 Pays You $700.00 => 140%
$700.00 Pays You $1087.50 => 145%
$1000 Pays You $1500 => 150%
$1,250 Pays You $1937.50 => 155%
The above is how Profit Alliance Club market their MLM opportunity on the company website.
The ruse is that ROI payouts are “backed by cryptocurrency mining”, however there’s an obvious disconnect between the daily ROI percentages paid out and legitimate cryptocurrency mining.
Legitimate cryptocurrency mining cannot be represented as a flat daily percentage payout.
That is not to say that a small percentage of funds invested into Profit Alliance Group may be put towards cryptocurrency mining, just that it’s obviously not the primary source of ROI revenue generation.
WHERE IS YOUR MINIG [sic] FARM LOCATED?
A: For security reasons, we do not disclose the exact location of our mining farms.
The only verifiable source of revenue entering Profit Alliance Club is affiliate investment.
The use of newly invested funds to pay off existing investors makes Profit Alliance Club a Ponzi scheme.
Despite this, Profit Alliance Club claim to be a company that is “trusted, legitimate and ethical”.
With Diego Noriega based in the US, regulation of Ponzi schemes falls under the purview of the SEC. To that end Profit Alliance Club offer up a hilariously weak attempt at pseudo-compliance;
As a private transaction, this program is exempt from the US Securities Act of 1933, the US Securities Exchange Act of 1934 and the US Investment Company Act of 1940 and all other rules, regulations and amendments thereof.
We are not FDIC insured. We are not a licensed bank or a security firm.
Yeah no, I’m sure that’ll put the SEC in their place. They won’t dare investigate Profit Alliance Club with a legally binding disclaimer like that.
The bottom line is Profit Alliance Club has been set up to capture naive investors who will swallow the ruse that 8% daily ROIs are possible through cryptocurrency mining.
This program was not designed for professional business people. It was designed for moms, dads, high school graduates, waiters and waitresses, passionate creative’s, college dropouts and anyone in between.
The only people who will make money in the scheme are Noriega and friends who have followed him from scam to scam.
This money will be earned through various pre-loaded positions loaded in at the $1250 level, with everybody else paid whatever peanuts are left over.
Once Profit Alliance Club recruitment dies down, the scheme collapses and the majority of investors take a loss.