ProfitFactorX Review: $7 chain-recruitment scheme
There is no information on the ProfitFactorX website indicating who owns or runs the business.
The ProfitFactorX website domain (“profitfactor.club”) was registered on the 4th of January 2016, however the domain registration is set to private.
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 ProfitFactorX Product Line
ProfitFactorX has no retailable products or services, with affiliates only able to market ProfitFactorX affiliate membership itself.
Once signed up, affiliates pay a $5 fee to participate in the ProfitFactorX income opportunity.
Bundled with each participation fee payment are a series of advertising credits, which can be used to display advertising on the ProfitFactorX website.
The ProfitFactorX Compensation Plan
The ProfitFactorX compensation plan sees affiliates pay $7 to participate.
Payment of this fee qualifies ProfitFactorX affiliates to then receive $5 commissions from subsequently recruited affiliates.
Commissions in ProfitFactorX are paid out via a 1-up compensation structure.
A 1-up compensation structure sees every recruited affiliate pass up one $5 commission to their upline. They keep every $5 commission generated via recruitment thereafter.
In turn, recruited affiliates must also pass up their first $5 commission, with this extending down an infinite number of levels.
Eg. You pay $7 and sign up as a new ProfitFactorX affiliate. Your affiliate membership fee ($5) is paid to your upline (the affiliate who recruited you).
You then recruit your first affiliate, with the $5 commission generated passed up to your upline. If you recruit another affiliate, you keep the $5 commission.
Your recruited affiliates pass up their first $5 commission generated, earning you $5 for each affiliate on your second level (unilevel).
Affiliate membership with ProfitFactorX is $7.
ProfitFactorX hearkens back to the days of traditional pyramid schemes, where affiliates paid money solely to qualify to earn on recruitment.
ProfitFactorX affiliates pay $5 to the affiliate who recruited them, which qualifies them to receive $5 from affiliates they recruit.
Without the 1-up passups this would be a single-level affiliate, but unfortunately we’re looking at a pretty scammy MLM.
The admin of the scheme pockets $2 from every signup, in addition to likely owning multiple master positions that receive the lion’s share of commission passups.
As with all pyramid schemes, once affiliate recruitment dies down so too will the commissions ProfitFactorX pays out.
Eventually the scheme collapses, leaving anyone who hasn’t recruited at least two affiliates out of pocket.