Quantum Club surfaced last year and operates in the forex and commodities trading MLM niche.

Quantum Club’s website domain “quantumclub.ai”, was privately registered on December 12th, 2023.

Initial research into Quantum Club revealed it was headed by David Wood and two other undisclosed co-founders.

That remains the case, with Quantum Club’s website nothing more than an affiliate signup/log in form as of March 2024.

No information about Quantum Club, its owners, executives or products are provided.

While we know David Wood is based out of Costa Rica, where Quantum Club is operating from remains unknown.

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.

Quantum Club’s Products

Quantum Club markets an AI trading bot they call Quantum Hulk for $14,997.

Quantum Club’s AI trading bot purportedly runs on “Hulk Smash Algorithm”, with three additional algorithms bundled.

Quantum Club claims its Quantum Hulk trading bot can be integrated “with any third-party broker”.

No information about who developed the Quantum Hulk trading bot is disclosed.

Quantum Club’s Compensation Plan

Quantum Club’s compensation plan pays on sales volume generated via retail sales and affiliate purchases of the $14,997 Hulk Smash trading bot.

Quantum Club’s compensation documentation states that 33% of the $14,997 per bot sold/purchased is counted as sales volume. This is calculated as $4,949.01.

Of that around $950 is paid to a “product company”, leaving around $4000 to fund Quantum Club’s compensation plan.

MLM Commission Qualification

To qualify for MLM commissions a Quantum Club affiliate must either:

  • sell the Quantum Hulk bot to a retail customer or recruited affiliate; or
  • purchase Hulk bot themselves

Quantum Club Affiliate Ranks

There are nine affiliate ranks within Quantum Club’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  1. Quantum Ace – earn three retail commissions or have one recruitment leg “leadership qualified”
  2. Quantum Oracle – earn six retail commissions or have two recruitment legs “leadership qualified”
  3. Quantum Enigma – earn nine retail commissions or have three recruitment legs “leadership qualified”
  4. Quantum Champion – earn twelve retail commissions or have four recruitment legs “leadership qualified”
  5. Quantum Master – earn fifteen retail commissions or have five recruitment legs “leadership qualified”
  6. Quantum Legend – earn eighteen retail commissions or have six recruitment legs “leadership qualified”
  7. Quantum Visionary – earn twenty-one retail commissions or have seven recruitment legs “leadership qualified”
  8. Quantum Infinity – earn twenty-four retail commissions or have eight recruitment legs “leadership qualified”
  9. Quantum Tesseract – earn twenty-seven retail commissions or have nine recruitment legs “leadership qualified”

“Leadership qualified” criteria requires a recruitment leg in a Quantum Club affiliate’s downline to meet the following criteria:

  • the affiliate at the top of the leg (the affiliate you recruited), must be MLM commission qualified (see “MLM Commission Qualification” above)
  • the affiliate at the top of the recruitment leg must make at least one Quantum Hulk bot sale
  • the recruitment leg as a whole must have at least three new Quantum Hulk bot sales made across it
  • the affiliate at the top of the recruitment leg must have had at least ten affiliates recruited into it
  • the recruitment leg as a whole must have had at least one hundred affiliates recruited into it

Note each of the above qualification criteria must be met in the same month for that recruitment leg to be considered leadership qualified.

There doesn’t appear to be any ongoing leadership qualified monthly requirements.

Retail Commissions

Quantum Club pays retail commissions as Quantum Hulk bot sales to retail customers.

Retail commissions are paid as up to 66.3% of generated sales volume (approx $4000 per bot sale), based on rank:

  • Quantum Aces earn a 50% retail commission rate
  • Quantum Oracles earn a 54.6% retail commission rate
  • Quantum Enigmas earn a 59% retail commission rate
  • Quantum Champions earn a 63.6% retail commission rate
  • Quantum Masters earn a 68.2% retail commission rate
  • Quantum Legends earn a 72.7% retail commission rate
  • Quantum Visionarys earn a 77.3% retail commission rate
  • Quantum Infinitys earn a 81.8% retail commission rate
  • Quantum Tesseracts earn a 100% retail commission rate

These are coded rates, meaning 100% of the 66.3% is always paid out regardless of the referring affiliate’s rank.

Instead of a regular coded payout, Quantum Club takes the differential amount (100% minus the rank commission rate), splits it into nine rank-corresponding amounts, and then splits that evenly between every upline affiliate at that rank.

Higher ranked affiliates receive a share of lower ranked amounts, heavily weighing volume towards higher ranked affiliates.

Depending on rank structure in the leg (e.g. a lack of higher ranked affiliates in the leg), “cycling” can result in unpaid commissions redistributed out to lower ranked affiliates up to three times per sale.

If there’s commissionable volume which for some reason isn’t paid out, it’s recycled and paid out via SuperPosition commissions (see “SuperPosition Commissions” below).

Note that due to them always being paid 100%, no differential is ever paid on Quantum Tesseract sales.

Recruitment Commissions

Quantum Club pays recruitment commissions as Quantum Hulk bot sales made to recruited affiliates.

Recruitment commissions are paid as up to 50% of generated sales volume (approx $4000 per bot sale), based on rank:

  • Quantum Aces earn a 42.4% recruitment commission rate
  • Quantum Oracles earn a 54.6% recruitment commission rate
  • Quantum Enigmas earn a 60.6%% recruitment commission rate
  • Quantum Champions earn a 66.3% recruitment commission rate
  • Quantum Masters earn a 72.8% recruitment commission rate
  • Quantum Legends earn a 78.8% recruitment commission rate
  • Quantum Visionarys earn a 84.8% recruitment commission rate
  • Quantum Infinitys earn a 91% recruitment commission rate
  • Quantum Tesseracts earn a 100% recruitment commission rate

As with retail commissions, Quantum Club’s recruitment commissions are also coded.

SuperPosition Commissions

Quantum Club’s SuperPosition is essentially a straight-line downline structure. You sign up, everyone who joined Quantum Club before you is above you and everyone who joins after you is placed below you.

It doesn’t matter who recruits who, there is only one line.

SuperPosition commissions are made up of 33.7% of sales volume generated by Quantum Hulk bot sales to retail customers and 50% of Quantum Hulk bot sales to recruited affiliates.

As to how SuperPosition Commissions are paid out, Quantum Club’s compensation plan details twelve steps of arbitrary criteria (again weighed heavily in favor of higher ranked affiliates), till a final calculation is reached.

It is honestly not worth even trying to get your head around. I’ll go more into Quantum Club’s compensation problems in the conclusion of this review.

Joining Quantum Club

Quantum Club affiliate membership is either free or pair.

Paid Quantum Club affiliate membership costs are not disclosed.

Quantum Club Conclusion

At its core, Quantum Club combines a $14,997 trading bot of unknown origin with a coded bonus and straightline compensation plan.

Unfortunately there are gaping disclosure holes and Quantum Club’s compensation plan is unnecessarily complicated, to the point I’m confident 99.9% of affiliates won’t understand it.

Quantum Club’s compensation plan comes in at twenty-four pages long. There are a few charts in there but for the most part it’s text.

This is excessive but I’d get over it if, at the end of page twenty-four I was confident I understood it all. The problem is I don’t.

And the issue isn’t Quantum Club has come up with a compensation plan so brilliant it’s beyond my understanding. About four or five pages in Quantum Club failed the headache test.

After that I had to brute force my brain into following a comp plan it had already decided was unnecessarily complicated to the point it wasn’t worth trying to digest.

Again, there’s only two commissions inside Quantum Club’s compensation plan. Its the way these commissions are calculated that’s mind- numbingly complicated for the sake of being complicated.

Imagine Elon Musk walking out on stage to announce a new Tesla car. It’s got 39 wheels, most of which are on the body of the car and never make contact with the ground, the seats are back to front but you have mirrors on the sides to see where you’re going from.

The car can only be charged using special Tesla electricity, costs of which are based on mileage per wheel on every car sold, multiplied by the weight of what each owner has for breakfast each day.

Yes, it’s still a car but I think we can all agree complicating things to the nth degree isn’t a functional improvement.

To drive home a point (no pun intended), here’s Quantum Club’s own explanation of their coded commissions *extreme headache trigger warning*:

Let’s say a Quantum Oracle [2] makes a sale, and there are 20 people above them at rank [1].

The $14.86 would pay through 9 levels of rank [1]. The bonus is 100% paid out in this case.

Let’s say at rank [2], there are only 9 levels. Each person at rank [2] is also at rank [1], so this is cumulative.

Each person at rank [2] gets an additional $14.86. In this case, the rank [2] amount is 100% paid out and it stops there.

Someone at Quantum Oracle above them would have earned at this point $29.72 because as we have mentioned, the bonuses stack.

However, let’s say there are 6 levels of leaders at rank [3]. There is still $133.78 to payout. Each person gets $14.86 additionally on top of the other previous rank payouts, but there is still $44.62 to payout (133.78 – 14.86 x 6 = 44.62).

The 44.62 divides into 6 sections, which is 7.44 and then pays 6 people $7.44.

In this case, the bonus is now 100% paid out for rank [3] and no additional cycles are needed. Someone at rank 3 would have now earned $52.02 from this sale, or 14.86 + 14.86 + 14.86 + 7.44 = $52.02.

However, let’s say in rank [4], there are only 3 people to earn the bonus. The differential still divides into 9 sections of $14.86 and pays through 3 levels of rank [4]. In this case, there is 89.20 available to payout.

So this divides into 6 sections of $14.87 again, and this seeks up 6 levels of rank [4] but there is only 3.

In this case, there is $44.59 available to payout after this part pays rank [4]. This then divides into 3rds, and the bonus repeats.

After dividing into thirds, there is $14.86 available to payout and this time this part of the bonus pays to zero and there is nothing remaining.

Now someone at rank [4] would have earned $96.61 in Coded Differential Bonuses, and the amount is not even halfway paid out: 52.02 + 14.86 + 14.87 + 14.86 = $96.61

However, let’s say at rank [5], there are only 2 people qualified at rank [5].

The bonus is cumulative, so on the same sale, the rank [5] would have the $133.78 divide into 9 sections of 14.86. Only this time it would only pay to 2 people at rank [5].

There is now 104.06 remaining to payout. This then divides into sections of 6 payments of 17.34, which is paid to 2 people at rank [5] in addition to the last bonus.

There is now $69.37 remaining in the payout. This divides into sections of 3 payments of $23.12. This looks upline and finds 2 people, leaving $23.12 not paid out.

This $23.12 then rolls into the bonus amount for the next rank. Remember rank [6] already had 133.78 to payout from this bonus. There is now $156.90

Let’s say rank [6] only has one leader. Remember this is cumulative, so he has earned the previous bonuses. In this case, 156.90 divides into 9 and he gets $17.43. There is $139.47 remaining.

This divides into 6 and he gets $23.25 and there is $116.22 remaining.

This divides into 3 and he gets 38.74 and there is $77.48 remaining.

This is now breakage and passes to the amount for the next rank.

However, in this case, there is no next rank as the highest rank in the company is rank [6]. So what would happen with the remaining $77.48?

In this case, there is not just $77.48. We only paid through rank [6] and there were 9 ranks, but there is nobody who is at ranks 7-9 yet in these examples.

So each of these ranks 7,8, and 9 have an available payout of $133.78. This is then added to $77.48. 133.78 x 3 + 77.48 = 478.82 is still available to payout.

So what happens?

It is divided into 9 sections again. In this case, 478.82 / 9 = $53.20 available to payout per rank.

So what happens with it?

The entire calculation repeats again in the exact same sequence. This cycle continues until the amount is zero or the full cycle through all ranks has repeated 9 times.

This calculation cycle occurs after the cutoff time for rank qualification at 11:59pm est the last day of the month.

If there is any remaining amount after 9 cycles of the calculation, it rolls into the TCV at the bottom of the Superposition Stream.

The maximum amount of times a person can get paid off of a single sale in the Coded Differential Bonuses is 9 ranks x 3 cycles per rank x 9 cycles of the entire Coded Bonus, which is 243 separate commissions.

In addition they can earn one Accelerator Bonus on personal sales and also bonus off of sales volume from the Superposition Stream, for a total of 245 commissions that can payout per sale (if they are at rank 9 [Quantum Tesseract] and there is leftover differential).

Uh yeah, so that’s what I’ve spent the last few hours getting my head around. Again, nobody in Quantum Club is going to understand this or be able to explain it to anyone.

The SuperStream explanation is no better, complicating a simple straight-line volume based commission with twelve separate modifier steps to arrive at the amount paid out.

I actually went looking for Quantum Club marketing to find an example of someone else breaking down the compensation plan (I figured the video would be hours long).

Didn’t find one example. Not one.

Other than wanting “cool names”…

Just keep in mind that although the name sounds complex, it just comes from different bonuses in the comp plan, and also happens to form a cool name at the same time.

…the reason Quantum Club’s compensation plan is the way it is is because it heavily favors higher ranked affiliates.

In this calculation, there are an interesting few points to notice.

First, although David and Sue had the same original point indicators, Sue earned $12,409.50 more than David from the Superposition Stream Bonus. Why?

Because she got locked in early and either bought the Quantum Hulk before David did or she made a retail sale.

Upon consideration of rank qualification criteria, namely having to have one recruitment leg with a hundred new affiliates recruited into it the same month all the other criteria is also met, it’s pretty obvious how this is going to play out.

Quantum Club is going to be full of people who signed up early, recruited a bunch of people for free and then sit back and hope to earn off them trying to sell a $14,997 trading bot of unknown origin, to earn commissions through a compensation plan they don’t understand.

The later you join Quantum Club the less volume you earn on. Notwithstanding the extreme unlikelihood of you developing “leadership qualified” recruitment legs, considering Quantum Club recruitment began in late 2023.

This brings us to the Quantum Hulk trading bot. Outside of maybe a handful of sales company-wide each month, nobody is dropping $14,997 on a trading bot of unknown origin with an unknown track record.

Quantum Club do not provide audited trading results on their website (in fact they don’t provide consumers with anything on their public-facing website).

Something else worth asking is where the majority of the $14,997 paid for the Quantum Hulk bot winds up. $4,949.01 is commissionable volume and includes payment to an undisclosed “product company”.

Who is keeping the other $9547.99?

When I first went over Quantum Club in December 2023, I raised concerns about securities fraud, commodities fraud and pyramid recruitment.

These concerns still remain.

Quantum Club does offer access to its Quantum Hulk bot to retail customers but at $14,997 viability is a huge question mark.

If the majority of Quantum Hulk bot license holders are also Quantum Club affiliates, that would mean Quantum Club was operating as a pyramid scheme.

Securities fraud and commodities fraud are intertwined through disclosures and failure to register with the SEC and CFTC respectively.

Quantum Club doesn’t disclose anything to consumers on its website. Who owns Quantum Club, associated joining costs, a refund policy and Quantum Hulk bot details are disclosure failures that need to be remedied.

In addition to the SEC and CFTC, disclosure failures could also attract the attention of the FTC.

Specifically with respect to securities fraud, we have passive returns offered through a bot of unknown origin.

An investment contract and thus securities offering can be identified in Quantum Club by way of the Howey Test.

An investment of money (stored on a client’s broker account), into a common enterprise (invested funds are put under control of the Quantum Hulk bot), with the reasonable expectation of profits (no other reason to invest with the bot), due to the managerial efforts of others (Quanum Club clients don’t own the bot generating passive returns for them).

We know Quantum Club isn’t registered with the SEC. Whether anyone associated with the Quantum Hulk bot is is unknown, due to aforementioned disclosure failures.

Commodities fraud comes in to play again as a result of passive returns derived via trading. This requires Quantum Club to be registered with the CFTC, which it is not.

As at February 2024, SimilarWeb tracked the vast majority of Quantum Club website visits as originating from the US (59%). US law very much matters here and, as far as I can tell, is being violated.

Another concern is Quantum Club’s bot blowing up. With no details about who created and runs the bot and no audited financial reports pertaining to past performance, clients are at risk of

  1. being scammed through rigged trades in favor of the bot owner; and/or
  2. losing all their money if the bot blows up.

Putting all of this together while we know more about Quantum Club today then we did last December, my summary then still applies today;

In a nutshell, Quantum Club is shaping up to be a pyramid scheme. If recruitment doesn’t collapse before it gains traction, Quantum Club could still wind up in the crosshairs of financial regulators in the US.

Approach with caution.