Socialx20 Review: Two-tier matrix Ponzi relaunch
Socialx20 initially launched in mid-2014 as a $25 a pop matrix cycler.
The scheme quickly collapsed upon launch, and that was that.
Now, some six months after the first collapse the Socialx20 admin seeks to resurrect the scheme.
Who this admin is remains a mystery, as there is no information about who owns or runs Socialx20 on the company’s website.
Additionally the Socialx20 website domain was first registered on the 7th of March 2014, 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 Socialx20 Product Line
Socialx20 has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.
Once a Socialx20 affiliate has signed up, they are then able to purchase matrix positions.
Bundled with each of these positions are a series of advertising credits, which can be used to display advertising on the Socialx20 website.
The Socialx20 Compensation Plan
The Socialx20 compensation plan sees affiliate purchase $25 matrix positions.
These positions form the entry into a two-tier matrix cycler, Silver and Gold respectively.
Entry into the Silver matrix costs $25. This matrix is a 5×1, meaning that five positions under the initial $25 position need to be filled.
Once all five positions are filled, the affiliate who owns the top position is paid $50, re-entered into a new Silver matrix and placed into a new Gold matrix.
The Gold matrix is an 8×1 matrix, meaning eight positions under the top position need to be filled.
Once all eight positions are filled, the affiliate who owns the top position is paid $100 and again re-entered once into both a new Silver and Gold matrix.
Referral commissions on the purchase of matrix positions are paid down three levels of recruitment as follows:
- level 1 – $1.25
- level 2 – 75 cents
- level 3 – 25 cents
A cycle commission of $15 (Silver) and $22.50 (Gold) is also paid out when personally recruited affiliates cycle out of either a Silver or Gold matrix.
Note that a “cycle” is a term used to refer to a matrix filling up and a commission being paid out.
Affiliate membership with Socialx20 is free, however free affiliates can only earn referral commissions.
Full participation in the Socialx20 compensation plan requires the purchase of at least one $25 Silver matrix position.
The simplest way to describe the Socialx20 compensation plan is as a $25 in, $150 Ponzi scheme.
Each $25 position requires 40 subsequent positions to be invested in before the $150 ROI is fully paid out.
Both matrix tiers offered in Socialx20 operate as individual straight-line queues, with funds from newly purchased positions used to pay out ROIs on existing positions.
Nothing is marketed or sold to retail customers, with all ROIs funded by participating affiliate investors.
Given that Socialx20’s initial launch was a flop, one imagines it’s not going to be any different this time around.
You’ve got your standard advertising-based Ponzi scheme, which will inevitably collapse when affiliate recruitment and subsequent new investment dries up.
Being a matrix-based Ponzi scheme, this will manifest itself by way of the matrix queues stalling.
One other thing to keep in mind is the nature of the queues themselves. With each new position requiring 40 subsequent positions to be invested in before the total ROI is paid out, and then those 40 positions requiring 40 subsequent positions each again, it doesn’t take long for the queues to mathematically blow out.
Once Socialx20’s matrices stall, the anonymous admin behind the scheme then does a runner with anyone’s funds still trapped in the system.
Or who knows, maybe they’ll just wait a few months like last time and then quietly opt for a third relaunch…