two-bit-matrix-logoThere is no information on the Two Bit Matrix website indicating who owns or runs the business.

The Two Bit Matrix website domain (“twobitmatrix.com”) was registered on the 14th of February, with a “Donald Shickle” listed as the owner. An address in the US state of New York is also provided.

A Google search of the Two Bit Matrix domain address reveals a Facebook profile belonging to “Donnie Shickle” (right). A caption on the profile reads:

Hi, I’m Donnie Shickle, singer, songwriter, musician, entrepreneur and modern day renaissance man of sorts.

I’m always looking to network with honest, reliable, open minded people who like to think outside the box.

Shickle’s Facebook profile has not been updated since November 2013.

Further research reveals a LinkedIn account bearing the name “Donald Shickle” (), in which Shickle claims to be the CEO of Two Bit Matrix:

donald-shickle-ceo-two-bit-matrix-linkedin

Shickle also claims to be the CEO of “Mad Ad Cash”, which sounds like a recruitment-driven pyramid scheme:

Guaranteed Earnings

You have to do very little effort to start earning income. Just introduce your few friends to us and earn money.

The above is from the Mad Ad Cash website, with further research confirming it to be a matrix-based recruitment scheme.

In addition to launching dubious opportunities, Shickle has also been involved in a few of them as an affiliate.

On the Facebook group “Let Your Voice Be Heard”, Shickle has advertised Feeder Matrix (pyramid scheme), EZ Cash Gifts (cash gifting), This Christmas Cash (pyramid scheme) and as recently as February of this year, Zero2Pro (pyramid scheme).

Mad Ad Cash was launched in early 2014, with Alexa traffic estimates revealing the opportunity is dead. Two Bit Matrix would appear to be the successor of the scheme, although Shickle has been promoting both simultaneously.

Read on for a full review of the Two Bit Matrix MLM business opportunity.

The Two Bit Matrix Product Line

Two Bit Matrix has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.

Once signed up, Two Bit Matrix affiliates can then purchase matrix positions and participate in the income opportunity.

The Two Bit Matrix Compensation Plan

The Two Bit Matrix compensation plan sees affiliate purchase matrix positions across a series of ten matrices.

A number of different sized matrices are used:

  • 2×5 – sixty-two positions to fill across five levels
  • 2×4 – thirty positions to fill across four levels
  • 2×3 – fourteen positions to fill across three levels
  • 2×2 – six positions to fill across two levels
  • 3×3 – thirty-nine positions to fill across three levels
  • 4×4 – three hundred and forty positions to fill across four levels
  • 5×5 – three thousand nine hundred and five positions to fill across five levels

The basic concept is that as positions fill in any of the ten matrices a position has been bought, commissions are paid out as follows:

  • Matrix 1 (2×5) – 50 cents per position filled (capped at $1)
  • Matrix 2 (2×4) – $1 per position filled (capped $2)
  • Matrix 3 (2×3) – $2 per position filled (capped at $4)
  • Matrix 4 (2×2) – $4 per position filled (capped at $8)
  • Matrix 5 (3×3) – $8 per position filled (capped at $24)
  • Matrix 6 (4×4) – $12 per position filled (capped at $48)
  • Matrix 7 (5×5) – $24 per position filled (capped at $120)
  • Matrix 8 (4×4) – $60 per position filled (capped at $240)
  • Matrix 9 (3×3) – $120 per position filled (capped at $360)
  • Matrix 10 (2×2) – $180 per position filled (capped at $360)

Two Bit Matrix affiliates are encouraged to use commissions paid out to “upgrade” themselves to higher level matrices, however this is optional (beyond purchasing an initial 50 cent position in Matrix 1).

Positions in each matrix are equal to that of the payout per position filled (eg. 50 cents in Matrix 1 and up to $180 in Matrix 10).

Joining Two Bit Matrix

Affiliate membership with Two Bit Matrix is free, however affiliates must purchase at least one matrix position in order to participate in the income opportunity.

As such the defacto minimum cost of Two Bit Matrix affiliate membership is 50 cents (the cost of one Matrix 1 position).

Conclusion

Can you find two people with half a dollar and half a brain? If so, you will make money with Two Bit Matrix.

-Donald Shickle, CEO of Two Bit Matrix

With nothing being marketed or sold to retail customers, Two Bit Matrix is revealed to be a ten-tier Ponzi investment scheme.

And even then it makes little sense.

Payouts as described on the Two Bit Matrix website suggest that commission payouts are capped on the first level of each matrix tier offered.

What the other levels of the matrix are for then escapes me. If you can only earn on the first level, why bother having any more?

In that sense Two Bit Matrix operates more like a straight-line queue cycler, with the first level of each matrix tier offered serving as the queue.

Why it wasn’t just launched like that I have no idea.

In any event, mathematically the flow of funds into Two Bit Matrix is $411.50, with an eventual $1167 ROI paid out.

The ROI is paid out subject to continued affiliate investment in matrix positions, with there being no other demonstratable revenue-source existing within the company.

This qualifies Two Bit Matrix as a ten-tier Ponzi scheme.

Being a matrix-based scheme, once new investment in positions dries up the matrices themselves will stall.

Incorrectly, Shickle attributes this inevitable collapse on the size of the matrices used:

Most matrices are set up for failure right from the start because they are too wide and, or too deep. They use 3×4, 4×4 or even wider, deeper levels in the matrix.

Make no mistake, matrix-based Ponzi schemes collapse for the same reason any other type of Ponzi scheme does: a lack of newly invested funds.

The size of the matrix is neither here nor there, serving only to determine how much new investment is required before a ROI is paid out.

Once new affiliate recruitment slows down and nobody is buying new matrix positions, Two Bit Matrix will collapse.