Xegal Review: $30 matrix positions, $15 a week fees
There is no information on the Xegal website indicating who owns or operates the business.
The Xegal website domain (“xegal.biz”) was registered on the 15th of January 2015, however the domain registration is set to private.
An address in the UK features on the Xegal website, however further research reveals this address belongs to Shoreditch Office Space.
The company advises on their website that they offer virtual mailing addresses in England for £15 a month.
Of note is that Alexa estimates that 91.3% of the traffic to the Xegal website originates out of India. This strongly suggests that India is where Xegal is being operated out of.
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 Xegal Product Line
Xegal has no retailable products or services, with affiliates only able to market affiliate membership with the company itself.
The Xegal Compensation Plan
The Xegal compensation plan revolves around affiliates purchasing $30 positions and then recruiting others who do the same.
The positions Xegal offers affiliates are placed in a 2×7 matrix.
A new $30 position places an affiliate at the top of the matrix, with two positions directly under them:
These two positions form the first level of the matrix, branching out into another two positions each to make up the second level.
The second level positions again branch out into another two positions each to make up the third level, and so on and so forth down a total of seven levels.
Commissions are paid as recruited affiliates purchase positions in the matrix, with commissions paid out depending on what level of the matrix these positions are placed:
- level 1 – $7.50 per position filled
- levels 2 to 6 – 50 cents per position filled
- level 7 – $3.50 per position filled
Each position in a Xegal matrix is attached to a $15 a week fee, which is paid out of commission earnt. If an affiliate does not earn at least $15 a week, then no fee is charged.
If a Xegal affiliate fills their 2×7 matrix (525 positions), the fee for that particular position is increased to $30 a week.
Referral commissions are paid on positions purchased by recruited affiliates, paid out down three levels of recruitment:
- level 1 – 5%
- level 2 – 3%
- level 3 – 2%
Xegal affiliates are given additional matrix positions, subject to the amount they are earning each week:
- $150 a week = 2 new matrix positions
- $300 a week = 2 new matrix positions
- $450 a week = 2 new matrix positions
The ongoing weekly fees for these positions are again paid out of commissions earned.
Finally, direct recruitment commissions are also paid when Xegal affiliates recruit new affiliates into the scheme:
- 5 affiliates in a downline (min 1 personally recruited) = $250
- 25 affiliates in a downline (min 2 personally recruited) = $750
- 125 affiliates in a downline (min 3 personally recruited) = $2500
- 625 affiliates in a downline (min 5 personally recruited) = $8000
- 3125 affiliates in a downline (min 7 personally recruited) = $50,000
- 15,625 affiliates in a downline (min 10 personally recruited) = $175,000
Affiliate membership with Xegal is tied to the purchase of a matrix position.
As such, the defacto minimum cost of Xegal affiliate membership is $30.
Note that each matrix position comes with an ongoing $15-$30 a month fee, paid out of commissions earnt.
Additional matrix positions can also be purchased, which will add to the cost of Xegal affiliate membership.
With nothing being marketed or sold to retail customers, Xegal presents itself as a simple money game.
Affiliates sign up and purchase matrix positions for $30, and are then paid to recruit other affiliates who do the same.
The $15 a week charge serves only to trap funds in the system, with the scheme inevitably collapsing anyway when position purchases slow down.
No new position purchases means no new money entering the scheme. It also means the matrices stall, which in turn means no commissions are generated.
I saw some rubbish about “angel positions” being created when a Xegal affiliate pays their weekly position fee, however all that’s happening there is the recycling of the $15 taken out of an affiliate’s commissions.
That money is used to pay off other affiliates, instead of being paid out to the affiliate it was deducted from.
All in all, even for someone actively looking to get involved in the MLM underbelly, Xegal’s offering is pretty unattractive. You’re going to cough up $30 and then have $15 a week deduced from your commissions.
Oh and for a bit of a laugh, be sure to check out the cheesy testimonials Xegal have on their website.
Not an Indian in sight and very much look like they were purchased from Fiverr or some such (one guy even mispronounces the company name!).