Ariix Review: Affiliate restrictions & complex pay plan

ariix-logoAriix launched in mid 2011, are based out of the US state of Utah and operate in the health and wellness MLM niche.

Heading up the company are its seven founders: Fred Cooper (CEO), Mark Wilson (President), Jeff Yates (CFO), Riley Timmer (COO), Deanna Latson (Chief Product Officer), Wenhan Harry Zhang (CIO) and Ian Chandler (Vice-President of Business Development for Asia-Pacific).

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With the exception of Latson, Ariix’s Founders all came from executive position with Usana.

Fred Cooper was Usana’s COO, Jeff Yates their CFO, Riley Timmer their Vice-President of Finance, Wenhan Harry Zhang their IT Director and Ian Chandler Usana’s Customer Relations Coordinator.

Evidently work on Ariix began while management still held their positions at Usana. The Ariix website domain was first registered on the 11th of January 2011, with Ariix’s Founders resigning from Usana four months later in May.

Explaining his departure from Usana on a September 2011 Ariix affiliate call, Fred Cooper equates his time there to “killing himself”:

When I started Ariix, I never actually thought we would be doing our own network marketing company.

I had what many people would have said was the most cushy job on the planet. It was a job which everyone tries to aspire to.

I worked hard, I got my good education, I did everything that I could… worked day and night, worked all the time, worked hours.

There were weeks where I’d work a hundred and twenty hours. A hundred and twenty.

In one year I missed forty-seven weekends out of fifty-two, at the cost of my family, my social life, my friends.

And all the things that I love to do, I didn’t have the time to do because I was killing myself to rise up into this company and kind of live the good life.

I finally did it, three years ago approximately I finally made it to the President of the organization.

I didn’t have much chance of going any higher, because the owner’s son took the top spot. But I was perfectly content in the second spot.

Then one day it became apparent to me, as much as I think this is my company too, because I had thireen years or so in that company, I had worked my guts out for thirteen (years), side by side with the owner, side by side next to the owner’s son, this was mine too – I had a vested emotional interest in that company.

And it became obvious that I was just an employee. That in the end, my decisions, my choices did not have to be adhered to or listened to.

That my ability to control my company was also limited. My ability to control my compensation was controlled by a board of directors and the owners.

And, more importantly, I saw first-hand that an associate colleague of mine, that I had worked with for thirteen years, was going to lose his job at the opinion of an owner.

The one place that I thought I was safe and secure, turned out to be not any safer or more secure than any other employee.

So when I saw the treatment of those other executives and what was going to happen to them, that was the day I realized, “Y’know what? My turn is coming.”

It’s not “if”, it’s “when” – and I had better do something to change my own financial situation.

That “something” was Ariix, which Cooper departed with a host of his fellow Usana executives.

We walked away from seven-figure incomes, to do a business that we’ve taken to become better.

With key Usana executives ditching the company so too came the inevitable affiliate jumpships, with Usana terminating a number of affiliates following Ariix’s launch.

One such affiliate was Lynn Allen-Johnson, a former 5 Star Diamond Director with Usana and member of their Millionaire Club.

Allen-Johnson was terminated by Usana in July 2011. Reflecting on her termination at the time, Allen-Johnson wrote (source withheld due to affiliate marketing links):

I am writing with much sadness to announce that I am no longer with USANA.

I have been terminated based on the fact that I was looking at the Ariix opportunity joined by my family on a private call to gain clarity on the compensation plan.

After 15 years of building my business for what I thought was a “life long” residual income and my legacy to my Grandchildren, I have once again discovered how naive I am.

USANA has blessed my life so much and given me so much but I also believe that I have given USANA much.

I have loved and shared the vision of Dr. Wentz with my whole heart and the fact that I chose to look at Ariix had nothing to do with USANA.

It had to do with the fact that Fred and Mark are my dear friends and I respect and admire them greatly. They have always been there for me with encouragement and love and I wouldn’t have accomplished what I did without them.

Although Ariix hasn’t opened yet, I was looking at it and weighing my options and deciding what path I wanted to follow for my future.

USANA compliance department has made that decision for me with a termination letter and it is with great sadness that I share this….

Responding to an enquiry about Allen-Johnson’s termination, Usana’s compliance asserted it was due to cross-promoting:

Thank you for your question about the recent cancellation of Lynn Allen Johnson’s associate agreement.

It was with a very heavy heart that USANA took the action to cancel her distributorship. Lynn violated her agreement when she invited a select group of USANA distributors, including leaders from her team, her family and non-family members, to an opportunity call where the CEO of another network marketing company presented the benefits of joining that company, including their perception of improvement over USANA.

On the call Lynn also promoted the benefits of joining that company to the USANA associates who were listening.

Because of the public way in which this was done, Lynn’s promotion of a competitor immediately caused damage in the USANA field.

USANA asked Lynn to help combat the damage caused by publicly committing her 100% efforts to USANA but she declined leaving no choice but to cancel the associate agreement.

Compliance with the associate agreement is essential to the security of USANA’s business and the independent businesses of thousands of USANA distributors.

While we are saddened by Ms. Johnson’s choice, we wish her well in her new company.

Calling out Ariix’s integrity and that of their affiliates, Usana went on to frame the termination as a potential regulatory issue:

State and federal regulators carefully scrutinize the network marketing industry to ensure that companies enforce polices to protect distributors and consumers alike from the unethical or illegal conduct of unscrupulous business promoters and rogue associates.

To that end, USANA vigorously enforces its polices so that associates and shareholders alike can rely on USANA as a long-term responsible business.

USANA regrets that it must take action to cancel any distributorship, and as such, it is a rare occurrence among the tens of thousands of hard working and deserving USANA associates.

However, when the actions of rogue associates directly affect the livelihood of other associates USANA has no choice. USANA will always choose to protect its associates.

USANA will gladly suffer the short-term effect of losing a distributor leader rather than sacrifice the integrity on which USANA is built and the livelihood if its associates and families.

On her LinkedIn profile, Allen-Johnson credits herself as a member of the “Ariix Founders Club”:

The ARIIX Founders Club is the most prestigious and high-level ranking that a Representative can achieve in the entire sector of network marketing.

The invitation to join the ARIIX Founders Club is the pinnacle of what can be achieved in the direct selling industry—the perfect balance of being a Representative with the privileges of a founder.

Other than the inevitable fallout of gutting one MLM company to start another, it appears to have been smooth sailing for Ariix since.

Read on for a full review of the Ariix MLM business opportunity. [Continue reading…]


3×9 Millionaire Machine Review: $435 million & terrible math

3x9-millionaire-machine-logoThere is no information on the 3×9 Millionaire Machine website indicating who owns or runs the business.

The 3×9 Millionaire Machine website domain (“3x9millionairemachine.com”) was registered on the 7th of September with Sherm Mason listed as the owner. An address in the US state of Arkansas is also provided.

sherm-mason-3x9-millionaire-machine-adminSherm Mason (right) first popped up on BehindMLM’s radar as the admin of Magnetic Builder in 2012.

Magnetic Builder saw affiliates pay $29.95 and get paid to recruit others who do the same.

Following Magnetic Builder Mason went quiet, until earlier this year when he launched Paradise Payments in February.

Paradise Payments saw affiliates gift $2 to $1000 to eachother, with the scheme collapsing shortly after launch.

Since February Mason has gone on to launch to other schemes (in addition to 3×9 Millionaire Machine), Magnetic Gratitude in April and Summer Fun Matrix in July.

Magnetic Gratitude was a $580 a pop Ponzi scheme and Summer Fun Matrix a $22 three-tier Ponzi cycler.

Alexa statistics suggest both schemes have since collapsed.

Now comes 3×9 Millionaire Maker, Mason’s fourth launch of 2015.

Read on for a full review of the 3×9 Millionaire Machine MLM business opportunity. [Continue reading…]


ProfitShare 63 Review: French Ponzi reboot

profitshare-63-logoThere is no information on the ProfitShare 63 website indicating who owns or runs the business.

The ProfitShare 63 website domain (“profitshare63.net”) was registered on the 20th of September 2015, with a “Paolo Longo” listed as the owner. An incomplete address at the French tourist attraction Puy de Dome is also provided.

ProfitShare 63 is obviously not being run out of a dormant volcano, and so I was ready to dismiss Paolo Longo as a made up name too.

longo-paolo-profitshare-63-adminTurns out there’s a “Longo Paolo” (right) posting on Facebook in relation to ProfitShare 63, with the account appearing to be legitimate.

Going by Paolo’s Facebook posts, Profits 63 was first launched on two separate French domains in late May.

By August Paypal shut down their payment processor account for violating their Terms or Service.

That was the end of the French iteration of ProfitShare 63, with Paolo restarting the scheme with a new domain a few days ago.

Read on for a full review of the ProfitShare63 MLM business opportunity. [Continue reading…]


USFIA offices raided, SEC granted TRO

usfia-logoDetails are sketchy, but from what I’ve been able to put together the SEC filed for a sealed Temporary Restraining Order against USFIA, Steve Chen, Alliance Financial Group, Aborell MGMT LLC, Aborell Advisors LLC, Aborell Reit II LLC, Ahome Real Estate LLC, Amkey Inc, US China Consultation Association and Quail Ranch Golf Course LLC on the 22nd of September.

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The TRO was granted by an Arizona District Court Judge on the 28th of September. The case however is still under seal so I don’t have any further details at this time. [Continue reading…]



Darryle Douglas ordered to surrender Zeek database

zeekrewardsIn mid July BehindMLM revealed Darryle Douglas’ grandiose plan to market his new opportunity, Auction Attics, using the Zeek Rewards affiliate database.

This caught the attention of the Zeek Receiver, whose property said affiliate database is.

darryle-douglas-sales-director-zeek-rewardsA subsequent motion was filed by the Receiver in late August, requesting Douglas (right)

  • return any copies of the Zeek Rewards database he has in his possession
  • appear for a deposition by the Receiver and
  • produce all financial records from November 1, 2011 to the present for his personal and business-related accounts (prior to being deposed)

The Receiver’s motion is part of an ongoing effort to clawback the millions Douglas stole from Zeek victims.

Judge Mullen ruled on the matter back on September 15th, with the future of Auction Attics left in serious doubt. [Continue reading…]


iFunding Connect Review: $25 a month cash gifting

ifunding-connect-logoAccording to the iFunding Connect website, the company was

was established in November 2014 by Cedric McGregor.

Cedric sought to create a unique, effective and proven shared platform where crowdfunders could thrive.

Despite this claim, the iFunding Connect website domain was only registered on the 7th of December 2014.

Furthermore promotion of iFunding Connect only began about a fortnight ago, with corporate iFunding Connect marketing videos going live on September 18th.

iFunding Connect claim to be based out of the US state of Georgia, with McGregor’s LinkedIn profile listing him as the owner of BetterLife Solutions.

According to Georgia state records, BetterLife Solutions was dissolved in 2012.

As per a capture page circa 2013, McGregor was promoting Big Idea Mastermind, which at the time was hitched to the Empower Network.

Read on for a full review of the iFunding Connect MLM business opportunity. [Continue reading…]


Speak Asia’s Harender Kaur wanted by Interpol

speak-asia-online-logoThis one totally flew under the radar, but it has come to my attention that Speak Asia’s Harender Kaur is wanted by Interpol. [Continue reading…]



Familia Unitas Review: $20-$200 a month recruitment scheme

familia-unitas-logoFamilia Unitas operate in the online marketing MLM niche.

An address on the company website suggests the company is based out of Michigan in the US, but curiously a contact number in Slovenia is also provided.

timothy-saltsman-familia-unitas-ceoIdentified as CEO of Familia Unitas on their website is Timothy Saltsman (right).

Past MLM opportunities Saltsman has promoted include Ingreso Cybernetico (recruitment-driven matrix scheme), IQ Life (rebrand of Level9App recruitment scheme) and MMO Cashout (another recruitment scheme) and ProShareExtreme ($1 micro Ponzi scheme).

On his Facebook page Saltsman was talking about launching an opp early this year, but Familia Unitas appears to be his actual first launch.

Read on for a full review of the Familia Unitas MLM business opportunity. [Continue reading…]


GBD Gift Review: $12 seven-tier cash gifting scheme

gbd-gift-logoThere is no information on the GBD Gift website indicating who owns or runs the business.

The GBD Gift website domain (“gbdgift.com”) was registered on the 15th of September 2015, 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. [Continue reading…]


TheBigHybrid Review: $5 to $20 ad-based Ponzi scheme

thebighybrid-logoThere is no information on TheBigHybrid website indicating who owns or runs the business.

TheBigHybrid website domain (“thebighybrid.com”) was registered on the 17th of August 2015, however the domain registration is set to private.

Alexa currently estimate that India is the largest source of traffic to TheBigHybrid website domain (25%), suggesting this might be where it’s being operated from.

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. [Continue reading…]