The Company: Elegant Matrix
Founder & CEO: Dale Payne Sizer
Startup Cost: $20
A 2x2 matrix cycler launched in February of 2016 with no legitimate products being sold. In my opinion, this is a classic ponzi scheme and as such I cannot recommend this. This scheme has since collapsed after publishing this review.
The website's domain info is set to private which is fine in itself but makes it difficult to determine who is responsible for this program, especially when the owner refuses to identify himself/ herself.
It appears to have been created by Dale Payne Sizer based on an affiliates statement:
The fact that this website and Dale's other program called Infinity Profit System are hosted on the same servers out of London concretes this further. It's never a good thing to be dealing with an anonymous program owner at all let alone the inherent risk in this kind of scheme as it is.
How It Works
The basic idea is to sign up into one of 5 matrix positions and 'cycle' your way out of them once the full six positions have been filled.
This is what a full matrix looks like:
There are 2 main options to be paid out upon entering a matrix, either the doubler or the leveraged options.
#1 Double Your Money
- $20 pays out $40 once complete
- $45 pays out $90 once complete
- $100 pays out $200 once complete
- $250 pays out $500 once complete
- $500 pays out $990 once complete
If you started at $20 and went right through and completed the $500 matrix, your total profit would be $905 after purchasing all 5 positions.
#2 The Leveraged Option
This option works by allowing you to purchase one level and only be paid out fully once you reach a pre-determined level. So you could purchase a $20 matrix position and choose not to be paid out until you cycle the $100 level. You will not be made to pay the $45 or $100 fee for entering these matrices but you miss out on the being paid double each time you fill up the $20 and $45 matrices.
For example: when cycling out of the $20 level- you only make $7 instead of $40. When cycling out of he $45 level you'll only make $17 instead of $90. But when you cycle out of the $100 matrix you'll make the full $200 since this is what you chose at the beginning. You're only out of pocket the initial $20 though and were automatically 'inserted' into each new position.
If you started at the $20 level and went right through to completing the $500 level using the leveraged option, you'd make a total profit of $1114.
You'll also make a 10% referral commission on anyone you bring into this operation, regardless of who they are placed under.
How Funds Are Attributed
The website explains how the funds are apportioned based on each purchase of a new matrix position.
Looking at the $20 level this is what it would look like:
10% to the person who referred you ($2)
4% Payment processor fee + 6% admin fee ($2)
30% to the person above you in the matrix ($6)
50% to the person 2 up from you. ($10)
Now, assuming you did not directly refer anyone in your current $20 matrix you would make $12 ($6 x 2 level 1 referrals) and $40 ($10 x 4 level 2 referrals). This comes to $52.
But hang on, we are being told we'd only make $40 for completing this cycle so the numbers do not make sense right?
The only way these numbers make sense is when you choose the 'leveraged option:The $7 'bit' you get paid plus the doubling of your money ($40) comes to $52. This is the same logic used for each position.
In other words, you DO NOT get paid the full 30% and 50% on levels 1 and 2 as shown above unless you choose the leveraged option and continue re-investing.
After understanding how this system works, it is clear the emphasis is being placed on constant and automatic re-investment into more matrix positions to take full advantage of the earnings potential.
The Inherent Risk
Provided the person behind this is in fact paying people what is owed, people will make money with this. My concern has never been that people will not initially make money or not.
Here's what does concern me...
There is no legitimate product or service being sold to non-investors. The website very clearly explains that the revenue gained through new investors is being used to pay out to existing investors.
As such, this is a recruitment driven Ponzi scheme. No one could rightfully argue with this.
This means that once recruiting slows, positions will stop filling up and people will no longer be making money. Depending on how many (and what level) unfulfilled matrices a person has at this time will determine their losses.
They even have a matrix collapse policy outlining they'll pay you an amount "based on the available funds for that level" which shows they are fully aware of it's inevitable collapse. Given the anonymous nature of those operating this website, I am personally not very inclined to trust the legitimacy of this 'backup' claim.
What I Liked
There's nothing I like about knowingly encouraging people to invest in a scheme that is guaranteed to collapse.
What I Didn't Like
- Ponzi/ recruiting scheme
- Anonymous nature of those behind it
- Linked to Dale Payne Sizer, who is (and has been) associated with a number of similar schemes
It might seem like an easy way to make a passive income and perhaps for a while it will be for the minority.
To make any money with this though, you'll need to know how to recruit people into your downline and teach them to do the same. This means investing money on advertising and matrix positions in the hope of being paid out before the whole thing craps itself.
Personally, this is not my cup of tea and certainly not something I recommend to people looking to build a legitimate online business.
Update October 2016
The Elegant Matrix website (http://elegantmatrix.com) has been suspended and the scheme no longer operates. This is what happens with these kinds of things and people lose money when they collapse.