The Company: Power Elite Team
Current CEO: Unknown
Startup Cost: $20
What Is Power Team Elite?
This company recently launched and there's no information about exactly who is running the show. The website states they are a 'group of people that have come together' with the only indication about who exactly this might be located on their Facebook page.
According to the website this is "cash gifting with a twist" since you gift 1 person and get paid from 2 people. Whatever, this is the definition of a cash gifting scheme whichever way you want to look at it. But what is cash gifting and is a system like this legit?
There's no doubt you can make money with something like this for a time, but since the whole thing is based on recruiting people who recruit people and there is no tangible product... it's not something I really recommend. Quite often these schemes are short lived at best.
How Does It Work?
This system works on a 2x1 matrix model where you are at the top and there's 2 referrals under you at any given time. At least that's how it looks at a glance. Looking at the example below, you got 2 people which qualifies you to move into cycle #2.
When you first start out it will cost you $20 to buy your position at the top of your matrix. Then, once you've recruited 2 people under you, you will complete '1 cycle' and earn the corresponding commission. Each cycle pays you an increasingly larger amount and there are 21 matrices in total.
There are currently only 7 matrices but the idea is to expand this in future I imagine:
Essentially, the first one costs you $20 and pays out $40. However, you must give $10 of this revenue to your sponsor so you only end up with a total profit of $10 for the first cycle. The chart above shows you how much you keep from each completed cycle under the 'K' section.
What You Should Know
At a glance it might appear as though there are very few people to recruit with a system like this. however, each time you cycle you cannot move forward until your original 2 referrals complete their cycle. Your referrals are always following you through these matrices which means there is an ever increasing number of referrals needed in order for you to progress.
You must help your referrals, and their referrals, and their referrals and so on which increases exponentially in the later matrices. I'm not saying this is a bad thing in itself, but it is an important concept to understand before signing up.
What Are The Risks?
There are risks involved with a scheme like this, especially in the long term. The main reason for this is because there is no tangible product being sold, new affiliates simply pay existing affiliates via a chain recruiting system. Only so many people will join a system like this and recruiting will inevitably slow up. When this happens, people stop making money a the lower levels since they can't get anyone which creates a flow on effect resulting in the matrices stalling. Right or wrong, this is just what happens.
Since you are paying your sponsor immediately and your referrals pay you immediately and directly, your risk is limited to the individual matrix cycle you are in should this collapse. This means instead of having $10,000's backed up waiting to be paid by the company itself, it may only be a small amount.
It's not all sunshine and rainbows though, not by a long shot. You should also consider the time, effort and money you have spent generating leads to build your downline. It is important to consider the impact a collapse might have on your reputation since you've convinced people to join this under you. At the very least it's probably worth making sure your referrals understand the risks well before they join.
You can definitely make money with a system, at least for a while, but I'd personally rather choose a company with quality products and where the owners aren't hiding behind anonymity. I really do think there are much better and longer term opportunities than this online all things considered.
I spent years listening to 'gurus' which left me broke, frustrated and totally lost. There's only ONE program that helped me create a real income online, here's how it helped me succeed...