I think you’ll agree with me when I say:
It’s REALLY hard to trust new MLM companies especially when many of them are not upfront about who owns or runs the company.
No problem, we have done the work for you and will hopefully answer all of your questions.
CPS Traders Review
After visiting CPS Traders website “www.cpstraders.com” set off our first red flag indicator. In short, there is no information on who owns or runs this company.
Not a good sign. Would you agree?
Next step is checking out the domain itself. The CPS Traders website was registered on June 17th, 2016. Of course it was registered as private.
Time to do some digging…
MMO24hs Group can be found in the “about section” of their website. Typically they refer to themselves as a “financial group” working with CPS their parent company.
They go on to describe themselves as traders, miners, programmers and workers. All their representatives live in the USA, UK, AU, Hong Kong and Japan.
Ok great. But who are you and do you all have a name?
Why does this matter?
Because I would never join an MLM company that isn’t upfront about who owns and runs the company.
CPS Traders – Product Line
Of course CPS Traders company does not have a product or service. With most Ponzi schemes you’re only able to market the membership itself.
For now lets give CPS Traders the benefit of the doubt and look at their compensation plan before putting them in that category.
So what’s the real story? Lets take a closer look.
CPS Traders – Compensation Plan
Assuming CPS Traders compensation plan pays our their affiliates a number of ways doesn’t mean it’s legit.
Firstly, affiliates “invest” in trading points. CPS give out an ROI of $100 per day to affiliates.
Along with recruitment affiliates are also paid on “shopping activity” in their downlines.
You’re probably curious how these “trading points” work?
So lets take a closer look!
Think of these points as a virtual currency and nothing more. CPS Traders invest on a 1 to 1 ratio.
So $1 is equal to 1 trading point.
Lets say a new affiliate signs up. Each affiliate will be rewarded with bonus points dependent on how much they spend.
Here is a diagram:
Bonus points are converted to trading points if a CPS trader posts spam for 70 days.
That’s not all..
Free affiliates have monthly membership fees. Paying these monthly fees determines if you qualify for trading points.
Trading Pool Return On Investment (ROI)
Think of this pool as nothing more than 50% of funds being invested into CPS traders.
At this point it looks like 50% goes out to affiliates and 50% back to the company.
The more trading points an affiliate has the larger their share in the pool.
There is also an expiration on these trading points. After 100 days they expire. Most systems like CPS Trader has to set an expiration date or the company would not be able to sustain itself.
In short, it would close down A LOT sooner because they wouldn’t be able to pay out their affiliates.
CPS Shopping Commissions
This particular e-commerce platform seems to be loaded with third-party products.
New recruits joining CPS Traders may purchase these products. Commissions will be paid out to the referring affiliate and also the company.
Lets take a look at the unilevel compensation plan that pays out affiliates.
CPS Traders – Unilevel Plan
A basic unilevel compensation plan places an affiliate at the top with every personal recruit placed on their first level.
CPS Traders compensation plan is no different. Big recruiters usually go wide placing as many on their first level so they can make more commission.
Cream usually rises to the top meaning the “players” will start building their own team with affiliates being placed on their first levels.
Theoretically this will duplicate an infinite number of levels.
Here is a diagram:
CPS Traders Cap
Yes there is a cap on the unilevel. Affiliates can only be paid on five levels. How many level an affiliate can earn on is determined by how much they spend on monthly fees.
- Starter Affiliate – paid on one level
- Intermediate Affiliate – paid on two levels
- Super Affiliate – Paid on five levels
Gets a little tricky here so read closely.
Percentages paid out is determined by what level the commissions were generated on.
Level one personal recruits pays out 5%. Level two through five pays out 1%.
CPS Recruitment Commissions
Every time a CPS Trader affiliate recruits another affiliate a commissions is paid out.
Same case with recruitment commissions. Everything determined by how much an affiliate is paying per month in membership fees.
CPS Trader Residuals
Residuals are paid out on a 2×21 matrix. An affiliate is placed on top of the matrix with two positions on their first level. This continues downward 21 levels.
Here is a diagram:
Theoretically if an affiliate was to fill up his entire 2×21 matrix they would have 4,194,302 positions full.
Positions in the matrix are filled via direct and indirect recruitment.
As the matrix fills in commissions are paid out. How much of a commissions an affiliate earns is all determined by how much in membership fees they are paying.
Cost To Join
Free memberships are certainly available however you can’t earn commissions. CPA Traders is all determined by paid membership fees.
Fees can be paid accordingly:
- Starter Level – $10 per month
- Intermediate Level – $50 per month
- Super Level – $100 per month
Income can be generated five different ways.
- Through bitcoin mining and trading
- Through forex
- Through software and app development
- Through advertising
- Through e-commerce
So what’s the real story?
Well, other than their e-commerce platform, there is zero evidence if any of these revenue sources exist.
From what we can see affiliate fees, token points and spending money on the shopping platform are the only verifiable revenue sources.
Classic Ponzi scheme? For sure.
Newly invested funds to pay off existing investors was the first indicator. Our second indicator was affiliate fees to pay recruitment commissions.
How about the pay to play aspect? Pay more earn more across the compensation plan. Pay less and earn less. This is prevalent across all components.
Personally I would never touch a company that doesn’t come right out and tell me who runs it and what their intention is.
At no point is CPS Traders clear. That is always a tell tale sign of some sort of scam.
These sort of companies have no intention of building long term.
Firstly when you’re talking about coupling anonymous companies using bitcoin as the currency of choice.
Would you really want to invest your money into such an unstable scenario? All I’m saying is be weary and do your homework.
CPS Traders – Conclusion
Time and time again companies such as CPS Traders put this 100 day maturity period so investors won’t realize the company has actually collapsed until it’s too late.
Daily ROI’s string affiliates along. They keep paying their fees and building their accounts while a selected few with big teams make some profit if the company actually pays. Not always the case.
When recruiting slows down the company will absolutely collapse. A very small percentage will actually make a profit whereas the majority of CPS Traders affiliates will lose money.
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