Solmax – Ponzi Scheme – MLM Scam
A recent search on Alexa does however indicate the vast majority of web traffic to the company website originates from Pakistan at 49%, indicating that the individuals behind Solmax Global can likely be traced to this location.
Another plausible scenario, supported by the company’s marketing material, suggest an individual or individuals based in the United Kingdom with established connections to Pakistan.
Remember, be very cautious of investing in or joining any MLM company that is not entirely transparent with regards to ownership and management.
Products provided by Solmax Global
Solmax Global does not offer any physical product or service. Affiliates can only promote the Solmax Global affiliate membership itself.
Solmax Global’s Compensation Plan
It seems that Solmax Global have developed a type of internal crypto-currency token they refer to as ‘Equity Tokens’ that affiliates invest in on the representation of passive earnings (a value increase of 600% – 800%)
Commissions are paid-out to affiliates whom successfully recruit (directly as well as indirectly) fresh investor members.
At the point of registration, affiliates have the choice of joining one of a selection of membership packages based upon the value of their investment :
Basic: £100 GBP
Starter: £250 GBP
Executive: £500 GBP
Professional: £1000 GBP
Premium: £2500 GBP
Elite: £5000 GBP
Supreme: £10,000 GBP
Max: £25,000 GBP
Solmax Global do not clarify the number of ‘Equity Tokens’ that are given out to correspond to the various tiers of membership.
As well as this, it is significant to note that the company only makes 66.6% of any commissions they pay out withdrawable to the affiliate.
What remains (33.3%) is transferred to a linked ‘trading account.’ It follows that this amount is limited to be invested exclusively in Solmax Global’s own Equity Tokens.
Solmax Global Affiliate Ranks
Solmax Global’s compensation plan is split into 7 ranks for affiliates additional to their respective qualifying criteria:
Associate: Executive or higher tier personal investment. Recruit additional individuals in investing a minimum sum of £5600 GBP. Recruitment of 2 or more Executive or higher ranked investment tier affiliates (one either side of the binary team)
Executive Associate: Recruit additional individuals in investing a minimum sum of £32,000 GBP (with at least £8000 on one side of the binary team). Recruitment and retention of 2 or more Associate or higher tier affiliates (one either side of the binary team)
Team Leader: Professional or higher tier personal investment. Recruit additional individuals in investing a minimum sum of £64,000 GBP (with at least £32,000 on one side of the binary team). Recruitment and retention of a minimum of 3 Executive Associate or higher tier affiliates (one either side of the binary team)
Regional Manager: Recruit additional individuals in investing a minimum of £160,000 GBP (with at least £64,000 on one side of the binary team). Recruitment and retention of a minimum of 3 Team Leader or higher tier affiliates (one either side of the binary team)
Regional Director: Elite or higher tier personal investment. Recruit other individuals in investing a minimum of £400,000 GBP (at least £160,000 on one side of the binary team). Recruitment and retention of a minimum of 4 Regional Director or higher tier affiliates (at least two either side of the binary team)
Regional Vice President: Recruit additional individuals in investing a minimum of £1,200,000 GBP (at least £400,000 on one side of the binary team). Recruitment and retention of a minimum of 5 Regional Director or higher tier affiliates (two either side of the binary team)
Senior Vice President: Recruit additional individuals in investing at minimum of £6,400,000 GBP (at least £1,200,000 on one side of the binary team). Recruitment and retention of 6 Regional Vice Presidents (three on either side of the binary team)
Commission for referrals
Affiliate members of Solmax Global are payed-out 10% of investments made by any affiliates they have directly recruited.
Residual Commission
A binary compensation structure is applied to pay out residual commissions..
This type of structure operates by positioning an affiliate at the head of a so-called binary team. The structure is then separated to accommodate two further affiliates (left and right) to create the first level:
This pattern continues downwards, every subsequent level of the binary team accommodating two times the number of positions above, generating a theoretically infinite number of levels as required.
Positions are occupied through the direct and indirect recruitment of affiliates.
Solmax Global closes every week with a tally of fresh investment accumulated on both the right and left sides of the binary team.
10% of the investment accumulated, on whichever side (right or left) with a lower fresh investment total, is then paid out to the affiliate.
The remainder investment on the higher performing side is then accumulated into the following week.
Matching Bonuses
Solmax Global applies a uni-level compensation model to pay out a ‘matching bonus’
The model positions an affiliate at the head of a so-called ‘uni-level team’, and any affiliates directly recruited by this head occupy positions below to create the first level.
If an affiliate on the first level personally recruits any new affiliates, these individuals are positioned directly below the recruiter to create the second level of the head affiliate’s uni-level team.
Should a level 2 affiliate personally recruit any new affiliates, these individuals are positioned directly below the recruiter. This downward pattern repeats itself to generate a hypothetically limitless number of levels and affiliates.
Note that payable uni-level team members are capped at the twelfth level.
Affiliates positioned within the twelve levels are paid out The Matching Bonus (comprising a 2% match on referral and residual commissions)
The affiliates investment tier governs the amount of levels the Matching Bonus is paid out on:
- Basic and Starter: Not eligible for the Matching Bonus
- Executive: Eligible for the Matching Bonus on levels 1 – 2
- Professional: Eligible for the Matching Bonus on levels 1 – 4
- Premium: Eligible for the Matching Bonus on levels 1 – 5
- Elite: Eligible for the Matching Bonus on levels 1 – 8
- Supreme: Eligible for the Matching Bonus on levels 1 – 10
- Max: Eligible for the Matching Bonus on all 12 levels
Note that additionally, in order to qualify, each affiliate must have directly recruited a minimum of 2 affiliates who have invested in the Executive tier or above (one placed on either side of the binary team).
Global Pools Scheme
5% of total Solmax Global company-wide investment is shared amongst three Global Pools:
- Top Producer affiliates: earn a share in a 1% Global Pool
- President affiliates: earn a share in a 2% Global Pool
- Executive affiliates: earn a share in a 2% Global Pool
A “Top Producer”, according to the company’s compensation plan, refers to the top ten affiliates (determined by “business production”) in any given country.
Without doubt “business production” almost certainly correlates to downline investments.
A ‘President’ refers to an affiliate that has invest at the Elite tier or above.
The ‘Executive’ Global Pool (2%) is further split between 6 affiliate rankings:
- Executives: earn 6%
- Team Leaders: earn 10%
- Regional Managers: earn 14%
- Regional Directors: earn 18%
- Regional Vice Presidents: earn 22%
- Senior Vice Presidents: earn 30%
These Global Pools are paid out to affiliates on a daily basis accordingly with the eligibility criteria outlined above..
Rank Achievement Bonus
Affiliates positioned at the Associate rank or above are given the following rewards:
- Associates: gift of a fountain pen featuring the Solmax Global brand
- Executive Associates: gift of an Apple iPad Mini
- Team Leaders: gifted of an Apple iPhoneX
- Regional Managers Regional Directors and Regional Vice Presidents: gift of a “car” at each rank
- Senior Vice Presidents: gift of a “house purchase contribution”
Solmax Global Membership
Affiliate membership with Solmax Global is dependent upon a £100 – £25,000 GBP investment.
Affiliates that invest a greater amount in the compensation plan can expect a higher return.
In Conclusion
Solmax Global assert that their Equity Tokens are assured by partnership with the UK based company Igniter100 “to market its Equity Tokens and earn rewarding commissions.”
Igniter100’s own company website claims to provide “funding and an off-site incubator environment through which promising FinTech start-ups can find the resources and tools needed to thrive.”
Heading up as CEO of Igniter100 is Florian Krueger who is described on his LinkedIn profile as an “experienced board level executive” with special expertise in the following:
- DLT, Blockchain, Enterprise Architecture, Big Data & Business Intelligence, Agile Digital Transformation
- Global Development of Companies and Markets, with focus on EMEA and the US
- Corporate Strategy and
- Marketing, PR and communications
It is difficult to ascertain the degree to which Krueger may or may not be tied up in Solmax Global.
We can note however, that the Igniter100 website fails to detail the source of its investment capital or the charge rate.
In any event, the Solmax Global compensation plan asserts that “Igniter100 will share its profits with Equity Token holders” implying Igniter100 supplies Equity Tokens with a source of external revenue.
Solmax Global also claim Equity Tokens earned via their compensation plan to be “tradeable on exchange”
It is, however, not possible to publicly trade Equity Tokens, therefore indicating that one of these companies, Solmax Global or Igniter100, is clearly operating an internal exchange.
Onwards from here, we discover the same, tired, MLM Ponzi points scheme.
Afilliates of Solmax Global invest as much as £25,000 GBP to earn Equity Tokens, whilst it is all too clear that Solmax Global or Igniter100 are themselves responsible for setting the Equity Token’s internal value.
Therefore, Solmax Global affiliates earn their ROI through an internal exchange according to the value set at any time by one of these companies.
Let’s be clear about it, Solmax Global are accepting actual capital from affiliates in an exchange for these worthless Equity Tokens.
Solmax Global would have to be registered with the Financial Conduct Authority to back up any assertion that returns on Equity Tokens are generated through Ignitor100 external revenue.
Registration with the FCA would include providing evidence of audited accounts that clearly demonstrated this source of external revenue apparently being used to pay affiliates.
Unsurprisingly, at present, neither companies Solmax Global nor Igniter100 have registration with the FCA.
In light of this, at very best, Solmax Globals representation of ROI amounts to an illegal unregistered securities offering.
At worst, the company is a full-blown Ponzi scheme whereby SolmaxGlobal is utilising new investments to honour Equity Token ROI withdrawals.
Furthermore, commissions paid out by Solmax Global are bound up with the pyramid recruitment model due to the absence of a retailable product.
Regrettably, the FCA are not active in the regulation of unregistered MLM securities schemes such as this. Therefore, the likely outcome is that Solmax Global will expire through its inevitable collapse and as we know all too well, the vast majority of investors will lose out on their investment.
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