Xplocial Scam? Yes It Is In My Opinion!
Many of my subscribers have been interested in information on the business opportunity named Xplocial. I had the chance to take a detailed look into the company and the man behind it. Here is what I found.
Update: Xplocial has been shutdown.
Xplocial Scam Claims
Make Money By Saving Money
With Xplocial, you can create a professional income in just WEEKS!
Save More. Earn More. Live Better.
Our simple system was designed for EVERYONE!
Here is the Xplocial presentation.
Xplocial Scam Reality
Here is a little business information for you guys. You do not make money by saving money. You make money by being paid more than you spend to provide a good or service to a customer. Paying less for goods and services you consume is not a business or making money.
Xplocial US Office:
68 South Service Road
Melville, New York 11747
The Xplocial office is a virtual office.
The creator of Xplocial is Lawrence B. Marcus.
Marcus has been involved in ripping people off with fraudulent investments in multiple states. He has two Cease and Desist Orders against him that I know of.
In February of 2000, the State of Missouri issued a Cease and Desist Order against Marcus for offering unregistered securities.
In March of 2012, the State of Maine issued a Cease and Desist Order against Marcus for offering unregistered securities. Here are a few details from the latest order.
On August 2, 2002, the Maine resident invested $10,000 in a Royalty Financing Agreement with Nitro d/b/a Compassionate Clicks. The agreement provided the Maine resident with 2500 shares of Nitro common stock and the following options:
- A 30% return on her investment that would be paid with principal upon the passing of one year and 60 days from the date Nitro had received the funds; or,
- A 24% return on her investment that would be paid in monthly payments of $200 with the return of her principal upon the passing of one year and 60 days from the date Nitro had received the funds.
The Maine resident chose the 30% return option.
The time for the return of the Maine resident’s investment has passed, and the Maine resident has not received any funds back from Nitro d/b/a Compassionate Clicks or Marcus in connection with the investment. – Source Maine.gov
Businesses Run By Lawrence B. Marcus
Here is one of the many complaints about Approval Warehouse.
Approval Warehouse is nothing but a Ponzi Scheme. They are an MLM, that charges $397 to sign up plus $39.95 per month, which gets you “NO” product, its simply a fee to sign up with Approval Warehouse. Then, the “Agent Sign-up” fee of $397 is paid out to the recruiting upline as commissions. This is the classic definition of an illegal Ponzi Scheme. Its only a matter of time until the regulators shut them down. – Complaintsboard.com
The Approval Warehouse has now become Xplocial.
Associate: $29.95 monthly.
Dream Life Vacation Club: $24.95 monthly.
Basic Membership: $99 and $49 monthly.
Premier Membership: $199 and $129 monthly for 23 months. Then a $129 annual renewal fee.
Premier Membership Fast Start: $399 and $99 monthly for 23 months. Then a $129 annual renewal fee.
Here is a video example of the low quality products that are provided by Xplocial.
The full details of the compensation plan are not shared with you until you join. This is totally unethical. No one should join a business without full disclosure. In the following video Lawrence B. Marcus explains why the full details of the compensation plan should not be shared with people.
Linear Pass-Up Compensation Plan
Each Associate passes up their 1st, 3rd, and 6th sale to their Enroller. These are called “Qualifying Training Sales.” You keep the commission on your 2nd, 4th, and 5th sales. Starting with your 11th personal sale, every 5th sale is passed up.
When your 2nd, 4th, 5th and 7th Members start enrolling others. Their 1st, 3rd and 6th Members ALL get credited to you. Plus, you will earn both upfront and monthly recurring commissions from every 1st, 3rd and 6th Member that they enroll down to an unlimited number of levels.
Once you have 6 directly enrolled people in your group, you can earn commissions from UNLIMITED depth.
The problems with 2-up compensation plans.
The only programs still offering the 2-Up, or any such variation, are relatively recent start ups or blatant money games.
The Aussie Two-Up. Or One-up, or Three-Up, or any variation of ups. There’s no way to fix this unredeemable, corrupt and historically failed system of compensation, so any variation of it should be avoided.
So with virtually a 100% long term failure rate throughout MLM history, why has the 2-Up refused to die? In fact, it seems to be experiencing a mild resurgence of late. The reason is two fold:
1. It actually rolls up tons of cash to the company;
2. It appears to roll up tons of cash to the distributor – on paper.
The 2-Up looks so good on paper because you only see what you get paid on the first level, but they never tell you that this percentage takes a precipitous plunge starting on the next level. You see the number of people you are paid on doubling upward, but are never shown the massive proliferation of sales you are paid nothing on that you would have otherwise been paid on in every other type of plan. – Source Marketwaveinc.com
No average income provided. You have no idea how much money people are actually making.
Terms & Conditions
Xplocial Scam Conclusion
In my opinion you should avoid the Xplocial business opportunity. It is run by a person that has no problem selling people fake investments. The office for the company is a virtual office and the products for the company are very low quality. The full compensation plan is not provided to you unless you join and they have a no refund policy. Xplocial is a product-based pyramid scheme that is designed to take advantage of you.