Mobile Talk USA is new entry in the online income opportunity quagmire. The concept is a lifetime membership for a one time cost of $25 with an additional $10 processing fee. Your subscription gets you access to discounted cell phones, plans and accessories. The $25 puts you into a 2 by 2 cycling matrix with re entry and follow on entries into constantly doubling 2 by 2 matrices.
Very little information is supplied about Mobile Talk USA. The domain mobiletalkusa.com is a private registration and the website does not supply any information about the company or owners. That is always a big red flag.
Mobile Talk USA may not be a SCAM but it is wrought with problems. If the company provides the products and pays the affiliates then it isn’t a SCAM but that doesn’t mean it is legal.
The first problem with Mobile Talk USA is the compensation plan. It appears that they will be classified as an illegal pyramid scheme. For $25 you receive a lifetime membership that supposedly gains access to discounts involving cell phones. There are no details available about the product but even if we give them the benefit of the doubt that it is a legitimate product it still doesn’t keep them from being a pyramid scheme. Typically the “touch test” for a pyramid is the presence of a product. While that is true it doesn’t end there. Mobile Talk USA is using a 2 by 2 cycling matrix.
A two by two matrix has a total of seven positions. The payline is the bottom row of 4. Each of these people pay $25 and when the row is complete the person at the top gets paid. Now there is $100 on the payline. You get $25. The company says you also get free reentry into the $25 matrix following your sponsor and free entry into the $50 matrix. It’s not free $25 off your payline was used to reenter the $25 matrix and the remaining $50 puts you into the $50 matrix. These are funds from you commissions and problem is that when you entered those new matrices you paid but didn’t receive any products. This continues on through every matrix. That makes is a pyramid scheme.
Another problem with Mobile Talk USA is the lifetime membership. When it comes to chargebacks when you buy a product you generally have 3 days. With a subscription the chargeback eligibility is for the length of the membership. In this case it’s lifetime. So everybody that quits can chargeback any time.
Mobile Talk USA talks about the matrices going on forever. The number of people that must join is ridiculous. In a perfect world (never is) everyone comes in 2 by 2. So 6 people have to follow you to get $25. For those six people to move on to the $50 matrix so you earn $50 each of them must have 4 people follow them. That’s 24 more people joining. At that point you have earned $25 on the first cycle and $25 in your second $25 matrix and $50 on your second matrix. It took 30 people paying $25 each for that to happen. So you generated $750 and made $100. To get the $100 matrix filled each of the 24 people need 24 people which means in order for you to collect the $100 payout and additional 576 must join at the $25 level. Think you will ever collect on the $200 matrix? That’s an additional 13,824 people. That’s if everyone sponsors 2 people. Never happens that way. Most of those 2 by 2 matrices will never complete. That’s called breakage. If you were wondering how the company makes money there it is, breakage. They keep all the money from the breakage.