Century Heng Yue Group SDN BDH, higher often known as CHY Mall, markets itself as a Malaysian firm.
Oddly sufficient, in actuality CHY Mall doesn’t exist exterior of Africa; specifically Nigeria and Ghana.
That is odd and factors to CHY Mall being operated from inside Africa itself.
Supporting that is CHY Mall beforehand going by Sairui E-Commerce Ghana Restricted:
As above, CHY Mall’s official Fb web page can be managed from Ghana.
On their web site, CHY Mall offers a imprecise collection of paragraphs that don’t present something related to CHY Mall as an MLM firm.
Fairly clearly Century Heng Yue Group started as Sairui E-Commerce in Ghana. Why the corporate is now pretending to be a Malaysian firm is unclear.
Offered as executives on CHY Mall’s web site are Ben Chah (CEO) and Kamal Khan (Vice-President).
Each of those people look like precise individuals, who characteristic in CHY Mall advertising movies:
Exterior of CHY Mall nonetheless, neither particular person seems to have a verifiable digital footprint.
Whether or not Chah and Khan are simply opportunistic Asians concentrating on Africa, or whether or not they’re working with people in Ghana is unknown.
Primarily based on their respective performances in CHY Mall’s advertising movies (instance 1, instance 2), Chah and Khan might additionally very properly be Boris CEO vegetation.
Regardless of the case, CHY Mall’s govt basis is stuffed with purple flags that shouldn’t be ignored.
Learn on for a full overview of CHY Mall’s MLM alternative.
CHY Mall’s Merchandise
CHY Mall associates are supplied entry to an e-commerce mall, stocked with low cost dropshipped crap from China:
CHY Mall’s Compensation Plan
CHY Mall’s compensation plan sees associates buy merchandise from the e-commerce platform.
By means of a sophisticated ruse of pretending to promote merchandise on behalf of associates to non-existent retail prospects, CHY Mall pays associates a ten day return.
The gist is you as a CHY Mall affiliate purchase one thing from the e-commerce platform. You hand over extra money (disguised as extra wholesale product purchases), and get a return over a month.
An instance supplied in official CHY Mall advertising materials particulars a $240 month-to-month ROI on a singly $180 funding. Plus some malarkey “quantum gas saving playing cards”.
The first supply of latest funding into CHY Mall is recruitment of latest associates, who every put money into VIP tiers:
- make investments $50 right into a VIP2 place and obtain $7 each 10 days
- make investments $100 right into a VIP3 place and obtain $14 each 10 days
- make investments $300 right into a VIP4 place and obtain $42 each 10 days
- make investments $600 right into a VIP5 place and obtain $84 each 10 days
- make investments $1200 right into a VIP6 place and obtain $168 each 10 days
Apparently returns proceed to be paid out each ten days, till a CHY Mall affiliate places in a withdrawal request.
Presumably at that time reinvestment is required to proceed receiving returns each 10 days.
Observe that the VIP tiers need to be invested in earlier than an affiliate can make investments exterior of affiliate membership (the VIP tiers are affiliate membership).
Recruitment Commissions
CHY Mall pays recruitment commissions by way of a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the high of a unilevel group, with each personally recruited affiliate positioned immediately below them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel group.
If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.
CHY Mall caps payable recruitment commissions at three unilevel group ranges.
CHY Mall associates earn 20% of gross sales quantity generated by funding by personally recruited associates.
Gross sales quantity (BV) is calculated as 80% of funds invested.
E.g. You recruit a brand new CHY Mall affiliate who invests $100. Generated BV is $80, on which you earn a 20% recruitment fee ($16).
Utilizing this identical paid as a share of generated gross sales quantity mannequin, CHY Mall pays out recruitment commissions as follows:
- stage 1 (personally recruited associates, as detailed above) – 20%
- stage 2 – 3%
- stage 3 – 2%
Crown Stage Bonus
The Crown Stage Bonus is paid out utilizing the identical unilevel compensation construction as recruitment commissions (see above).
The Crown Stage Bonus is paid on 3% of gross sales quantity generated throughout a CHY Mall affiliate’s unilevel group, excluding quantity generated on the strongest and weakest unilevel group legs.
Residual Commissions
CHY Mall pays residual commissions by way of a binary compensation construction.
A binary compensation construction locations an affiliate on the high of a binary group, cut up into two sides (left and proper):
The primary stage of the binary group homes two positions. The second stage of the binary group is generated by splitting these first two positions into one other two positions every (4 positions).
Subsequent ranges of the binary group are generated as required, with every new stage housing twice as many positions because the earlier stage.
Positions within the binary group are crammed by way of direct and oblique recruitment of associates. Observe there isn’t any restrict to how deep a binary group can develop.
On the finish of every day CHY Mall tallies up new funding quantity on either side of the binary group.
Associates are paid 12% of corresponding gross sales quantity (80% of funding quantity) generated on their weaker binary group facet.
As soon as paid out on, quantity is matched in opposition to the stronger binary group facet and flushed.
Leftover quantity on the stronger binary group facet carries over.
Matching Bonus
CHY Mall pays a Matching Bonus on residual commissions earned by downline associates.
CHY Mall caps the Matching Bonus at two ranges of recruitment, based mostly on how a lot an affiliate themselves has invested:
- if the Matching Bonus paid out is lower than an affiliate has invested, they obtain 20% of a 100% match on stage 1 (personally recruited associates) and 50% on stage 2
- if the Matching Bonus paid out reaches 500% of what an affiliate has invested, they obtain 20% of a 100% match on stage 1 and 75% of stage 2
- if the Matching Bonus paid out reaches 1000% of what an affiliate has invested, they obtain 20% of a 100% match on ranges 1 and a pair of
Ecommerce Revenue
Within the unlikely occasion a CHY Mall affiliate convinces a service provider so join and begin promoting on CHY Mall, they obtain 1% of that service provider’s month-to-month turnover.
No matter This Is
I’m not going to attempt to fake I perceive this mess:
It seems to be like a Matching Bonus paid out throughout the binary group (residual commissions), on high of the Matching Bonus we’ve already lined.
However uh yeah, good luck making sense of it.
Becoming a member of CHY Mall
CHY Mall affiliate membership prices between $25 and $1200:
- VIP1 – $25 (no MLM commissions or returns)
- VIP2 – $50
- VIP3 – $100
- VIP4 – $300
- VIP5 – $600
- VIP6 – $1200
Conclusion
CHY Mall markets itself as a “new retail idea”.
It’s not. Dropship e-commerce platforms have been round for years. Probably the most well-known of which is Alibaba’s Ali Categorical, which CHY Mall compares itself to;
CHY Mall is a current On-line Purchasing Mall which incorporates a New Mannequin Referred to as New Retail plus the Conventional E-Commerce like Jumia, Alibaba, and so on.
In actuality CHY Mall is just a ruse for a similar previous Ponzi/pyramid mannequin that’s been round for years.
With respect to the stream of cash CHY Mall isn’t any totally different to Zhunrize, an ecommerce Ponzi scheme the SEC shut down over six years in the past.
Being run by puppets in Asia and concentrating on Africans, CHY Mall is unlikely to face the identical regulatory destiny. However the end-result would be the identical, the vast majority of CHY Mall affiliate traders will lose cash.
CHY Mall associates join and make investments funds. A tiny share of invested funds is used to dropship crap from China. The remaining is put in direction of recruitment commissions and ten-day returns.
The recruitment commissions kind the pyramid part of CHY Mall’s compensation plan.
The ten day returns is Ponzi territory, owing to newly invested funds being recycled to pay withdrawal requests. I say withdrawal requests as an alternative of returns as a result of returns aren’t really realized till a withdrawal request is put in.
Cue CHY Mall’s “we’ll solely pay you if you happen to don’t withdraw” coverage, which sees early traders withdraw the vast majority of invested funds in true Ponzi vogue.
On high of that you’ve the CHY Mall’s precise house owners taking their lower, leaving everybody else with an eventual loss.
From what I could make out Sairui E-Commerce was the preliminary idea that flopped. It was rebooted in mid 2020 as Century Heng Yue Group and CHY Mall, seemingly hoping to capitalize on the COVID-19 pandemic.
To date the scammers behind CHY Mall have profitable concentrating on low-hanging fruit in Nigeria and neighboring Ghana. Lengthy-term they’ll must unfold to different international locations to proceed the rip-off.
Sadly if historical past has proven us something, that occurs all too simple in Africa.
As with all MLM Ponzi schemes, as soon as affiliate recruitment dies out so too will new funding.
It will depart CHY Mall unable to pay withdrawal requests, finally prompting a collapse.
The mathematics behind Ponzi schemes ensures that almost all of contributors lose cash. CHY Mall received’t play out any totally different.
Replace sixth February 2021 – Ghana’s SEC issued a securities fraud warning in opposition to CHY Mall on January eighth.