Eaconomy surfaced three or 4 weeks in the past underneath “International Takeover” prelaunch branding.
After a cringey “we gained’t inform you the corporate identify however plz join anyway” interval, Eaconomy was revealed a few week in the past.
Heading up Eaconomy is President Hassan Mahmoud.
Mahmoud (proper) first appeared on BehindMLM again in January, as co-owner of Silverstar Stay.
Silverstar Stay was a short-lived MLM firm, providing unregistered securities underneath the guise of automated foreign exchange bot buying and selling.
I’ve been loosely monitoring SilverStar Stay’s collapse. Apparently because it was collapsing there was a fallout between Mahmoud and his spouse, and convicted fraudster David Mayer.
Sooner or later SilverStar Stay was renamed AI International, after which once more to Ai Knowledgeable Advisor.
There’s no details about who’s operating AI Knowledgeable Advisor on its web site, however presumably it’s nonetheless Mayer.
Keep in mind there’s not a lot of an organization left, with Alexa pegging AI Knowledgeable Advisor with a 2.5 million rank (good as useless for an MLM firm).
After splitting with Mayer, Mahmoud appears to have taken what he collected and launched his personal alternative.
Mahmoud’s spouse, Candace, joined him as co-owner of SilverStar Stay.
There’s no point out of her on the Eaconomy web site, and he or she appears to have deleted all her social media profiles.
Undecided what the story is there, however I’m positive she’s having fun with the cash she obtained from SilverStar Stay associates.
One final observe on Eaconomy administration; I couldn’t assist however discover Sal Leto credited as Vice President of Operations.
Leto is greatest recognized for spearheading makes an attempt to market the OneCoin Ponzi scheme within the US.
When that failed Leto switched to iPro Community. When iPro Community collapsed… effectively, right here we’re.
Learn on for a full assessment of the Eaconomy MLM alternative.
Eaconomy Merchandise
Eaconomy market two foreign exchange bots, which for some purpose they’re misrepresenting as “knowledgeable advisors”:
- Traide Ringer – “this superior knowledgeable advisor creates a hoop round worth like a wheel that rotates and captures revenue because the wheel turns”
- Traide Runner – “this prime foreign exchange knowledgeable advisor could make over 100 trades a day gathering small wins that add up like a scalper”
- Traide Compass – “this superior knowledgeable advisor creates a hoop round worth like a wheel that rotates and captures revenue because the wheel turns”
Eaconomy’s promote entry to their bots for $247 after which $169 a month.
Reductions are provided on a number of bot purchases, nonetheless these will not be disclosed on Eaconomy’s web site.
The Eaconomy Compensation Plan
On the time of publication, Eaconomy fail to supply a replica of their compensation plan on their web site.
The next is sourced from a International Takeover prelaunch advertising and marketing video and varied advertising and marketing shows.
Eaconomy Affiliate Ranks
There are twelve affiliate ranks inside Eaconomy’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Rank 1 – generate 435 GV a month in bot subscription quantity and generate and preserve a minimum of three complete downline bot subscriptions
- Rank 2 – generate 1740 GV a month in bot subscription quantity and generate and preserve a minimum of twelve complete downline bot subscriptions (break up 4/4/4)
- Rank 3 – generate 5075 GV a month in bot subscription quantity and generate and preserve a minimum of thirty-five complete downline bot subscriptions (break up 10/10/15)
- Rank 4 – generate 13,050 GV a month in bot subscription quantity, generate and preserve a minimum of ninety complete downline bot subscriptions (break up 30/30/30), and recruit and preserve a minimum of three Rank 1 associates
- Rank 5 – generate 36,050 GV a month in bot subscription quantity, generate and preserve a minimum of 200 and fifty complete downline bot subscriptions (break up 100/100/50), and recruit and preserve a minimum of two Rank 2 associates
- Rank 6 – generate 72,500 GV a month in bot subscription quantity, generate and preserve and preserve least 5 hundred complete downline bot subscriptions (break up 200/200/100), and recruit and preserve a minimum of two Rank 3 associates
- Rank 7 – generate 181,250 GV a month in bot subscription quantity, generate and preserve a minimum of one thousand 200 and fifty complete downline bot subscriptions (break up 500/500/250), and recruit and preserve a minimum of two Rank 4 associates
- Rank 8 – generate 362,500 GV a month in bot subscription quantity, generate and preserve a minimum of two thousand 5 hundred complete downline bot subscriptions (break up 1000/1000/500), and recruit and preserve a minimum of two Rank 5 associates
- Rank 9 – generate 725,000 GV a month in bot subscription quantity, generate and preserve a minimum of 5 thousand complete downline bot subscriptions (break up 2000/2000/1000), and recruit and preserve a minimum of two Rank 6 associates
- Rank 10 – generate 2,175,000 GV a month in bot subscription quantity, generate and preserve a minimum of fifteen thousand complete downline bot subscriptions (break up 6000/6000/3000), and recruit and preserve a minimum of two Rank 7 associates
- Rank 11 – generate 4,350,000 GV a month in bot subscription quantity, generate and preserve a minimum of thirty thousand complete downline bot subscriptions (break up 12,000/12,000/6000), and recruit and preserve a minimum of two Rank 8 associates
- Rank 12 – generate 8,700,000 GV a month in bot subscription quantity, generate and preserve a minimum of sixty thousand complete downline bot subscriptions (break up 24,000/24,000/12,000), and recruit and preserve a minimum of two Rank 9 associates
GV stands for “Group Quantity” and is gross sales quantity generated by way of bot subscriptions to retail clients and recruited associates.
Be aware that GV is downline subscription gross sales quantity, not simply your personal private efforts.
Cut up subscription numbers seek advice from an Eaconomy affiliate’s prime three downline legs (quotes are minimums required within the three largest legs).
MLM Fee Qualification
With the intention to qualify for MLM commissions, every Eaconomy affiliate should preserve 55% retail buyer quantity on their first three recruitment legs.
A recruitment leg is created whenever you personally recruited an Eaconomy affiliate.
Weekly Fee Caps
Eaconomy caps all weekly residual commissions and bonuses based mostly on rank:
- Rank 1 associates can earn as much as $37.50 per week
- Rank 2 associates can earn as much as $150 per week
- Rank 3 associates can earn as much as $375 per week
- Rank 4 associates can earn as much as $750 per week
- Rank 5 associates can earn as much as $1250 per week
- Rank 6 associates can earn as much as $2500 per week
- Rank 7 associates can earn as much as $6250 per week
- Rank 8 associates can earn as much as $12,500 per week
- Rank 9 associates can earn as much as $25,000 per week
- Rank 10 associates can earn as much as $62,500 per week
- Rank 11 associates can earn as much as $125,000 per week
- Rank 12 associates can earn as much as $250,000 per week
Retail & Recruitment Commissions
Retail and recruitment commissions are paid when retail clients and recruited associates buy entry to Eaconomy buying and selling bots.
A $40 one-time fee is paid on the primary bot subscription purchases by an affiliate’s fourth retail buyer and/or recruited affiliate.
Be aware that extra bot purchases by the identical retail clients and/or recruited associates solely generates a $15 fee.
Quick Begin Bonus
Eaconomy pays a one-time $110 Quick Begin Bonus if an affiliate generates 4 bot gross sales inside ten days of signing up.
Group Coded Bonus
The Group Coded Bonus is a bonus paid on the primary three downline retail clients or recruited affiliate bot purchases.
That’s associates you recruit promoting Eaconomy bots to retail clients or associates they recruit, and also you getting paid 15% on their first three bot gross sales.
If any of these first three retail clients change into associates (or all are associates), 15% of their first three retail buyer and/or recruited affiliate bot purchases can be paid out.
On this method the Coded Bonus can theoretically pay an infinite depth, so long as subscriptions proceed to be bought.
Affiliate rank will increase the Coding Bonus as much as a possible 30%.
- Rank 1 associates earn the usual 15% Coded Bonus fee on the primary three associates and so forth
- Rank 2 associates earn a 20% Coded Bonus fee on the primary three associates and so forth
- Rank 3 associates earn a 25% Coded Bonus on the primary three associates and so forth
- Rank 4 associates earn a 25% Coded Bonus on the primary three associates and so forth, plus an extra 25% on personally recruited associates out of your fourth (the three associates they recruit and so forth), plus an extra 3% on all subscriptions offered out of your fourth recruited affiliate
- Rank 5 associates earn a 28% Coded Bonus on the primary three associates and so forth, in addition to the 25% Rank 4 fourth affiliate and onward bonuses (consists of bonus 3%)
- Rank 6 associates earn a 28% Coded Bonus on the primary three associates and so forth, plus the three% Rank 4 extra bonus share is elevated to five%
- Rank 7 associates earn a 30% Coded Bonus on the primary three associates and so forth, plus the Rank 6 elevated Rank 4 bonus percentages
- Rank 8 and better associates earn a 30% Coded Bonus on the primary three associates and so forth, plus the 6% Rank 6 extra bonus share is elevated to 7%
Be aware that “the primary three” refers back to the first three associates recruited, the primary they recruit (stage 2) and so forth and so forth.
The fourth affiliate and onward nonetheless preserve this “first three” construction.
That’s the fourth affiliate’s first three recruited associates, the primary three they recruit and so forth.
Sounds complicated? That’s as a result of it’s.
Matching Coded Bonus
Rank 2 Eaconomy associates earn a 20% match on Group Coded Bonuses earned by their first three recruited associates.
Rank 3 Eaconomy associates earn the identical 20% and likewise a ten% match on Group Coded Bonuses paid out to their first 9 second stage recruited associates.
Be aware that the second stage refers to associates recruited by your personally recruited associates.
Rank 4 Eaconomy associates earn the identical 20% and 10% match, and likewise a 5% match on Group Coded Bonuses earned by ranges 1 and a couple of of your fourth personally recruited affiliate and onward.
That’s associates recruited by your fourth recruited affiliate and associates these associates recruit.
Once more, if that sounds confusingly sophisticated it’s as a result of it’s.
Assured Revenue
Eaconomy pays assured weekly revenue based mostly on rank.
- Rank 1 associates obtain $37.50 per week
- Rank 2 associates obtain $150 per week
- Rank 3 associates obtain $375 per week
- Rank 4 associates obtain $750 per week
- Rank 5 associates obtain $1250 per week
- Rank 6 associates obtain $2500 per week
- Rank 7 associates obtain $6250 per week
- Rank 8 associates obtain $12,500 per week
- Rank 9 associates obtain $25,000 per week
- Rank 10 associates obtain $62,500 per week
- Rank 11 associates obtain $125,000 per week
- Rank 12 associates obtain $250,000 per week
Becoming a member of Eaconomy
Eaconony affiliate membership is $79 after which $29 a month.
Conclusion
The entire advertising and marketing pitch behind SilverStar Stay was that David “Fast Silver” Mayer was a profitable dealer.
Hassan and Candace Mahmoud have been relative nobodies, who previous to SilverStar Stay have been promoting Enagic water filters.
So who or what’s behind Eaconomy’s buying and selling bots?
The corporate fails to reveal who created the bots, their historical past or any verifiable buying and selling historical past of the bot itself.
Versus legally required funding disclosures concerning their bot, as a substitute potential Eaconomy subscribers are being instructed they’ll make 22.3% per week.
Contemplating Eaconomy is predicated out of the US and so is Mahmoud, this places each him and firm in violation of US securities legislation.
Which makes Sal Leto’s compliance interview with Elizabeth Morgan (cited as an “legal professional at legislation”), all of the extra ridiculous.
From day one we’ve had an enormous emphasis on compliance and ensuring that legally we’re structured in a approach that may preserve us secure and guarded long-term.
At one level throughout the alternate, which doesn’t addresses securities fraud, Morgan claims
We are literally working immediately with the CFTC and different regulatory our bodies to verify what we do that accurately.
Sorry, what? US regulators don’t “work with” corporations on their compliance.
The truth is they’re notably cagey about corporations (MLM or in any other case) inferring any type of working relationship, because it inevitably implies regulatory approval.
And let’s face it, that’s mainly the underlying tone of Leto’s ‘HAY GUYS, WE SPOKE TO A LAWYER!’ video.
Make no mistake, stated video isn’t an alternative to registering with the SEC and/or CFTC, and offering traders full disclosure concerning Eaconomy’s auto buying and selling bots.
This would come with submitted audited accounting verifying any buying and selling outcomes attributed to the bots.
Let’s shift gears although and take a step again from legalities and regulators.
Think about you wakened sooner or later, strolling into your kitchen and there’s a buying and selling bot sitting in your desk.
Hooked up is a observe telling you that in case you plug the bot right into a dealer account, you’re going to make a ton of cash.
What’s your first intuition?
To plug it in, see if it really works after which quietly make a fortune?
Or whore the bot out over the web for $247 a pop?
That is the issue with each single auto buying and selling bot MLM alternative.
If the bot(s) is/are so nice, why don’t the corporate house owners use them to change into the following Jeff Bezos?
Therein lies the fallacy of the MLM buying and selling bot rip-off. And for proof we want look no additional than Silverstar Stay.
No person in that firm had any thought what their Hamilton bot was doing. They simply bought it off somebody or bought some builders to cobble some source-code collectively.
Like Eaconomy, potential associates have been proven 30% A WEEK OMFG!%!” advertising and marketing slides. And every part labored nice… till it didn’t.
From reminiscence Silverstar Stay subscribers initially struggled to recoup month-to-month charges, which then devolved into blowout losses.
Right here at BehindMLM, Hamilton bot subscribers started reporting losses in early March.
These continued by till the scheme collapsed.
And keep in mind, Hassan Mahmoud was a co-owner of Silverstar Stay.
For on a regular basis I’ve spent on the buying and selling facet of Eaconomy although, in reality it’s all simply smoke and mirrors.
Hopefully that’s one thing these gullible to take a position with SilverStar Stay’s bot discovered.
If you happen to’ve gone over the compensation plan part of this assessment, you’re prone to have been left confused.
Whereas Hassan Mahmoud may know stuff all in regards to the technicalities of buying and selling bots, he evidently can put collectively a massively sophisticated compensation plan.
Go up this, skip this, receives a commission on this and that group… there’s far easier methods to place collectively an MLM compensation plan.
So why this explicit one?
On the core of Eaconomy’s compensation plan are the coded pass-ups.
Regardless of how garbage these could be for normal associates or incomprehensible to elucidate, firm house owners and admins love these plans as a result of… guess who sits on the prime of the company-wide pass-up chains?
Yep. Via a number of preloaded positions, and positions created for executives, and positions created for the Michael Fausts and the remainder of the insiders… a lot of the cash paid in charges is handed up – straight into the financial institution accounts of stated insiders.
It doesn’t matter if the bot causes widespread losses, the subscription charges are the place Mahmoud and his companions will make all their cash.
I imply clearly the bot isn’t as a lot of a cash spinner as they’re making it out to be, in any other case, as beforehand identified, they’d be quietly utilizing it to create riches.
One remaining factor I wish to contact on are the rank-based assured payouts.
This can be a complete compliance pink flag in any MLM firm.
Positive, Eaconomy require associates to take care of a 55% retail ratio in some recruitment legs to qualify (along with rank qualification), however from a regulatory perspective the circulate of cash is similar.
You join as an Eaconomy affiliate, pay charges and acquire a assured weekly quantity based mostly on charges paid by those that be part of after you (retail clients or associates).
Retail clients make it not fairly a complete Ponzi scheme, however as much as 45% of that weekly payout might be sourced from charges paid in by subsequent associates.
That drags us into pay to play pyramid scheme territory, except Eaconomy can show nearly all of associates are utilizing the bot and turning a revenue.
Which brings us again to SEC/CFTC registration and offering potential subscribers and public with legally required disclosures.
Advertising screenshots with no context (and even with context) will not be a substitute.
And might I simply say that nothing kills retail gross sales sooner than requiring associates to move up retail commissions.
No person goes to enroll and generate three retail gross sales, solely to look at the commissions circulate upline.
With zero info disclosed about Eaconomy’s Traide bots, it’s simple to think about they have been sourced from the identical supplier of Silverstar Stay’s Hamilton bot.
Mahmoud was in spite of everything a co-owner and undoubtedly had the entry.
On the finish of the day although I suppose it doesn’t actually matter to the common affiliate or retail subscriber.
You’ll be able to go and lookup the mess that Silverstar Stay left behind. Eaconomy present no proof to counsel it’ll prove any completely different.
Replace fifth November 2019 – On November 4th Hassan Mahmoud and Candace Ross-Mahmoud settled Silverstar Stay CFTC fraud violations for $75,000 plus post-judgment curiosity.
Replace tenth March 2020 – As of some days in the past Eaconomy has formally collapsed.
Replace seventeenth August 2020 – As of someday within the final 24 hours, the cited video interview between Sal Leto and Elizabeth Morgan has been pulled from YouTube.