Recyclix Review: Genuine Opportunity or Well Planned Scam?
May 12, 2016 by Tim 8 Comments
Quick Overview
Company Name: Recyclix Sp.z o.o
Summary: A revenue sharing company supposedly paying ROI’s based on an innovative recycling operation turning waste into ‘granules’. When I first saw this company I wondered if this could finally be a legitimate and sustainable revenue sharing program. Unfortunately, the facts paint a very different picture as I show in this review.
Costs: Free – €98,450 +
Score: 1/10
About The Company
There is zero information on the company website about the CEO or anyone running this operation, and their domain registration is set to private.
They claim to have been:
“collaborating for a long time with leading international companies engaged in the production and recycling of plastics.”
They provide no information on any of these companies or what ‘collaboration’ took place. According to official registration documents this company was registered in 2014:
Official Company registration details
Source:
http://krs-pobierz.pl/recyclix-i5527226I did some digging and found a blog post of theirs about one of their events, along with a Facebook post that clearly shows the Founder and CEO as being Dmitri Paladi:
CEO and management names
Paladi has no Facebook, LinkedIn, Google + or any other profile I can find and there is zero information about him anywhere online.
According to the company website they are “headquartered” in Warsaw at the following address:
Al.Solidarnosci 115, office 2 , zip: 00140, Warsaw, Poland
Fun Fact: This is a virtual office address that made available by VLS-System for as little as US$11.59 +VAT per month at the time of writing this. These can be used as the address used in the registration of a limited liability company such as theirs, set up over the internet and require very little ID and documentation.
Source:
www.wikiprocedure.com/index.php/Poland_-_Starting_a_Business was purchased through
http://www.biurowirtualnewarszawa.pl/english/comparison-of-services.htmlThey have 3 other office locations:
Representative Office- Competence Center Koblenz, Ferdinand-Nebel-Str. 7, 56070 Koblenz
Brazil Office- St Nossa Senhora do Carmo 75, Castro, Parana, Brazil
Morocco Office- P21 Avenue Mohammed V, Marrakech, Morocco
I couldn’t find much to verify these, but the legitimacy of those offices is not of much consequence since office space can be rented or purchased by anyone. The factories are a lot harder to fake, they claim to have 2 of these operating in Poland and Latvia however, do NOT provide an address to prove this.
Company claims on factory locations
After doing some digging I was only able to find their alleged Poland address which is a hotel:Poland Factory Location
According to a statement made by the company in September of 2015, they do not have time to answer questions about their factory locations from potential investors:
Company statement
No legitimate company would need to surround their operation with such secrecy and deception. What possible reason is there for all of this if they really were legit?
What Is Recyclix & How Does It Work?
The way the company goes about explaining how this system works is pretty frustrating to say the least. After going through things carefully, here’s what I learned…
Getting Started
The company is currently giving members a €20 sign-up bonus to be used for investing into the system. This will generate you €2.21 profit after 3 months according to the income calculator. These 3 cycles must be complete in order for you to withdraw.
When the bonus offer ends, new members will need to deposit a minimum of €20 to get started.
Earning Through The Revenue Share Platform
The easiest way to understand this is to think of it as a 3 stage ‘cycle’ that takes exactly 35 days to complete:
Each stage/ product is valued at a set amount per kg:
Waste is valued at €0.20
Re-Grind is valued at €0.40 (takes 28 days to complete this stage)
Granules are valued at €0.60 (takes 35 days total to complete this stage)
Three stage process
When you buy waste and see it through to granule stage after 35 days, this is known as completing a full cycle.
The only way to make money with this is to continue re-investing, or ‘re-cycling’ as they like to say. You cannot profitably hit the ‘sell’ button on the ‘granules’ stage until after 3 full cycles (105 days) if you want to become profitable, regardless of the amount of waste purchased.
Example of Purchasing €100 of Waste
I purchase €100 of waste on June 1st 2016 which gives me 500kg of waste. Admittedly, I’ve always wanted to buy half a ton of crap so I’m pretty chuffed at this stage.
On June 29th this has now become ‘re-grind’ and is worth €200 since re-grind is worth €0.40 per kg and you have 500kg of it. If I sell it now I’ll get 25% of this €200, or exactly €50. Clearly then, I’ll lose money if I sell now since I started out with €100.
So I must hit the ‘re-cycle’ button shown above and wait another 2 weeks for it to turn into granules, which brings us to the 5th of July 2016. I now have granules and have turned my initial €100 of crap into €300 of pure granule goodness! I don’t get to withdraw this yet though, at least not if I want to make any money.
If I cash out at this point I’ll only make 25% of €300, which comes to €75.
If I hit ‘restart’ and do not sell my granules I’ll have made a 14% profit on a €100 investment. I’ll be able to start buying waste again with this money with a brand new cycle with €114.
In other words, you only really make a profit in the first 105 days if you re-invest everything.
Once I complete 3 full cycles, 105 days after June 1st 2016 I’ve made €3 profit. I am not kidding lol.
€100 example earnings chart
On a brighter note, if you ‘compound’ your earnings during this 105 day period by purchasing more waste with any profits made, you will make a little more. You’ll make €11.16 profit to be precise.
Using this exact same process starting out with €1000, you’ll end up with €30 in total profit after 105 days. Clearly, the only way to make money is to invest higher amounts over longer periods of time.
I love the companies example though:
Marketing material earnings example
Shining example of deliberately misleading people with a half truth.
Firstly, you will not make any withdrawal profits at all in ‘just several weeks’. The only way you’ll make the the €142 total revenue after 3 cycles is to follow the strategy I just explained and re-invest into the next cycle. So you can’t even cash out €42 in profit after several months- let alone weeks!
But there is another way to maximise your profits…
The Equipment Shares
Once you’ve purchased a full 5000kg (€1000) you are then eligible to purchase ‘equipment stock’ to increase your profit share and waste quota to increasing amounts as follows…
Forklift: €1 per share increases the amount of waste you can buy (recycling quota) to another 25kg per share. This is capped at 200 shares, meaning an extra 5000kg of waste purchasing becomes available for €200.
Sorting: €10 per share increases your quota by 60kg per share, capped at 250 shares. So for €2500 you can now purchase an additional 15000kg of waste. Buying 250 shares will increase your profit from 14% to 16.5% when completing cycles.
Shredder: €25 per share increases your quota by 100kg per share, capped at 250 shares total. For €6,250 you can purchase an additional 25,000kg of waste and increase you profit share to 21.5% when completing cycles.
Washing: €50 per share increases your quota by 140kg per share, capped at 250 shares. For €12,500 you can purchase an additional 35,000kg of waste and increase your profit share to 31.5% when completing cycles.
Granulator: €100 per share increases you quota by 100kg and is capped at 500 shares. For €50,000 you can now purchase another 50,000kg of waste and increase your profit share to 51.5%, only the company caps this share to 50% total.
Total Costs & Rewards
The real way to look at this is to forget all about the terminology and the idea of some recycling factory. In my opinion, that is just a marketing strategy.
What really happens with this is you start out with your first lot of 5000kg of purchasable waste, then buy 200 ‘forklift shares’ to unlock the next lot of 5000kg waste purchasing ability. You continue doing this all the way through to the ‘granulator’ status to earn the maximum amount of money possible.
The end result is the purchasing of 135,000kg of waste for a total of €27,000 and €71,450 worth of purchasing to unlock quotas and increased profit share percentages.
Once you get right to the top status and purchase all the equipment shares you can make €13,500 profit on 135,000kg of waste every 5 week cycle period. You can see this by using the blue ‘selling plan’ option on the calculator.
Note: Once your revenue share hits 33% or more, it is now profitable for you to start selling the granules after a full 5 week cycle instead of re-investing your money. In other words, after almost €10k in equipment share purchasing, it starts becoming worth your while to hit the ‘sell’ button instead of the ‘restart’ button.
Referral Commissions
This operates on a level unilevel downline system where you can have unlimited people on each level, 4 levels deep. You recruit people, who recruit people and so on.
Each level pays you a different commission based on their deposits:
Level 1: 10%
Level 2: 3%
Level 3: 2%
Level 4: 1%
You get a bunch of banners and a way to track clicks on your affiliate links. Nothing special there.
What I Liked
I like the idea of a legitimate company helping the environment and creating sustainable revenue share program. That really does not appear to be the case here though
The website is pretty cool
I’ve got to hand it to these guys, this is a grade A performance. I honestly don’t know whether to laugh or cry
What I Didn’t Like
In my opinion, this is a HYIP/ Ponzi scheme and I will explain why I say this below
Confusing explanation of the system and how it operates will likely leave a lot of people skipping over the finer details. This is exactly what this kind of scheme plays on
Huge amount of secrecy/ deception surrounding the CEO, management and factory locations
Misleading marketing material suggesting people will make more than they really will in a given time frame
These kinds of schemes will inevitably collapse in the coming months/ years as recruiting slows
Why This Is a Deceptive Scheme
The company assures people that they are a real company and admittedly put out a fairly believable front. In fact I have not seen many companies go to the kind of lengths they do to establish credibility.
Allow me to present the red flags that expose this scheme for what it is:
Zero Proof of Their Factories
Neither their marketing material, their biased affiliates, nor their baseless YouTube videos prove the companies legitimacy.
In fact the only proof that I have found ANYWHERE shows the opposite, this is a giant load of BS. Elaborate, yes, but when con artists stand to make millions of dollars out of a scheme like this it is well worth organising a few tours with a couple of local factories and planning things out to a level that will fool the majority for the longest period of time possible.
But Tim, they’ve been part of some trade shows and have offices and all that stuff!
None of this is proof and is simply an opportunity to legitimise an otherwise unbelievable scam. If they didn’t go to these lengths, no one would believe them. Think about it carefully. Buying a stand at a trade show means zero, renting an office means zero, walking people around a random factory means zero.
Even if by some miracle they did have a recycling operation, it would clearly be a front for a ponzi to support such high ROI’s.
Unusually High Returns
They provide unusually high passive ROI’s as you progress through the system to the tune of 150% ROI in a 5 week period. That’s not just high, it is downright laughable. For this to be even remotely possible, they’d have to be operating an insanely profitable business.
Let’s take a look at the real state of the recycling industry. According to an article written by the Wall Street Journal the CEO of Waste Management INC had this to say:
“Recycling is in a crisis, and isn’t profitable for us, and we have to react to that by shutting down plants.”
The article goes on to report:
Market values of used plastics have fallen sharply, a decline some in the industry have attributed to lower crude oil prices, which have pushed down the cost of producing new plastic and left manufacturers less keen to work with recycled material.
Another article published by LetsRecycle.com points out:
We are all aware that the UK’s recycling industry is going through a challenging time.
Needless to say, paying investors this kind of return is not only contradictory to the state of the industry, but outrageously unsustainable.
Payments
The hallmark of a ponzi scheme is paying existing members with new member investment. In this case they actually admit this in the fine print on their website:
Payment Policy
This is stating that they will use the ‘pool’ of member payments to pay out existing affiliates, the same pool that is added to regularly by new member investment.
Additionally, deposits are limited to €250 by credit card and not accepted at all via PayPal which throws up yet another red flag.
Final Thoughts
In my opinion, this is a well planned HYIP/ ponzi scheme with a fairly clever marketing strategy behind it. They give people the impression of a legitimate company and use a vocabulary and internal system to attempt to support their story.
One of the biggest misconceptions is that it “must be legit since people are getting paid”… that is not a sign of legitimacy at all. People have, and always will make money in these kinds of schemes but a LOT more lose out when they eventually collapse.
Make no mistake, all ponzi’s eventually collapse. Why? Because this is not a sustainable business model. Once recruiting slows, the revenue being used to pay out ROI’s comes to a grinding halt and the company pulls the pin. Hence the reason for the virtual headquarters and the lack of information about the people behind this.
tl;dr The whole 'Recyclix' company front is bullshit, ponzi.
