Randy Garrard launched the 5 Dollar Leveraging System earlier this month, a nine-tier matrix cycler requiring a $5 entry fee. This new venture follows Garrard's previous scheme, Residual Income In a Box (RIIAB), which funneled participants into various multi-level marketing operations.
Residual Income In a Box saw declining activity before Garrard introduced his latest project. Alexa ranking data showed RIIAB's traffic had significantly decreased, suggesting a loss of interest and participation. Garrard's operational pattern involves moving from one fading scheme to the next, often repurposing the underlying structure.
The 5 Dollar Leveraging System offers no tangible product or service. Its core offering is membership in the system itself, a common characteristic of pyramid schemes. Affiliates buy positions within the matrix, receiving "advertising credits" for the company website. These credits function as a superficial attempt to mask the lack of a genuine retail product or external revenue source.
The compensation plan uses various matrix structures across nine boards. These include 2x2, 3x2, and 4x1 matrices. A 2x2 matrix places the participant at the top, with two positions directly below them forming level one, and four positions on level two. A 3x2 matrix features three positions on level one and nine on level two. The 4x1 matrix has four positions on a single level, which is a narrower, quicker-filling structure designed for faster cycles.
New affiliate sign-ups fill positions within these matrices. When a matrix fills, it "cycles" the participant, triggering payouts and new re-entries into the system. The progression through the nine boards works as a ladder, with each cycle moving a participant higher.
Board 1, a 2x2 matrix, costs $5 to enter. Cycling from this board generates a new Board 1 position and advances the participant to Board 2.
Board 2, also a 2x2 matrix, cycles to spawn one new position each in Boards 1 and 2. It then advances the participant to Board 3.
Board 3, another 2x2 matrix, creates one new position in Boards 1, 2, and 3, sending the participant to Board 4.
Board 4, a 2x2 matrix, cycles to generate one position in each of Boards 1 through 4, moving the participant to Board 5.
Board 5, a 2x2 matrix, spawns one position in each of Boards 1 through 5, and advances to Board 6.
Board 6, a 2x2 matrix, is the first board to offer a cash payout, returning $250. It also spawns one position in each of Boards 1 through 6, and moves the participant to Board 7.
Board 7, a 3x2 matrix, generates six Board 1 positions plus one Board 7 position, advancing to Board 8.
Board 8, a 3x2 matrix, pays $500. It spawns one position each in Boards 1, 7, and 8, then moves the participant to Board 9.
Board 9, a 4x1 matrix, offers the largest individual payout of $2,600. It also generates ten Board 1 positions and one position each in Boards 7, 8, and 9.
Beyond matrix cycling, affiliates can earn referral bonuses. These bonuses activate when personally recruited individuals cycle out of specific boards. Boards 1 through 7 pay $5 per referral cycle. Board 8 pays $50, and Board 9 pays $100.
A participant must cycle through Board 6 to see any cash return on their $5 initial investment. This means filling many positions across multiple 2x2 matrices before receiving $250. To reach the theoretical maximum payout of $3,350 from the system, hundreds of $5 payments must flow in. This count does not include the complex effects of referral commissions, phantom re-entries, and the unpredictable nature of matrix fills. The actual number of new participants required to sustain these payouts is significantly higher.
The absence of retail sales means all payouts depend entirely on new money coming from new affiliates. This structure defines a pyramid scheme. It uses Ponzi-like mechanics, where earlier participants are paid with funds from later participants. Those who recruit heavily and early typically collect the majority of available funds, while later entrants often contribute more than they receive.
Such schemes consistently collapse when recruitment slows or stops. The system's "phantom positions" generated by re-entries create increasing payout obligations without bringing in fresh capital. This imbalance causes the system to drown in its own financial liabilities. When the 5 Dollar Leveraging System inevitably stalls, funds trapped within its nine tiers become inaccessible. Most participants, particularly those at lower levels or those who joined later, will lose their initial investment. This outcome is a mathematical certainty for matrix cycler schemes lacking external revenue.
Randy Garrard's operational history suggests a cycle of launching new matrix schemes as older ones decline, with the 5 Dollar Leveraging System appearing as a direct continuation of his previous model. The Federal Trade Commission (FTC) provides resources on identifying and avoiding pyramid schemes on its website, FTC.gov.