Amazing Money Magnet, an online scheme offering investment plans, conceals its ownership. The company's website domain, amazingmoneymagnet.com, was registered on August 29, 2012, but its registration details remain private. This lack of transparency raises immediate questions about the operation's legitimacy.
The Amazing Money Magnet platform offers no actual products or services for retail sale. Instead, members join to make investments. Each investment plan includes a bundle of "advertising credits," which members can supposedly use to display ads on an in-house network.
Amazing Money Magnet presents five distinct investment phases. In Phase 1, an $11 investment promises a $2.55 return on investment (ROI) for the first six cycles, then $1.27 for the next six. Phase 2 requires $22, returning $5.10 for six cycles and $2.55 for the subsequent six. Phase 3, at $44, pays $10.20 for six cycles and $22 for the next six. Phase 4 involves an $88 investment, yielding $20.40 for six cycles and $44 for the next six. The final Phase 5 demands $132, offering $30.60 for six cycles and $15.30 for the remaining six. Each investment can cycle a maximum of 12 times before it expires.
Referral commissions are paid directly on investments made by personally recruited members. These commissions range from $1 for a Phase 1 recruit to $8 for a Phase 5 recruit. A mandatory rule forces members to reinvest 50% of all ROIs back into the scheme. Members face a withdrawal cap of $2500 every seven days.
Joining Amazing Money Magnet is free. However, members cannot earn any actual money without first investing in the scheme. All members pay a $10 fee when they make their initial investment. Free members can accumulate "virtual earnings" by recruiting new investors, but they must eventually invest themselves to withdraw any funds.
Amazing Money Magnet operates as a classic Ponzi scheme. It sells no retail products or services, relying solely on new member investments to pay returns to earlier participants. The company explicitly denies being an investment scheme, calling itself "a fully automated advertising site." It states, "We are NOT an investment company or a HYIP nor a get rich overnight site."
The company claims members "purchase advertising position packages." The concept of an "advertising position" remains undefined. Any suggestion of selling legitimate advertising dissolves when examining the refund policy: "All sales and payments at AMM are final. We do not offer any refunds!" If real advertising credits were sold, a refund would be due for unused credits. But this is not possible when new money funds old payouts.
Amazing Money Magnet does not specify the duration of a "cycle." Without external revenue, the speed of these cycles directly depends on the influx of new investment money. When new investments cease, the cycles stop, and Amazing Money Magnet collapses. As with all Ponzi schemes, those who invest last lose everything.