Scott Chandler and Brent Robinson, two of AutoXTen's three founders, left the company barely a month after its launch. They sent emails to members, stating their intent to pursue "other projects." Their departure followed AutoXTen's rapid accumulation of $829,000 in immediate revenue from 82,898 members, each paying a $10 joining fee.
The timing of the exits raises questions. If just 10 percent of recruits successfully cycled through the program, bringing in new members, the founders would have pocketed nearly $1.7 million. A 50 percent cycle rate would have pushed gross revenue past $8 million. This money appeared sufficient for the founders to walk away clean from a company that had not even completed its first full month of operation.
Co-founder Jeff Long attempted to control the fallout. "The rumor that we are shutting down is just that—A RUMOR," he wrote to members. He claimed the company had resolved programming issues and continued paying commissions. "AutoXten is not going anywhere!" he insisted. Long attributed the exodus to typical industry gossip, suggesting members were merely cross-promoting other programs to their teams.
But two of three founders abandoning a company after 30 days is not a rumor. It indicates a clear pattern.
The business structure itself explains the situation. AutoXTen operated as a multilevel recruitment scheme. It presented itself as a legitimate opportunity. New members paid to join, then earned commissions by recruiting others below them. All funds came exclusively from new recruits, not from any actual product or service. The scheme's collapse would inevitably follow once the initial wave of sign-ups flattened.
Chandler and Robinson evidently saw this outcome. They joined early, cashed out during the explosive growth phase, and then vanished. Estimates suggest each founder cleared over a million dollars.
Now Long and Franco Gonzales, who Long reportedly brought in recently, face a deteriorating situation. The headline departure of two founders will alarm members. Rumors of a shutdown, whether accurate or not, trigger panic withdrawals and slow new recruitment. A pyramid scheme cannot sustain itself once people stop believing in continued growth.
Long's frantic assurances suggest he understands what is happening. He attempts to hold together a collapsing recruitment network while two partners have already taken their share. Whether he and Gonzales are simply trying to extract what remains from the scheme, or if they genuinely believe they can revive it, is unclear.
Thousands of members who bought into AutoXTen's promises now watch two of the three people who made those promises head for the exits. The message they send, intentionally or not, is clear: there is no long-term here.
