Virgil Coffee, founder and CEO of TVC Matrix, operates a multi-level marketing scheme that relies on new member recruitment for its revenue. The company, which lists its domain registration to TVC Marketing in Oklahoma as of February 14, 2005, offers no clear ownership details on its primary website.
The 'tvcmatrix.com' domain shows 'TVC Marketing' as the registrant, operating from Oklahoma. The associated 'tvcmarketing.com' domain redirects back to the TVC Matrix site, providing no additional information about company ownership or management. Coffee's name appears as a signatory on one TVC Matrix page, revealing his role as CEO. This information does not appear prominently on the company's main public face. TVC Matrix began in 2004 as a 3x8 matrix program, paying commissions on membership sales. The compensation structure later shifted to a unilevel plan.
TVC Matrix offers no retailable products or services of its own. Members instead sell memberships for third-party vendors. The primary vendor is Motor Club of America (MCA), also known as Auto Club of America. MCA provides roadside assistance through monthly memberships. Virgil Coffee also owns MCA. MCA memberships are advertised on the TVC Matrix website at $9.95 for Security Motor Club, $14.95 for Security Plus Motor Club, and $19.95 for Total Security Motor Club. Other vendors listed include the Small Business Club of America (SBCA) and TVC Pro-Driver. The exact nature of these entities and their relationship to TVC Marketing remains undisclosed.
The TVC Matrix compensation plan lacks clear explanation on the company website. Information suggests an upfront commission of approximately 200% for signing new members to MCA, SBCA, or TVC Pro-Driver. For instance, MCA memberships appear to require two months' payment upfront. Recruiting a new MCA Total Security Club member, who pays $39.90, could yield an upfront commission of $79.80 for the recruiter. Members also reportedly earn $6 for each individual recruited directly into their downline. An additional 66 cents is paid for each member across the entire downline. These figures are based on observations of the Total Security Club Membership, as the company does not provide full compensation plan details to non-members.
Joining TVC Matrix itself is free. However, participation in the compensation plan requires purchasing an MCA membership. This monthly membership costs between $9.95 and $19.95, depending on the chosen option. The absence of a clear business model and compensation plan on the TVC Matrix website raises immediate concerns.
The compensation plan, where commissions are entirely paid from membership fees, demonstrates a pyramid scheme structure. TVC Matrix has no retailable products or services, and no functional distinction exists between TVC Matrix members and MCA members. Without new member recruitment and ongoing membership fees, no income is generated. Some older matrix-related compensation material for SBCA memberships was found, though its current activity is unclear. This material also focused on recruiting new members to SBCA plans, with recruiters earning a cut of membership fees.