Xegal operates an affiliate marketing scheme requiring participants to purchase $30 matrix positions and pay a $15 weekly fee, with no retail products offered. The company's website, "xegal.biz", registered on January 15, 2015, hides its ownership details behind private registration.
The Xegal website lists a UK address. Investigations, however, reveal this address belongs to Shoreditch Office Space, a virtual mailing address provider. Such services offer a company a virtual presence for approximately £15 a month, without requiring a physical operational base.
Alexa traffic data suggests 91.3% of Xegal's website visitors originate from India. This indicates the scheme likely operates from India, despite the listed UK virtual address.
Xegal does not sell any retailable products or services. Its business model relies solely on affiliates marketing membership to the company itself.
The core of Xegal's compensation plan involves affiliates buying $30 positions. They then recruit others who make similar purchases, filling a 2x7 matrix structure.
Each new $30 position places an affiliate at the top of their matrix. Two positions immediately sit below them, forming the first level. These branch into two more each, creating the second level, and so on for seven total levels.
Commissions are tied to positions filled within this matrix. An affiliate earns $7.50 for each position filled on level one. Levels two through six pay 50 cents per position. Level seven pays $3.50 per position filled.
A $15 weekly fee applies to each Xegal matrix position. This fee is deducted directly from earned commissions. If an affiliate earns less than $15 in a week, the fee is not charged.
Once a 2x7 matrix is fully populated, holding 525 positions, the weekly fee for that specific position increases to $30. This also comes from earned commissions.
Xegal also grants additional matrix positions based on weekly earnings. An affiliate earning $150 a week receives two new positions. The same applies for those earning $300 and $450 weekly, each yielding two new positions. The ongoing fees for these supplementary positions are also paid from commissions.
Referral commissions are paid on new positions purchased by downline affiliates, extending three levels deep. First-level referrals earn 5%, second-level earn 3%, and third-level earn 2% of the purchase price.
Direct recruitment commissions offer bonuses for building a downline. Bringing in 5 affiliates, with at least one personally recruited, earns $250. This bonus scales up to $175,000 for 15,625 affiliates in a downline, provided at least 10 are personally recruited.
Joining Xegal requires buying at least one matrix position, making the minimum affiliate membership cost $30. This initial fee does not include the ongoing $15 to $30 weekly charge per position, which is paid from commissions.
The Xegal model functions as a pure money game. Participants buy positions and earn by recruiting others to do the same, without any external product sales.
The weekly $15 fee effectively traps funds within the system. Xegal states this fee is paid from commissions. But this money, rather than being fully disbursed to the earning affiliate, is recycled to pay other participants. The company refers to this recycling as creating "angel positions," but it simply moves funds internally.
This scheme faces an inevitable collapse as new position purchases slow down. A lack of new money entering the system means matrices stall, and commissions stop.
Potential participants should note the company's testimonials, which appear to be stock footage. One video features an individual mispronouncing the company's name, further raising questions about authenticity.