The admin of ExoticFX (exoticfx.net) whose name is Charles has already become famous among investors for being extremely active and sending out regular detailed newsletters. In the latest one he informs about the successes of his project which are even bigger than his team expected. They have analyzed the HYIP market and figured out that ExoticFX is really succeeding and the unexpected number of investors keeps joining the program. Charles seems to be very self-confident and his words reminded me of the admin of a recently closed KlickWallet. Considering that KlickWallet helped many investors make profit, this is probably a good sign.
It is explained how the referral program at ExoticFX.net works in the second part of the newsletter. There are some details that are different from other HYIPs and that all investors of this program should know about because otherwise the administration of ExotiFX will take measures which will make it impossible for trespassers to earn. The thing is that one member complained that he had received $98 referral commission instead of $100 (5% of $2,000 deposit). The admin explains why this happened:
In this case the referred member, the downline, deposited $2,000.00. Previously he had withdrawn $40.00 in profit. So, in reality, he had deposited $1960.00 in NEW DEPOSITS and $40.00 in PREVIOUSLY PARTICIPATED funds for a $2,000.00 total. Commissions were paid on the $1,960.00 worth of new deposits for a total commission of $98.00.
They explain that in most programs referral commissions are paid on all deposits. In such case, the Referral Sharks offer HYIP investors Referral Cash Back (RCB). Those people from their downline know that if they withdraw their profits and redeposit them, they will by far increase their referral commissions. So they actually earn commissions on commissions, or compound their referral fees. Other members manipulate the system by creating self-referred accounts.
We feel that this is the primary reason many admins, and members alike, are against referral programs. It can also create cash flow issues for any program that allows such action to take place. Manipulation of the system can be damaging to any program. With Exoticfx, our script monitors the actual NEW DEPOSITS made to the program and deducts previously commissioned funds as well as the profits earned by them from all subsequent deposits. The script also adjusts the referral fee to reflect honest commissions earned.
Well, the taken measures are definitely thought over and reasonable. What do you think?