This is a revenue share company supposedly paying ROI’s based on an innovative recycling operation that turns waste into granules.
I was impressed with their site and was hoping I’d found a genuine opportunity, but after doing some digging I’m not convinced it’s the real deal.
About The Company
There is zero information on the company website about the CEO or anyone running this operation, and their domain registration is set to private. They claim to have been:
…collaborating for a long time with leading international companies engaged in the production and recycling of plastics.
They provide no information on any of these companies or what ‘collaboration’ took place. According to official registration documents this company was registered in 2014:
I did some digging and found a blog post of theirs about one of their events, along with a Facebook post that clearly shows the Founder and CEO as being Dmitri Paladi:
Paladi has no Facebook, LinkedIn, Google + or any other profile I can find and there is zero information about him anywhere online.
The HQ Is a Virtual Office
According to the company website their headquarters is in Warsaw at the following address: Al.Solidarnosci 115, office 2 , zip: 00140, Warsaw, Poland
This is a virtual office address that made available by VLS-System for as little as US$11.59 +VAT per month at the time of writing this. These can be used as the address used in the registration of a limited liability company such as theirs, set up over the internet and require very little ID and documentation.
4 Other Locations They Use
Representative Office- Competence Center Koblenz, Ferdinand-Nebel-Str. 7, 56070 Koblenz
Brazil Office- St Nossa Senhora do Carmo 75, Castro, Parana, Brazil
Morocco Office-P21 Avenue Mohammed V, Marrakech, Morocco
Sales Support- Poligonowa 28, 18-400 Lomza, Polska
I couldn’t find much to verify these, but the legitimacy of those offices is not of much consequence since office space can be rented or purchased by anyone. The factories are a lot harder to fake, they claim to have 2 of these operating in Poland and Latvia however, do NOT provide an address to prove this. After doing some digging I was only able to find their alleged Poland address which is a hotel:
Update: According to the company, this was a mistake made by Google.
Despite providing the locations of their virtual and physical offices, of more importance is how there is no mention of the location of their factories. According to a statement made by the company in September of 2015, they do not have time to answer questions about their factory locations from potential investors:
No legitimate company would need to surround their operation with such secrecy and deception. What possible reason is there for all of this if they really are legitimate?
What Is Recyclix & How Does It Work?
The way the company goes about explaining how this system works is pretty frustrating to say the least. After going through things carefully, here’s what I learned…
The company is currently giving members a €20 sign-up bonus to be used for investing into the system. This will generate you €2.21 profit after 3 months according to the income calculator. These 3 cycles must be complete in order for you to withdraw. When the bonus offer ends, new members will need to deposit a minimum of €20 to get started.
Earning Through The Revenue Share Platform
The easiest way to understand this is to think of it as a 3 stage ‘cycle’ that takes exactly 35 days to complete:
Each stage/ product is valued at a set amount per kg:
- Waste is valued at €0.20
- Re-Grind is valued at €0.40 (takes 28 days to complete this stage)
- Granules are valued at €0.60 (takes 35 days total to complete this stage)
When you buy waste and see it through to granule stage after 35 days, this is known as completing a full cycle.
The only way to make money with this is to continue re-investing, or ‘re-cycling’ as they like to say. You cannot profitably hit the ‘sell’ button on the ‘granules’ stage until after 3 full cycles (105 days) if you want to become profitable, regardless of the amount of waste purchased.
Example of Purchasing €100 of Waste
- I purchase €100 of waste on June 1st 2016 which gives me 500kg of waste. Admittedly, I’ve always wanted to buy half a ton of crap so I’m pretty chuffed at this stage
- On June 29th this has now become ‘re-grind’ and is worth €200 since re-grind is worth €0.40 per kg and you have 500kg of it. If I sell it now I’ll get 25% of this €200, or exactly €50. Clearly then, I’ll lose money if I sell now since I started out with €100
- So I must hit the ‘re-cycle’ button shown above and wait another 2 weeks for it to turn into granules, which brings us to the 5th of July 2016. I now have granules and have turned my initial €100 of crap into €300 of pure granule goodness! I don’t get to withdraw this yet though, at least not if I want to make any money
- If I cash out at this point I’ll only make 25% of €300, which comes to €75
- If I hit ‘restart’ and do not sell my granules I’ll have made a 14% profit on a €100 investment. I’ll be able to start buying waste again with this money with a brand new cycle with €114
In other words, you only really make a profit in the first 105 days if you re-invest everything. Once I complete 3 full cycles, 105 days after June 1st 2016 I’ve made €3 profit.
On a brighter note, if you ‘compound’ your earnings during this 105 day period by purchasing more waste with any profits made, you will make a little more. You’ll make €11.16 profit to be precise.
Using this exact same process starting out with €1000, you’ll end up with €30 in total profit after 105 days. Clearly, the only way to make money is to invest higher amounts over longer periods of time.
I love the companies example though:
This is a shining example of deliberately misleading people with a half truth.
Firstly, you will not make any withdrawal of profits at all in ‘just several weeks’. The only way you’ll make the the €142 total revenue after 3 cycles is to follow the strategy I just explained and re-invest into the next cycle. So you can’t even cash out €42 in profit after several months- let alone weeks!
But there is another way to maximise your profits…
The Equipment Shares
Once you’ve purchased a full 5000kg (€1000) you are then eligible to purchase ‘equipment stock’ to increase your profit share and waste quota to increasing amounts as follows…
Forklift: €1 per share increases the amount of waste you can buy (recycling quota) to another 25kg per share. This is capped at 200 shares, meaning an extra 5000kg of waste purchasing becomes available for €200.
Sorting: €10 per share increases your quota by 60kg per share, capped at 250 shares. So for €2500 you can now purchase an additional 15000kg of waste. Buying 250 shares will increase your profit from 14% to 16.5% when completing cycles.
Shredder: €25 per share increases your quota by 100kg per share, capped at 250 shares total. For €6,250 you can purchase an additional 25,000kg of waste and increase you profit share to 21.5% when completing cycles.
Washing: €50 per share increases your quota by 140kg per share, capped at 250 shares. For €12,500 you can purchase an additional 35,000kg of waste and increase your profit share to 31.5% when completing cycles.
Granulator: €100 per share increases you quota by 100kg and is capped at 500 shares. For €50,000 you can now purchase another 50,000kg of waste and increase your profit share to 51.5%, only the company caps this share to 50% total.
Total Costs & Rewards
The real way to look at this is to forget all about the terminology and the idea of a legitimate recycling factory operation. In my opinion, that is just a marketing strategy.
What really happens with this is you start out with your first lot of 5000kg of purchasable waste, then buy 200 ‘forklift shares’ to unlock the next lot of 5000kg waste purchasing ability. You continue doing this all the way through to the ‘granulator’ status to earn the maximum amount of money possible.
The end result is the purchasing of 135,000kg of waste for a total of €27,000 and €71,450 worth of purchasing to unlock quotas and increased profit share percentages. Once you get right to the top status and purchase all the equipment shares you can make €13,500 profit on 135,000kg of waste every 5 week ‘1 cycle’ period. This is 150% ROI every 5 weeks. You can see this by using the blue ‘selling plan’ option on the calculator.
Note: Once your revenue share hits 33% or more, it is now profitable for you to start selling the granules after a full 5 week cycle instead of re-investing your money. In other words, after almost €10k in equipment share purchasing, it starts becoming worth your while to hit the ‘sell’ button instead of the ‘restart’ button.
This operates on a level unilevel downline system where you can have unlimited people on each level, 4 levels deep. You recruit people, who recruit people and so on. Each level pays you a different commission based on their deposits:
- Level 1: 10%
- Level 2: 3%
- Level 3: 2%
- Level 4: 1%
You get a bunch of banners and a way to track clicks on your affiliate links. Nothing special there.
What I Liked
- I like the idea of a legitimate company helping the environment and creating sustainable revenue share program. That really does not appear to be the case here though
- The website is pretty cool
- I’ve got to hand it to these guys, this is a grade A performance. I honestly don’t know whether to laugh or cry
What I Didn’t Like
- In my opinion, this is a HYIP/ Ponzi scheme and I will explain why I say this below
- Confusing explanation of the system and how it operates will likely leave a lot of people skipping over the finer details. This is exactly what this kind of scheme plays on
- Huge amount of secrecy/ deception surrounding the CEO, management and factory locations
- Misleading marketing material suggesting people will make more than they really will in a given time frame
- These kinds of schemes will inevitably collapse in the coming months/ years as recruiting slows
Why This Is a Deceptive Scheme
The company assures people that they are a real company and admittedly put out a fairly believable front. In fact I have not seen many companies go to the kind of lengths they do to establish credibility. Allow me to present the red flags that expose this scheme for what it is below.
Zero Proof of Their Factories
Neither their marketing material, their biased affiliates, nor their baseless YouTube videos prove the companies legitimacy.
In fact the only proof that I have found ANYWHERE shows the opposite, this is a giant load of BS. Elaborate, yes, but when con artists stand to make millions of dollars out of a scheme like this it is well worth organising a few tours with a couple of local factories and planning things out to a level that will fool the majority for the longest period of time possible.
But Tim, they’ve been part of some trade shows and have offices and all that stuff!
None of this is proof and is simply an opportunity to legitimise an otherwise unbelievable scam. If they didn’t go to these lengths, no one would believe them. Think about it carefully. Buying a stand at a trade show means zero, renting an office means zero, walking people around a random factory means zero. Even if by some miracle they did have a recycling operation, it would clearly be a front for a ponzi to support such high ROI’s.
Unusually High Returns
They provide unusually high passive ROI’s as you progress through the system to the tune of 150% ROI in a 5 week period. That’s not just high, it is downright laughable. For this to be even remotely possible, they’d have to be operating an insanely profitable business.
Let’s take a look at the real state of the recycling industry. According to an article written by the Wall Street Journal the CEO of Waste Management INC had this to say:
Recycling is in a crisis, and isn’t profitable for us, and we have to react to that by shutting down plants.
The article goes on to report:
Market values of used plastics have fallen sharply, a decline some in the industry have attributed to lower crude oil prices, which have pushed down the cost of producing new plastic and left manufacturers less keen to work with recycled material.
Another article published by LetsRecycle.com points out:
We are all aware that the UK’s recycling industry is going through a challenging time.
Needless to say, paying investors this kind of return is not only contradictory to the state of the industry, but outrageously unsustainable.
How People Get Paid
The hallmark of a ponzi scheme is paying existing members with new member investment. In this case they actually admit this in the fine print on their website:
This is stating that they will use the ‘pool’ of member payments to pay out existing affiliates, the same pool that is added to regularly by new member investment.
Additionally, deposits are limited to €250 by credit card and not accepted at all via PayPal which throws up yet another red flag.
In my opinion, this is a well planned HYIP/ ponzi scheme with a fairly clever marketing strategy behind it. They give people the impression of a legitimate company and use a vocabulary and internal system to attempt to support their story. One of the biggest misconceptions is that it “must be legit since people are getting paid”… that is not a sign of legitimacy at all. People have, and always will make money in these kinds of schemes but a LOT more lose out when they eventually collapse.
Make no mistake, all ponzi’s eventually collapse. Why? Because this is not a sustainable business model. Once recruiting slows, the revenue being used to pay out ROI’s comes to a grinding halt and the company pulls the pin. Hence the reason for the virtual headquarters and the lack of information about the people behind this.
I do not recommend this as a legitimate online business or investment strategy.
Update | 31st August 2016
I am getting a lot of comments from affiliates trying to prove to me that the factories are real. Yes, the recycling factories themselves are obviously ‘real’ for crying out loud. My point about this aspect was how the company does not disclose the locations of these to potential and existing investors. They have instead provided ‘proof’ by conducting scheduled tours of these factories with selected members. In my opinion, the so called ‘proof’ they provided is thin at best and makes me wonder why they are being so secretive.
Are the factories being shown in the videos legitimately owned by Recyclix and do they genuinely conduct recycling activities on a daily basis? Maybe they do, maybe they don’t. I am not claiming to have proof either way and it is important to understand that this is NOT the most important concern I have raised in this review. This is the last I am going to be saying on this particular matter and if I get any further comments regarding this particular aspect I will simply direct you to this section.
The Main Reason I Don’t Recommend Recyclix
Regardless of whether there is or isn’t recycling going on, I genuinely believe they are operating as a Ponzi/ HYIP scheme and this is the most important point to understand. Why I believe this is a ponzi and why don’t I recommend them:
- They pay existing investors with new member investment by ‘pooling’ funds which is not a legitimate way to handle investor funds and is exactly how Ponzi schemes operate
- They offer unusually high returns of up to 150% per 5 week period, or 4.29% daily returns which therefor constitutes them as a HYIP (High Yield Investment Program)
- The returns are way too consistent and do not reflect genuine market conditions
- They are not a registered or licensed investment firm yet solicite investements from all over the globe
- The underlying details of their operation are either vague or not provided to potential or existing investors. Things such as business partners, factory locations, general operations and financial data among other things
I recommend doing further reading on this matter to better understand the issues I have stated:
I also recommend reading the BitcoinTalk.org Forum to keep updated on current developments as these guys seem to be keeping a very close eye on developments and some of the things going on with the company.
Do The Numbers Really Add Up?
According to Recyclix, they process 1 ton of waste every hour which means they are processing 720 tonnes of waste every month currently. Cool.
They also state that they are limited to processing 3,000 tons of ‘film waste’ every month.
At the most basic level, anyone can start off buying up to 5 tons (5,000kg) of waste for €1000. Once you unlock the highest quota, you are then able to purchase (135,000kg) 135 tonnes of this waste and have it processed within a 5 week cycle. Furthermore, an unlimited number of investors can continue purchasing up to 135 tons of waste every 5 weeks depending on how high their quota is.
Think about this for a moment… how on earth can the company possibly process such high volumes for an unlimited number of people given their stated capacity? These guys get a lot of traffic to their website and likely have many investors buying ‘waste’ on a continual basis. Would buying ‘equipment shares’ automatically ramp up the companies capacities? Give me a break. These numbers simply don’t add up.
Update | 7th November 2016
I just received a comment from an angry affiliate who was annoyed that I was reporting the facts and my opinion about Recyclix. I’ve responded to that nonsense, however, this spurred me on to see how things have been developing with this company and dig a little deeper.
I can safely say things have gone from bad to worse since publishing this review.
The first thing I wanted to comment on was something I had overlooked to an extent. A while ago I got a comment from a a reader who alerted me to the fact that Recyclix was under investigation by CONSOB, an Italian investment regulator. This is what they do as taken straight from the CONSOB website:
It conducts investigations with respect to potential infringements of insider dealing and market manipulation law
While I was aware of the investigation, this point they made in their report is absolutely key:
DEEMED in this regard, that the comments made by the company through their lawyers are not capable of rebutting the above felt about the financial investment proposed by “Recyclix” company through the site www.recyclix.com ; Noting, in fact, that such statements are not substantiated by any documentary source – given that the company, despite the requests of Consob, declined to provide the contracts used in relationships with customers – and also they appear inconsistent with that published in the site www.recyclix.com ;
The investigation to this point reveals that despite Recyclix claiming to be operating as a genuine recycling company, they have refused to provide information to CONSOB that verifies this and appear (just as I have said) to be operating as an investment operation as oppose to a genuine recycling company. I recommend reading the above article, although you may need to run it through Google Translate.
Ask yourself, why would they refuse to provide evidence of their operation to CONSOB and why have they been unable to rebut the assertion that they are operating as a financial investment company?
McDonald’s and Plamika
This one is irrefutable proof that Recyclix are trying to cover up the truth.
At one point, the company claimed they had a deal with McDonalds and when nothing happened, people naturally started asking questions. Later, Recyclix said they didn’t have a deal with McDonalds at all, but it was their business partner Plamika that had this deal. They clarified this in one of their ‘news’ posts on their website (https://recyclix.com/news/zagan-open-days):
Moving on, we would like to issue a clarification as some members have been interested in our collaboration With McDonald’s United States and some confusion has arisen from an inaccurate translation of the original documentation. Plamika UAB, Lithuania, which has been awarded the contract to process all of the waste materials. We on the other hand have collaborated with Plamika UAB, Lithuania to handle the plastic wastes as a subcontractor.
However, Plamika have since completely denied ANY dealings with Recyclix. As in, they never had any deal, that was a total lie. They were so pissed about these lies they posted an official statement on the front page of their website!
Furthermore, it appears as though Recyclix have been deleting any comments or questions regarding this on their Facebook page (https://www.facebook.com/cyclix/posts/722589791224914) AND they deleted the above statement about their partnership from their website ‘news’ page!
How do I know it was even there? For starters, there are several affiliate websites that have re-posted the statement, there is proof on BitcoinTalk.org and my favourite, Google search results. They may have deleted it from their site, but Google hasn’t updated it’s search results yet!
Oops! Guess the geniuses behind Recyclix didn’t think about that one huh? The above data showing up in the search results is undeniable PROOF that Recyclix have removed this from their website and are trying to cover it up.
I don’t know how much more evidence needs to be submitted for some of the die hard affiliates to get the point. Anyway, I guess they don’t care about people. They only care about referring people into this scheme so they can make money off their inevitable loss.
Hope you enjoyed the article! My name is Tim and I’m the creator of Affiliate UNguru. I started this site out of a passion to help others avoid scams and to share how I’ve been able to create a successful business online. You can see how I did it in this free training.