Complaint Review: Ixp.net - 2by2.net
- Ixp.net - 2by2.net
333 City Blvd. West Suite 2150, Orange CA
- Phone: 877-778-8883
- Category: Multi Level Marketing
IXP.net aka 2by2.net is a pyramid scheme in disguise, the bulk of income is from RECRUITING, deceptive recruiting practices. Rip-off! Orange California
IXP.net used to be known as 2by.net, but they changed their name because of:
1)a bad undercover expose piece that aired on FOX 11 in Los Angeles
2)bad word of mouth
3)a HUGE Federal Trade Commission lawsuit against 2by2.net which resulted in an 11 million decision against them.
They are now trying to spread under the name IXP.net, yet still make the same claims and exagerrations as when they were 2by2.net.
On paper, they look legit. However, in real life the only way you can make money is with recruiting, major recruiting. And even then, it is next to impossible to make a decent living.
They frequently change the rules for how you get paid, keep making promises that they will have DSL internet soon (since 2001 they have said it was about "6 months away").
Also they tell people that if they work really hard and become a top producer that they will be "gifted" IPO stock when the company goes public (also always just a few months away since 2001). This never materializes and is just the "carrot they keep dangling in fron of you.
Lastly, and most importantly, MOST LEADERS ARE BROKE! Many have taken personal loans from friends just to pay bills, yet are held up to reps in the company as examples of success.
The leaders make a LARGE CHUNK of their money by forcing people to go to "trainings" every week that cost 5-10 dollars, "leadership" on SUnday that costs 10 dollars, and "big events" which occur about every 3 months that cost 10 dollars.
This does not sound like a lot of money, but when you multiply $5 times about 300 people for training, that's an extra $1500.
Add in $10 times 500 to 1000 reps each sunday for training and you have an extra $5000 to $10,000 per week, or $20,000 to $40,000 per month.
Big events, multiply $10 times 3000-6000 people, and you have a nice $30,000 to $60,000 every 3 months.
And only the leaders get the spoils. The cost to put these on is minimal. Reps are pressured to buy large blocks of tickets for the "team." Most of us who were small "leaders" were pressured to buy at least $500 worth of big event tickets on pre-sale. Thus the big leaders know the event will sell out all tickets even if not all tickets actually have a body bringing them to the event.
For the "commissions" on internet sales, what they do not tell you is that in order to collect on the sales of your downline you must have very high sales through your own website, especially because the payout percentages are so small. If you do not meet the numbers, you do not collect. But when you are recruited, they do not tell you this.
Instead they pressure you to sign up and tell you that all you need to do is get 2 reps and 2 customers, and then they do the same and you will collect on everyone else!
They will try to say, "Why would companies like Disney and Dell partner with us if we were not legit?"
Well, the reason is this: they are not "partnered." Instead, the IXP mall merely has links to these and other companies sites, which then pays a commission to the refererrer.
In reality, any person can set up their own website, and get these banners on it and collect the referral fee without giving IXP a cut, but IXP says "we're the only ones doing this."
In conclusion, go to www.bbb.com and look up the company and you will see their negative report.
Then go to www.ixp.net and click on the link that the FTC required them to place which givers you the full terms of the lawsuit.
Long beach, California
This report was posted on Ripoff Report on 05/26/2004 10:52 AM and is a permanent record located here: http://www.ripoffreport.com/reports/ixpnet-2by2net/orange-california/ixpnet-aka-2by2net-is-a-pyramid-scheme-in-disguise-the-bulk-of-income-is-from-recruitin-93038. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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