MLM Company Review: Troy Dooly Talks With Scott Chandler and Brent Robinson About AutoXTen

What happens when a Yankee (Brent Robinson) teams up with a Rebel (Scott Chandler)… You get an internet-based company called AutoXTen. Then add in an infamous online marketer (Jeff Long) and without a doubt you will drive short-term momentum through the roof. But… is short-term momentum enough?

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Since I did the short editorial in my weekly MLM news report, I have been praised by some, and chastised by others. This is not about who is right and who is wrong when it comes to AutoXTen, it is about case law, and facts.

After talking with Scott and Brent, which by the way was very enlightening, I have come to the conclusion these two truly have been on the short end of the stick when it comes to picking the right network marketing companies over the years.

Their goal now is to create a company run “by distributors, for distributors” called AutoXTen. Sadly, in creating what they have deemed as “The Most Powerful Global Opportunity Ever Created”, they have fallen short of their vision, and if they do not correct the red flags below, within the next week or so, they could end up doing to their distributors, the exact thing that has happened to them over and over… leave them without a home and shattered hopes and dreams.

Let me say right now, I will not cover the compensation plan in this article. If in the next week or so, a competent network marketing attorney or consultant is not hired to review and tweak the compensation plan, then I will do a follow-up article to cover this specific topic.

Current Red Flags

1. No Policies and Procedures or Terms and Conditions located anywhere on the public site or back office. This one red-flag alone causes the distributors issues period! As it stands right now, the distributors have NO leg to stand on if there is any type of issue.

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What I don’t understand is why guys, who have been hit with a string of company issues in the past where they feel the company has broken promises to distributors, would launch this way. But I also don;t understand how any distributor would join without some form of signed agreement.

2. No US based merchant account. The company is using AlertPay, which in and of itself does not raise red flags. But not having any form of merchant account based in the USA does raise concern of the business model and creditworthiness of the company.

3. The products marketed by AutoXTen are ONLY available to people who join at the $10 level. Since there is NO ability to market any product to a retail customer, the whole business AutoXTen business model falls under the FTC definition of a Pyramid. In other words this is a “pay to play” situation.

And since there are not retail sales, I would question the “Market Value” placed on the products. This is the same thing which got D.N.A and Narc That Car in trouble. The case law is very clear in this area!(See Below)

FTC Pyramid Schemes

4. “Completely Eliminates Failure, and Turn one-time $10.00 into $10,000” These phrases are used on the website and could cause a couple of issues. First it may be seen as an enticement or guarantee, second it is not a one-time $10.00. The business model is designed to force an upgrade at every level. Which means, the distributor is paying out of “earned commissions” (income) additional money to have a possibility to earn $10,000.00.

Before you get your panties in a wad, I do understand the distributor is ONLY paying out of pocket $10.00 cash. But, based on FTC case history, this is a red flag.

And, when you tell people you have “eliminated failure”, then expect to be held responsible for those words. Sadly, there is NO way to guarantee anyone from failure. If that were possible I can tell you it would have happened centuries ago, not by AutoXTen.

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5. Lack of complete Income Disclaimer and Compensation Plan document. The one line income disclaimer used in the videos and on the website is also a red flag. Due to the fact there is no document fully explaining in details the compensation plan, and the lack of a full income disclaimer, the company is outside of compliance.

Anytime a multi-level or network marketing compensation plan is used with 3 levels or more, then full disclosure must be available to the public for review before joining the company. In most cases the company will have a stand alone document, and also include it in the P&Ps.

In the case of AutoXTen these are completely missing. Yes, the videos are very informative, and come to think of it, the script would be a great place to start in creating the compensation document.

Well, there you have it. Until these and a few additional red flags are fixed both the company and the distributors are at risk.

I can say after talking with Scott and Brent, I do believe they want to make it work for the long haul. And if the distributors will do things right, and the company will correct the red flags, this company may just keep rocking it forward. Only time will tell for sure.

For anyone thinking about launching or using a direct sales channel to build their business, don;t do it on a shoe string budget! Hire a competent MLM consultant or network marketing attorney.

Living An Epic Adventure,

Troy

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13 thoughts on “MLM Company Review: Troy Dooly Talks With Scott Chandler and Brent Robinson About AutoXTen”

  1. Troy what do you know about this new company. FastProfitsDaily.com

    They are suppose to launch tonight at 9pm.

  2. These two scamers at it again,FAST PROFITS DAILY there new scam.

    Check out the report on them at Behindmlm.com

  3. The two guys you spoke with, Troy, have not only left the company, but have started another money game company. Their unannounced departure is tainted because they had to be already working on another business — all the while hosting cheer leader conference calls on AutoXTen. They rolled out this new company in conference calls within one day. No way that could have been possible without many weeks of advanced preparation. Which means they misled over 50,000 people in AutoXTen about their long term intentions with AutoXTen.

    And since when do owners just leave in 24 hours or less while leaving the business completely intact? Don't owners take some assets with them? In other words, I suspect they were being used as front men by whomever really does own the company. And the remaining key person, Jeff Long, is infamous, as you pointed out. What does that leave all those distributors? Something with a nasty after-taste and a hidden ownership with no headquarters location of record. Who specifically is the custodian of all those W-9's?

  4. Well, it seems that the founders, Scott Chandler and Brent Robinson have, in the words of the company, "made the decision to leave AutoXTen and move on to other projects and we wish them the absolute best." One has to wonder if this is the beginning of the complete unraveling of this thing.

    What is so sad is that these types of things give the entire industry a bad image.

  5. Troy,

    I would love to hear what you think about the new developments at AutoXTen.

    Scott and Brent have left!

  6. Troy, having consulted with 2 of the top MLM attorneys in the industry over the past 30 years on various consulting projects, one other point that needs to be stressed is that regulators like to 1)see a certain ratio of customers to distributors, hence the reason for the 6 customer rule for example in various telcom deals; 2) that a substantial portion of the company's revenue is coming from sales to non-business participants; and 3) that a significant portion of the income being earned is coming from legitimate retail sales to non-business participants. Otherwise you have what amounts to nothing more than a money game. I would venture to guess that all 3 of these areas are going to be problematic for these guys, at least in the early stages.

  7. I totally believe you, Troy, that they admitted they didn't have legal counsel, at least yet. This is contrary to what they said two weeks ago on a call.

    They certainly didn't admit to their reps that they were trying to do this on a shoestring budget. But they admitted that to you? Peculiar. Again, I believe you, but what a contrast in verbage. One owner claims to be a millionaire living in an 8,000 square foot home.

    The one thing I will give them credit for is a very robust, populated social site on Ning for reps. Even late at night there will be 50 people there chatting and posting blogs, on forums, and so forth. Most companies would look at that with some envy. Because of AutoXTen's sheer numbers, they were able to construct a well populated, helpful site with member tips. That's worth the ten bucks one time. And fun, too.

    Those who are tempted to pony up one to two grand and more with their new Phase Two better not do it! But ten bucks will make you a lot of new friends on that social site. Well worth it to me, irrespective of any alleged income opportunity.

  8. Most disappointing experience, they take your money and keep taking.

    Only the few "chosen" ones at the top line their pockets. No help, just a lot of BS.

    I have just cancelled the account.

  9. Hey Troy. After watching the video I tried to find their LLC. I found this. Kind of disturbing. The meat is about half way down the blog page. Can you shed some light on this blog and it's information for all of us concerned? Thank you.

    These guys listed below are ????

    http://faithsloan.com/2011/07/17/jeff-longs-autox

    Jaime Westmoreland/Shane Jeffery/Sean Gagne/Jason Peters and Hitcrawlers.

  10. THANK YOU TROY!

    Also, from the get go Scott made it very clear that there will always be FREE memberships where "free" members will get a Retail site to market (free website too, no fees) the products at the retail level, and earn commission that way, and not partipate in the MLM compensation plan. I have no doubt this is coming, but am sure Jeff has been so busy getting other features ready for next week……..it's coming and it is a legal requirement, so I do believe they are "on it" and no doubt the compliance issue with the policies and procedures there will happen, and we all thank you for taking the time to further investigate AXT and talk with the owners! God Bless YOU!

  11. Thank you Troy. Iam out as we were lied to again. told they had mlm lawyers to the field and they tell you differently? Sorry Scott your heart is great but you must tell your leaders the truth all the time.

  12. Good that they appear to want to bring this up to snuff but… This could just as easily be like the kid caught with the cookie jar who says he was just moving it back so it wouldn't fall. I can not picture how anyone with the amount of experience in the field as Scott Chandler, especially when it includes companies like BioPerformance would not have submitted their business plan for legal review long before they accepted their first 10 spot.

    I share the same concerns on these red flag issues as you. I also think that these catch lines of a one time payment to make X to the Nth degree profit are deceptive. Just because the money to buy into the next level is applied from earnings doesn't make it any less an additional payment by the player than if they entered their charge car number. I could go on with my thoughts on assigned value to virtual products but hey that's capitalism.

    Nice piece, Troy. I hope we don't have another Burn Lounge or similar incident because those are the types of programs that doubters join because they ca affrd to lose a few bucks and when it goes south they say, Yep! I've been right all along. They're ALL Scams."

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