Home > Featured > In for the Penny, in for the Pound – A Look at Penny Matrix

In for the Penny, in for the Pound – A Look at Penny Matrix

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It still surprises me that people get hooked by pyramid schemes, especially as they just don’t ring true. How is it that you can pay $7 a month to someone, and yet be able to (theoretically) earn $19,659.60 a month?

I am bad at mathematics, but those figures just don’t add up to me.

This is how pyramid schemes roll, they lure you in with promises of vast amounts of money, but the reality is much different, and even if you begin to make some money, one scare and the house of cards comes tumbling down.

It is fair to say that pyramid schemes are like robbing Peter to pay Paul: someone always loses out. With these types of pyramid schemes, the loser is almost definitely going to be you.

I came across Penny Matrix and sighed heavily. Here is another classic scheme, another system to get peoples hopes up and in the end just rip them off.

Let’s start with the basics.

The Penny Matrix system at PennyMatrix.com costs $7 a month and uses a 2×14 matrix to reimburse members. As with all classic pyramid schemes, it’s a recruitment thing, you have to recruit members below you in order to siphon off money from their membership fees in order to get paid.

You will need to get 16,386 people below you in order to earn $6,553.20, because you only earn, $0.30 cents from each person, no doubt because the rest needs to be spread about to make the system work and of course, line the pockets of the person at the top!

To get that amount of people involved is virtually impossible. Do you know 16,000 people? Could you fill an arena with your friends? Odds are, probably not unless you are a marketer extraordinaire. In which case you would be running the scheme or better yet promoting legitimate goods.

As such, it is very unlikely you will make much money with a scheme like this, certainly nowhere near the fabled $19,659.60 a month mentioned earlier.

Is the Penny Matrix a Scam?

Penny Matrix goes one step beyond the standard pyramid scheme and tries to legitimize the whole system. It does this by offering a free eBook every month from its wide selection of rather poor eBooks. They consist of some business eBooks, marketing of course, some public domain books, and so forth. My favorite is the single book on bricklaying, which actually has its own category!

These books are not there to be sold by members, like in some systems where the members turn a profit from the sales of physical or digital products, in fact back in 2012 Penny Matrix didn’t sell these books to the public at all, they were purely a free gift every month to the members of the system.

Fast forward to now and Penny Matrix is still trying to legitimize its scam. The books are still supplied one a month to the members, but you can also purchase the eBooks without signing up. That is, if you want to spend $16.50 on literature that you can get for free with a little googling, such as the public domain Shakespeare.

The Bottom Line

Is the Penny Matrix a scam?


No matter how they try to legitimize this system by providing eBooks and selling them, you yourself are not selling anything, you are just being paid by other members membership fees.

It is a classic pyramid or ponzi schema and these are classified as fraudulent activities via the FTC.

If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s not. It’s a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money.


You can possibly turn a profit with this system, but unless you get thousands, tens of thousands of people below you it will certainly not be much.

Avoid this scheme at all costs.

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  1. Sorry but they are technically not illegal. They wouldn’t last that long if they were. It is MLM and MLM is not illegal. If there is a product involved then they are perfectly legit. Most of these businesses know what they are doing and know how to cover themselves. I suppose we will have to agree to disagree here though.

  2. I would say that Penny Matrix has been quite confusing
    since Tracy is no longer promoting or working with PM.

    He will not be issuing refunds either.

  3. I always enjoy reading your posts, although this is my first comment. I am a PI into internet marketing. I bust scams as well as other things. It really amazes me as to the level of excitement over these programs. Pyramids are older than Ponzie, but people act like it is the newest thing since the iphone. What’s worse is the FTC does not seem to care, and your quote above, direct from the FTC, I have on my site, but people still want to say I am stupid and do not know what I am talking about. Really? I have a degree in Criminal Justice

  4. Steve, IO received an E-Mail from you several weeks ago, where you were going to review Empower Network. What were your findings?


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