MOBE Review (2026): How Matt Lloyd's '21-Step System' Became a $125 Million FTC Case
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MOBE in One Minute
MOBE ("My Online Business Education") was an internet business program run by Australian marketer Matt Lloyd (Matthew Lloyd McPhee). It sold a "proven" 21-step system for making money online, starting with a $49 entry fee and then pushing members to buy membership packages costing thousands of dollars.
In June 2018, the Federal Trade Commission charged three individuals and nine businesses with bilking more than $125 million from thousands of consumers, and a federal court halted the scheme and froze the defendants' assets. Here's what happened.
| Program | MOBE (My Online Business Education) |
|---|---|
| Run by | Matt Lloyd (Matthew Lloyd McPhee) |
| Entry fee | $49 for the 21-step program |
| Upsells | Memberships costing thousands |
| FTC action | June 2018 |
| Consumer losses | More than $125 million (FTC) |
How MOBE Worked
- Pay $49 for the 21-step program.
- Get calls from coaches pushing expensive memberships.
- Buy higher packages to continue the steps.
- Learn that the "system" is selling MOBE to others.
- Earn commissions only if you recruit buyers.
What the FTC Alleged
According to the FTC's press release, MOBE targeted U.S. consumers, including service members, veterans and older adults, through online ads, social media, mailers and live events. The FTC said most people who bought expensive memberships couldn't recoup their costs, some lost more than $20,000, and refund guarantees were often not honored.
| Fact | Detail |
|---|---|
| Press release | June 11, 2018 |
| Court order | Temporary restraining order, June 5, 2018 |
| Court | U.S. District Court, Middle District of Florida, Orlando |
| Defendants | Matt Lloyd, Russell W. Whitney Jr., Susan Zanghi and nine businesses |
| Alleged losses | More than $125 million |
The Lessons
- Cheap entry, expensive upsells: a $49 start led to packages costing thousands.
- The product was the opportunity: the "system" was selling the same program to others.
- Refund promises aren't always kept.
- High-pressure phone sales are a warning sign.
The FTC's Business Opportunity Rule explains the disclosures sellers of many opportunities must provide.
The Upsell Ladder Pattern
MOBE's structure, a cheap entry product followed by phone sales for increasingly expensive packages, is common in high-ticket internet marketing programs. The low starting price lowers people's guard. Then "coaches", who are often commissioned salespeople, encourage buyers to upgrade, sometimes suggesting credit cards or loans to fund packages costing thousands or tens of thousands of dollars.
Watch for the signs: a very low entry price for a "system", pressure to book calls, claims that you need to "invest in yourself" to unlock the next step, and an eventual reveal that the business model is selling the same program to others. Legitimate education can be expensive, but it should be clearly priced up front, explain exactly what you'll learn and never depend on you recruiting new buyers.
Was MOBE a Scam?
The FTC alleged it was a fraudulent business education scheme, and a court froze the defendants' assets. Treat any program with the same structure as a red flag.
Pros and Cons
What Stands Out
- None
What to Weigh Up
- FTC charged it with bilking $125M+
- Cheap entry led to expensive upsells
- Income depended on recruiting
- Refunds often not honored (FTC)
Who It Suited
No one. It's a cautionary example.
Our #1 Recommendation for Making Money Online in 2026
If MOBE (My Online Business Education) isn't the right fit for you, here's what we suggest instead.
After comparing hundreds of programs over the years, we know what works and what doesn't. In fact, most of the business opportunities are either instant cash grab schemes or scams or they require experience. However, this beginner-friendly system stood out and is our #1 recommendation for 2026.
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Frequently Asked Questions
What Was MOBE?
Matt Lloyd's "My Online Business Education" program.
What Happened to MOBE?
The FTC charged it in 2018, and a court halted it and froze assets.
How Much Did People Lose?
More than $125 million, according to the FTC.
Who Is Matt Lloyd?
The Australian marketer who ran MOBE.
Our Verdict on MOBE
MOBE is a textbook example of a cheap-entry, high-ticket upsell scheme. Learn its warning signs and avoid lookalikes.
Looking for a Better Starting Point Than MOBE?
Consider our #1 recommendation for making money online in 2026.