Tuesday, February 28, 2017

Can you really make money with Life Leadership? (full review)

What do you call someone who gives people advice on how to get rich when their monthly paycheck is still in the double digits?

A Life Leadership affiliate.

Too harsh? Okay, a handful of people might make pretty good money with Life Leadership, but have I been involved?

This video explains everything:


Make sense? Either way, here’s the full review on Life Leadership.

Overview

Life Leadership was founded in November 2011 by seven entrepreneurs: Orin Woodward, Chris Brady, Claude Hamilton, George Guzzardo, Bill Lewis, Dan Hawkins, and Tim Marks.

Life Leadership was started with the following mission:

“…to help people live The Life They’ve Always Wanted by providing world-class, life-changing products and services to our customers and an industry-leading compensation plan to our sales force in the field.”

Pretty vague. Can you tell what they’re selling yet? Probably not.

According to the website, the founders include:

  • A NY Times bestselling author
  • A Guinness World Record holder for largest book signing
  • Two of Inc. Magazine’s Top 50 Leadership and Management Experts
  • Modern Servant Leader’s Top Leadership Experts
  • Magazine’s Top 100 Speakers
  • Top 20 Most Followed Leadership Influencers on Twitter
  • HR’s Top 100 Blogs for Management and Leadership

Most of the accomplishments listed above seem to come from Orin Woodward, an author and blogger on everything from leadership and management to financial health and the media. He’s pretty accomplished and seems to be leading the pack.

Woodward got his start with Amway back in the early 90s. He was so successful, that he started selling leadership and motivational tools to other distributors at the company. Of course, Amway wasn’t crazy about that, even though (according to Woodward) his tools helped Amway generate an extra $200 million in sales one year.

Either way, he left in 2007 to start his own full-fledged leadership and motivational company called Team. An article in Forbes back in 2008 calls the company “a pyramid on top of a pyramid.” [1]

Eventually, they were hit with a lawsuit from Amway in 2010 that was settled confidentially. In 2011, Life Leadership was born (aka Team was renamed).

How much does Life Leadership cost?
The Business Starter Kit costs $99. In order to stay active, a Member must also purchase a monthly subscription to one of the company’s products.

Products

Life Leadership sells educational products that come in the form of audio CDs, videos, and books. The company also holds over 7,500 live events every year in various locations around the world.

The products are based on the teachings of both Woodward and Brady, and they’re not without their fair share of awards. Aside from the NY Times Bestseller list, they’ve also won a Gold ADDY Award for Design, eLit Awards, Living Now Book Awards, Illumination Book Awards, and Reader’s Legacy Choice Awards.

Life Leadership sells leadership and motivational programs and tools in the following three categories:

  • Financial Development
  • Professional Development
  • Personal Development

Financial Fitness

These are their financial development products. Subscription products range from $11-$22 per month, and includes financial tracking and savings tips as well as tools for building good wealth habits. Master classes charge a one-time fee ranging from $109-$246.99, and they teach students the basics of financial fitness and personal finance.

Corporate Education

These are professional development tools based on the bestselling book Launching a Leadership Revolution by Orrin Woodward and Chris Brady. Subscriptions cost $64.95 for 6 months and include 1 book and 4 audios each month.

Personal Development

Their personal development products come in the form of monthly subscriptions ranging from $11/month to $82.50/month. They teach things like personal growth, the principles of success, the principles of freedom, and spiritual growth (for Christians). They even have personal development products geared toward teens and pre-teens.

Opportunity

Life Leadership’s compensation plan offers 19 and ½ ways to make money, which is really just a gimmick. A compensation plan never needs more than 4 or 5, maybe 6 or 7 different ways to make money – after that the plan is just needlessly complicated, probably to distract people from the fact that they’re still not making any money. [2]

If I went into detail on all 19.5 ways to make money with Life Leadership, you’d probably die of boredom before getting to the end. So, I’ll just list out all 19 (and a half) and then discuss the most important.

  1. Retail Sales Commission
  2. Customer Pool Bonus
  3. Cumulative Customer Bonus
  4. Personal Volume Bonus Chart Commissions
  5. Customer Bonus Chart Commissions
  6. Differential Bonus Chart Commissions
  7. Product Scholarship Program
  8. Scholarship Development Bonus
  9. Coordinator Rank Advancement Trip
  10. Balanced Business Bonus
  11. Annual Cash Awards
  12. Leader Bonus

13-19. Various Depth Bonuses

½. The “3 for FREE” Customer Referral Program

Retail Sales Commission is 15% on all personal sales – not much.

The “3 for FREE” program means that if you get three customers subscribing to products that cost as much as or more than your subscription in a month, you get that month for free.

The Customer Pool Bonus is a bonus paid out based on a Member’s total Registered Customer sales in a month, as long as they hit at least 600 PV. This bonus starts at $50.

The Cumulative Customer Bonus is a similar bonus based on Registered Customer sales, but it’s an annual bonus based on a distributor’s sales in an entire calendar year. The bonus ranged from $500 for 5,000 PV in annual sales to $40,000 for 200,000 PV in annual sales. Of course, you have to stick around for a year to get this bonus, and most don’t.

The Differential Bonus Chart Commission is money you make based on the total volume sold by your downline. Exact numbers are not specified.

The Scholarship bonuses (7 & 8) are monthly bonuses ranging from $60-$500 that depend on the size and performance of your team.

The Depth Bonuses (13-19) are rank bonuses that reward distributors for moving up in rank and also reward them for having team members who move up in rank.

Recap

The compensation plan might all sound pretty confusing, and it’s supposed to. But if you look past all the gimmicks and jargon, to the income disclosure statement at the bottom of the compensation plan, it’s pretty clear how much money you can make.

The majority of Life Leadership distributors, about 65%, are making $.07-$82.29 per month. That’s right – 7 cents. Even the high end here is barely making enough to pay off their subscription.

Bottom line is, if you’re looking to develop a passive income stream, there are better opportunities out there.

But if you like automated ways to build passive income, there are better ways.

(and you can trash those old MLM habits, too)



from MLM Companies

Monday, February 27, 2017

Is LifeWave just another health and wellness scam?

We all know that girl who swears that she always feels healthy and energized because she walks around barefoot in the mud a few times a week. Something about the ground’s electric force soaking into her feet and how wearing shoes blocks healthy ions coming from the earth blah blah blah.

LifeWave’s “miracle patch”, a sticker you put on your body that magically prevents disease, boosts energy, and keeps you from getting fat…sounds like it’s about on that level.

But if Standford swimmers and Olympic athletes have worn it, they actually might be onto something. [1]

Have I been involved with LifeWave?

This video explains everything:


Make sense? Either way, here’s the full review on LifeWave.

Overview

LifeWave was founded in 2004 and is a member of the Direct Selling Association headquartered in sunny San Diego, California.

David Schmidt is the founder and CEO of LifeWave, and he’s got some chops. He’s an entrepreneur and product developer with over 25 years of experience and a degree in Management Information Systems and Biology.

Schmidt didn’t just start a business, he’s also the inventor of the company’s LifeWave Technology. He’s even worked in research and development for the military, during which time he developed new ways to produce hydrogen and oxygen, designed unique power generation systems, and built metal-combustion rocket engines that won him an honorary doctorate from Dr. Alexander Marinaccio of the International Hall of Fame.

Now, a lot of people in MLM like to call themselves “Dr.” without really earning it, and if you look into this Alexander Marinaccio guy, not much comes up aside from what’s written about him on the LifeWave website. There’s no evidence of an accredited institution, or any college or university, associated with either men or the “honorary doctorate degree”. Going to go ahead and guess that it doesn’t mean much.

Anyway, after all this Schmidt began 3 years of research into natural solutions for increasing energy, stamina, and fat-burning in the body, and eventually started LifeWave based on that research.

In 2011 the company was ranked #721 on the Inc. 5,000 Fastest Growing Companies list, with a 3-year growth rate of 436% and a 2010 revenue that hit $38.8 million. They’re no longer on the list. [2] [3]

In 2015, their European branch came into some trouble with the law for defaulting on their taxes, leading to a settlement of 164,000 EUR. [4]

How much does LifeWave cost?
Starter kits come in a variety of levels, each one offering more product and the chance to earn more:

Starter: $25
Bronze: $99.95
Silver: $299
Gold: $499
Platinum: $999
Diamond: $1,499

In order to remain active, affiliates must maintain at least 55 PV per month.

Products

Suzanne Somers is the spokeswoman for the product. Is there any mediocre MLM or As Seen on TV product that Suzanne Somers HASN’T repped? Then again, what else are you going to do for money when you get too old to pose for Playboy?

LifeWave sells what are touted as miracle patches that use “organic crystals” to give pain relief, burn fat, slow the aging process, boost energy, and detoxify the body to “improve overall health”. They have a variety of patches that target specific health issues, such as the Energy Enhancer patch and the Silent Nights patch.

The patches don’t leak anything, chemical or otherwise, into your body. Instead, they electronic stimulate pressure points, similar to acupuncture. The patches themselves simply contain water, oxygen, amino acids, and a few other organics.

Basically, you put a sticker on your body (that contains no drugs), and it’s supposed to solve every health problem you could possibly have.

They claim the product is backed by lots of research and over 60 clinical studies, but if you’re a little skeptical, you’re not alone.

Benefits

  • Energy improvement
  • Fat-burning
  • Age-defying
  • Stress-reducing
  • Detoxification

Remember, none of these benefits have been FDA approved or fully proven.

Side Effects
The benefits may not have a lot of evidence behind them, but because these patches don’t use any drugs or chemicals, there aren’t any side effects to report either. The few ingredients that are in the patch are listed under FDA under 21 CFR and are totally safe.

Opportunity
Distributors at LifeWave make weekly residual commissions based on a binary plan with a unilevel matching bonus.

Retail commissions on personal sales are the difference between your wholesale price and the retail price for regular customers.

Each time you personally recruit a new affiliate, you make a commission dependent on their sign-on kit as follows:

  • Bronze: $15
  • Silver: $50
  • Gold: $100
  • Platinum: $150
  • Diamond: $200

Residual commissions are paid on a binary structure based on the group volume sold by both legs. Each time an affiliate’s team hits 330 GV on one leg and 660 GV on the other, that affiliate gets a $50 commission check. There are weekly caps on binary commission based on rank that range from $5,000-$25,000. After certain ranks, there don’t seem to be any weekly caps.

Unilevel matching bonuses are also offered on binary commissions earned in an affiliate’s downline, capped at three levels.

Level 1: 25% matching bonus, must be ranked Silver or higher with at least 2 affiliates ranked Bronze or higher in each leg and have at least 110 PV from the past 5 weeks.

Level 2: 20% matching bonus, must be ranked Gold or higher with at least 2 affiliates ranked Silver or higher in each leg and 110 PV from the past 5 weeks.

Level 3: 20% matching bonus, must be ranked Gold or higher with at least 6 affiliates ranked Silver or higher (2 on each side) and 110 PV from the past 5 weeks.

Recap

The compensation plan is overly confusing, for sure. But it’s not a bad one. If you can build up a massive team, you could definitely make some decent money.

However, the product screams placebo. In order to do well in MLM, you really need to be pushing a product you believe in and are passionate about. If you think you can get genuinely passionate about an overpriced placebo, then go for it.

But if you like automated ways to build passive income, there are better ways.

(and you can trash those old MLM habits, too)



from MLM Companies

Sunday, February 26, 2017

Can Longaberger survive much longer? (review)

A direct marketing company that sells picnic baskets sounds adorable. Adorable, wholesome, all-American, and like something that would do really well…

…in 1953.

Depression-era, handwoven oak baskets are great, but people aren’t exactly jumping at the chance to gather around a friend’s dining table and discuss them. That being said, Longaberger is still around.

Does this mean I’ve been involved?

This video explains everything:


Make sense? Either way, here’s the full review on Longaberger.

Overview

The Longaberger Company was started in 1973 by Dave Longaberger and stayed a family-owned and operated business until it was taken over by CVSL in 2013.

The company was founded in Dresden, Ohio, and became one of the biggest employers in the small town, with over 8,200 full-time employees and $1 billion in sales. It was also infamous in the area for its headquarter building, shaped like a giant picnic basket after the maple wood baskets the company sells. That came back to bite them in the ass, but more on that later.

The basket-making direct sales company has a very long, very American history. Dave Longaberger’s father, J.W. Longaberger, became a passionate apprentice at The Dresden Basket Factory way back in 1919. Unfortunately, the factory shut down shortly thereafter due to The Great Depression.

The Longaberger family wasn’t giving up so easily. J.W. continued to make and sell his baskets on the weekends, and eventually they raised enough money to purchase the closed factory and start up their own business. In 1973, Dave Longaberger opened J.W.’s Handwoven Baskets, and a few years later, the company began selling the Longaberger baskets via a direct sales model.  [1]

Tami Longaberger, the daughter of founder Dave Longaberger, led the company after Dave passed away, all the way up until May 5, 2015 when she announced that she would resign. John Rochon Jr. is now the current leader of the company. [2]

Longaberger has seen better days, to say the least. What was once one of the largest employers in Dresden now only employs 75 full-time and part-time employees.

While they’re still in business, they’ve peaked wayyy back in 2000 with $1 billion in sales, and have since then plummeted to only $100 million in 2012. [3], Longaberger’s parent company CVSL, which owns eight direct-selling companies, reported a 28% decline in first-quarter revenues. [4]

Due to the drastic cut in employment, the company made the decision in the summer of 2016 to sell their headquarter building and move their remaining employees to Newark, Ohio. [5]

They put the building, a 7-story beloved road trip landmark which cost the company $32 million, on the market for only $7.5 million. As of September 2016, the price had dropped to $5 million, a steal for 180,000 square feet, but no one wants it. Why would they? A giant picnic basket might make for a cheesy roadtrip gimmick, but it doesn’t make for a serious headquarter for any company other than Longaberger. [6]

It sounds like Longaberger could really use the cash, too, In August of 2016 it was reported that the company is coming under fire for unpaid phone bills and late financial filings multiple quarters in a row. [7]

How much does Longaberger cost?
They offer two business starter kits that cost either $79 or $264.

Products

Longaberger started out selling hand-crafted maple wood baskets, each one individually signed and dated.

Of course, that was way back when. Companies nowadays have traded in handcrafted for Made in China and quality work for assembly lines.

While Longaberger hasn’t gone so far as to ship manufacturing over to China, their baskets are notably less personal than they used to be. They’re still lovely, and they do offer some more expensive custom-crafted options. But really, how many basket does one person need?

That’s probably why the company branched out and started to sell a variety of other products, including home goods, decorative items, woven furniture, and kitchen accessories. They even have a “couture” line of hand-woven, meticulously crafted urns, vases, and more, but retail prices are in the thousands.

Opportunity

Longberger’s compensation plan, or their “Dream Builder” plan, isn’t extremely detailed or easy to find, but I did come across some information.

Home Consultants can earn up to 25% commission on personal sales. If they hit certain sales numbers, they can unlock a 50% discount on samples. Basic Home consultants get a free personalized website and the opportunity to earn rewards and trips, but they aren’t eligible to recruit new consultants or earn team commissions.

Senior Home Consultants are consultants who have sponsored 1-2 team members and at least $350 in personal sales. Additional benefits for these consultants include monthly sponsoring overrides and “the reward of helping others grow their sales and discover their potential”. Aw, it’s a touching sentiment, but personally, I prefer cold hard cash. These consultants get a 1% override on direct recruits’ override sales and .5% on Showroom Sales, and that’s not a lot in terms of cold hard cash.

Executive Home Consultants have at least 3 direct qualified recruits and are eligible to bank 2% overrides on their personal and direct recruits’ override sales and 1% on Showroom Sales.

Executive Home Consultants who have achieved a Manager rank (a minimum of 6 direct qualified recruits, group sales volume of at least $6,000, and $350 in personal sales) qualify for tons of extra perks and rewards,  including a 6% override sales on their central group, 3% on direct break-offs, 4% on Showroom Sales from central, and 2% on showroom sales from direct break-offs.

Senior managers with 9 direct qualified recruits and a group sales volume of $10,000 bump those numbers up to 7% override sales on central, 4% override sales on direct break-offs, 1% override sales on indirect break-offs, 4% showroom sales on central, 2% showroom sales on direct break-offs, and 1% showroom sales on indirect break-offs.

Director level and above get all kinds of perks, vacations, and attention. Here’s what their overrides look like:

Directors get 8% override sales on central, 5% override sales on direct break-offs, 2% override sales on indirect break-offs, 6% showroom sales on central, 4% showroom sales on direct break-offs, and 1% showroom sales on indirect break-offs.

Senior Directors get 9% override sales on central, 5.5% override sales on direct break-offs, 2% override sales on indirect break-offs, 6% showroom sales on central, 4% showroom sales on direct break-offs, and 1% showroom sales on indirect break-offs 2 levels down.

Executive Directors get 10% override sales on central, 6% override sales on direct break-offs, 2% override sales on indirect break-offs, 6% showroom sales on central, 4% showroom sales on direct break-offs, and 1% showroom sales on indirect break-offs 2 levels down.

Recap

Longaberger is a historic company, at least for the Midwest, which might not be saying a lot.

Still, they’ve made a name for themselves doing honest business. Unfortunately, that business isn’t doing so well anymore.

Even with the best compensation plan in the world, jumping in at this point, when they’re clearly on a downhill slope, would be a bold (arguably stupid) move.

But if you like automated ways to build passive income, you might have better luck with something like this.

(and you can trash those old MLM habits, too)



from MLM Companies

Friday, February 24, 2017

Are Magnabilities consultants actually making any money? (full review)

You know that interchangeable costume jewelry that your grandma from The South likes to wear? The charm bracelet that she decorates in palm trees and flip flop charms when she goes down to Florida for vacation, and the earrings she decks out with wreaths and baby angels around Christmas time?

Well, give grandma a ring and let her know that she can sell those ugly, cheesy bracelets with Magnabilities now. If she knows how to hustle, she might even make enough money to pay her cable bill.

Does this mean I’m involved?

This video explains everything:


Make sense? Either way, here’s the full review on Magnabilities.

Overview

Magnabilities is a magnetic jewelry direct sales company based in Sumner, Washington. Thing Silpada Designs, except even less trendy (and we saw what happened to them).

They were founded in 2008 and are a member of the Direct Selling Association.

The company is currently generating $1 million to $5 million in revenue each year. Small numbers after almost a decade in business, but there’s still potential. We don’t all come out of the womb running.

Susan Fahsel, Kari Hoke, and Brent Hoke founded Magnabilities and are in charge of design, marketing, and technology, respectively. Their mission is to “spread POSITIVITY, make an IMPACT, and become EMPOWERED.”

The company still runs primarily on in-home parties thrown by independent consultants, though, which is really not a good way to get your revenue off the ground in regards to product sales. No one wants to spend countless Saturdays over at Kathy’s house listening to her pitch her magnet bracelets yet again. Not only is this not a sustainable sales method, but after a while, consultants really start to alienate their friends, family, and customer base, and it brings down the company’s reputation as a whole.

Even consultants and employees themselves don’t seem to be too thrilled about Magnabilities. Their rating on Glassdoor, an employer rating website, is 2/5 stars. Multiple former employees warm prospects to “stay away from this company”. [1]

How much does Magnabilities cost?

A basic starter kit costs $99, while a “Party Kit”, which presumably includes everything a distributor needs to throw in-home parties, costs $249.

In order to remain active, distributors have to maintain 400 PV per month.

Products

Magnabilities sells magnetic, interchangeable jewelry, with over 250 products in their catalog. The concept is a little 2003 Home Shopping Network-esque.

You purchase “base jewelry”, which can be a necklace, charm bracelet, or earrings, and these base pieces have empty slots that allow you to insert your favorite magnetic interchangeable charms and decorative inserts.

Inserts range from typical costume jewelry charms to dogs and cats to holiday-themed inserts to personalized photo inserts. Most are an affordable $5-$10.

Base jewelry is also affordable, with bracelets running around $20-$25, pendants for $25-$30, and earrings for $15.

Products are made in America, Thailand, and China, and most are made from cheap but decently durable materials. All jewelry is made from lead and nickel free base material and shipped from their warehouse in Sumner, WA. They also have a 30-day return policy, but shipping and handling is not refunded.

Opportunity

Independent Associates at Magnabilities can earn between 25-60% commission on personal sales. On the low end, commission is somewhat average, but if you can make your way up to 50% and 60% commission rates, you’re doing pretty well.

Once Independent Associates sell and recruit enough to qualify for override commissions, they can earn 10% override commission on personally sponsored team members and 4% overrides on organizational sales.

The company also offers some generous fast start bonuses and matching bonuses.

Party hostesses get reward credits that can be used to purchase product at a major discount as well as a free gift set, but they have to sell enough.

Recap

The monthly requirement for remaining active is one of the biggest I’ve seen at 400 PV per month (or 1,200 PV in a three-month period). You’d need to hold 1-2 SUCCESSFUL parties per week to maintain those numbers, and that’s just to remain qualified.

One or two parties a week might not sound like a lot, but it can be pretty difficult when your friends and family have gotten tired of being invited over just to listen to your sales pitches. Also, these have to be successful parties, meaning you have to sell well. Not all parties rake in decent sales numbers unless you’ve got a really stellar product.

The company also doesn’t seem to offer much in the way of training and education. Without extensive sales and marketing knowledge and experience, it’s really difficult to do well in MLM.

Also, you’ve got to be passionate about a company and a product to succeed. If you’re passionate about ugly magnetic costume jewelry, go for it, but if not, you’re going to have trouble making money.

It doesn’t help that this company relies almost solely on in-home parties. MLM is still a booming industry, but only for those companies that know how to innovate and set the trends. Considering Magnabilities is relying on re-vamped Tupperware parties from the 50s and the kind of jewelry your clueless grandma might buy you for Christmas, I don’t think they’re one of those trend-setters.



from MLM Companies

Thursday, February 23, 2017

Market America’s CEO is getting rich, but are their consultants? (review)

Market America does a great job of combing two of the worst MLM types for double spammy, scammy goodness: product brokerage and internet marketing.

Meanwhile, their CEO is living lavishly at yacht parties in Miami and penthouses in NYC. Have I been involved?

This video explains everything:


Make sense? Either way, here’s the full review on Market America.

Overview

Market America was founded in 1992 by JR and Loren Ridinger in Greensboro, NC. JR Ridinger was a former top Amway distributor, and Loren Ridinger is his wife.

They got off to a rocky start. Market America didn’t start taking off for nearly a decade, perhaps due to charges from the SEC in 1999 regarding violations of federal securities laws.

Like so many MLMs that go public and then run into problems with the SEC for sketchy behavior, Market America then decided to go private in 2001. By 2002, they were expanding internationally into Australia. Soon after they moved into Hong Kong, the Philippines, Mexico, and the UK.

As of 2011, they had 650 full-time employees, and they had really started to pick up some buzz.

In 2010, they acquired Shop.com, an online comparison shopping engine that touts some of the biggest former investors in the world, including Amazon, Yahoo, and Bill Gates himself. [1]

The same year, they reported $393 million in revenue, and they unveiled two new celebrity spokespeople: Scottie Pippen would rep their Prime Joint Support Formula by Isotonix, and Kim Kardashian, the physical definition of celebrity, made a guest appearance at their Annual International Convention to tout their Cashback program (lol at the idea that Kim K has any need for a Cashback program). [2]

By 2013, they were ranked 27th on the DSN’s Global 100. [3]

If JR and Loren Ridinger are any indicator of the company’s success, then it’s doing well. The couple is loaded – their laundry list of assets reads like a rap song by Rick Ross. They are multimillionaires with a 35,000 square foot mansion in Miami’s Biscayne Bay, a 150-square foot yacht on their dock, celebrity friends, and a $25 million condo in Manhattan. They’re 93% owners of what is now one of the top MLMs in the world. [4]

But you know as well as I do – a rich CEO does not a rich distributor make.

How much does Market America cost?

It costs $399 for an UnFranchise Business Owner Startup Kit, and that’s not including monthly fees.

You also have to meet a monthly minimum of $200 in personal sales to qualify for commissions.

Products

The Market America store is bigger than a Wal-Mart…literally. I’m not going to sit here and list out everything they sell, because they’ve got over 3,000 proprietary products.

Their products include…everything. Health tonics, household cleaners, makeup, weight-loss and nutritional supplements, fitness programs, gardening products…seriously, everything.

In addition to having their own proprietary products, Ridinger made the decision to purchase Shop.com, a website that sells all kinds of well-known name brands at cheaper prices, in order to turn the company into the next Amazon.com.

The most popular product is the one they got Scottie Pippen to rep back in 2010 – Isotonix, a line of nutritional supplements. They go for $70 a bottle. You could find supplements with the same ingredients at your local drugstore for about $20 a bottle, but those don’t have an NBA star’s face on them.

Opportunity

Commission in the Market America compensation plan is built around a binary system, and you have to build out the two sides of your downline evenly. Actually, JR Ridinger claims that Market America is the inventor of the binary compensation plan, and that hundreds of MLMs have tried to copy them but simply can’t beat their compensation.

There are a few ways to earn with this company.

Gross Retail Profit

Distributors earn retail profit off their personal sales, and exact amounts vary by product item.

There are two ways to earn this commission. Distributors can either carry inventory purchased at wholesale and sell it themselves at retail, or they can build up a network of preferred customers who continually order from them online each month on a monthly auto-ship program. Distributors can make up to 50% on retail profit.

Cashback Commission

This is cashback that a distributor makes on both their own personal purchases as well as their customers’s purchases. Cashback only comes from eligible products on Shop.com, and they have to be Market America-branded products, but it’s possible to earn up to 35% cashback on your own purchases and .5% cashback on the purchases of every customer you refer.

Team Earnings

If a distributor has developed a team of representatives that is equally distributed between right and left legs, they qualify for team commissions. Team commissions are paid out weekly based on a distributor’s weaker leg.

Distributors are capped at $3,600 in team commissions per week.

The company has generated over $2 billion in commissions and retail profits since opening up shop in 1992.

Recap

This company is booming, and I don’t think it’s going anywhere. The Ridingers have certainly made a name for themselves.

But despite all their claims of wanting to “help people achieve their dreams”, they don’t seem to be making a name, or a paycheck, for most of their distributors. According to their career manual, the average Market America distributor makes under $1,000…per year.

That’s wayyy below poverty level income…in a third-world country.

If you like automated ways to build passive income, there are certainly better ways.

(and you can trash those old MLM habits, too)



from MLM Companies