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To further understand the below and all compensation plans, please take a look at this must watch training.
Threre are MANY MANY “GAME-OVER” clauses in this compensation plan from DubLi.
I couldn’t find a detailed compensation plan but I did find this online. If anyone has a better one, please email me at firstname.lastname@example.org so I can put more details into this comparison.
To start off, I will say this, this is not the first reverse auction MLM that’s started and it won’t be the last. From the above compensation plan, there are many issues that one should be concerned with. I’ll try to make this as detailed as possible. I’ll firstly focus on the compensation plan itself and then later on explain the concept and the concerns I see with the concept of a reverse auction MLM.
Firstly, their compensation plan is filled with ranks. As discussed in the above pitfalls training, it’s a “GAME-OVER” when you see ranks. It appears that the DubLi compensation plan is either a unilevel plan, or a matrix plan, either of which you have to build more then two legs here to reach the highest rank. Again, why bother having to build more then 2 legs when at GWT, you only ever have to build 2, one of which is usually built for you and you get paid on both legs! Also, GWT doesn’t have ranks.
But back to the comparison, the ranks start from TM (Team Member), then TL (Team Leader), then TC (Team Coordinator), then SD (Sales Director), and then finally VP (Vice President). To some, ranks may seem exciting and a way to motivate people, but that is only because they don’t truly understand what ranks do. Ranks only have one purpose which is to restrict the flow of income from the company to you. Think of it this way. If a company could afford to pay out everyone the same amount of money as the VP, then why wouldn’t they? Simple answer is because they can’t afford to so they have to have ranks in place. In GWT, you have no ranks to achieve to unlock the highest payout. Everyone gets paid the same amount!
And to make things worse, DubLi’s ranks actually impact your residual income. So to start, if you are only a TM (Team Member), you don’t even receive any residual income aside from the people you personally sponsor. “GAME-OVER” because they are restricting your income from the volume in your entire organization. If you become TL (Team Leader), only then do you receive 2% commissions. If you become a TC (Team Coordinator), only then do you receive 3% commissions. If you become a SD (Sales Director), only then do you receive 4% commissions, and if you become VP then you get 5%. In GWT, you earn 8% dollar to dollar commission from your first level, down to infinite and you never have to achieve any kind of rank. Would you prefer 5% which most people never get because they can’t get to VP, or would you rather just join a company and get 8% like at GWT?
The person who wrote this breakdown wasn’t much worried of making it look like a ponzi scheme were you get paid based on other people’s sign-ups. That would usually be legal if those people were getting something of value like products or services, but here you’re getting credits as I understand towards future auctions. But whether you get good value for those credits is something to question. In any case, another huge issue with ranks is that you get screwed if someone matches your rank because there may not be that many overrides. And if someone in your team actually surpasses your rank, then it’s even worse.
I can personally foresee this system not lasting very long. Not just form the compensation plan point of view, but from the fact that anyone can really copy this system and then make it better. This is partly similar to Lyoness with the cashback system, and of course like Market America where you also get a cashback too. The reality is that anyone can partner with retail stores to arrange a cashback and if that happens like it already did, then your team will quit eventually.
I highly recommend people to read this FAQ from DubLi so that you really understand the whole process from start to finish. I can foresee so many people not really understanding how the whole process works and eventually getting fed up.
I was asked to do this comparison though I just noticed that there are no Canadian stores. Keep in mind if you order form the US you have to deal with shipping internationally and it’s just easier to buy it locally and not pay shipping. Not to mention the taxes, VAT’s, etc…