Kyani

DISCLAIMER: The below compensation plan comparisons and breakdowns are based upon the opinions of people. Compensation Plans from companies to companies do change overtime and so these below comparison documents may be outdated. We highly suggest that you do your own homework, your own due diligence and contact whomever you feel is most professionally inline and has knowledge regarding your company or a company that you are looking into. We do not and can not guarantee that our opinions are 100% accurate but are simply our own personal opinions of the compensation plans after we have looked at them.

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The Kyani Compensation Plan can be found here:

https://asia.kyani.net/public/sg/en/opportunity/comp-plan

and the more detailed one here:

http://assets.kyani.net/forms/en-us/comp_plan.pdf

Taking a look at the top link, let’s go one by one here.

Customer Program

At Kyani, you are paid up to 20-30% commission on your customer’s purchase.  At GWT, you get paid 50-100% retail profit on your customer’s purchase.  So if an item was $200, and your cost thus is $100, you earn $100!  That’s 100% retail profit.  Clear winner here is GWT.

Kyani also has a one-time customer CV bonus where for 500 CV you get $100 bonus, and 1000 CV you get a $500 bonus.  To understand the difference here, GWT is paying you 100% retail profit on every single customer sale which if you do the math, you’re earning more for LIFE.  Where as at Kyani, you get a small 20-30% on customer purchase and they try to make it look better by giving you this one-time customer CV bonus.  Remember, that’s one-time, where as at GWT you’re earning 100% EVERY TIME!

Sponsor Bonus/Team Bonus

At Kyani, you get paid a sponsor bonus for bringing on new people.  However, if you look at the second link, it states that you have to reach certain ranks in your first 31, first month, and second month.  So what happens is that again, after these months are gone, this bonus is gone.  AT GWT, you earn a Wholesale Profit of $50 for every Silver, Plangsten, Gold, and Diamond that is introduced or $10 for a Retailer and this is FOREVER!!  Clear winner here is GWT.

Kyani PayGate Accumulator

So in my history of looking at compensation plans, I have to say that they did a good job on this video to make this thing ‘look’ good, but when you really understand it, it’s really not even comparable to GWT’s compensation plan.

Firstly, I think most people who look at the PDF version are completely 100% confused.  And the ones you watch this video, I think more of them get it but they don’t see the pitfalls.  The Kyani PayGate Accumulator tries to impress you but saying that you can get paid at different gates.  In other words, they try to say that you can get paid multiple times on the same CV.  However, that statement itself is misleading.  You have to understand from the video that as volume starts from the bottom and goes up, less and less go up because more and more people are qualifying for the PayGates.  So it’s a huge Compensation Plan Contradiction as we talk about in the Compensation Plan Pitfalls training because when your team succeeds and earns (through PayGates), the less CV you get.

The difference with GWT is that you get paid all the way down to INFINITY and it doesn’t matter how much commissions your team makes, it never impacts the volume that you get.  I’ll give another example.  If in Kyani, you had 3 legs, but in each of those 3 legs, you had the first level people each making the PayGates, it means that you got a whole lot less (perhaps you won’t even qualify for a cheque).  How does that make any sense?  That when your teams are doing so well, that you make less?

In this type of plan, you do the best when your team isn’t making those PayGates so that you yourself can earn from multiple PayGates.  GAME-OVER as it’s a huge compensation plan contradiction.

And to make matters worse, as you progress through the gates, the payout percentage gets smaller and smaller.  These pay Gates range from 5%, 7&, 8%, 7%, 6%, 5%, 3%, 1%, 1%, 0.50%, 0.25%, 0.25%.  What’s also, in my opinion, a downfall of this plan is that you’re never really sure what your pay cheque will be from week to week.  Because you don’t know when someone below you will reach a higher PayGate and cut you off from yours.  I’d rather have a stable 10% payout at GWT, 5000CV pays you $500 and nothing anything that my team does when they have success can impact my commissions.  So in Kyani, one week you may have the Pay Gate 1 at 8%, and Pay Gate 3 at 6% (don’t forget that the Pay Gate 3 6% is on a smaller volume already), then the next week you may only get Pay Gate 5 and earn 3%.  YIKES!!!

Generational Check Match

In order to qualify for this check match, you also need to advance through ranks to earn it.  However, don’t forget that the check match is based on the PayGate commissions which are already very small.  So if you watch the video, someone earns $35 and you earn 15% of that which is $5.25 matching bonus.  At GWT, you earn 10% of $500 which is $50.  Clearly, you would want $50 over $5.25.  At Kyani you ‘could’ potentially (very hard though) earn matching bonuses down to 9 levels but the reality is how many people actually can achieve those ranks?  Less then 1%.  Again, another GAME-OVER clause where you have to advance around 13 ranks to achieve all of the bonuses.  YIKES!  At GWT, just joining Diamond unlocks all the earning potentials and bonuses!

At GWT, we also have the Ambassador Cruise Bonus, Regional Ambassador Luxury Vacation program, National Ambassador Luxury Car program, and the Global Ambassador Exotic Car program, and 2% Revenue Sharing.  However, our ranks don’t impact your commissions, it’s just for the cruise, vacation, cars, and etc…

Additional Key Thoughts

In today’s day and age, 2013, there are more then 30 million people in the Health and Wellness and those are the people you are competing against. Every few months there is a brand new health and wellness company with the latest product line that are raving about how they have the latest and greatest product that no one else has. You’ll be forever competing with other companies that are arguing that their products are the best You’ll be dealing with other people who are forever saying that your company’s products can’t compete with theirs.

On top of that, ask yourself how many people have heard about your company. If 5 out of 10 people know of it, it’s gotten out there pretty fast. If 9 out of 10 heard of it, it’s too late.

Flushing

In Market America, they don’t talk about this much in their documents but there is a flushing that happens in the company. There are actually two kinds.

The first kind of flushing is when you cycle the 5000 points left and right, then whatever additional volume you had gets flushed. In GWT, we NEVER flush volume.

The second kind of flushing is after one year in the business, they flush all your volume. In GWT, we never flush volume. So Reza had 8,000,000 of volume on one leg!!!

WANT versus NEED

It’s easier to sell a want then a need. Want is more powerful then need. For example, people don’t need to smoke, but they want to. People don’t need to drink, but they want to. People don’t need to buy designer labels, but they want to. In nutrition, selling a need was good many many years ago. When there was only a few nutritional companies or telecom companies or utility companies. Nowadays, there are too many choices amongst MLM and even the local grocery and pharmacies to buy nutritional items. In GWT, people are happily saving money into their IA to one day buy the item they’ve always wanted and have been saving up for.

Education in products

In most health companies, you have to become half a doctor to be able to effectively sell their products. In GWT, everyone knows what a watch is, jewelry, etc… so it’s SUPER simple.  In nutrition, you have to not only become half a doctor, but also you need to train your team on how to become half a doctor.  Duplication is key and the longer it takes for someone to learn about their products, the longer the duplication process.  And the more learning there is in a system, the more complicated it can become, and you can potentially lose a lot of your team due to this.

Competition

According to the DSA, there are now 30 million people in North American who are in the health and wellness industry.  As great as companies can be, if there are too many people competing against you, it’s almost impossible to make those huge incomes as you always wanted.  If you had joined these huge companies when they first got started 20 years ago, you’d be in a good situation because there wasn’t that many companies back then in health and wellness.  Today, every month or even every week there is the newest latest and greatest health and wellness company.  And I’m constantly being approached by these company’s to join them, bring a team over, and they’ll give me some type of joining incentive (cash, inherit a downline, etc..).  In summary, if you’re today in a health and wellness company, it’s almost pointless.  Even if you establish a huge team, after a few months, when the latest and greatest company comes out, most of your team leaves you and now you’re back to trying to building a brand new team.  The industry retention ratio is roughly 10-18% so that means after one year with 100 people, only 10-18 of them are left.  It’s exhausting and if that’s the deal in health and wellness companies, then no thank you!