Market America

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 Compensation Plans from companies to companies do change overtime and so these below comparison documents may be outdated.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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Global Wealth Trade (GWT)

Market America

Direct Sales Association (Nutritional)

Winner

Products

WANT

NEED

GWT

Product Risk

None

Many

GWT

Competition

None

Many

30,000,000 competitors

GWT

International

Open

Limited

GWT

Market Saturation

12000 distributors

10,000,000 customers and 180,000 distributors

GWT

Auto-ship

No

Yes

GWT

Retention

82%

11%

GWT

Monthly Re-Order

68%

6%

GWT

Volume Flushing

No

Yes (365) OR once you cycle the 5000/5000 left and right

GWT

Binary Payout

Variable

50/50

GWT

Cap

$10,000/Week Cap per BC (BV)

$3,500/Week Cap per BC (BV/IBV)

GWT

Additional BC’s

Top

Bottom

GWT

E/D Ratio

$9-$20

$7.35

GWT

Max BC Example per week

$100,000 = $10,000 (BV)

$115,000 = $1,500 (BV)

$85,000 = $1,500 (IBV)

$200,000 = $3,000 (BV/IBV)

GWT

BV Payout

8%

5%

GWT

 

MA

Additional Notes:

Maximum Weekly Commissions

In Market America, each BC can earn you a maximum of $3,500/week. So based on building two legs, the maximum you can earn if $3,500/week. In GWT, with two legs, you can earn $10,000/week. In other words, to make $10,000/week in Market America, you’ll need to build 2 additional legs to make the same income. If you would have built two more legs in GWT, you would be making $30,000/week. Even in Market America slides, it writes “Statistics show that the average person successfully develops 2.8 organizations.” Interestingly enough, you need to build 3 legs in Market America.

Points to Dollar Ratio

One of the key things to analyze when looking at the pay out in a compensation plan is the points to dollar ratio. In other words, to correctly calculate the cycle commissions. For example, some companies have a cycle payout of 10% for the volume in your legs. For instance, 100 volume pays you $10. But the key question, is how much dollars was required to generate the 100 volume. In some companies, 1 volume point is equivalent to $2. So really, 100 volume is equivalent to $200 that in turn paid you $10, so the payout is 5%.

In Market America, they are a 50/50 comp plan.

1200 Left and 1200 Right pays you $300
2400 Left and 2400 Right pays you $300
3600 Left and 3600 Right pays you $300
5000 Left and 5000 Right pays you $600

So at this point you’ll make $1500 that week from BV. And ASSUMING that you had that many sales in IBV, you would make another $1500. And if you had the $1500, you get an extra bonus of $600 which means a total of $3600. So if you read my next section, you’ll realize that the $1500 of IBV is something that is possible, but 99% of the people don’t bother getting. So in REALITY, the most you would make normally is $2100 a week. In GWT, again, $10,000 a week, nice and simple.

But the MORE important question for this topic of Points to Dollar ratio, is how many dollars you need to make 1200 LEFT and 1200 RIGHT. Again, according to Market America members, 1BV is equivalent to about $1.25 dollars. So your monthly 200BV in Market America is about $250 plus taxes plus shipping monthly payment. So to generate 1200 points left and right, it’s really 2400 total BV which is equivalent to $3000 which then pays you $300. At this point, it looks good, a 10% payout. But what is required to get the next $300? Well, the 1200 Left and Right points that you already have accomplished, sets the counter back to zero and now you need 2400 points on the Left, and 2400 points on the Right. So total, is 4800 Points is what you need which is equivalent to $6000 which then pays you $300. Now, it’s only paying you 5%.

But let’s keep going. The next level 3600 which is 7200 left and right, is equivalent to $9000 which then pays you $300, a 3.33% payout. And at the last level, it’s 5000 Left and 5000 Right, which is 10000 Points that pays you $600 which is a 6% payout. So in total, if I added 1200+1200+2400+2400+3600+3600+5000+5000 that is 24,400 that’s $30,500 which then paid you a total of $1500 which is a grand total of 4.91% or about 5%. In GWT, we pay you 8%. Would you rather have 5%, or 8%?

In GWT, every 5000 points pays you $500. In GWT, 1 point is the same as $1.25. So 5000 points is $6250 which then pays you $500 which is a 8% payout. But in reality, with a Common Leg or a Power Leg in GWT, for every 1667 volume that were to come in from the smaller leg, it would take 3333 volume from the bigger leg which is 5000 would pay you $500. In Market America, for every 1667 that were to come in, it would take 1200 from the left, 1200 from the right and pay you $300. In this example of volume of 1667 coming in, would you rather have $300 or $500?

BV and IBV

In Market America, they track your BV (business volume) separate. So BV is a different payment tracking then IBV. In GWT, we track all of your volume in the same place. Which means that once you hit 5000 total volume, you get paid $500. It’s better to track them together because you can get paid faster since it’s all coming into the same bucket for calculation.

Also, what’s very interesting is Market America sells so highly their IBV payment system, and the idea of selling online but every person I’ve ever met in Market America when asked how much IBV they have, they all say they’re focusing on BV and not IBV. In fact, I met many people in Market America who literally have zero IBV but have BV.

In my personal opinion, if I was going to buy something while driving by BestBuy or Canadian Tire, I wouldn’t bother to remember I had a friend who I could buy it at some small discount when I could just walk in and buy it right away. I don’t want to wait for the shipping to have to get it… as I want things right away.

Maximum Earning Potential

In Market America, is says with 3 BC’s you could make $561,000 per year given that you also have IBV. If you don’t, it’s as if you’re only making half of that. In GWT, with 3 BC’s you’re making $1.56 million a year in JUST the residuals, not including your bonuses. Would you rather have $561,000 or $1.56 million?

Minimum Obligation Purchase

One in Market America needs to spend at least 200 BV in order to maximum commissions. How much is that then you are spending monthly to UNLOCK the highest earning potential? According to Market America consultants, $1 of each BV you spend is equivalent to 80% of that dollar. In other words, 1BV is equal to $1.25. So having 200 BV means that you are spending around $250 plus taxes and shipping to UNLOCK the highest potential. In GWT, you are only spending $150/month plus taxes into your Inventory Account (no shipping, until you purchase something and could be lumped order), and that unlocks your maximum earnings. Would you rather pay $250/month to unlock maximum earnings, or $150/month?

Flushing

One of the biggest downsides to the Market America plan is the flushing that occurs once you reach the maximum cycle of 5000 left and 5000 right, the rest of the volume is flushed.  So let’s say you had 5000 on one side, and 200,000 volume on the other side.  With Market America, it would take 5000 from the left, take 5000 from the right, you get your cycle cheque, but the rest of the volume is flushed.  So on the right hand side, you had 200,000 volume less the 5000 for the cycle which means you should have had 150,000 volume left…. but you don’t because Market America flushes that volume.  With GWT, there is never any flushing anytime.  We’ve had people that accumulated 8,000,000 of volume on one leg and every time they cycle, the remaining volume is still there.

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!

GLOSSARY OF TERMS

Industry

This is an important item because there is no other Direct Sales company that does what we do which is a Designer Brand in MLM.  If you are in the health and wellness industry there are millions of people competing against you.

Product Type – 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 fashion items, 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.

 Product Shelf-Life/Expiration

GWT Products have no shelf-life so they can be passed down generation after generation.  Other companies have products that either expire or go bad and if not consumed are tossed are in the garbage.  Other companies products go obsolete.

Products Maintain/Gain Value

GWT Products gain value over time such as the FERI Silver, FERI MOSH line, and more.  Other companies have products that do not gain value over time.  They are mostly consumed, tossed in the garbage, or go obsolete.

Products have Verifiable Retail Value

GWT Products are certified and appraised by the world’s largest third-party companies such as GIA, AGS, IGI and GemLabs and the value of what you bought can be verified.  Other companies may sell products where there is no way to determine the actual retail value.

Retail Profits

GWT profits can easily be 100% and more with our vast line of naturally high profit margin products.  Other companies are often no higher then 30-40%.

Products Can Be Passed Down to Future Generations

GWT Products are a type of product that never get thrown away but rather are passed down generation after generation.  Other companies products go bad, tossed in the garbage, become obsolete and are not passed down one generation after the next.

Products Natural High Profit Margins

GWT Products have naturally high profit margins to allow people to earn more income.  Other companies have retail prices that no one would ever buy those products at the retail cost because the retail cost is unnaturally inflated.

Products are Visual

GWT Products are Visual and can be worn at all times to promote your business.  Other companies have products that are not visual and you would not be as easy to promote on you.

Products are Culturally Accepted

GWT Products (fashion) are accepted by all cultures all over the world.  Other companies may have products in which certain cultures are not accustomed too.

Products are Unique

GWT Products (FERI MOSH 19K, FERI MOSH 21K, and FERI Plangsten and all of the designs by FERI, FERI MOSH, and POSH) are designed in house by designers and unique to Global Wealth Trade.  The FERI MOSH 19K, 21K, and Plangsten are only available material wise by GWT.  Other companies have products that can be found in other competing companies.

Vast Selection of Flagship Products

GWT Products are vast and have over 1200 SKU’s which allow the distributors to earn substantial incomes.  In other companies they often only sell a fell products that can become boring over many years.  GWT Products gain more excitement year after year.

Product Risk

GWT’s products carry no risk and in fact gain value over time.  With many other companies, especially consumables may have certain reactions that are risky (not everyone reacts the same way).

Product Time Till Gratification

GWT’s products have instant gratification.  Once you see something you like, you like it. With other companies, you have to consume the products for several days or months to see the effect or the damage.

Products Pre-Approved in Every Country

GWT’s products are pre-approved in every country around the world because companies already import/export the types of products we carry.  With other companies, products often require approval from the Food and Drug Administration by the Governments or for service type companies, the services and partners must be established (i.e. telecom).

Can Do Business In Every Country?

Simply put, you can do business in every country with GWT.  Other companies can not due to their product issues.

Competition

With GWT, there is no other company in Direct Sales that does what we do, a Fashion Designer Brand.  In Health and Wellness over 92% of the companies on the DSA and in Health and Wellness, Telecommunications, or Household products.

Third-Party Media Accolades

GWT has an incredible number of third party media credibility such as the Canadian Business Journal, American Business Journal, VIVA Internationale, Canadian Jeweller, REGARD Magazine, The VIEW, Toronto International Film Festival (TIFF), the Emmy’s, Oprah Winfrey’s (Women of Wealth), Networking Times, BusinessForHome, Network Marketing Business Journal, Prestige Magazine, Entertainment Tonight, Preferred Magazine, Fashion Shows and More.  Other companies usually only have one or two media appearances and most of them are within MLM where as with GWT many are NON-MLM media accolades.

Saturation

Saturation has to do with timing and competition in that GWT has only 12000 people.  Many other companies have well over 300,000 which means that the timing may not be as good.  On the flip side, a company with only 100-200 people could be a risky company.  Typically if a company has surpassed 5 years it’s going to be a non-high risk company to work with.

Autoship

GWT has the revolutionary IA Program where as others usually have an autoship that you have to order products every month.

Retention and Monthly Reorder

The autoship relates to retention because according to the DSA the average for renewing the business yearly is 11% where as the monthly product re-orders are 6%.  GWT’s retention ratio is 500-600% higher then other companies on average because of the revolutionary IA Program.

Volume Flushing

GWT never flushes volume in any kind of way.  Other companies flush volume which means that of the work you did or did not do to accumulate volume, the company will flush that in one of many ways and you lose that. When you lose that, you lost possible revenue because volume is usually commissionable.

Volume Cap

GWT doesn’t have a cap for the maximum amount of volume you can have.  Some other companies do.

Max Carry-Over Volume

GWT does not have a max carry-over on volume.  Some other companies only allow you to carry over a certain amount and the rest is flushed.

How Many Legs to Build?

GWT only has 2 legs to build which is the easiest.  Trying to build more then 2 legs is just more work.  Why build more then 2 legs when you only need to build 2?

Pays to Infinity?

GWT pays from the first level down to the very last one (INFINITE).  Other companies only pay you down to a certain number of levels which means that you lose the volume from the bottom levels (which means you lost income).  Other companies do pay to infinite but you have to work to a certain rank to unlock that and often enough when you unlock those levels, it’s a lower payout in percentage.  Why go through all that when you can join a company that has no levels?!

E/D (Earning Per Distributor) Ratio

The E/D Ratio just means how much in residual passive income do you get paid per person in your team.  The Average is 1 to $1 which means 1 person pays you $1.00 in passive income.  So to make $10,000 a month passive income you need 10,000 people.  With GWT, it’s up to $10-$20 which means for much less people, you can make much more.  Why do more work for less?

Team Commissions % Payout

This is the bread and butter, the focus of MLM is to build a long term passive income.  The higher the better and it has to be on all of your business.  GWT pays 8% on the first level down to infinite.  Others don’t pay to infinite or it’s a low pay out.

Cap on Commission Based on Rank?

GWT has no cap on your commission based on ranks.  Other companies don’t allow you to earn the full commissions until you unlock a certain level rank.  Why the hassles of working through ranks when GWT has none?

Do Ranks impact your pay?

Aside from the commission, does the ranks impact your other revenue streams and bonuses.  With GWT it doesn’t because there are no ranks.

Active Personal Requirement

With GWT, you only need two personal sponsors to start earning commissions but you start to accumulate volume even without the two.  With other companies, you need to have certain number of personal sponsorships to unlock your commissions or to maintain commissions.

Car Program and Car Program Monthly Qualifications

GWT has two car programs for the luxury line and also the elite line and best of all, there are no monthly qualifications to maintain.  Once you achieve it, it’s yours for 18 months.  Other car programs you are on the lease and if you can’t maintain your qualifications, you have to pay out of your own pocket.

Total Payout

The higher the total payout, the more income one can earn.  But one must also understand that a high payout doesn’t necessarily mean it’s easy to unlock those commissions.  With GWT, it’s a high payout and there is nothing to stop one from unlocking the highest and attaining the most commissions.

Bonus or Commission Focused

Companies often focus on paying lots of bonuses because bonuses are one-time.  With Commissions, companies have to keep paying that week after week.  Pay in Commission are good for the members where pay in Bonuses are good for the company.  GWT has both!