Momentis

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The compensation plan I looked at was found here.

http://www.momentis.net/pdfs/Momentis_Comp_Plan.pdf

Before I get started, I did want to say that there are many “GAME-OVER” clauses as per my training on

http://ourgwt.com/ourblog/compensation-plan-pitfalls/

One of the many is whether the plan pays a lot in Bonuses, or in Residuals/Passive Income.  In the Momentis compensation plan, it has higher bonuses and less residual which is what we don’t want in MLM.  In MLM, people join in hopes of earning high residual incomes for life and unfortunately, the residuals here are a lot lower then other companies.  And it’s not really anyone’s fault, it’s just that their profit margin they have doesn’t allow them to pay a lot in residuals so they need to make it look attractive in bonuses.  I personally know someone who has well over 500 people in their team and they agreed that the residuals are very tiny.  We had an interesting conversation because they told me that their company pays residuals every once a month.  I asked him if he

Momentum Immediate Bonus

Firstly, I have to say that any company that requires someone to finish an online certification course just makes it that much harder for new people to get in.  The faster it is for someone to join a company, the more it can duplicate.  This reminds me of WFG or Primerica where you have to get your license and when people fail, duplication is slow.  I’m not sure the extent to the course you have to take, but just a good point to note.

To join Momentis, it’s $299.  Once you join, there are bonuses you can get for the first 30, 60, 90, and 120 days into the business.  Each time you enroll a new member or customer into the program, you can get a $100 bonus.

  • 30 Days – 3 reps or 3 customers
  • 60 Days – 10 reps or 10 customers
  • 90 Days – 15 reps or 15 customers
  • 120 Days – 20 reps or 20 customers
  • 150 Days – 25 reps or 25 customers

Personally, for me, to enroll 3 people into a company and earn $100 is already less then GWT that pays you $150 for enrolling 3 people.  But take that to the next level and have to enroll 10 to get the next $100 bonus, you would have earned $500.  And at GWT, there is ZERO time limit on when these people have to be enrolled.  Of course, at GWT, we have extra bonuses if you do have new LC’s in the first 30 days as well.  But looking at 150 days, with 25 new members for $100, you’d have earned $1250 at GWT.  This is one of those “GAME-OVER” clauses where they have time limits to achieve your earnings.  At GWT, there is no time limit but if you do achieve Diplomat or Ambassador in the first 30 days, there’s extra incentives above and beyond the $50 Wholesale Profit.

Mentor Bonuses

This is yet again another “GAME-OVER” clause where one has to achieve a certain rank to unlock these bonuses.  Again, why not pay everyone these bonuses, nice and fairly?  In my training above, we talk a lot about ranks and what ranks can do to harm your business, your team’s business, and the dangerousness of having ranks.  Please watch the training referenced as Compensation Plan Pitfalls I recorded above.

My Leadership Bonuses

Just like the previous bonus, this is yet again another “GAME-OVER” clause where one has to achieve certain ranks to earn these bonuses.  If you actually look closely, all of these bonuses are paid on people ‘joining’ rather then product or service being rendered.  They should really call these bonuses “SUPER NATO COMMANDER” bonuses because the guy with the highest bonus can only earn the most.  At GWT, you earn exactly what the top earners do because their are no ranks, no issues to deal with.

Just a quick note, that the above bonuses have fine print that one should know about such as …

“Momentum Bonuses are paid weekly to QMRs when they achieve the necessary qualifications by gathering the necessary Customer Points
(CP) set herein. Note that to qualify for your first QMR bonus, 1 of your CPs must be from the sale of a product to a third-party. To qualify
for your second, third and fourth QMR bonuses, 70% of your CPs must be from the sale of products to third-parties.”

In other words, it’s not as easy as just referring to agents but you also have to have a mix of sale to third-parties.  Just makes it more complex.

My Team Bonuses

Well, yet again, another bonus that requires you to reach a certain rank.  And this rank is even higher then the previous.  You basically get a 25% matching bonus on your first generation (people you personally sponsor) bonuses from the previous section called ‘My Leadership Bonus’.  So if no one in your team is getting these, you aren’t getting anything either.  Then you can get 10% and 10% on second and third generations but again, based on the previous bonus.  Just looking at all these ranks one has to go through makes it so difficult to achieve a nice part time income on the side here.

Monthly Recurring Income

Finally, here is the meat and potatoes, the main income stream that people join Network Marketing or MLM for!  It’s to make the on-going passive income!  Firstly, the fact that your residual income depends on the rank you are is a HUGE “GAME-OVER” clause.  At GWT, you get your residual income simply by joining without having to go through ranks!  Earn 10% from your first generation down to INFINITE!

This is simply one of those compensation plans that in order to make $10,000 a month of residual income, you probably need 10,000 people in your team PLUS!  Depending on which service someone signs on as (and let’s not even get into the retention aspect, I’ll talk about that later), you get a cents to a dollar or two.  If you do the math, you’re probably earning less then a 1%, and in most cases probably earning $0.10 for each person with a service.  Not to mention that you don’t earn down to infinite until you reach again a higher rank.  And let’s not forget that this compensation plan is basically a unilevel plan.  “GAME-OVER”.  Once you need to build more then 2 legs to achieve the highest ranks to unlock the best earning potential… “GAME-OVER”.  Why not just join a company that pays you 10% on all the volume from the 1st leg down to INFINITE!!!

It’s not surprise that the person I was talking to admitted to me that his residual income is so tiny even with a big team of 400-500.

But another key risk in your residual income is people leaving and finding a cheaper service somewhere else.  Momentis isn’t the first of it’s kind nor will it be the last.  ACN is one example, and many more will continue to emerge.  Everytime a new company emerges, guess what happens to your team at the bottom who want to be at the top?

This goes back to the NEED versus WANT industry.  If you are selling a NEED, a need to save on your bills of internet, utilities, etc… then you always risk losing your clients to another company.  If you sell a WANT, if people just want your products then they’ll never leave.  Average retention ratio on the DSA is 12% and GWT stands at and out-standing 70%+ and above.  Some teams have even 95% retention ratio!

So can someone make money with Momentis?  Of course.  Would I put time into Momentis versus GWT, of course GWT.  Why?  Because GWT has the most insane long term residual income that’s REAL.  In my past 6 years of this business, so many other leaders in other companies are either not doing their MLM, or have not made more in their company and are making less because of all the problems I mentioned above.  So do you want to make money quick and then die out, or make money for long term?