A reader lately wrote in asking about Elepreneurs. They have been contemplating the chance however famous BehindMLM hadn’t taken a take a look at it since early 2018.
Noting adjustments within the compensation plan, I queued Elepreneurs up for a rework.
Immediately we revisit Elepreneurs’ MLM alternative with an up to date evaluate for 2020.
The Firm
In our authentic evaluate we noticed Elepreneurs was intently linked to Elevacity, by their guardian firm Sharing Companies Inc.
On the time Jordan Brock, Robert Oblon and Frank Walters have been appointed administrators of Sharing Companies Inc.
It appears since we wrote our evaluate a authorized dispute broke out between Robert Oblon, Jordan Block and Alchemist Holdings LLC.
In a memo offered to Elepreneurs associates in February 2020, the corporate accused Oblon of “gross monetary misconduct”.
Courtesy of Troy Dooly’s MLM Information Desk;
Robert Oblon was faraway from the Board of Administrators and stripped of his place of authority because of gross monetary misconduct.
He voluntarily resigned to keep away from punitive authorized actions arising from his malfeasance.
Frank Walters resigned from Sharing Companies on or round Could 2019.
Immediately Sharing Companies Inc. is called Sharing Companies International Company. The corporate is headed up by CEO John Thatch.
Elepreneurs is headed up by CEO Keith Halls.
Halls was appointed CEO in 2018, and as per his Elepreneurs company bio
served as Senior Vice President and Board Member for one of many largest corporations within the community advertising trade.
In 2001, Keith did what few company executives do, he turned an unbiased distributor so he may straight assist extra folks.
He constructed a number of worldwide downlines, totaling greater than 500,000 folks world wide.
The MLM firm Halls an government in and Elepreneurs appear afraid to say is Nu Pores and skin.
In 2001 Halls signed on as a distributor with Synergy WorldWide, a pay to play autoship recruitment scheme.
Halls was with Synergy Worldwide for six years.
In 2012 he signed on with Youngevity. Halls promoted Youngevity till he joined Elepreneurs in 2018.
Along with selling the corporate, Halls is/was a Youngevity shareholder.
As a part of a authorized dispute between Youngevity and Wakaya Perfection, in 2017 Halls was questioned about insider buying and selling.
Quite than reply the questions, Halls pleaded the fifth.
Elepreneurs’ Merchandise
In 2018 there was no point out of retailable merchandise on Elepreneurs’ web site.
Since then that’s been remedied, with the corporate selling “instantaneous affect merchandise”.
Our merchandise are uniquely designed to raise the “D.O.S.E. response” in your mind utilizing a proprietary mixture of all-natural elements.
The extra you and your clients take these merchandise, the extra happiness and motivation you and your clients can expertise.
That’s a complete lotta advertising communicate for what is basically a spread of dietary dietary supplements.
Sadly if you would like particulars of Elepreneurs’ merchandise, you need to head over to Elevacity’s web site.
Under we’ll separate Elepreneurs’ merchandise into two classes; wellness and skincare.
Wellness
- D.O.S.E Espresso – “weight managing, temper enhancing, nootropic infused, blissful espresso”, retails at $105 for a 4.8 oz tub (137 g)
- D.O.S.E Choclevate – a “scrumptious chocolate purposeful beverage”, retails at $105 for a 6.4 oz tub (181 g)
- D.O.S.E Nitro – a “weight managing, temper enhancing nootropic & nitric oxide promoter”, retails at $117.50 for a 3 oz tub (90 g)
- D.O.S.E Zest – “the proper afternoon pick-me-up”, retails at $105 for a 5.29 oz tub (150 g)
- vanilla chai and georgia peach tea – “incorporates a proprietary mix of highly effective urge for food controlling, temper and focus enhancing elements”, no retail pricing offered
For some purpose all of Elepreneurs’ wellness merchandise are bundled with XanthoMax, a xanthohumol complement.
Xanthumol comes from hops and could be present in beer. As a standalone ingredient, xanthumol seems to supply a broad vary of medical advantages.
That stated, there doesn’t look like any medical research particularly pertaining to XanthoMax.
Notice that Elepreneurs’ merchandise are additionally accessible in $19.95 trial packs.
Skincare
- Timeless Eye Gel – “eye enhancer reduces the look of wrinkles and superb traces across the eyes”, retails at $55 for a 0.33 oz bottle (10 ml)
- Elier Moor Mud Masks – “anti-aging masks that purifies pores and skin with mud from a sought-after area in Europe”, retails at $27.50 for a field of ten single-use sachets
- Elier Facial Serum – “anti-aging skincare designed to deeply nourish and regenerate on the mobile stage leading to a younger look”, retails at $67.50 for an unknown bottle measurement (not printed)
Elepreneurs’ Compensation Plan
Elepreneurs’ compensation plan combines retail gross sales with residuals paid by a unilevel group.
Further rank-based bonus swimming pools are additionally accessible.
Elepreneurs Affiliate Ranks
There are 13 affiliate ranks inside Eleprneurs’ compensation plan.
Together with their respective qualification standards, they’re as follows:
- Elepreneur – join as an Elepreneurs affiliate
- Star – generate and keep 80 PV or 240 RPV a month, refer and keep one retail buyer who orders not less than 40 RPV a month and generate 1250 GV a month
- Bronze – keep 80 PV or 240 RPV a month, refer and keep two retail clients who order not less than 40 RPV a month every and generate 2500 GV a month
- Silver – keep 80 PV or 240 RPV a month, refer and keep three retail clients who order not less than 40 RPV a month every and generate 5000 GV a month (max 90% from anyone recruitment leg)
- Gold – keep 80 PV or 240 RPV a month, refer and keep 4 retail clients who order not less than 40 RPV a month every and generate 10,000 GV a month (max 80% from anyone recruitment leg)
- Platinum – keep 80 PV or 240 RPV a month, refer and keep six retail clients who order not less than 40 RPV a month every and generate 20,000 GV a month (max 70% from anyone recruitment leg)
- Diamond – keep 80 PV or 240 RPV a month, refer and keep eight retail clients who order not less than 40 RPV a month every and generate 40,000 GV a month (max 60% from anyone recruitment leg)
- Black Diamond – keep 80 PV or 240 RPV a month, refer and keep eight retail clients who order not less than 40 RPV a month every and generate 80,000 GV a month (max 50% from anyone recruitment leg)
- Royal Black Diamond – keep 80 PV or 240 RPV a month, refer and keep eight retail clients who order not less than 40 RPV a month every and generate 150,000 GV a month (max 50% from anyone recruitment leg)
- Ambassador – keep 80 PV or 240 RPV a month, refer and keep eight retail clients who order not less than 40 RPV a month every and generate 300,000 GV a month (max 40% from anyone recruitment leg)
- Crown Ambassador – keep 80 PV or 240 RPV a month, refer and keep eight retail clients who order not less than 40 RPV a month every and generate 500,000 GV a month (max 40% from anyone recruitment leg)
- Royal Crown Ambassador – keep 80 PV or 240 RPV a month, refer and keep eight retail clients who order not less than 40 RPV a month every and generate 1,000,000 GV a month (max 40% from anyone recruitment leg)
- Triple Crown Ambassador – keep 80 PV or 240 RPV a month, refer and keep eight retail clients who order not less than 40 RPV a month every and generate 2,000,000 GV a month (max 40% from anyone recruitment leg)
PV stands for “Private Quantity” and is gross sales quantity generated by an Elepreneurs affiliate’s personal purchases.
RPV stands for “Retail Private Quantity” and is gross sales quantity generated by personally referred retail clients.
GV stands for “Group Quantity” and is RPV generated by an affiliate and their downline.
Elepreneurs compensation plan states that PV is excluded from rank calculation quantity, aside from Happier and Happiest Packs.
The quantity from private orders (PV) doesn’t depend in the direction of Rank {Qualifications} (aside from Happier and Happiest Packs within the first month).
Rank-based Fee Caps
Elepreneurs caps month-to-month commissions earned by associates based mostly on rank:
- Elepreneurs can earn as much as $750 a month
- Stars can earn as much as $1250 a month
- Bronzes can earn as much as $2500 a month
- Silvers can earn as much as $5000 a month
- Golds can earn as much as $7500 a month
- Platinums can earn as much as $12,500 a month
- Diamonds can earn as much as $20,000 a month
- Black Diamonds can earn as much as $32,500 a month
- Royal Black Diamonds can earn as much as $50,000 a month
- Ambassadors can earn as much as $70,000 a month
- Crown Ambassadors and better don’t have any earnings cap
Though not explicitly said, I consider the caps apply to all earnable commissions and bonuses.
Retail Commissions
Elepreneurs pays retail commissions on retail buyer purchases.
Retail commissions are 10% to twenty%, calculated based mostly on the distinction between the wholesale and retail value of merchandise ordered.
Notice that retail autoship orders solely pay out 10%. Trial packs pay out $10.
Buyer Acquisition Bonus
The Buyer Acquisition Bonus rewards Elepreneurs associates for referring retail clients.
The Buyer Acquisition Bonus is a three-tier bonus, calculated month-to-month as follows:
- refer three or 4 new retail clients in a month and obtain a $25 CAB
- refer 5 or 6 new retail clients in a month and obtain a $50 CAB
- refer seven or extra new retail clients in a month and obtain a $100 CAB
Notice that with a view to depend in the direction of CAB qualification, new retail clients should place an 80 PV or greater order.
Recruitment Commissions
Elepreneurs pays commissions on the recruitment of latest associates who join with elective packs.
Recruitment commissions are coded and based mostly on how a lot a newly recruited affiliate spends after they join.
- recruit a Happier Pack affiliate and obtain $75
- recruit a Happiest Pack affiliate and obtain $150
A coded bonus is paid based mostly on tiers, that are in flip tied to Elepreneurs affiliate ranks:
- Elepreneur to Silver are tier 1
- Gold and Platinum are tier 2
- Diamond to Royal Black Diamond are tier 3
- Ambassador and better are tier 4
Coded bonuses paid out on the Happier and Happiest Packs are as follows:
- Happier Pack tiers 2 to 4 – $12.50 on every tier
- Happiest Pack tiers 2 to 4 – $25 on every tier
The coded nature of the tier commissions sees greater ranks in a position to gather the distinction in commissions paid to decrease ranked associates of their downline.
If we use the Happiest Pack for example, $75 ($25 divided by 3) is paid as a coded bonus on every Happiest Pack affiliate recruited.
If a tier 2 ranked affiliate recruits a Happiest Pack affiliate, they obtain the $150 base fee plus a $25 coded bonus.
This leaves $50 to be paid out ($75 minus $25).
The system searches upline for both a tier 3 or tier 4 affiliate to pay the remaining coded bonus out to.
If a tier 3 affiliate is discovered first, they obtain their $25 share and system searches additional upline for a tier 4 affiliate to pay the remaining $25 out to.
If a tier 4 affiliate is discovered first, they obtain the remaining $50 coded bonus.
Notice that anytime a tier 4 affiliate recruits a Happier or Happiest Pack affiliate, they obtain the complete coded bonus with nothing handed upline ($37.50 and $75 respectively).
Residual Commissions
Elepreneurs pays residual commissions by way of a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the prime of a unilevel group, with each personally recruited affiliate positioned straight below them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel group.
If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.
Elepreneurs caps payable unilevel group ranges at ten.
Residual commissions are paid as a proportion of funds generated throughout these ten ranges as follows:
- Elepreneurs earn 7% on stage 1 (personally recruited associates) and 6% on stage 2
- Stars earn 7% on stage 1, 6% on stage 2 and 5% on stage 3
- Bronzes earn 7% on stage 1, 6% on stage 2, 5% on stage 3 and 4% on stage 4
- Silvers earn 7% on stage 1, 6% on stage 2, 5% on stage 3, 4% on stage 4 and three% on stage 5
- Golds earn 7% on stage 1, 6% on stage 2, 5% on stage 3, 4% on stage 4, 3% on stage 5 and a pair of% on stage 6
- Platinums earn 7% on stage 1, 6% on stage 2, 5% on stage 3, 4% on stage 4, 3% on stage 5 and a pair of% on ranges 6 and seven
- Diamonds earn 7% on stage 1, 6% on stage 2, 5% on stage 3, 4% on ranges 5 and 6 and three% on ranges 6 and seven
- Black Diamonds earn 7% on stage 1, 6% on stage 2, 5% on ranges 3 and 4 and 4% on ranges 5 to 7
- Royal Black Diamonds earn 7% on stage 1, 6% on stage 2 and 5% on ranges 3 to 7
- Ambassadors earn 5% on ranges 1 to five, 6% on ranges 6 and seven and 1% on stage 8
- Crown Ambassadors earn 4% on ranges 1 and a pair of, 5% on ranges 3 to five, 6% on ranges 6 and seven, 2% on stage 8 and 1% on stage 9
- Royal Crown Ambassadors earn 3% on ranges 1 and a pair of, 4% on ranges 3 and 4, 5% on stage 5, 6% on stage 6, 7% on stage 7, 3% on stage 8, 2% on stage 9 and 1% on stage 10
- Triple Crown Ambassadors earn 2% on ranges 1 and a pair of, 3% on stage 3, 4% on stage 4, 5% on stage 5, 6% on stage 6, 7% on stage 7, 4% on stage 8, 3% on stage 9 and a pair of% on stage 10
Management Bonus
Elepreneurs rewards Platinum and better ranked associates with a month-to-month Management Bonus:
- Platinums obtain $400
- Diamonds obtain $600
- Black Diamonds obtain $800
- Royal Black Diamonds obtain $1000
Diamond Pool
Elepreneurs takes 0.5% of month-to-month company-wide gross sales quantity and locations it into the Diamond Pool.
Diamond and better ranked associates qualify for a share within the pool, which is paid month-to-month.
Shares within the Diamond Pool are calculated pro-rata on GV generated by every affiliate (i.e. their GV contribution as a proportion of the whole GV of each qualifying affiliate).
Ambassador Pool
Elepreneurs takes 1.5% of month-to-month company-wide gross sales quantity and locations it into the Diamond Pool.
Ambassador and better ranked associates qualify for a share in two swimming pools, that are paid month-to-month.
The primary is a 0.5% pool, during which an equal share is distributed month-to-month to all qualifying Ambassador and better ranked associates.
The second is a 1% pool, during which shares are calculated pro-rata on GV generated by every affiliate (i.e. their GV contribution as a proportion of the whole GV of each qualifying affiliate).
Becoming a member of Elepreneurs
Primary Elepreneurs affiliate membership is $49.
Optionally available pack memberships are additionally accessible:
- Happier Pack – $299
- Happiest Pack – $549
The distinction between the packs and common Elepreneurs affiliate membership is bundled merchandise.
Conclusion
The reader who first contacted me about updating BehindMLM’s Elepreneurs evaluate opened with Elevacity.
This prompted me to go examine Elevacity’s web site for an up to date compensation plan, whereby I couldn’t discover one – a lot the much less any point out of an MLM alternative.
After reporting again my discovering the reader pointed me to Elepreneurs, at which level I bear in mind this was that firm.
There’s actually no want for 2 separate web sites. Elevacity began off a Travopoly journey area of interest alternative, nonetheless that doesn’t exist anymore.
By all means preserve the Elevacity product branding, however I believe it’s time to ditch the separate and complicated firm web sites.
I famous this in our 2018 evaluate, opening that evaluate conclusion with “I’m probably not certain why Elepreneurs exists.”
I don’t see why Elevacity couldn’t have simply rebooted itself with a brand new compensation plan.
Two and a half years later the problem hasn’t been addressed.
Transferring onto Elepreneurs’ merchandise, not a lot has modified since our 2018 evaluate.
One factor I’m not a fan of is the D.O.S.E advertising.
While clearly a play on phrases, it nonetheless in a *winkwink* approach implies medicinal advantages.
None of Elepreneurs’ merchandise are accepted for remedy or administration of any medical situation.
I really feel attempting to be good with acronyms, to indicate Elepreneurs’ merchandise are greater than they’re, is pointless and cheesy.
The merchandise themselves lean closely into “happiness” advertising, which I’m not a fan of. I bought the impression Elepreneurs see their product vary as an alternative choice to individuals who aren’t feeling blissful (learn: depressed).
That once more is wading into harmful regulatory non-compliance territory.
I is likely to be studying an excessive amount of into the branding, however I don’t consider in coincidences relating to advertising and branding.
On the plus facet Elepreneurs’ offered figures suggests the product vary is a success with retail clients.
Elepreneurs claims it has
a ratio of almost 10 CUSTOMERS FOR EVERY 1 DISTRIBUTOR! (409,739 Clients to 42,689 Distributors as of October 31, 2019)
Not clarified is whether or not these 409,739 clients have been energetic, i.e. had they positioned a latest order or is that an amassed whole buyer quantity.
I used to be initially skeptical whether or not “clients” included associates who’ve since gone inactive, however that doesn’t appear to be the case.
Buyer: A person that buys items from an Elepreneur both in particular person or by a private replicated web site with out establishing themselves as an Elepreneur.
Elepreneurs’ compensation plan counts retail clients in the direction of rank qualification provided that they’re buying 40 PV a month.
To be correct, I believe any buyer calculations Elepreneurs does ought to undertake the identical PV requirement.
And in the event that they’ve completed that, then that’s unbelievable!
One thing else I used to be initially flagged as an issue was Elepreneurs permitting 80 PV to qualify, versus 240 RPV.
That’s you possibly can both purchase 80 PV value of product, or must generate 3 times as a lot in retail quantity if you wish to receives a commission every month.
What I noticed as I went by the compensation plan is finally all associates, not less than those that progress in rank, are required to refer and keep retail clients.
This maxes out at eight, which when multiplied by the 40 RPV minimal quantity involves 240 RPV.
I nonetheless assume the 300% improve in required retail quantity may very well be lowered on the decrease ranks, however given the retail buyer necessities this isn’t essentially essential.
I’m positively not eager on capping earnings based mostly on rank, as somebody may very well be punching above their weight quantity sensible and having commissions withheld. Whenever you issue within the retail buyer necessities nonetheless, you could possibly take a look at it as incentive to personally construct your retail customer-base if you wish to earn extra in your downline.
I’m nonetheless in two minds about it as you don’t sometimes see unilevel-based compensation plans capping commissions based mostly on rank.
One different factor that stood out was the lowered unilevel group percentages.
I do know the concept is that deeper ranges obtain corresponding proportion will increase however nonetheless, at these depths your counting on folks a number of ranges down from you to construct.
Your individual efforts are diminished by lowered percentages, which I think about could be disheartening.
I noticed no point out of the dodgy SHRV Inventory Rewards scheme I flagged in our 2018 evaluate, so if that’s gone than that’s a plus.
Talking of inventory, I famous Sharing Companies’ sustained losses of $6.9 million {dollars} in 2018.
As per Sharing Companies’ newest annual report, filed on July eighth, 2020,
For the fiscal 12 months ended April 30, 2020, our consolidated web gross sales elevated by $45.5 million, to $131.4 million, in comparison with $85.9 million for the fiscal 12 months ended April 30, 2019.
Internet earnings for 2019-2020 have been $2.7 million. Notice nonetheless that’s down from $21.4 million the earlier 12 months.
A number of different attention-grabbing figures embrace Elepreneurs citing 24,000 associates, down from 42,689 in 2018.
In addition to this assertion relating to their gross sales unfold;
Through the fiscal 12 months ended April 30, 2020, roughly 47% of our consolidated web gross sales have been to recurring clients (which we confer with as “SmartShip” gross sales), roughly 26% have been to new clients and roughly 27% have been to our unbiased distributors.
Undecided in the event that they’re counting associates on autoship as “clients” there. The beforehand cited buyer definition is in Elepreneurs compensation plan, not their filed annual report.
One ultimate factor I’ll contact on is how Elepreneurs’ markets its “blissful” packs.
I’m not questioning whether or not “most of” Elepreneurs’ prime earners signed up with the most costly possibility, however I’m questioning why.
The one distinction between the Happiest Pack and the opposite choices is bundled product.
There’s no monetary profit, so why would you indicate a better probability of changing into a prime earner by spending extra while you join?
It comes off as slimy and one thing the FTC may flag as a possible advertising concern from a regulatory perspective.
All in all though I’ve raised quite a few essential factors, Elepreneurs is a fairly well-balanced MLM alternative.
You’ve gotten a stable product line that has demonstrated demand by gross sales, and a compensation plan that makes a real effort to deal with driving retail gross sales.
Stated retail gross sales will not be solely inspired, they’re required and that’s nice to see.
There’s at all times room for enchancment; particularly consolidation of Elevacity and Elepreneurs, in addition to some minor advertising revisions.
Oh and earlier than you gung-ho with the happiness advertising, please attempt the merchandise first and consider whether or not they even have any impact in your happiness.
Undecided the way you’d quantify that on a person stage, a lot the much less from a advertising angle – however that’s the branding Elepreneurs have opted to go together with.
Good luck!
Replace twenty fourth February 2021 – Doubtless searching for to distance itself from founder Rob Oblon, who has gone on to do his personal issues, Elevacity has rebranded itself as The Comfortable Firm.