Farmasi launched within the US in 2019, nevertheless the corporate’s roots date again to the Nineteen Fifties.
Farmasi’s founder, Dr. C. Tuna, launched a pharmaceutical firm on or round 1950.
In some unspecified time in the future Tuna switched to cosmetics, with Farmasi launched as an MLM firm in Turkey in 2010.
Dr. C. Tuna handed away in 2017. As of September 2020, Sinan Tuna (proper) was appointed CEO of Farmasi in North America.
As per a September twenty second press-release;
Tuna has gained experience working in numerous departments at Farmasi the place he has been a Board member since 2019.
Sinan Tuna’s grandfather, the late Dr. Cevdet Tuna, was the founding father of one of many Republic of Turkey’s first pharmacies.
Sinan continues his grandfather’s legacy because the third era to steer the Farmasi enterprise.
No govt particulars for Farmasi Turkey are offered on the corporate’s English-language web site.
Along with the US, Farmasi claims to function its MLM alternative in twenty-four international locations.
Learn on for a full assessment of Farmasi’s MLM alternative.
Farmasi’s Merchandise
Farmasi markets a variety of private care merchandise, manufactured in-house in Turkey.
We’ve one of many largest built-in cosmetics manufacturing crops on the earth which is positioned in Istanbul, Turkey in an ecological setting.
Built-in manufacturing implies that we not solely produce the majority product, but additionally product most of our personal packaging in-house, and we receive our waters from the wells positioned inside our amenities.
Updated, we now have formulated hundreds of merchandise, launched greater than 2.000 merchandise, and shipped our merchandise to over 125 international locations all around the globe.
Farmasi’s web site doesn’t fairly element two hundreds merchandise however there’s rather a lot on supply.
Farmasi’s marketed product classes embody;
- hair care
- foot care
- oral care
- child care
- solar care
- lip care
- skincare
- intimate care (girls’s hygiene)
- make up (physique, lips, face, eyes and nails)
- Mr Wipes family cleansing merchandise (this was a 2014 model addition)
- fragrances
Farmasi merchandise can both be bought individually or in bundled units.
A full product catalog with retail pricing is offered on Farmasi’s web site.
Farmasi’s Compensation Plan
Farmasi’s compensation plan is sophisticated by the very fact the corporate fails to offer correctly rank qualification and Management Bonus particulars.
I’ve completed my greatest to interrupt down Farmasi’s compensation plan beneath, primarily based on their official compensation documentation.
Farmasi Affiliate Ranks
Bear with me as a result of making an attempt to decipher Farmasi’s affiliate qualification ranks is a nightmare.
There are eighteen affiliate ranks inside Farmasi’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Supervisor – qualification standards not offered
- Director – generate $1500 in month-to-month facet factors
- Silver Supervisor and Director – preserve 1 ARM and preserve $1500 in month-to-month facet factors
- Gold Supervisor and Director generate 2 ARMs and generate $2500 in month-to-month facet factors
- Platinum Supervisor and Director – generate 4 ARMs and preserve $2500 in month-to-month facet factors
- Emerald Supervisor and Director – generate 8 ARMs and $5000 in facet factors
- Diamond Supervisor and Director – generate 12 ARMs, preserve $5000 in month-to-month facet factors and generate 20 title factors a month
- Vice President Supervisor and Director – generate 16 ARMs and $10,000 in month-to-month facet factors, and generate 40 title factors a month
- President Supervisor and Director – generate 20 ARMs, preserve $10,000 in month-to-month facet factors and generate 80 title factors a month
- Boss Supervisor and Director – generate 30 ARMs, preserve $10,000 in month-to-month facet factors and generate 160 title factors a month
You’ve most likely seen the double-up on rank qualification. Primarily based on the knowledge offered, there’s no distinction between the Supervisor/Director variants of every rank qualification sensible.
There’s a distinction made in title factors generated (see beneath), however regardless of the distinction between the ranks is qualification sensible I do not know.
What are facet factors? Glad you requested.
Aspect Factors Requirement: You must preserve working in your 1st era, no matter your title.
Aspect factors are calculated by subtracting the group quantity of your 25%’s in your 1st era from your personal group quantity, after which subtracting the most important group quantity of 25%, 22%, and 18% entrepreneurs, if any, in your 1st era from the ensuing worth.
Your Group Quantity – (Sum of 1st Technology 25%’s Group Quantity) – (Largest Group Quantity of 1st Technology 25%, 22%, and 18% Group Quantity, if any!) > 1500.
That’s direct from Farmasi’s compensation plan and it’s clear as mud.
From what I collect it’s principally making certain Farmasi affiliate’s down slack off from personally recruiting new associates.
You’re taking GV generated by associates you’ve personally recruited who’re on the 25% Private Bonus fee, and subtract that from your personal GV.
Keep in mind GV is the sum-total PV generated by associates you’ve personally recruited, so that you’re taking GV generated by your personally recruited associates (successfully gross sales quantity generated on degree 2 of your unilevel crew), and subtracting that from your personal GV (gross sales quantity generated on degree 1 of your unilevel crew).
You then take that quantity and subtract once more “the most important group quantity of 25%, 22%, and 18% entrepreneurs”. Whether or not that’s one affiliate or a couple of of them, who is aware of.
Anyway, no matter you’re left with is your “facet factors”, which you will need to have sufficient of to qualify for the Management Bonus at your relevant rank.
Confused? Nice! Let’s transfer on to ARMs.
ARMs usually are not outlined wherever in Farmasi’s compensation documentation, so I can’t provide you with a definitive reply.
If I needed to guess, ARM stands for “lively recruited members”, that means personally recruited lively associates (see MLM fee qualification beneath).
Lastly we now have “title factors”. Title factors are generated primarily based on the rank of personally recruited associates.
- obtain 0.5 title level for each personally recruited Supervisor and Director
- obtain 1 title level for each personally recruited Silver Supervisor and Director
- obtain 1.5 title factors for each personally recruited Gold Supervisor
- obtain 2 title factors for each personally recruited Gold Director
- obtain 3 title factors for each personally recruited Platinum Supervisor
- obtain 4 title factors for each personally recruited Platinum Director
- obtain 6 title factors for each personally recruited Emerald Supervisor
- obtain 8 title factors for each personally recruited Emerald Director and better
For the aim of rank qualification, title factors are calculated month-to-month.
MLM Fee Qualification
So as to qualify for MLM commissions a Farmasi affiliate should be lively.
To qualify as lively, every Farmasi affiliate should buy $250 value of product every month.
Retail Commissions
Farmasi associates earn commissions on the sale of merchandise to retail clients.
Retail commissions are paid out as the share between the retail and wholesale value of merchandise ordered.
Recruitment Commissions
Farmasi associates earn $30 per MLM fee certified affiliate they recruit.
This successfully equates to a fee paid per affiliate recruited who spends $250+ on Farmasi merchandise after they join.
Private Bonus
The Private Bonus is a bonus paid on gross sales to retail clients and a Farmasi affiliate’s personal purchases.
The Private Bonus fee is calculated primarily based on month-to-month GV manufacturing:
- generate 200 to 399 month-to-month GV and obtain a 3% Private Bonus fee
- generate 400 to 599 month-to-month GV and obtain a 6% Private Bonus fee
- generate 600 to 899 month-to-month GV and obtain a 9% Private Bonus fee
- generate 900 to 1399 month-to-month GV and obtain a 12% Private Bonus fee
- generate 1400 to 2199 month-to-month GV and obtain a 15% Private Bonus fee
- generate 2200 to 3599 month-to-month GV and obtain an 18% Private Bonus fee
- generate 3600 to 4999 month-to-month GV and obtain a 22% Private Bonus fee
- generate 5000 or extra month-to-month GV and obtain a 25% Private Bonus fee
GV stands for “Group Quantity”. Farmasi counts GV as an affiliate’s personal PV and that of their personally recruited associates.
PV stands for “Private Quantity” and is gross sales quantity generated by retail orders and a Farmasi affiliate’s personal purchases.
Group Bonus
The Group Bonus permits Farmasi associates to earn the distinction between their Private Bonus fee and that of their personally recruited associates.
E.g. If a Farmasi affiliate qualifies for a 15% Private Bonus fee and so they have a personally recruited affiliate who qualifies for six%, the Group Bonus can pay them the 7% distinction on that affiliate’s PV for the month.
Management Bonus
Farmasi’s Management Bonus is a bit sophisticated, so bear with me.
The Management Bonus kicks in when a Farmasi affiliate hits the 25% Private Bonus fee.
The Management Bonus is paid on gross sales quantity generated throughout a unilevel crew.
A unilevel compensation construction locations an affiliate on the prime of a unilevel crew, with each personally recruited affiliate positioned instantly beneath them (degree 1):
If any degree 1 associates recruit new associates, they’re positioned on degree 2 of the unique affiliate’s unilevel crew.
If any degree 2 associates recruit new associates, they’re positioned on degree 3 and so forth and so forth down a theoretical infinite variety of ranges.
Farmasi caps the Management Bonus at six unilevel crew ranges.
Management Bonus quantity is calculated as PV generated by associates on every unilevel crew degree, who qualify for both a 25%, 22% or 18% Private Bonus fee.
That’s to say any gross sales quantity generated by associates who qualify for a 15% Private Bonus fee and decrease is excluded from the Management Bonus.
The best way the Management Bonus is paid out on every begins with degree 2 GV being subtracted from degree 1 GV. The remaining GV is paid out as a share primarily based on rank.
Stage 2 GV is then calculated by subtracting Stage 3 GV from Stage 2 GV and paying out what’s left, once more primarily based on rank.
Simply to make clear, right here is the formulation for every of the six unilevel crew ranges Farmasi associates can qualify for:
- Unilevel degree 1 Management Bonus = a rank-based share of Stage 2 GV subtracted from Stage 1 GV
- Unilevel degree 2 Management Bonus = a rank-based share of Stage 3 GV subtracted from Stage 2 GV
- Unilevel degree 3 Management Bonus = a rank-based share of Stage 4 GV subtracted from Stage 3 GV
- Unilevel degree 4 Management Bonus = a rank-based share of Stage 5 GV subtracted from Stage 4 GV
- Unilevel degree 5 Management Bonus = a rank-based share of Stage 6 GV subtracted from Stage 5 GV
- Unilevel degree 6 Management Bonus = a rank-based share of Stage 7 GV subtracted from Stage 6 GV
Corresponding Management Bonus percentages primarily based on rank are as follows:
- Director – 4% on degree 1, 3% on degree 2, 2% on degree 3 and 1.5% on degree 4
- Silver Manger and Director – 4.5% on degree 1, 3.25% on degree 2, 2.25% on degree 3 and 1.75% on degree 4
- Golden Manger and Director – 5% on degree 1, 3.5% on degree 2, 2.5% on degree 3 and a couple of% on degree 4
- Platinum Manger and Director – 5.5% on degree 1, 4% on degree 2, 2.75% on degree 3 and a couple of.2% on degree 4
- Emerald Manger and Director – 6% on degree 1, 4.5% on degree 2, 3% on degree 3 and a couple of.5% on degree 4
- Diamond Manger and Director – 6.5% on degree 1, 5% on degree 2, 3.25% on degree 3, 2.75% on degree 4 and 1.5% on degree 5
- Vice President Manger and Director – 7% on degree 1, 5.5% on degree 2, 3.5% on degree 3, 3% on degree 4 and 1.75% on degree 5
- President Supervisor and Director – 7.5% on degree 1, 6% on degree 2, 3.75% on degree 3, 3.25% on degree 4, 2% on degree 5 and 0.75% on degree 6
- Boss Supervisor and Director – 8% on degree 1, 6.5% on degree 2, 4% on degree 3, 3.5% on degree 4, 2.25% on degree 5 and 1% on degree 6
Automotive/Journey Journey Bonus
Farmasi pays Silver Director and better ranked associates a month-to-month Automotive/Journey Bonus:
- Silver Administrators obtain $300 a month
- Golden Administrators obtain $350 a month
- Platinum Administrators obtain $400 a month
- Emerald Administrators obtain $450 a month
- Diamond Administrators obtain $500 a month
- Vice Presidents obtain $550 a month
- Presidents obtain $600 a month
- Bosses obtain $650 a month
Though not explicitly clarified, I consider the Supervisor variants of every rank obtain the identical Automotive/Journey Bonus because the Director rank variant.
Rank Achievement Bonus
Farmasi pays associates who qualify at Golden Administrators and better a one-time Rank Achievement Bonus:
- qualify a Golden Director and obtain $2000 a month
- qualify at Platinum Director and obtain $4000 a month
- qualify at Emerald Director and obtain $8000 a month
- qualify at Diamond Director and obtain $16,000 a month
- qualify at Vice President and obtain $32,000 a month
- qualify at President and obtain $64,000 a month
- qualify at Boss and obtain $128,000 a month
Notice that rank qualification should be met for five-consecutive months earlier than the Rank Achievement Bonus is launched.
Additionally be aware that though not explicitly clarified, I consider the Vice President to Boss rank standards applies to the Director variant of every rank.
Becoming a member of Farmasi
Farmasi affiliate membership is $19.99.
Optionally available product packs might be bought for $49.99 to $200. These packs embody Farmasi merchandise at a reduction.
Notice that Farmasi associates should preserve a $250 standing month-to-month order with the intention to qualify for MLM commissions.
Conclusion
Farmasi’s $250 a month minimal spend requirement is an insurmountable regulatory roadblock.
Simply so there’s no confusion, right here’s what Farmasi state of their compensation plan verbatim (emphasis mine);
While you sponsor an lively recruit inside a calendar month, you can be eligible to hitch the crew constructing program.
For every lively entrepreneur that you simply personally sponsor, you’ll earn $30.
So as to grow to be lively, an entrepreneur has to buy merchandise value $250 (catalog value) in the course of the calendar month. In different phrases, have private quantity 125 or larger.
Spend $250 a month, otherwise you don’t qualify for commissions. That is pay to play and lends itself to Farmasi working as a pyramid scheme.
To not function as a pyramid scheme, every Farmasi affiliate spending $250 a month would wish to even be promoting at the very least $250 a month to retail clients.
That’s not life like by any stretch of the creativeness.
What you could have with Farmasi is an MLM firm through which associates are paying $250 a month to qualify for commissions, paid on their downline who’re additionally paying $250 a month to qualify for commissions.
That’s the traditional product-based pyramid scheme mannequin.
To be clear I’m not stating retail gross sales aren’t occurring in Farmasi, simply that there’s probably not sufficient to steadiness the $250 month-to-month minimal spend compelled on associates.
There’s no manner round this, in need of not forcing associates to buy merchandise. Introducing retail quantity quotas as a part of rank qualification wouldn’t harm both.
I don’t know whether or not Farmasi hasn’t bothered to replace their compensation info in English or whether or not one thing was misplaced in translation, nevertheless it’s horrendous.
You will get away with half-assing compensation if it’s a typical plan I can nonetheless make sense of. Given Farmasi’s compensation mannequin isn’t normal (I’ve by no means seen subtracting quantity on one unilevel from one other to calculate commissionable gross sales quantity), this solely compounds the issue.
That drawback being the common client making heads or tails of Farmasi’s compensation plan.
For an MLM firm launched in 2010, there isn’t a excuse or justification for this.
Subsequent up Farmasi’s firm title. Initially it didn’t set off however, at the very least in English, “Farmasi” is a play on “pharmacy”.
Notice the next disclaimer on Farmasi’s web site;
The efficacy of those merchandise has not been confirmed by FDA-approved analysis. These merchandise usually are not meant to diagnose, deal with, treatment or stop any illness.
Representing your self as a pharmacy, even when tongue-in-cheek, is a regulatory no-no. I get this is perhaps a throwback to Dr. Tuna’s pharmaceutical roots however right here and now, in 2020 – Farmasi has nothing to do with the pharmaceutical trade.
In Indonesian Farmasi is a direct translation of “pharmacy”. In Farmasi’s native Turkey, the corporate title interprets to “pharmaceutical”.
The literal definition of pharmaceutical is “a medicinal drug”.
If that’s not what Farmasi is promoting (they aren’t) then, for my part, you’re simply begging for hassle from the FDA down the monitor.
Not a deal-breaker such to the extent pay to play is however a priority nonetheless.
Sadly these two points let down Dr. Tuna’s legacy on the merchandise entrance. Farmasi’s merchandise really appear competitively priced and are simply the perfect part of the MLM alternative.
They’re manufactured in-house that means Farmasi is aware of and controls precisely what goes into the product vary.
Product growth can also be cheaper than getting another person to do it. They usually have a historical past in manufacturing to lean on.
Once more, Farmasi’s product line is substantial and in principle must be readily retailable. Why the corporate has opted for a wonky compensation plan on the back-end I do not know.
I’ll wrap up by going over Farmasi’s advertising and marketing philosophy;
There’s not a selected place to introduce the advantages of FARMASİ: within the park, within the grocery retailer, within the restaurant, within the espresso home, within the film theatre, in the course of the match, within the faculty, within the bus, within the metro…
Your potential entrepreneurs are ready for you in all places with the intention to beautify themselves and from you any incomes alternative.
You greatest consider if I’m watching a film or consuming at a restaurant, the very last thing I would like is to be interrupted by your MLM pitch.
And I’m fairly assured that I’m additionally not alone on this sentiment.
It is best to completely share and clarify what, when and the way you achieved it with FARMASİ.
Every social setting face-to-face, on telephone, on social media, within the park, within the backyard, within the buying malls, within the restaurant, within the theatre, within the bus, in the course of the match, within the faculty – is a chance to start out communication with different folks.
Take Farmasi’s advertising and marketing philosophy with a grain of salt. You actually don’t need to be that one who goes round harassing folks.