HLBS Community’s web site offers no details about who owns or runs the corporate.
The footer of the web site offers an deal with in Slovakia for HLBS s.r.o., revealing the corporate’s European roots.
As I perceive it HLBS Community’s US division operates as HLBS International Advertising and marketing US LLC in Texas.
Company information reveal HLBS Community was based in 2016.
Additional analysis reveals Peter Gabriel citing himself as HLBS Community’s CEO:
Based on his LinkedIn profile, Gabriel is predicated out of Hungary.
Gabriel (proper) does have an in depth company historical past however HLBS Community seems to be his first MLM enterprise.
Previous sectors Gabriel has labored in embrace hospitality, finance and real-estate.
Why HLBS Community government info isn’t supplied on its web site is unclear.
With Gabriel being based mostly out of Hungary, it follows that is the place HLBS Community is operated from. The Slovakian incorporation would look like a shell firm.
That is mirrored in HLBS Community’s Phrases and Situations;
Contemplating that HLBS s.r.o. is represented by the HLBS s.r.o. Hungarian Department, with regard to this doc, Hungarian Legislation is relevant.
Learn on for a full evaluate of HLBS Community’s MLM alternative.
HLBS Community’s Merchandise
HLBS Community’s web site particulars three product classes; cosmetics, purposeful meals and dietary dietary supplements.
HLBS Community Cosmetics
HLBS Community markets 4 merchandise in his cosmetics vary:
- Citrus+ – “gently cleanses and helps the pores and skin’s fast regeneration and safety”
- LH+ Physique – “cares for all pores and skin varieties with its valuable elements that stability the pores and skin’s PH degree”
- LH+ Face – “a robust instrument in preserving pores and skin youth, it protects in opposition to dangerous solar radiation and its liposomal expertise ensures supply of the energetic ideas all the way in which to the deepest layers of the pores and skin of the face”
- LH+ Spray – “contributes to the pores and skin’s fast regeneration and to its safety”
HLBS Community Purposeful Meals
HLBS Community markets two merchandise in its purposeful meals vary:
- Chocodream Premium Chocolate – “silhouette sugar free darkish chocolate with humic acid and psyllium seed husk”
- Espresso On the spot – “specialty espresso with taurine, guarana and inulin”
HLBS Community Dietary Dietary supplements
HLBS Community markets 9 merchandise in its dietary dietary supplements vary:
- CGS12+ – basic well being complement in a “vegan capsule”
- CBR7 – vitamin C complement with bioflavonoids and rutin
- DPS12 – “day by day vegan protein shake”
- IS8 – “a pure raspberry and vitamin cocktail”
- DK5 – “vitamin D3 and vitamin K2 in double vegan capsule crammed with olive oil”
- HMAX8 – “the pure elements of HMAX8 make the physique sturdier and extra resistant, they’ll even enhance athletic efficiency”
- Berry SLM – “helps cleansing, weight reduction and offers the physique with nutritional vitamins”
- AAG1 – “dietary complement containing astragalus, ginseng and phosphatidyl in vegan capsule”
- HC80 – “meals complement capsules with humic acid and cordyceps”
All of HLBS Community’s merchandise look like manufactured in Hungary by third-parties.
Word that HLBS Community don’t present retail pricing for any of their merchandise.
HLBS Community’s Compensation Plan
HLBS Community associates earn commissions on retail gross sales.
The majority of the compensation plan nonetheless is geared in the direction of affiliate recruitment.
Fee Qualification
To qualify for commissions, HLBS associates should generate €100 EUR a month.
That is offered as a required month-to-month private spend. Whether or not retail gross sales quantity qualifies in the direction of the €100 EUR a month requirement is unclear.
HLBS Community Affiliate Ranks
There are three recognized ranks inside HLBS Community’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Affiliate – enroll as a HLBS affiliate and meet fee qualification standards (see above)
- Group Chief – recruit and keep seven associates
- Supervisor – qualification standards not disclosed
Retail and Recruitment Direct Commissions
When a HLBS Community affiliate indicators up a brand new retail buyer or recruits an affiliate, they obtain a direct fee.
Retail and recruitment direct commissions are paid 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 (degree 1):
If any degree 1 associates recruit new associates, they’re positioned on degree 2 of the unique affiliate’s unilevel group.
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.
Retail and recruitment direct commissions are paid as a share of gross sales quantity, generated on referral of a retail buyer or affiliate recruitment.
Retail and recruitment direct commissions are paid on as much as 4 unilevel group ranges, based mostly on rank:
- 20% on degree 1 (personally recruited associates)
- 10% on degree 2
- 5% on degree 3 (Group Leaders and Managers)
- undisclosed share on degree 4 (Managers solely)
HLBS Pool
The HLBS Pool is, if I’m not mistaken, a binary bonus pool offered in a stupidly sophisticated approach.
Right here’s HLBS Community’s official HLBS Pool slide:
Earlier than we get into what the textual content says, I’ll attempt to break down the diagram as I perceive it.
Within the heart you’ve gotten the affiliate. To the fitting you’ve gotten “1 TY”. I don’t know what “TY” stands for however the “1” represents their first recruited affiliate.
To the fitting of “1 TY” we’ve got “1-1”, which I consider represents the primary personally affiliate recruited by “1 TY”.
To the fitting of “1-1” we’ve got “3”, representing the third personally recruited affiliate.
Then there’s “1-3” (third affiliate recruited by “1 TY”), 2-2 (second affiliate recruited by “2”), and “3-1” (first affiliate recruited by “3”).
On the left we’ve got “2” (second personally recruited affiliate), “1-2” (second affiliate recruited by “1-TY”), “2-1” (first affiliate recruited by “2”), “2-1-1” (first affiliate recruited by “2-1”), and 4 (fourth personally recruited affiliate).
Right here’s the auto-translated textual content from the slide above:
- have two energetic members and obtain a share within the Bronze pool
- each Monday you’ll obtain a share of the turnover of 100, 500, or an infinite variety of members on the axis out of your 2nd member
- it depends upon what beginning bundle you’ve gotten
- the system invests 25% of the online worth of every member exercise and 10% of the worth of buyer purchases within the HLBS pool
- as you develop in depths you’re going to get a share of 10%, 15%, or 20% of the pool
So far as I can inform both sides of the binary group is stuffed usually (one place on the left, one on the fitting).
I don’t know if there’s any significance to the second place on the left, however that’s the place the quantity paid out on begins.
Quantity paid out on is as much as 25% of affiliate and 10% of retail buyer order quantity.
These percentages look like tiered. The one qualifier talked about is “beginning bundle”, suggesting how a lot a HLBS Community affiliate spends after they enroll dictates their HLBS Pool charge.
What I can affirm is the “100, 500, or an infinite variety of members” the HLBS Pool is earned on, is tied to how a lot an affiliate spends after they enroll:
- Primary tier associates earn the HLBS Pool on as much as 100 recruited associates
- Newbie tier associates earn the HLBS Pool on as much as 500 recruited associates
- Skilled and Enterprise tier associates earn the HLBS Pool on an infinite variety of recruited associates
Begin Pool
HLBS Community locations 10% of newly recruited affiliate quantity and locations it into the Begin Pool.
To qualify for a share within the Begin Pool a HLBS Community affiliate should recruit 4 associates in a month.
The extra these associates spend when recruited, the bigger the qualifying affiliate’s Begin Pool share:
The extra members you register with the most important beginning bundle, the upper your fee will likely be.
The Begin Pool is paid out month-to-month.
Prime Chief Fee (???)
HLBS Community’s compensation plan references a “Prime Chief Fee”.
This fee isn’t defined however we do know the extra an affiliate spends after they enroll determines their Prime Chief Fee charge:
- Primary tier associates earn a 50% Prime Chief Fee charge
- Newbie tier associates earn a 60% Prime Chief Fee charge
- Skilled tier associates earn an 80% Prime Chief Fee charge
- Enterprise tier associates earn a 100% Prime Chief Fee charge
Becoming a member of HLBS Community
HLBS Community affiliate membership prices €150 to €2500 EUR.
- Primary – €150 EUR
- Newbie – €300 EUR
- Skilled – €750 EUR
- Enterprise – €2500 EUR
Along with receiving HLBS Community merchandise, the extra a newly recruited affiliate spends the upper their revenue potential.
HLBS Community Conclusion
Your first clue retail isn’t a spotlight in HLBS Community is the corporate’s terribly named merchandise.
LH+, CBR7, DPS12, IS8? The merchandise look like abbreviations of their elements, with no thought put into naming in any respect.
This lack of retail focus carries into HLBS Community’s compensation plan, which at its core is a pay to play recruitment scheme.
This begins with how a lot a newly recruited affiliate spending figuring out their revenue potential.
Spend extra, earn extra is the inspiration of an MLM pyramid scheme.
Whereas retail commissions can be found, the remainder of HLBS Community’s compensation plan is geared in the direction of recruitment.
Having 7 members as quickly as attainable is the first objective and the fitting approach to succeed as a member.
Recruiting seven associates will get you Group Chief. Presumably Supervisor and any greater ranks require extra recruitment.
To qualify for commissions you’re taking a look at a €100 EUR a month spend. This interprets into the majority of commissions being paid out on recruited €100 EUR or extra a month autoship associates.
In different phrases, your typical product-based MLM pyramid scheme.
One factor I’m confused about is the presentation of HLBS Community’s binary-based compensation plan.
The corporate claims it’s a
linear resolution of the system is exclusive and revolutionary.
it’s the first and solely system with out battle of curiosity.
There’s definitely nothing distinctive and revolutionary about binary-based compensation plan. They’ve been round without end.
What’s “distinctive and revolutionary” is presenting one in a vastly complicated method. A binary isn’t a straight-line compensation plan.
All HLBS Community have finished is ignore one aspect of the binary group and prohibit commissionable quantity a bit on the opposite.
Granted you’re not restricted to matching or ratios – however why not simply pay out by way of a unilevel group then?
That’s primarily what HLBS Community is doing doing, solely they’re reducing out a bunch of quantity and pretending that is someway advantageous to associates. It’s not.
I can’t communicate as to why HLBS Community don’t present compensation particulars on their web site.
Given HLBS Community is energetic within the US, hiding blatant violations of the FTC Act may be one motive.
As regards to transparency, HLBS Community additionally fail to supply government info on their web site.
That is one other potential violation of the FTC Act.
Between HLBS Community wonkily named merchandise and recruitment pushed compensation plan, that is one MLM firm to keep away from.