Longrich’s offered company construction is complicated.
The corporate markets itself as “Longrich America Int’, Inc.”, but additionally claims to be a ‘main firm which dominates the beauty trade in southern China.’
In July 2009, the Ministry of Commerce of the direct promoting trade administration data techniques introduced that Jiangsu LONGRICH Bio-Science Co., Ltd has formally obtained the China’s direct promoting license.
Inside that 12 months, Longrich was chosen because the “High Ten Worthwhile Enterprises in Cosmetics Manufacturing Business”.
Longrich as a non-MLM firm has been round since 1986.
Based in 1986, our firm has seen regular development in its market share and growth that makes us as we speak one of the profitable non-public corporations.
Our emblems have been registered in 183 nations and our merchandise are offered in additional than 50 nations and areas all over the world together with Malaysia, Taiwan, Hong Kong, Singapore, Nigeria, Ghana, Gabon, South Africa, Cameroon, Russia, Ukraine, South Korea, Thailand, Philippines, United Arab Emirates in addition to the USA.
On Longrich’s web site a collection deal with in Cerritos, California is offered. Google Maps exhibits the deal with is a shared use workplace constructing.
Longrich’s advertising and marketing movies present a “city” in China. The corporate’s official YouTube channel sits deserted for 4 years.
Company workers detailed on Longrich’s web site embody Zhiwei Xu and Sean Xu.
Zhiwei Xu (proper) is credited as Chairman of Jiansu Longliqi Biosceince, which seems to be Longrich’s buying and selling title in China.
As per Xu’s company bio, he has ties to the Chinese language authorities and is dubbed ‘probably the most influential man in China’s beauty trade’.
No data with respect to Longrich is offered.
Sean Xu’s Longrich company bio is a advertising and marketing pitch for the corporate itself. No details about Xu or his enterprise expertise is offered.
In keeping with his LinkedIn profile, Xu (proper) can be “HRD” (Human Assets Director?) at Jiansu Longliqi Bioscience.
I did attempt seeking out unbiased data on each Xus. Sadly their names are too generic and I believe language-barriers didn’t assist.
The one images of the pair that appear to exist are two pictures utilized in Longrich advertising and marketing.
In 2016 Longrich Botswana collapsed, leading to “tens of millions of Pula” in losses.
In April 2019 the Financial institution of Namibia outlawed Longrich, discovering it to be an “unlawful monetary scheme”.
The Financial institution hereby declares Longrich as an unlawful monetary scheme exhibiting undesirable practices.
The sale of Longrich merchandise just isn’t necessary. The advertising and marketing technique focuses primarily on the recruitment of latest members as the first supply of revenue, versus the sale of Longrich merchandise.
Learn on for a full assessment of Longrich’s MLM alternative.
Longrich’s Merchandise
Regardless of claiming to have “greater than 1,000 merchandise”, Longrich’s web site solely particulars a handful throughout house ware, private care, vitamin and female care.
Product descriptions are offered by means of PDF brochures. There appears to be a bug with ordering although as after I click on on the order button I’m redirected again to Longrich’s homepage.
Longrich fail to supply retail pricing for any merchandise on their web site.
Longrich’s Compensation Plan
Longrich don’t present a replica of their compensation plan on their web site.
As such, the next evaluation has been put collectively from numerous advertising and marketing displays revealed in 2020.
Affiliate Ranks
There are twelve affiliate ranks inside Longrich’s compensation plan:
- 1 Diamond – buy Platinum tier affiliate membership or improve
- 2 Diamond – buy Platinum VIP tier affiliate membership or improve
- 3 Diamond – have two unilevel crew legs with a 2 Diamond or larger in every
- 4 Diamond – have two unilevel crew legs with a 3 Diamond or larger in every
- 5 Diamond – have two unilevel crew legs with a 4 Diamond or larger in every
- 6 Diamond – have two unilevel crew legs with a 5 Diamond or larger in every and generate 250 GV in new downline quantity every month
- 7 Diamond – have two unilevel crew legs with a 6 Diamond or larger in every and generate 750 GV in new downline quantity every month
- 1 Star Director – have three unilevel crew legs with a 6 Diamond or larger in every and generate 1250 GV in new downline quantity every month
- 2 Star Director – have three unilevel crew legs with a 7 Diamond or larger in every and keep 1250 GV in new downline quantity every month
- 3 Star Director – have three unilevel crew legs with a 1 Star Director or larger in every and generate 5000 GV in new downline quantity every month
- 4 Star Director – have three unilevel crew legs with a 2 Star Director or larger in every and generate 10,000 GV in new downline quantity every month
- 5 Star Director – have three unilevel crew legs with a 3 Star Director or larger in every and generate 20,000 GV in new downline quantity every month
GV stands for “Group Quantity” and is gross sales quantity generated by an affiliate’s orders and that of their downline.
New quantity is tied to recruitment of associates for that month who buy Longrich merchandise.
Recruitment Commissions
Longrich associates are paid to recruit new associates.
Commissions are paid as a proportion of funds spent by newly recruited associates when the enroll.
Whereas the recruitment fee proportion itself isn’t disclosed, a ten% recruitment fee is paid when recruited associates buy a higher-tier affiliate membership stage.
Residual Commissions
Longrich pays residual commissions through a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the high of a unilevel crew, with each personally recruited affiliate positioned instantly beneath them (stage 1):
If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel crew.
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.
Word that Longrich caps unilevel crew ranges at three. Presumably because of this anybody recruited after three is positioned left to proper throughout the present three unilevel crew legs.
Residual commissions are paid as a proportion of gross sales quantity generated throughout the 2 weaker unilevel crew legs, that’s the two legs with much less quantity towards the third.
Gross sales quantity is generated when recruited associates buy Longrich merchandise.
Residual fee percentages are calculated primarily based on how a lot a Longrich affiliate spends after they enroll:
- enroll on the Q-Silver and Silver tiers and obtain an 8% residual fee price
- enroll on the Gold tier and obtain a ten% residual fee price
- enroll on the Platinum and Platinum VIP tiers and obtain a 12% residual fee price
Word that the advertising and marketing examples I’ve seen seem to recommend Longrich limits the unilevel crew to 3 legs. This is able to imply residual commissions are paid on the 2 weaker legs.
If that’s the case, then what occurs past three recruited associates, with respect to unilevel crew placement, is unclear.
Management Bonus
The Management Bonus is an identical bonus paid on residual commissions earned by downline associates.
The Management Bonus is paid out utilizing the identical unilevel compensation construction as residual commissions, nevertheless the variety of legs is uncapped.
That’s to say every personally recruited affiliate generates a brand new unilevel crew leg.
The Management Bonus is tied to affiliate rank, capping out at 5 Star Director associates incomes the bonus throughout twelve unilevel crew ranges.
- 1 Diamond ranked associates earn a ten% match on stage 1 (personally recruited associates)
- 2 Diamond ranked associates earn a ten% match on stage 1 and 5% on stage 2
- 3 Diamond ranked associates earn a ten% match on stage 1 and 5% on ranges 2 and three
- 4 Diamond ranked associates earn a ten% match on stage 1 and 5% on ranges 2 to 4
- 5 Diamond ranked associates earn a ten% match on stage 1 and 5% on ranges 2 to five
- 6 Diamond ranked associates earn a ten% match on stage 1 and 5% on ranges 2 to six
- 7 Diamond ranked associates earn a ten% match on stage 1 and 5% on ranges 2 to 7
- 1 Star Director ranked associates earn a ten% match on stage 1, 5% on ranges 2 to 7 and 1% on stage 8
- 2 Star Director ranked associates earn a ten% match on stage 1, 5% on ranges 2 to 7 and 1% on ranges 8 and 9
- 3 Star Director ranked associates earn a ten% match on stage 1, 5% on ranges 2 to 7 and 1% on ranges 8 to 10
- 4 Star Director ranked associates earn a ten% match on stage 1, 5% on ranges 2 to 7 and 1% on ranges 8 to 11
- 5 Star Director ranked associates earn a ten% match on stage 1, 5% on ranges 2 to 7 and 1% on ranges 8 to 12
Repeat Order Bonus
The Repeat Order Bonus is an autoship fee, that means Longrich associates will need to have a standing 30 PV or larger autoship order to qualify.
PV stands for “Private Quantity” and is gross sales quantity generated by an affiliate’s product purchases.
The Repeat Order Bonus is paid out as 4.5% of autoship orders positioned by associates throughout a “placement tree”.
The location tree is described as a fifteen-level deep matrix construction, nevertheless the width of the matrix just isn’t outlined.
Breakaway Bonus
The Breakaway Bonus is an autoship fee, that means Longrich associates will need to have a standing 30 PV or larger autoship order to qualify.
The Breakaway Bonus pays a proportion on autoship orders maintained by personally recruited associates.
The Breakaway Bonus proportion is calculated primarily based on the sum whole PV generated by an affiliate’s autoship order and that of their personally recruited associates.
- generate much less then 100 PV a month in autoship orders and obtain a 21% Breakaway Bonus price
- generate 100 to 200 PV a month in autoship orders and obtain a 25% Breakaway Bonus price
- generate 200 to 400 PV a month in autoship orders and obtain a 29% Breakaway Bonus price
- generate 400 to 800 PV a month in autoship orders and obtain a 33% Breakaway Bonus price
- generate 800 to 1600 PV a month in autoship orders and obtain a 37% Breakaway Bonus price
- generate 1600 to 3500 PV a month in autoship orders and obtain a 41% Breakaway Bonus price
- generate 3500+ PV a month in autoship orders and obtain a forty five% Breakaway Bonus price
Tremendous Director Bonuses
To qualify as a Tremendous Director, a Longrich affiliate should
- generate 3500 GV a month inside their personally recruited affiliate group;
- have a personally recruited affiliate who has certified for Tremendous Director; or
- have two associates wherever in your unilevel crew who’ve certified at Tremendous Director.
As soon as certified, Tremendous Director associates earn a Vertical and Horizontal Bonus.
The Horizontal Bonus is predicated on gross sales quantity generated by personally recruited associates:
- generate lower than 3500 PV throughout your personally recruited associates and earn nothing
- generate 3500 PV throughout your personally recruited associates and earn 10% on as much as 3500 GV
Each these bonus quantities are wonky, as offered by Longrich associates.
The primary has a selected system: (your private group gross sales+whole group gross sales of all first stage that reaches 3500PV 3500PV)*10%.
The issue is in case you’re producing lower than 3500 GV out of your personally recruited associates, basically you’re subtracting 3500 from a quantity lower than 3500, after which multiplying that by 10%.
The second choice additionally has a system: 10% out of your first stage that reaches 3500PV.
Once more you want 3500 GV to qualify, so if the fee is capped at 3500 GV that’s all you’re ever going to earn on.
The Vertical Bonus is a little more straight ahead. It’s paid out on downline quantity and primarily based on what number of Tremendous Administrators you’ve personally recruited:
- recruit three Tremendous Administrators and obtain a 5% bonus on their generated gross sales quantity
- recruit 5 Tremendous Administrators and obtain a 3% bonus on their generated gross sales quantity
- recruit seven Tremendous Administrators and obtain a 2% bonus on their generated gross sales quantity
- recruit 9 Tremendous Administrators and obtain a 1% bonus on their generated gross sales quantity
Becoming a member of Longrich
Longrich affiliate membership is priced throughout six tiers (observe that I used to be solely capable of finding membership prices in Nigerian Naira):
- Q-Silver – N40,000
- Silver – N80,000
- Gold – N130,000
- Platinum – N350,000
- Platinum VIP – N750,000
How a lot a newly recruited Longrich spends on their membership instantly impacts incomes potential.
Presumably every affiliate membership tier can be bundled with an assortment of Longrich merchandise.
Conclusion
Longrich is your traditional product-based pyramid scheme.
Your first crimson flag is Longrich banging on about being a majorly profitable Chinese language firm, but not working their MLM alternative there.
Chinese language regulators have a status for not caring until their very own citizenry are being scammed. That and I believe there’s loads of palm-greasing occurring behind the scenes.
Pure hypothesis after all on my half.
Zhiwei Xu’s ties to the Chinese language authorities aren’t speculative although, and that little doubt helps Longrich.
As recognized by authorities in Botswana, the core of Longrich’s MLM alternative is signing up, placing in a month-to-month autoship order, after which getting paid to recruit others who do the identical.
This explains Longrich’s virtually non-existent retail concentrate on their web site, together with the damaged ordering system referenced within the introduction of this assessment.
How lengthy the ordering system has been damaged for, who is aware of. It doesn’t matter, as a result of there’s no retail exercise going inside the corporate.
That is additionally why compensation materials isn’t overtly offered, as you’re speculated to be conned into signing up by an current Longrich affiliate.
With respect to Longrich’s merchandise themselves, I observe that Mmegi columnist, Richard Harriman acknowledged
they declare that their “Nutri V Wealthy” product is “anti most cancers, enhance and forestall diabetic, hypertension, and different terminal ailments.
“In addition they say it’s ‘virtually 100% efficient in treating a variety of circumstances corresponding to hypertension, fatty liver, diabetes mellitus (kind 2 diabetes), weight problems, gastritis, liver illness’.
I didn’t discover something as egregious at that from Longrich themselves, however the results of easy searches like “longrich diabetes” or “longrich most cancers” are minefields of unlawful medical claims.
Longrich themselves don’t appear to offer a crap. Once more neither will Chinese language regulators, as long as no person in China itself is scammed.
Whereas I didn’t discover Longrich making illness associated claims about their merchandise, a minimum of not publicly, I did discover their description of straightforward cooking pots totally ridiculous.
This can be a bit prolonged but it surely’s Longrich’s verbatim advertising and marketing for his or her “Elegant Model Power Pots”.
With Elegant Model Power Pot, with out seasoning or flavorings as soon as served combined dishes of hen, fish seafood, greens and or tofu.
Your meals won’t be oily. Soup at all times clear and greens retain the unique coloration and style.
The Elegant Model Power Spot [sic], making use of bodily “area synergy” impact know-how of China unbiased property rights, with core know-how machine “sixty 4 column array”, the vitality product system of world main, created initially by the Chinese language.
It’s working precept is accumulating and integrating disordered house vitality by system resonance, one form of new “vitality area” is transferred and fashioned with efficient methodology.
What a load of utter baloney. And if that’s how Longrich are formally advertising and marketing a easy cooking pot, god is aware of how different merchandise are unofficially marketed.
Wonky merchandise, a pyramid scheme compensation plan, executives with no verifiable background and lack of MLM enterprise of their house nation.
There’s actually nothing interesting about Longrich’s MLM alternative, outdoors of incomes a fast buck by recruiting folks into this mess.
One factor I did observe is Longrich claims to have a thriving whitelabel enterprise.
Beside the standard gross sales and direct gross sales, we even have a confirmed expertise in OEM and ODM.
We assist native and worldwide corporations handle their whole provide chain in China.
We’ve the aptitude to supply product analysis and growth, packaging design, uncooked materials procurement, manufacturing, warehousing, distribution and gross sales of every kind of cosmetics, private care, family, well being and pet care merchandise.
Once more, that is purely hypothesis on my half, however I believe that is the precise core of Longrich’s enterprise operations. I’d definitely wager it’s behind the success touted by the corporate.
The MLM aspect of Longrich is low-effort and, with out sounding crude, appears focused at third world nations whose populace won’t know any higher.
Lengthy story quick; if somebody approaches you about Longrich and so they begin babbling on about magical cooking pots, run.