ModiCare is owned by Modi Enterprises, a $2.8 billion greenback Indian conglomerate.
ModiCare was based in 1996 and is headquartered in New Delhi. In the present day the corporate claims to have
40 facilities throughout the nation that provides merchandise to over 2,700 cities.
The corporate is headed up by founder and CEO Samir Modi, grandson of Modi Enterprises founder Gujarmal Modi.
Samir Modi (proper) started his enterprise profession in 1992, working via Modi Enterprises’ tobacco pursuits.
After varied stints within the Modi Group’s companies, he launched the network-marketing arm of Modicare in 1996.
The enterprise started 12 merchandise and 300 distributors.
In 2003, he took over the cosmetics enterprise in Modicare, launching Colorbar Cosmetics for the home Indian market in 2004.
Learn on for a full assessment of ModiCare’s MLM alternative.
ModiCare’s Merchandise
Modicare markets a variety of merchandise spanning private care, house, agriculture, auto, vitamin, well being and wellness, jewellery and tech.
The corporate has too many merchandise to record right here individually, nevertheless a full catalog with retail pricing is on the market on ModiCare’s web site.
From the sounds of it, ModiCare’s merchandise are designed in-house.
Modicare merchandise are developed by the Firm’s personal extremely skilled technical employees at its R&D facilities.
All merchandise are formulated in response to worldwide requirements and developed in accordance with Indian tastes.
Given the dimensions of Modi Enterprises, I wouldn’t be stunned if the merchandise are additionally manufactured in-house. Word nevertheless that there’s no affirmation of this (at the least I couldn’t see any).
ModiCare’s Compensation Plan
ModiCare’s compensation plan pays out on gross sales quantity generated by
- retail buyer purchases;
- ModiCare affiliate purchases; and
- recruited ModiCare affiliate purchases.
ModiCare’s major technique of fee funds is factors primarily based bonuses, paid out by way of unilevel staff degree generations.
ModiCare Affiliate Ranks
There are fourteen affiliate ranks inside ModiCare’s compensation plan.
Together with their respective qualification standards, they’re as follows:
- Marketing consultant – generate 1 to 300 gathered PV and 25 to 7524 gathered GV
- Senior Marketing consultant – generate 301 to 1200 gathered PV and 7525 to 30,024 gathered GV
- Affiliate Supervisor – generate 1201 to 2700 gathered PV and 30,025 to 67,524 gathered GV
- Deputy Supervisor – generate 2701 to 4500 gathered PV and 67,525 to 112,524 gathered GV
- Supervisor – generate 4501 to 6000 gathered PV and 112,525 to 150,024 gathered GV
- Director (preliminary qualification) – generate over 6000 gathered PV and 150,025 gathered GV, or generate 4800 PV and 120,000 GV in a single month
- Director (month-to-month qualification) – preserve 600 PV a month, generate and preserve 1240 PGBV a month and 31,250 GV a month
- Senior Director – recruit and preserve one Director and generate 600 PV and 27,500 PGBV a month
- Govt Director – recruit and preserve two Administrators, preserve 600 PV a month and generate 22,500 PGBV a month
- Senior Govt Director – recruit and preserve three Administrators, preserve 600 PV a month and generate 15,000 PGBV a month
- Platinum Director – recruit and preserve 4 Administrators, preserve 600 PV a month and generate 7500 PGBV a month
- Presidential Director – recruit and preserve six Administrators and preserve 600 PV a month
- Crown Diamond Director – recruit and preserve eight Administrators and preserve 600 PV a month
- Royal Black Diamond Director – recruit and preserve eleven Administrators and preserve 600 PV a month
- World Black Diamond Director – recruit and preserve fourteen Administrators and preserve 600 PV a month
PV stands for “Private Quantity” and is gross sales quantity generated by retail orders and an affiliate’s personal purchases.
GV stands for “Group Quantity” and is PV generated by an affiliate and their total downline.
PGBV stands for “Private Group Bonus Quantity” and counts an affiliate’s PV and that of their personally recruited associates solely.
Retail Commissions
ModiCare pays as much as 20% commissions on retail buyer product orders.
Retail commissions are paid out because the distinction between the wholesale price and retail worth of merchandise ordered.
Collected Efficiency Bonus
The Collected Efficiency Bonus pays on gross sales quantity generated by a ModiCare affiliate and their personally recruited associates (PGBV).
- Consultants obtain a 7% Collected Efficiency Bonus
- Senior Consultants obtain a ten% Collected Efficiency Bonus
- Affiliate Supervisors obtain a 13% Collected Efficiency Bonus
- Deputy Supervisors obtain a 16% Collected Efficiency Bonus
- Supervisors obtain a 19% Collected Efficiency Bonus
- Administrators obtain a 22% Collected Efficiency Bonus
The Collected Efficiency Bonus is first calculated by tallying up PV generated by an affiliate and their personally recruited associates.
The recruited associates are paid their share primarily based on rank, with the distinction leftover paid to the qualifying affiliate.
If a Marketing consultant generates 240 PV and 6000 GV (gathered) in a single month, they obtain a ten% Efficiency Bonus price for that month.
Director Bonus
ModiCare takes 14% of company-wide gross sales quantity every month and locations it into the Director Bonus pool.
The Director Bonus is paid by way of a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the high of a unilevel staff, 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 staff.
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.
Throughout the unilevel staff, generations are outlined when a Director or larger ranked affiliate is present in a unilevel staff leg.
These associates cap off every technology, with decrease ranked associates in between making up the totally different generations.
If there’s an open-ended technology in a unilevel staff leg (e.g. an affiliate is certified to earn on as much as three generations per leg however there are solely two), that technology runs the complete depth of the leg.
Utilizing this generational construction, ModiCare calculates Director Bonus pool factors throughout the unilevel staff every month.
- Administrators’ factors are calculated as 6% of their very own PV
- Senior Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations and 4% of second generations
- Govt Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations, 4% of second generations and three% of third generations
- Senior Govt Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations, 4% of second generations, 3% of third generations and a pair of% of fourth generations
- Platinum Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations and 1% of fifth generations
- Presidential Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth generations
- Crown Diamond Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth and seventh generations
- Royal Black Diamond Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth to eighth seventh generations
- World Black Diamond Administrators’ factors are calculated as 6% of their very own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth to ninth generations
Once more, generations are calculated in every unilevel staff leg unbiased of the opposite legs.
As soon as the Director Bonus pool level stability has been tallied up for all certified associates, ModiCare splits the 14% put aside gross sales quantity and pays it out.
Given the dynamic calculations concerned, the Director Bonus payouts will differ from month to month.
Management Productiveness Bonus
ModiCare takes 15% of company-wide gross sales quantity every month and locations it into the Management Productiveness Bonus pool.
Senior Administrators qualify for a share of the Management Productiveness Bonus, utilizing the identical factors system the Director Bonus is paid out with (see above).
Management Productiveness Bonus generations are primarily based on the variety of Senior Administrators in a unilevel staff leg.
What number of generations are used to calculate ModiCare affiliate’s Management Productiveness Bonus level stability relies on what number of Senior Director legs they’ve of their downline.
- Senior Administrators with one Senior Director leg rely 5% of their PV and 5% from one technology per leg
- Govt Administrators with two Senior Director legs rely 5% of their very own PV and 5% on as much as two generations per leg
- Senior Govt Administrators with three Senior Director legs rely 5% of their very own PV and 5% on as much as three generations per leg
- Platinum Administrators with 4 Senior Director legs rely 5% of their very own PV, 5% on three generations and 4% on a fourth per leg
- Presidential Administrators with six Senior Director legs rely 5% of their very own PV, 5% on three generations, 4% on a fourth and three% on a fifth per leg
- Crown Diamond Administrators with eight Senior Director legs rely 5% of their very own PV, 5% on three generations, 4% on a fourth, 3% on a fifth and a pair of% on a sixth
- Royal Black Diamond Administrators with eleven Senior Director legs rely 5% of their very own PV, 5% on three generations, 4% on a fourth, 3% on a fifth, 2% on a sixth and 1% on a seventh
- World Black Diamond Administrators with fourteen Senior Director legs rely 5% of their very own PV, 5% on three generations, 4% on a fourth, 3% on a fifth, 2% on a sixth, 1% on a seventh and 0.5% on an eighth
Senior Director legs solely rely if the legs are technology 90,000 GV a month.
As soon as factors are tallied up throughout all qualifying Senior Director and better associates, ModiCare splits the Management Productiveness Bonus pool accordingly.
As with the Director Bonus, the Management Productiveness Bonus level worth payout will differ from month to month.
Outbound Journey Fund
ModiCare takes 3% of company-wide gross sales quantity every month and locations it into the Outbound Journey Fund.
The Outbound Journey Fund is used to contribute in direction of company-organized journey incentives.
Senior Director and better ranked associates qualify for a share within the Outbound Journey Fund, which is calculated utilizing Director Bonus factors (see above).
Dream Car Fund
ModiCare takes 5% of company-wide gross sales quantity every month and locations it into the Dream Car Fund.
The Dream Car Fund is put in direction of the acquisition of a car pre-approved by ModiCare (new automobiles and two-wheelers with a price of at the least Rs. 50,000 are eligible).
Senior Govt Director and better ranked associates qualify for a share within the Dream Car Fund, from the fourth month of continued rank qualification.
The Dream Car Fund is calculated utilizing Director Bonus factors (see above).
The month-to-month Dream Car Fund payout per affiliate is capped at Rs. 100,000.
Dream Dwelling Fund
ModiCare takes 3% of company-wide gross sales quantity every month and locations it into the Dream Dwelling Fund.
The Dream Dwelling Fund is put in direction of the acquisition of a house. Though not explicitly clarified in ModiCare’s compensation plan, I take this to imply mortgage funds.
Presidential Director and better ranked associates qualify for a share within the Dream Dwelling Fund, from the frouth month of continued rank qualification.
The Dream Dwelling Fund is calculated utilizing Director Bonus factors (see above).
The month-to-month Dream Dwelling Fund payout per affiliate is capped at Rs. 120,000.
Becoming a member of ModiCare
ModiCare doesn’t disclose affiliate membership prices on its web site.
I tried to provoke the join course of to see if prices had been disclosed, nevertheless ModiCare calls for a number of layers of private info.
My very own analysis revealed claims that ModiCare didn’t price something to hitch, nevertheless I used to be unable to independently confirm.
What I can state is that it seems ModiCare associates are anticipated to buy merchandise every month.
This caps out at 600 PV a month from Director. Sadly I don’t have a 600 PV to Rs. equal.
Conclusion
The first focus of ModiCare’s MLM alternative is join, buy merchandise after which recruit others who do the identical.
Retail is feasible however I’m not satisfied it’s viable. Not essentially from a price perspective, however somewhat a company-wide focus.
ModiCare’s compensation plan tells new associates:
Confidence comes by doing issues your self. Therefore it’s vital that you just first turn into a 100% self person of ModiCare merchandise and change all of your present merchandise in your house with ModiCare merchandise.
This makes self-consumption sound non-compulsory (albeit sturdy really helpful).
Later within the compensation documentation nevertheless, necessary ModiCare affiliate purchases are referenced:
To qualify for efficiency bonus, a marketing consultant ought to do a minimal private buy of 300 PV until the tip of Supervisor and at the least 600 PV from Director degree onwards.
If in any case a marketing consultant fails to make the required minimal private buy, the Accumulative Efficiency Bonus earned in that month is carried ahead and is launched within the month the distributor makes the required minimal private buy.
Outdoors of mentioning retail commissions in a single part, wherever else PV comes up it seems to be self-purchase.
Self-consumption in MLM corporations isn’t a difficulty in and of itself. It turns into a difficulty when it’s the first income technology company-wide.
This occurs on the expense of retail gross sales. An MLM firm producing the majority of income internally operates as a pyramid scheme.
I can’t affirm that is taking place inside ModiCare, however necessary affiliate purchases on the particular required month-to-month PV quantity doesn’t encourage confidence.
Regardless of retail showing to not be a company-wide focus, ModiCare does have an honest refund coverage:
If a Buyer is just not utterly glad, he/she might return the product to the Modicare Marketing consultant for a 100% refund for the product inside 7 days of authentic buy.
A Modicare Marketing consultant can return such merchandise again to the corporate inside 30 days of its buy.
The Product Refund Coverage is relevant on saleable merchandise in addition to partially used merchandise, whereby no more than 25% of the product has been used.
I’m assuming that additionally applies to recruited affiliate purchases, though I think about upline stress might be excessive towards doing so.
ModiCare don’t disclose company-wide retail gross sales quantity. And lack of disclosure is a recurring theme.
ModiCare has named its compensation plan the “Samir Modi Azadi Plan”. It’s taglined with the promise of “monetary azadi for each Indian”.
Azadi, if you happen to’re not accustomed to the time period, is Persian for “freedom or liberty”.
Albeit in a distinct language, that is the widespread “monetary freedom” MLM advertising phrase.
Given ModiCare has been round since 1996, certainly after virtually 1 / 4 of a decade the corporate has been capable of supply on this promise?
I couldn’t discover an Earnings Disclosure Assertion wherever on ModiCare’s web site to confirm.
Earnings Disclosure Statements are fairly widespread all through the MLM business, so it’s odd ModiCare doesn’t present one.
The corporate is actually advertising itself on the premise of monetary freedom, certainly they’ve the figures to again up that declare?
One different oddity with ModiCare’s compensation plan was decreased quantity necessities via rank development.
Sometimes one ought to anticipate elevated quantity manufacturing (each retail and recruited affiliate) via rank development.
In ModiCare nevertheless required rank quantity lower as you get larger, down to simply requiring 600 PV a month.
This gives the look that success throughout the firm is discovered by preserve a 600 PV product order, and palming off recruitment to your downline at a sure level.
You recruited them, they’re spending 600 PV or extra a month. Now it’s as much as them to get on the market and recruit associates who additionally spend 600 PV or extra a month.
Setting retail quantity quotas would go a great distance to make sure retail gross sales are literally being made. Higher nonetheless an annual Earnings Disclosure Assertion revealing a particular company-wide retail income proportion, towards affiliate purchases.
After all if these numbers aren’t favorable, I can see why they’re not offered.
What this implies for you as a potential ModiCare affiliate is you’re most definitely going to be recruiting to construct your corporation.
If after twenty-four years retail gross sales will not be a viable technique to construct ModiCare, then there’s an issue with the chance itself.
You must be capable to confirm this by asking your potential upline how a lot of their month-to-month PV rank requirement is their very own purchases.
If it’s all or most of it, that affiliate is operating their ModiCare as a pyramid scheme.
If that is widespread all through the corporate, then as a complete ModiCare is working as a pyramid scheme.
On the possibility you do discover an upline who’s actively constructing their ModiCare enterprise via retail, the next move is evaluating the merchandise themselves.
To their credit score ModiCare present a full product catalog on their web site, so comparability is straight-forward.
I’m not going to supply any examples as a result of I’m not accustomed to the Indian shopper market. Do your individual analysis and consider for your self whether or not ModiCare’s merchandise are aggressive at a retail degree.
If they’re, trial the “change your buying with our merchandise” idea earlier than committing.
Worth isn’t the one issue to contemplate right here. The merchandise themselves must be as much as scratch for somebody not within the MLM alternative.
Strategy with warning.