Former ACN distributors launch competitor

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NeXarise operates in the ecommerce MLM niche. The company does not provide a corporate address on its website.

Instead a UK incorporation number for “Nexarise European Services LTD” is provided.

Typically UK incorporation is meaningless, however in this instance, based on NeXarise’s co-founders, I’ll give the company a pass.

NeXarise was co-founded by Asad Ali (Chairman), Ahmed Mukhtar (President) and Liju Thomas (CEO).

All three NeXarise co-founders made a name for themselves in ACN. That ended on or around April 2020.

I wasn’t able to establish why the trio left ACN. And it isn’t discussed in NeXarise marketing.

At the time of publication NeXarise are active in the UK, Norway, Sweden, Denmark and Finland.

Read on for a full review of NeXarise’s MLM opportunity.

NeXarise’s Products

In their own words, NeXarise offers “a variety of products and services”.

Said products and services are provided by third-party merchants, with NeXarise itself operating as an intermediary.

Product and service categories featured on NeXarise’s website include:

  • Business Energy
  • Nex Mobile
  • Lifestyle by NeXarise
  • HomeCare by NeXarise
  • Arise Academy
  • Nex Protect and
  • Tech by NeXarise

Unfortunately NeXarise’s presentation of offered products and services is terrible.

When a potential retail customer clicks on a product category, they’re provided a list of “do’s and dont’s – obviously targeted at affiliates.

Some of these pages have “order now” buttons, which if you click does nothing.

Luckily in the same webinar I had to use to put together NeXarise’s compensation plan (see “compensation” below), product category information is provided.

  • Lifestyle by NeXarise – travel and travel services booking portal (Silver £36 a month, Gold £55.20 a month, Platinum £84 GBP a month)
  • Arise Academy – forex trading education (NexLite £120 a month, NexPro £149 a month)
  • HomeCare – home emergency cover offered through PlusHeat (Standard £13.90 a month, Premium £21.90 a month, Platinum £29.90 a month)
  • NexProtect – insurance provided through WealthMax
  • NexMobile – cell service provided through O2 and Vodafone (£16 to £48 a month)
  • Business Energy – business utilities for businesses provided through LA Supply

Tech by NeXarise wasn’t covered.

NeXarise’s Compensation Plan

NeXarise do not provide a copy of their compensation plan on their website.

The following analysis is pieced together from a NeXarise corporate webinar, held on or around September 24th, 2020.

NeXarise Affiliate Ranks

There are fifteen affiliate ranks within NeXarise’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  • IBO – sign up as a NeXarise affiliate
  • Customer Qualified IBO – generate 100 PV a month
  • Executive Team Trainer 100 – maintain 100 PV a month and generate and maintain 350 GV a month
  • Executive Team Trainer 250 – generate and maintain 150 PV and 1200 GV a month
  • Executive Team Leader 500 – maintain 150 PV a month and generate and maintain 2500 GV a month
  • Executive Team Leader 1000 – maintain 150 PV a month and generate and maintain 5000 GV a month
  • Team Coordinator 3000 – maintain 150 PV a month and generate and maintain 15,000 GV a month
  • Team Coordinator 5000 – maintain 150 PV a month and generate and maintain 25,000 GV a month
  • Regional Director 10K – maintain 150 PV a month and generate and maintain 50,000 GV a month
  • Regional Vice President 20K – maintain 150 PV a month and generate and maintain 115,000 GV a month
  • Regional Vice President 50K – maintain 150 PV a month and generate and maintain 275,000 GV a month
  • Regional Vice President 100K – maintain 150 PV a month and generate and maintain 625,000 GV a month
  • Senior Vice President – 200K – maintain 150 PV a month and generate and maintain 1,800,000 GV a month
  • Senior Vice President 500K – maintain 150 PV a month and generate and maintain 5,000,000 GV a month
  • Senior Vice President Crown – maintain 150 PV a month and generate and maintain 11,200,000 GV a month

PV stands for “Personal Volume” and is sales volume generated by retail sales and an affiliate’s own purchases.

Each NeXarise product has a corresponding PV amount. PV is generated each time a product is purchased or when a recurring billing schedule is charged.

Note that gas and PlusHeat plans generate PV for a maximum of 18 months. NexProtect services generates PV for up to 24 months.

GV stands for “Group Volume” and is PV generated by an affiliate and their downline.

Note that for GV qualification, a maximum of 40% required monthly GV can count from any one recruitment leg.

There are no restrictions on how much PV can count towards required monthly GV

Personal Sales Commissions

Personal sales is paid on monthly PV production.

PV is an affiliate’s own purchases, as well as sales to both retail customers and recruited affiliates.

Personal sales commission rates are determined by monthly PV production:

  • generate 150 to 299 PV in a month and earn 1% on generated PV
  • generate 300 to 699 PV in a month and earn 3% on generated PV
  • generate 700 to 999 PV in a month earn 5% on generated PV
  • generate 1000 to 1999 PV in a month and earn 10% on generated PV
  • generate 2000 BV or more in a month and earn 20% on generated PV

Fast Start Bonuses

NeXarise’s Fast Start Bonuses are time-sensitive rank-based bonuses:

  • qualify as a Customer Qualified IBO within your first 30 days and receive £50 GBP

Fast Start Bonuses to appear to be attached to other ranks (there’s a total 90 day qualification period), however no specifics are provided.

Residual Income

NeXarise pays residual commissions based on rank:

  • Executive Team Trainer 100 – £100 GBP a month
  • Executive Team Trainer 250 – £250 GBP a month
  • Executive Team Leader 500 – £500 GBP a month
  • Executive Team Leader 1000 – £1000 GBP a month
  • Team Coordinator 3000 – £3000 GBP a month
  • Team Coordinator 5000 – £5000 GBP a month
  • Regional Director 10K – £10,000 GBP a month
  • Regional Vice President 20K – £20,000 GBP a month
  • Regional Vice President 50K – £50,000 GBP a month
  • Regional Vice President 100K – £100,000 GBP a month
  • Senior Vice President 200K – £200,000 GBP a month
  • Senior Vice President 500K – £500,000 GBP a month
  • Senior Vice President Crown – £1,000,000 GBP a month

Rank Achievement Bonuses

Starting from the Team Coordinator 3000 rank, NeXarise rewards affiliates with the following Rank Achievement Bonuses:

  • qualify as a Team Coordinator 3000 and receive £5000 GBP
  • qualify as a Regional Director 10K and receive £10,000 GBP
  • qualify as a Regional Vice President 50K for three consecutive months and receive £50,000 GBP
  • qualify as a Senior Vice President 200K for three consecutive months and receive £300,000 GBP
  • qualify as a Senior Vice President 500K for three consecutive months and receive £750,000 GBP
  • qualify as a Senior Vice President Crown for three consecutive months and receive £3,000,000

Global Leadership Pool

NeXarise takes 1% of company-wide sales volume and places it into the Global Leadership Pool.

The Global Leadership Pool is paid annually to Regional Vice President 50K and higher ranked affiliates.

Joining NeXarise

NeXarise affiliate membership is £199 GBP and then £20.40 a month.

Conclusion

ACN as the inspiration behind NeXarise is pretty obvious. That’s not necessarily a negative, but it does raise some interesting questions.

Asad Ali, Ahmed Mukhtar and Liju Thomas promoted ACN for years. They featured on official ACN marketing material and were decently high up in the pay plan.

So why leave and start a competing MLM opportunity?

Where NeXarise fails is convincing me why I should use their services over ACN’s.

Surely it’s not just the travel and SEO services?

The way I see it there are only a few possibilities to entertain here; Ali, Mukhtar and Thomas either

  1. weren’t happy with their ACN pay checks; and/or
  2. something about ACN wasn’t satisfying them (management, commissions, offered services etc.).

A bit of disclosure would go some way to make a compelling case to sign up with NeXarise over ACN.

On the other hand if it’s as simple as Ali, Mukhtar and Thomas realizing it’s far more profitable to take a slice of everyone’s sales activity rather than be limited to just those of your personal downline, I can see why this isn’t addressed.

Be it as a potential NeXarise or ACN distributor, read in to that as you will (seeing as no official explanation has been provided).

Make no mistake, NeXarise’s co-founders left ACN for whatever reason – and now see themselves as competition.

We confidently say we are the Amazon of the network marketing industry.

And our vision is to become the number one direct selling company in the world. – Liju Thomas

The shadow ACN casts over NeXarise aside, the crux of the business model comes down to whether there are more retail customers paying for services over distributors.

NeXarise has no retail volume requirements. The company does go on about customers but makes no distinction between retail customers and affiliate customers.

One interesting clause in NeXarise’s Policies and Procedures is a £200 GBP cap cooling off period.

NeXarise shall not accept from a new IBO any payment or undertaking to make a payment to NeXarise or any other IBO of any sum exceeding £200 (in aggregate) unless seven (7) calendar days have expired from the commencement of his agreement.

If the IBO purchases NeXarise products or services which would exceed the £200 limit, NeXarise will not complete the excess transactions, but will contact the IBO after the seven day period for confirmation that the IBO wishes to complete the purchase in question.

This sounds like NeXarise is looking out for distributors but I get the sense it’s to reduce chargebacks. Otherwise surely the same policy would apply to retail customers too?

The good news is establishing whether your potential upline is retail or recruitment focused is easy.

Every NeXarise affiliate has to hit a PV quota each month. Find out what your potential upline’s rank is and look up the required PV.

Ask if they’re hitting their monthly PV on there own spend. If so, ask if they’ve also got equivalent retail PV (ideally more retail PV than their own spend).

If so, great! Although I’m still at a loss why I’d sign up with NeXarise over ACN.

If not, it’s highly likely this affiliate is self-qualifying for commissions and simply recruiting others who do the same.

If this is how the majority of sales revenue within NeXarise is being generated, that would make it a pyramid scheme.

To be clear; I’m not arguing for or against ACN being better than NeXarise. NeXarise co-founders however were promoting ACN for years and have taken it upon themselves to launch a pretty similar competitor.

The onus is on them to explain why they left ACN and what NeXarise does better than ACN, which they haven’t.

Until that’s addressed, I’m not confident NeXarise is any more viable than ACN is or isn’t.

That’s not a sentiment you want to build a long-term MLM career on.