Is Market America a gimmick or is it legal?
Market America has been obtaining a large amount of attention recently. Online forums really are a buzz as to whether or not Market America is a Scam. The fast and straightforward response is no...it's not a scam. However, after doing my research about this company I've discovered several troubling issues.
What exactly is Market America?
According to Market America they're "a product brokerage and Online marketing company that specializes in One-to-One Marketing." What's One-to-One Marketing? Only a fancy term for MLM or Multi-Level Marketing. And just what exactly is really a product brokerage? A fancy word for any wholesaler. They provide what they call an "unfranchise" for their members which allows the members to recruit more members and obtain paid commissions on their purchases.
Exactly what do they sell?
Market America sells everything from shoes to financial lending. They do appear to really push their lines of generic health, personal care and anti-aging products. However, it's not necessary to purchase them and there are name brand products available as well.
What's the Market America Comp plan?
The compensation plan is simply plain confusing...either they don't do a sufficient job describing it or they purposefully made it confusing to hide what your real profits is going to be. And so i did more research to discover exactly what their compensation plan is and what their real payouts are. This is when it gets scary folks.
And so i went to the marketplace America main site (no affiliate site) and I couldn't find any detailed information on their own payout structure. Hmmm...I wonder why? So I started a chat session with someone named Alex who kept saying to their field office to answer my questions (yeah right!...like I am going to fall for that one simply to end up on a hard sales call). After a lot of persistence Alex finally told me which i could find a presentation with an affiliate website, but that some affiliates choose to turn the presentation off. I'm wondering why they'd do that? So I did several searches and finally found a joint venture partner site which had an exhibition and wow did my head start to spin. I needed to view the payout structure several times to know what they were referring to. Now I know why most affiliates not show the presentation.
First to be able to qualify to begin making money you must purchase 200 BV (Business Volume) worth of product.
What is BV you ask? Yeah me too. So to friendly but frustrated Alex at the chat center, and again I'm continually told to make contact with their field office to reply to what BV is. Well not entirely Alex does give me some rehearsed definition of what BV is but can't or possibly won't answer just how much BV pertains to in dollars...you realize the funny green stuff us humans use down here in the world. And so i returned towards the forums and check engines looking everywhere for the elusive BV. Finally, I found it on some regional Market America Challenge site...it appears as though they challenge their members to purchase specific products and if you win the challenge you get preferred seats to their conference (that you simply still have to pay for). The BV exchange rate is variable and depends on the products sold. BV is around 60-90% from the dollar value of the product. Most products appear to have a BV value of around or just under 80% towards the dollar. So to qualify you have to buy approximately $250 price of products...hmmm that's not bad I wonder why it's so secret?
Next refer two people to qualify.
To start earning money you need to refer two people (who both buy 200 BV worth of product) to your left and right business line.
Start making money!
You make money in line with the GBV (Group BV) and you are restricted to only two business lines...but wait you can add an additional two business lines by doing something they call "Re-Entry". What's Re-Entry you ask? I've no clue and frankly I am fed up with searching to find out how you can translate Market America terms and acronyms. Once both legs of your business line generates 5000 GBV each then you receive $1500. Therefore if BV equals approximately 80% and you need 10,000 BV to earn $1500 that means your business lines need to purchase or sell approximately $12,500 worth of product. Which of course means you obtain approximately 12% commissions. Sorry for that algebra problem.
Hold on it gets better...
There is also something called IBV. I know you are going to ask here is exactly what Market America defines IBV as "IBV (Incentive Business Volume) may be the Unit (Point) Value assigned to an IBV Product/Service to calculate IBV Commissions". Are you currently confused yet...yeah me too. Also, now you can make much more money by registering for a Market America credit card and using it on all of your MA purchases! WooHoo!
Just how much can one make?
The Market America presentation will highlight how easy it's to make $10,800 per week or $561,600 annually! Ok...you want the truth right? The fact is that based from the earnings statement for that Canadian form of the presentation only 2.07% of members make more than $80,000 and 65.75% of members make $3000 or less and 44.89% make $1000 or less each year. Tip: always view the Canadian form of a company opportunity presentation because in Canada network marketing companies must disclose the particular earnings of their members. So do you want to spend your time, money and effort the promote a program which has an average earnings of $1000 or less for almost 1 / 2 of their members?
To conclude: Is Market America Scam or Legal?
Market America isn't a scam and is legal. However, their payout structure is very confusing and also the average members success rate isn't very good. They do appear to have a number of products that will be able to entice most internet buyers. If you are planning to join Market America achieve this for the products they provide not the company opportunity. Any company opportunity in which you only make $1500 commission off of $12,500 in sales is not excellent in my opinion. So make an effort to to help keep looking and merely shop because you want to shop, not to make money.