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Is Market America a gimmick or is it legal?
Market America has been obtaining a lot of attention recently. Online forums are a buzz whether or not Market America is really a Scam. The fast and simple response is no...it is 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 are "a product brokerage and Online marketing company that are experts in One-to-One Marketing." What's One-to-One Marketing? Just a fancy term for MLM or Multi-Level Marketing. And just what exactly is a product brokerage? An expensive word for any wholesaler. They provide the things they call an "unfranchise" for their members which allows the members to recruit more members and obtain paid commissions on their own purchases.
Exactly what do they offer?
Market America sells everything from shoes to financial lending. They are doing appear to really push their lines of generic health, personal care and anti-aging products. However, it's not necessary to buy them there are name brand products available too.
What is the Market America Compensation plan?
The comp plan is simply plain confusing...either they do not do a sufficient job describing it or they purposefully managed to get confusing to cover what your real profits will be. And so i did more research to discover precisely what their comp plan is and just what their real payouts are. This is where it gets scary folks.
So I went to the Market America main site (not an affiliate site) and that i couldn't find any more information on their payout structure. Hmmm...I wonder why? And so i started a chat session with someone named Alex who kept telling me to their field office to answer my questions (yeah right!...like I will fall for that certain just to end up on a hard sales call). After a lot of persistence Alex finally explained that I could find a presentation on an affiliate website, but that some affiliates choose to turn the presentation off. I'm wondering why they'd do this? And so i did several searches and finally found an affiliate site that had a presentation and wow did my head start to spin. I needed to view the payout structure many times to know the things they were talking about. Now I know why most affiliates not show the presentation.
First in order to qualify to start making money you have to purchase 200 BV (Business Volume) price of product.
What is BV you may well ask? Yeah me too. So to friendly but frustrated Alex at the chat center, and again I'm continually told to contact their field office to answer 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 relates to in dollars...you know the funny green stuff us humans use down here on planet earth. So I went back to the forums and check engines scouting around for the elusive BV. Finally, I discovered it on some regional Market America Challenge site...it appears as though they challenge their members to buy specific products and if won by you the challenge you receive preferred seats for their conference (that you simply still have to purchase). The BV exchange rate is variable and depends on the products sold. BV is approximately 60-90% from the dollar value of the product. Most products appear to have a BV value of around or just under 80% to the dollar. To qualify you must buy approximately $250 price of products...hmmm that isn't bad I'm wondering why it's so secret?
Next refer two people to qualify.
To start making money you need to refer a couple (who both buy 200 BV price of product) for your left and right business line.
Start making money!
You are making money based on the GBV (Group BV) and you are restricted to only two business lines...hold on you can include one more two business lines by doing something they call "Re-Entry". What's Re-Entry you ask? I have not a clue and frankly I am tired of searching to discover how to translate Market America terms and acronyms. Once both legs of the business line generates 5000 GBV each then you definitely 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 receive approximately 12% commissions. Sorry for the algebra problem.
Hold on it gets better...
Addititionally there is something called IBV. I know you will ask here is exactly what Market America defines IBV as "IBV (Incentive Business Volume) is the Unit (Point) Value assigned to an IBV Product/Service to calculate IBV Commissions". Are you confused yet...yeah me too. Also, you can now make much more money by registering for a Market America credit card and taking advantage of it on all your MA purchases! WooHoo!
Just how much can I make?
The marketplace America presentation will show you how easy it's to make $10,800 a week or $561,600 annually! Ok...you would like the reality right? The truth is that based off of the earnings statement for that Canadian version of the presentation only 2.07% of members make a lot more than $80,000 and 65.75% of members make $3000 or less and 44.89% make $1000 or less per year. Tip: always see the Canadian version of a business opportunity presentation because in Canada network marketing companies must disclose the particular earnings of their members. So do you wish to spend time, money and energy the promote a course that has an average earnings of $1000 or less for nearly 1 / 2 of their members?
To conclude: Is Market America Scam or Legal?
Market America isn't a scam and it is legal. However, their payout structure is very confusing and also the average members success rate isn't very good. They do seem to have a number of products that will be able to entice most internet buyers. If you are going to become listed on Market America do so for the products they offer not the business opportunity. Any business opportunity in which you only make $1500 commission off of $12,500 in sales isn't very good in my opinion. So my advice is to keep looking and merely shop since you want to shop, to not make money.