Does Market America – Shop dot com truly offer a difference with their UnFranchise business model?
Today I am going to break things down and make a few comparisons so you can decide for yourself.
One of the major differences the company points out is, they are not like a typical multi-level marketing (MLM) company.
I have looked at a lot of comp plans over the last few years and must say, the Market America UnFranchise compensation plan is very different and more powerful than anything I have seen. The entire business model as you will see is different from a traditional MLM.
A Brief History of Market America – Shop dot com.
Founded in 1992, MA is a product brokerage online internet marketing company, meaning they do not manufacture any products themselves. Through various consumer analysis, MA determines the hottest trends and partners with companies to bring those products to market through the shop dot com web portal like WebCitz does for other websites. Thus never putting themselves in a vulnerable position when products fall out of favor or are not selling well.
In 2010 Market America acquired Shop dot com for over 650 million dollars. Shop dot com was responsible for building Amazon and Yahoo’s web/search portals, among several others. In the last 4 years this has proven to be a brilliant acquisition as Shop dot com is rapidly becoming the best place to shop online.
With over 3000 partner stores and 30 million products to choose from, consumers create a free account and are paid up to 50% CashBack on nearly every purchase.
The company profits not from consumers, but the advertisers and the 3000 partner stores such as, Home Depot, Victoria Secrets, Nike, Best Buy, Target, Travelocity, Nordstrom’s, Anne Klein, Avis, Walgreens, Macy’s, Neiman Marcus, and The Apple Store, just to name a few.
Market America is a global company currently doing business in several countries; the United States, Canada, Australia, Taiwan, Hong Kong and the UK.
One of the most remarkable points of interest I found is, in 22 years the company has never had a down quarter in sales. They have paid out in estimated retail profits and combined total commissions equalling over 2.5 billion dollars to UnFranchise business owners.
Company Principles:
JR Ridinger: CEO
Loren Ridinger: Senior VP
Marc Ashley: COO
Vince Hunt: COO, Shop dot com
Dennis Franks EVP
Kevin Buckman VP
Jim Winkler VP Sales
Michael Brady CTO
Let’s examine what makes Market America and the UnFranchise Compensation Plan so unique!
First, as mentioned above, the UnFranchise business model is very different from a typical MLM. The number one reason for this is…
Compensation bonuses are not paid to recruit people into a downline.
This is extremely important because most MLM’s pay such a small percentage on the weakest leg, that in order to generate any real income, a consistent flow of new recruits must be maintained. In addition, most multi-level comp plans incorporate all kinds of restrictions and quota’s in order for the distributor to generate a commission or residual check.
With the Market America Comp plan there are three ways to get paid. In order to fully understand how this works, first let’s look at the different divisions available an UnFranchise owner has at their disposal.
The company advertises access to ten different multi-billion dollar markets with their exclusive branded products.
The Top Four Main Areas of Specialization Include:
1. Health & Nutrition – Isotonix & nutraMetrix
2. Motives Cosmetics by Loren Ridinger
3. TLS Weight Loss Solution
4. Ma WebCenters
Three Ways UnFranchise Owners Are Able To Earn Income With The Market America Compensation Plan.
1. CashBack – An UnFranchise owner will earn CashBack from their online transactions and their customers transactions.
2. Retail Profits – Provide products and services for 10 to 15 Preferred Customers in order to earn 30-50% gross retail profit.
3. Leverage Time – Develop & manage only 2 sales and distribution organizations then duplicate those efforts!
UnFranchise Owners are required to keep a Transfer Buy in place each month of 50 to 150 BV. (Business Volume) depending on the distributors level. The transfer buy doesn’t kick in until the 3rd month, which allows a business owner time to start generating income. (65 BV is equivalent to about $100.00)
Traditional MLM’s will require distributors to purchase what is known in the industry as an “AutoShip.” Most AutoShips range anywhere from $75.00 to $100.00 dollars monthly, and are a fixed business expense.
There are two distinct differences that jump out when comparing most MLM pay plans to the Market Amercia – Shop dot com compensation plan.
1. An AutoShip is very different from a Transfer Buy. Why?
Because most Network Marketing companies offer a very small scope of products the Rep can choose from, sometimes only one or two choices are available. If I sell MonaVie or Shakeology for instance, I am stuck with either an antioxidant health drink or a weight loss product that I must purchase. For most people it is a monthly expense they normally would not incur.
A true transfer buy exists when you can purchase the same everyday products you would normally buy, and not have it effect you’re monthly budget. Therefore transferring you’re spending from one place to another without effecting your wallet.
The Shop dotcom web portal makes it ridiculously easy for anyone to transfer their spending. With so many products in every conceivable niche, having what the industry calls an auto-ship, is painless. Not to mention, UnFranchise owners get paid to shop on their own web portal.
2. The simplistic vertical pay structure which makes up the compensation plan and how BV can be placed.
Here is what makes Market America and owning an UnFranchise business unique. Everyone is paid the same 100% BV throughout the organization they develop or are a part of.
Go back and read that again, I know I had to!
How is that possible you ask? Simple, BV/IBV points are capped at 5000.
The smallest paycheck the company pays is $300.00. Each UnFranchise owner is given 3 Business Development Centers (BDC) when they open their Market America – Shop dot com business. There are two separate banks per BDC, one for BV (Business Volume) the other for IBV (Internet Business Volume). They accrue separately and simultaneously. BV rolls over and remains active for 12 months, while IBV is active for 24 months.
Each time both banks reach 1200 points, (up to 3600 points) a $300.00 check is earned. Accumulate another 1400 points totaling 5000, that releases a $600.00 check. For a total of $1500.00. Both banks then re-set to zero and the process starts over. In time as your business develops and your organization grows, each BDC can earn $3600.00 per week. Once completing the cycle you can open another BDC at no additional cost and make up to $3600.00. There is no limit on how many BDC’s you can open.
In order to be eligible for commission checks one must activate, meaning finding two business partners. One on each side, left and right. Keep in mind, there are no bonuses paid for sponsoring a new business partner. Which in my mind is a good thing! There is no pressure that way to continue to recruit a million people (that aren’t going to work the business) for a small one time bonus.
Retail profits (on average) are 30% and paid on all customer product sales along with BV or IBV points which will generate commission checks as shown above.
Now, lets get back to the sentence I asked you to read twice… “Everyone is paid the same 100% BV throughout the organization they develop or are a part of.”
BV = points. Points = commission checks. 100% of everyones points will get you to the ultimate goal of a commission check far quicker than a traditional MLM company.
To make the compensation plan even stronger, Market America – Shop dot com allows you to place BV under any personally sponsored UnFranchise business owner. By doing so, the BV flows right back up to the top. It is a totally different dynamic. Talk about an incentive to help your teammates create their first check!
Most MLM companies only pay on the weakest leg. Typically 10% to 15% BV, 25% if you’re really lucky, but you can’t place it below a newly sponsored rep and have everyone benefit.
Even though the Market America compensation plan doesn’t offer vacation bonuses, car bonuses, or any of the other gimmicky bonuses a lot of network marketing companies offer, this is a powerful compensation plan with a myriad of products and ways to build a business, part time from home.
Do you shop online? If so, its time to get paid to shop! Check out the Shop.com portal, create a free account and start getting CashBack from all of your favorite stores!
Setting Up Your Shop.com Account is Easy, Fast & Free!
If you have any questions or comments, please direct them in the comment box below. I would love to hear your thoughts, especially if you have come across a more powerful comp plan you would like to share.
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As any independent business owner in network marketing or a contract laborer, you are sent a 1099 for all income earned and report it on your taxes and then write off your expenses against the earnings.
I hope that helps?
RichardP
Hello,
I have a question about withhold from each earning check?
Or how it works?
Thank you
Hey Jeff,
Thanks for your comment. You make some valid points.
1. I should have positioned that MA is not like a typical MLM company. Even thought they have a 24 point document as to why they say they are not a MLM, the similarities are there. I will make a change on this point.
2. Yes, basically 25% of the points do equate to a $300 check. I’m not sure I get what you are saying… “a minimum pay check of $300 sounds good, but is not because you do not get paid earlier if the points (1200) is not there”.
You only get paid at the 4 levels, 1200, 2400, 3600, and at 5000 points you get a $600 check. But what you are forgetting is, and again, this is where things with MA are very different from other MLM’s is… 100% of each team leg adds to the points, which creates checks.
If there are 25 people in one leg and I sponsor a new person, (which must go at the bottom of the leg) then I can place any new points under that person. Allowing everyone in the leg to get 100% of those points.
All of the above is regarding the residual passive income that can be created with Market America. We have not even taken into account the retail profit business owners can make as they share their web portal with customers.
3. You are not completely wrong. Yes a couple of the comments came from new team members who are learning the biz. There are also 2 comments from seasoned team members. To be honest, out of the 60 Facebook shares, I was hoping to gain a lot more comments from people in or out of the business.
I appreciate your comment and apologize for taking so long to respond.
Thanks again,
RichardP
Hi Richard,
I like your analysis of Melalueca comp plan. It really is not that attractive and very confusing like you said.
However you are not being objective and very bias for saying that MA biz model is not a MLM model. So what do you call a model that requires you to find and develop 2 biz partners and get them to do the same? I would said that this looks like a MLM with a kind of hybrid binary system….2 looking for 2 looking for 2 and so on…
You mentioned that MA pays 100% of BV throughout the organization…this sound very good, BUT…and this is a big BUT…one need to accumulate 1200 points for a $300 pay check which actually equate to 25% of points converting to $. And minimum pay check of $300 sound good, but is not because you do not get paid earlier if the points (1200) is not there.
And it looks (I might be wrong here) like those people who wrote in to give comments are in cohort with you to make MA sound good and interesting.
PS. I am not a Melalueca member, just someone looking up Melaleuca comp plan and found your article.
Hey Jeff,
Thanks for your comment. You make some valid points.
1. I should have positioned that MA is not like a typical MLM company. Even thought they have a 24 point document as to why they say they are not a MLM, the similarities are there. I will make a change on this point.
2. Yes, basically 25% of the points do equate to a $300 check. I’m not sure I get what you are saying… “a minimum pay check of $300 sounds good, but is not because you do not get paid earlier if the points (1200) is not there”.
You only get paid at the 4 levels, 1200, 2400, 3600, and at 5000 points you get a $600 check. But what you are forgetting is, and again, this is where things with MA are very different from other MLM’s is… 100% of each team leg adds to the points, which creates checks. If there are 25 people in one leg and I sponsor a new person, (which must go at the bottom of the leg) then I can place any new points under that person. Allowing everyone in the leg to get 100% of those points. All of the above is regarding the residual passive income that can be created with Market America. We have not even taken into account the retail profit business owners can make as they share their web portal with customers.
3. You are not completely wrong. Yes a couple of the comments came from new team members who are learning the biz. There are also 2 comments from seasoned team members. To be honest, out of the 60 Facebook shares, I was hoping to gain a lot more comments from people in or out of the business.
I appreciate your comment and apologize for taking so long to respond.
Thanks again,
RichardP
Hi Amy,
Thanks for taking the time to comment. For the record, I went and checked out the price for Kettle Potato chips and you’re right… $21.99 – BUT, those are sold in a case of 24 which brings the price down to $0.92 per bag. I haven’t seen them cheaper than that in any of our local retail stores, have you?
The grocery store on shop ,com is much like Costco, buy in bulk without the $55 a year membership cost. Plus, CashBack is paid on everything on Shop .com. I haven’t had any problems sharing the site with friends. Once they realize they can shop at any of their favorite stores (that they already shop online at) and get paid cash back, it’s a no brannier.
Hopefully you will take another look and see how great the deals are. Not to mention the technology the site offers with things like, comparison shopping, eGifts, ShopBuddy, and paying .5% cash back for referrals.
Thanks again Amy,
RichardP
Hello Carmen,
Thanks for the kind words!
Network marketing can be discouraging and takes time to become successful. Most people often quit too soon or jump to the next “Shinny Object”… I know I was guilty of that at one time.
Yes, Market America has a great presence in Australia. I will email you directly to answer your questions.
Thanks for your comment!
RichardP
Sounded intriguing so I sent to the Shop.com site to look into it further and on the front page of the store found Kettle Potatoe chips for $21.99 a bag. Is that how they can pay so much back in commission? By having the product price much higher than u can find in retail stores? It would be hard for me to convince friends to shop if they would be paying 4 times the price for a bag of chips. Is this common among products on the site??
Hello Richard,
Wow I just discovered you and your wealth of information.
AMAZING & Thankyou.
I’ve been in so far 4 MLM businesses and worked very hard, spent so much money on products on a AUTOSHIPMENT and honestly made “NOT MUCH” . I get discouraged yet I’m a Entreprenuer with passion inside and hoping to find the right company for me.
I only joined Melaleuca last night but after reading your review I’m thinking twice. Yes products are amazing but I have to spend $90 a month and start finding customers to join and buy..
Please tell me about the company above that you mentioned and is it in Australia. Hope to hear from you soon.
Carmen
Hi Mary,
Yes, that is how most MLM companies work. Its a revolving door when it comes to distributors in the MLM world.
You are correct with the MA compensation plan, but keep in mind, with only 2 business partners and a handful of customers, a six figure income is attainable, but it will take 3-5 years to get there. Providing you help your 2 business partners duplicate the program.
As with anything, the more you effort you put in, the bigger the pay off. 100% of the BV adds up quickly as the team duplicates, if you can find 4 or 5 business partners, the whole process increases.
And who knows, someone on the team like yourself who has been in the business for several years may end up sponsoring 50 people themselves. That’s the beauty of networking, it’s not who you know, but who they know that can break things wide open.
Try and have that happen in the “Corporate World” LOL
Give me a call if you’re interested in learning more!
Thanks for taking the time to comment!
RichardP
Richard, I was involved with 6 MLM companies and made little income & worked a lot of hours. I needed 100’s of customers and 30-50 business partners to make a few thousand a month. From what I understand with this pay plan a distributor just needs 10-15 customers and 2 business partners to make a six figure income. In the companies I worked with I was paid percentages on levels and only down 10-12 generations, this pays to infinity and 100%?? That is unheard of! I will take a closer look as this sounds like a compensation I could actually make serious income.
Hi Mary,
Yes, that is how most MLM companies work. Its a revolving door when it comes to distributors in the MLM world.
You are correct with the MA compensation plan, but keep in mind, with only 2 business partners and a handful of customers, a six figure income is attainable, but it will take 3-5 years to get there. Providing you help your 2 business partners duplicate the program.
As with anything, the more you effort you put in, the bigger the pay off. 100% of the BV adds up quickly as the team duplicates, if you can find 4 or 5 business partners, the whole process increases.
And who knows, someone on the team like yourself who has been in the business for several years may end up sponsoring 50 people themselves. That’s the beauty of networking, it’s not who you know, but who they know that can break things wide open.
Try and have that happen in the “Corporate World” LOL
Give me a call if you’re interested in learning more!
Thanks for taking the time to comment!
RichardP
Thanks Linda,
They do offer something no one else seems to with their comp plan and business model. Once people understand the power of 100% it sheds a whole new light on how to create residual income.
Thanks for stopping by.
RichardP
Hey Julie,
Thank you for stopping by, and the answer to your question is Yes! It’s brilliant, but don’t forget, there is a cap on BV points. Once each side reaches 5000, they reset.
So if one bank has 15,000 points in it, and your other bank only has 1200, once your small bank reaches 5000 points, both reset and start over again. You will lose the 10,000 points on your strong leg, but you were paid commissions up to 5000 points which equals $1500.00. If possible, it is always best to keep both banks as close to equal as possible. It sounds confusing but really it is a very simple concept.
I haven’t seen any other comp plan that works this way.
Thanks again,
RichardP
I must say this is a THOROUGH reading and explanation finally on the differences. The comp Plan on MA is not short of brillant. Only way to go if you want residual income. It offers something for EVERYONE….consumable products that we need daily in our lives and get paid for it?
Fabulous article!!!
Thanks Linda,
They do offer something no one else seems to with their comp plan and business model. Once people understand the power of 100% it sheds a whole new light on how to create residual income.
Thanks for stopping by.
RichardP
Hi Richard,
So even if I dont personally sponsor someone that has been put down under on of my legs by someone I did or maybe didn’t even sponsor, I would still make 100% of their commission BV points too?
If that is the case that is really very cool, does anyone else do that?
Hey Julie,
Thank you for stopping by, and the answer to your question is Yes! It’s brilliant, but don’t forget, there is a cap on BV points. Once each side reaches 5000, they reset.
So if one bank has 15,000 points in it, and your other bank only has 1200, once your small bank reaches 5000 points, both reset and start over again. You will lose the 10,000 points on your strong leg, but you were paid commissions up to 5000 points which equals $1500.00. If possible, it is always best to keep both banks as close to equal as possible. It sounds confusing but really it is a very simple concept.
Thanks again,
RichardP