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Is Market America a gimmick or perhaps is it legal?
Market America continues to be getting a large amount of attention recently. Online forums are a buzz whether or otherwise Market America is a Scam. The quick and simple response is no...it is not a gimmick. However, after doing my research about this company I've discovered several troubling issues.
What is Market America?
Based on Market America they're "a product brokerage and Internet 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 what exactly is 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 get paid commissions on their own purchases.
Exactly what do they offer?
Market America sells 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 buy them there are brand name products available too.
What's the Market America Compensation plan?
The comp plan is just plain confusing...either they don't do a good job describing it or they purposefully made it confusing to cover what your real profits is going to be. And so i did more research to find out precisely what their comp plan is and what their real payouts are. This is where it gets scary folks.
And so i visited the marketplace America main site (not an affiliate site) and I could not find any more information on their own payout structure. Hmmm...I wonder why? And so i started a chat session with someone named Alex who kept saying to call their field office to answer my questions (yeah right!...like I will be seduced by that one just to end up on a hard sales call). After a lot of persistence Alex finally explained which i could find an exhibition on an affiliate website, but that some affiliates choose to turn the presentation off. I wonder why they'd do this? So I did several searches and lastly found a joint venture partner site which had a presentation and wow did my head start to spin. I had to see the payout structure several times to understand what they were talking about. Now we all know why most affiliates not show the presentation.
First to be able to qualify to begin earning money you must purchase 200 BV (Business Volume) worth of product.
What's BV you may well ask? Yeah me too. So back to friendly but frustrated Alex in the chat center, and again I am continually told to make contact with their field office to reply to what BV is. Well not entirely Alex does produce some rehearsed definition of what BV is but can't or maybe won't answer how much BV relates to in dollars...you know the funny green stuff us humans use down here in the world. And so i returned towards 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 visitors to buy specific products and if you win the task you receive preferred seats for their conference (that you simply still have to purchase). The BV exchange rates are variable and depends upon these products sold. BV is approximately 60-90% of the dollar worth of the merchandise. Most products seem to have a BV worth of around or just under 80% to the dollar. So to qualify you have to buy approximately $250 price of products...hmmm that's not bad I wonder why it is so secret?
Next refer a couple to qualify.
To start making money you need to refer two people (who both buy 200 BV worth of product) for your right and left business line.
Begin to make money!
You are making money based on the GBV (Group BV) and you're simply limited to 3 business lines...but wait you can include one more two business lines by doing something they call "Re-Entry". What's Re-Entry you may well ask? I have no clue and frankly I'm tired of searching to discover 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 also you need 10,000 BV to earn $1500 which means your company lines have to purchase or sell approximately $12,500 price of product. Which of course means you obtain approximately 12% commissions. Sorry for that algebra problem.
But wait it gets better...
Addititionally there is something called IBV. I understand you are going to ask here is 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 signing up for an industry America credit card and taking advantage of it on all of your MA purchases! WooHoo!
Just how much can I make?
The Market America presentation will highlight how easy it's to make $10,800 per week or $561,600 annually! Ok...you would like the reality right? The truth is that based off of the earnings statement for the Canadian version 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 per year. Tip: always see the Canadian form of a business opportunity presentation because in Canada multilevel marketing companies must disclose the actual earnings of their members. So do you wish to spend time, money and effort the promote a course which has a typical earnings of $1000 or less for almost half 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 are doing appear to carry a wide range of items that should be able to entice most online shoppers. If you are planning to join Market America do so for the products they provide not the company opportunity. Any business opportunity in which you only make $1500 commission from $12,500 in sales is not very good in my opinion. So my advice is to keep looking and just shop since you wish to shop, to not make money.