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Is Market America a scam or perhaps is it legal?
Market America continues to be getting a lot of attention recently. Online forums really are a buzz as to whether or otherwise Market America is really a Scam. The quick and straightforward answer is no...it is not a gimmick. However, after doing my research about this company I have found 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 is One-to-One Marketing? Just a fancy term for MLM or Multi-Level Marketing. And what exactly is really a product brokerage? A fancy word for a wholesaler. They offer what they call an "unfranchise" for their members that allows the members to recruit more members and get paid commissions on their purchases.
Exactly what do they sell?
Market America sells everything from shoes to financial lending. They are doing seem 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 too.
What is 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 managed to get confusing to hide what your real profits is going to be. So I did more research to discover exactly what their comp plan is and what their real payouts are. This is where it gets scary folks.
And so i visited the Market America main site (no affiliate site) and that i could not find any detailed information on their own payout structure. Hmmm...I'm wondering why? And so i started a chat session with someone named Alex who kept telling me to call their field office to reply to my questions (yeah right!...like I will fall for that one just to end up on the hard sales call). After a large amount of persistence Alex finally explained that I may find an exhibition with an affiliate website, but that some affiliates choose to turn the presentation off. I wonder why they'd do this? And so i did several searches and finally found a joint venture partner site that had a presentation and wow did my head start to spin. I had to view the payout structure many times to understand the things they were referring to. Now we all know why most affiliates not show the presentation.
First to be able to qualify to start earning money you must purchase 200 BV (Business Volume) worth of product.
What's BV you ask? Yeah me too. So back to friendly but frustrated Alex in the chat center, and again I'm continually told to make contact with their field office to answer what BV is. Well not entirely Alex does produce some rehearsed meaning of what BV is but can't or possibly won't answer how much BV pertains to in dollars...you know the funny green stuff us humans use down here in the world. So I returned towards the forums and check engines scouting around for that 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 won by you the task you receive preferred seats to their conference (that you still have to pay for). The BV exchange rates are variable and depends on these products sold. BV is approximately 60-90% of the dollar value of the product. Most products seem to have a BV value of around or just under 80% to the dollar. So to qualify you must buy approximately $250 price of products...hmmm that isn't bad I'm wondering why it is so secret?
Next refer two people to qualify.
To begin earning money you have to refer two people (who both buy 200 BV price of product) to your right and left business line.
Start making money!
You are making money in line with the GBV (Group BV) and you are limited to 3 business lines...hold on 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 find out how to translate Market America terms and acronyms. Once both legs of the business line generates 5000 GBV each then you definitely receive $1500. So if BV equals approximately 80% and you need 10,000 BV to earn $1500 that means your company lines need to buy or sell approximately $12,500 price 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 are going to ask here is exactly what Market America defines IBV as "IBV (Incentive Business Volume) is the Unit (Point) Value allotted to an IBV Product/Service to calculate IBV Commissions". Are you confused yet...yeah me too. Also, now you can make much more money by registering for an industry America credit card and using it on all your MA purchases! WooHoo!
Just how much can one make?
The Market America presentation will show you how easy it is to make $10,800 a week or $561,600 annually! Ok...you want the truth right? The truth is that based off of the earnings statement for the 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 per year. Tip: always see the Canadian version of a business opportunity presentation because in Canada network marketing companies must disclose the actual earnings of the members. So do you wish to spend time, money and energy the promote a course that has a typical earnings of $1000 or less for nearly 1 / 2 of their visitors?
In Conclusion: Is Market America Scam or Legal?
Market America is not a scam and 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 number of items that will be able to entice most internet buyers. If you are going to become listed on Market America do so for that products they offer not the business opportunity. Any business 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 keep looking and merely shop since you wish to shop, not to make money.