Is Market America a gimmick or is it legal?
Market America has been obtaining a lot of attention recently. Online forums really are a buzz as to whether or not 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 have found several troubling issues.
What is Market America?
According to 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 just what exactly is a product brokerage? An expensive word for a wholesaler. They provide the things they call an "unfranchise" to their members that allows the members to recruit more members and obtain paid commissions on their own purchases.
What do they offer?
Market America sells from shoes to financial lending. They do seem to really push their lines of generic health, personal care and anti-aging products. However, you don't have to buy them there are brand name products available too.
What is the Market America Comp 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. So I did more research to discover exactly what their comp plan is and just what their real payouts are. This is when it gets scary folks.
So I visited the Market America main site (not an affiliate site) and I could not find any more information on their own payout structure. Hmmm...I'm wondering why? 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 simply to end up on a hard sales call). After a lot of persistence Alex finally explained which i could find a presentation on an affiliate website, but that some affiliates decide to turn the presentation off. I wonder why they would do this? So I did several searches and finally found a joint venture partner site that had a presentation and wow did my jump to spin. I had to see the payout structure several times to know what they were referring to. Now we all know why most affiliates not show the presentation.
First in order to qualify to begin earning money you must purchase 200 BV (Business Volume) worth 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 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 possibly won't answer just how much BV relates to in dollars...you realize the funny green stuff us humans use down here in the world. And so i went back towards the forums and check engines looking everywhere for that elusive BV. Finally, I found 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 challenge you get preferred seats for their conference (that you simply still need to pay for). The BV exchange rate is variable and depends upon the products sold. BV is approximately 60-90% of the dollar value of the merchandise. Most products appear to have a BV value of around or simply under 80% towards 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 start making money you need to refer two people (who both buy 200 BV worth 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're simply restricted to only two business lines...hold on you can include an additional two business lines by doing something they call "Re-Entry". What's Re-Entry you may well ask? I have not a clue and frankly I am tired of searching to discover how you can 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 also you need 10,000 BV to earn $1500 that means your company lines have to purchase or sell approximately $12,500 worth of product. And that means that you receive approximately 12% commissions. Sorry for the algebra problem.
But wait 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 confused yet...yeah me too. Also, you can now make much more money by signing up 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 show you how easy it is to create $10,800 per week or $561,600 annually! Ok...you would like the reality right? The fact is that based from the earnings statement for the Canadian form 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 form of a company opportunity presentation because in Canada network marketing companies must disclose the particular earnings of the members. So do you wish to spend your time, money and energy the promote a course which has a typical earnings of $1000 or less for almost 1 / 2 of their members?
To conclude: Is Market America Scam or Legal?
Market America is not a scam and is legal. However, their payout structure is very confusing and the average members success rate isn't excellent. They do seem to have a number of products that should be able to entice most internet buyers. If you are going to join Market America do so for the products they provide not the business opportunity. Any company opportunity in which you only make $1500 commission from $12,500 in sales isn't excellent for me. So make an effort to to help keep looking and just shop since you want to shop, not to make money.