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I”m excited to do this Visalus Review video and and go over the Visalus Compensation Plan. I’ve got 17 and a half years of experience in this industry, lost a million and a half dollar home about seven and a half years ago due to the faults of the multi-level marketing industry.
So I considered myself pretty much an expert when it comes to understanding the industry, why some companies succeed, why others fail, and what you need in a business to create long term successful residual income that comes in for a lifetime for you and your family.
Visalus Review – The Faults Of The Visalus Compensation Plan
So what we’re going to do right now is go over the Visalus Compensation Plan and go through some of the different levels thatVisalus has, go through some of the different compensation plan structures that they have within the business and really just start to unravel a little bit about the Visalus Compensation Plan. I’m also going to go over some of the faults because that’s what I’ve been seeing right now with talking to a lot of folks that are in Visalus, even the ones that have reached the upper tiers of the compensation plan.
It’s starting to really tell the truth of why Visalus is experiencing some major issues right now, why sales are dramatically down over last year at this time. We’re going to answer the big question “Does Visalus Really Work?”, especially when it comes to long term residual income.
So let’s go through some of the different levels in Visalus. We’ve got Associate, Director, Regional Director. Regional Director is where you can start qualifying for the BMW Car Bonus Program that they have in place. Then you’ve got National Director, Presidential Director, Ambassador, One-Star Ambassador, Two-Star, Three-Star, Four-Star and Five-Star Ambassador, Diamond Ambassador, Royal Ambassador, Crown Ambassador, and then Global Ambassador.
Personal Volume In The Visalus Compensation Plan
So those are the different levels within the compensation plan. Now to stay active in Visalus you have to do 100 in personal qualification volume which was purchased yourself, or you can have 200 in personal qualification volume if it comes from retail sales.
The main part of this and what we teach at FreedomAndTime.com is first of all weight loss is a completely fickle industry. I was among one of the top multilevel marketing companies in the weight loss industry and customers come and go. Now it might be one of the reasons of why the sales within the company is fluctuating drastically over last year to this year.
It’s a very, very fickle industry. In weight loss, the customers are very fickle. It’s not a long term mindset of the consumer buying dietary weight loss supplements. Yes, it is taught to be a way of life and it is taught not to be a diet. But it is taught to be a good balanced nutrition program that should become a part of your everyday daily routine.
The problem is most people don’t stay on those products long term. So as we talk about on TimeAndFreedom.com, the 80/20 principle, most people don’t do much when it comes to the business. But are their feet held to the fire by staying a long term customer of least of that company’s products or services?
The Real Numbers When It Comes To Visalus Products
What we see in Visalus right now is a lot of numbers come up on the board to drink the Visalus shakes. A lot of people set up accounts but when it comes to long term customers staying active, or their distributors or as they call it their promoters, staying active… it starts to fail in that category. A hundred in personal volume or personal consumption or 200 a month in retail is not something that the masses are going to do long term, nor are they going to stay on those products long term. This is why some are calling it the Visalus scam.
I had 700 personal customers from my former weight loss company. At the end of 11 and a half years, 7 were active. That is the nature of the beast when it comes to weight loss products.
So here’s the thing. There’s nine different ways of earning compensation in Visalus. We’re not going to go through all those nine different ways and income streams available but there are nine different income opportunity streams when it comes to the compensation plan within Visalus.
The Visalus BMW Program
One is the Visalus BMW program that starts at the Regional Director position. You have to do 12,500 volumes in your organization to reach the Regional Director status. Here’s where the problem starts to unravel a little bit with the BMW program that Visalus has in place right now. They’re promoting a lot of folks to the Regional Director status pretty quickly. Last year, it was an enormous amount. This year it is drastically decreasing with folks reaching that rank in Visalus.
But I want you to understand that a lot of folks in Visalus are reaching the BMW status of the 12,500 status pretty quickly; some within their first couple of weeks to a month, to their first few months or six months or even less. The problem with that is, is that the company is giving them a car but the volume isn’t stable.
As we talked about, the weight loss customers are extremely fickle. They don’t stay on the products long term. To acquire a Visalus BMW payment and acquire 12,500 in volume to reach that status to get that BMW payment, it’s scary because most people don’t have solid consumable volume being done in their organization to be able to sustain that 12,500 position.
So what we’re seeing in Visalus right now is a lot of people getting the BMW and then a lot of people not having that BMW paid for by the company and it starts having to come out of their pocket. That volume is very unstable. It is not stable volume and because people are getting the BMW in such the lower ranks of the compensation plan, it’s scary because most people are not holding that status in order to have the company continue paying it. Now they’re stuck with the BMW payment. Very, very, very scary.
When I saw Visalus come out with this car program at the lower ranks, I said, “There’s going to be a problem with that especially with weight loss customers.” They’re going to have a lot of people that are going to be running these weight loss challenges and they’re going to be doing these parties but the problem is the customers aren’t going to stay long term after 90 to 120 days? If they don’t continue to do more challenges, they’re going to have a hard time keeping up that volume. So we’ve got to be really, really cautious with that piece when it comes to Visalus.
Visalus Team Commissions
When it comes to Visalus team commissions, you have the ability to earn 8 generations of percentages on residual or royalty income or override income in the Visalus opportunity. The problem is, is that you don’t earn those depth levels until you reach the higher ranks of the company.
So for instance, at even just the Director status, which you have to have over 2000 volume points to be at that Director status, you need 2000 volume within your organization. You earn 4r generations. Even when you get to the Regional Director status, you earn 6 generations, but most people don’t get to 12,500 points within their organization. Most people don’t accumulate 2000 volume points within their organization.
So the majority of the Visalus promoters are not earning many generations of their organization because you only earn the in depth parts of the compensation plan, when you start hitting the higher, higher ranks of Visalus. That’s where it gets a little scary.
The level right before Ambassador, Presidential Director, you’re earning 8 generations in the compensation plan. At Ambassador, you have 150,000 volume points within your organization in order to reach that status. That’s the only time that you’re getting 8 generations within the compensation plan, is Ambassador and Presidential Director.
So it’s really, really, really scary to see a business model that does not pay a lot of folks generations of commissions until they reach the higher levels of the compensation plan. Where is this long term residual income? Are the masses even earning residual income in Visalus? I’m going to have to debate no because the masses are not presidential and the masses are not Ambassador. You can see that from the audited income statistics that the company supplies.
So most people are not earning commissionable income and they’re only getting a few generations if that. Like I said, at Director, they only get 4 even at the Director status and yeah, there’s a lot more Visalus Directors than Ambassadors but four generations is not a very, very lucrative compensation plan.
Visalus gives you huge bonuses, huge upfront bonuses, huge start-up bonuses for getting customer acquisition and getting promoters involved with the business. But when it comes to commissions, override income, they fall short in that. You’ve got to get to the higher tiers.
One of the other biggest flaws that I see within the Visalus compensation plan is that in order to reach your next rank advancement, you only can have 60 percent of volume coming from any one of your legs.
So if you have one leg or if you have one entity that’s producing a lot of volume, you only can use 60 percent of that volume towards your next rank advancement. You can only have 60 percent or use 60 percent of that volume from any leg that you have.
I have a real problem with any compensation plan that penalizes you with not getting paid on volume that is brought in by that entity that wouldn’t be involved with that business if it wasn’t for you in the first place.
Why should there be a gotcha? If you bring in one person into your Visalus organization, whether it’s a binary where it’s infinite but you still have to balance certain legs, or if it’s a regular compensation plan that’s outside of a binary system where you’ve got generations one through three or one through five or one through seven or one through nine or whatever it might be. When you introduce an entity, a distributor, a promoter, a consultant, a marketing executive, however we might call it to that business model, you should be paid on the full depth of that business and what it offers and whatever volume happens from that entity within that business and within that compensation plan.
It should also count towards your next rank advancement. So that’s something. That’s a little bit of a tricky situation right there and it’s a little bit of a got-you and that’s something that’s not a real strong I think point in the Visalus compensation plan.
So what are the Visalus positives? I had a hard time really looking at the positives just from the fact that people don’t stay on the products long term. The positive if we were to look at it is that they do give you a lot of money upfront. They do give you a lot of money for making customer acquisitions and promoter acquisition with getting folks started. The problem is, is the residual income there? I think Visalus falls short with that from the customers not staying on the Visalus shakes long term to the promoters not getting depth within the compensation plan until they hit the higher ranks. That means the majority of people within your organization are not going to get paid a lot of team commissions. They will get bonuses. They will get upfront bonuses. They will be able to share in some revenue pools and all of that, but when it comes to residual income, which is why people are involved with this industry in the first place, I think Visalus fails those criteria majorly.
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This review was written by Jason Fisher of TimeandFreedom.com.