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Organo Gold Compensation Plan Review

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Introduction to Organo Gold Compensation Plan

Let me start by going on record to say that I love the Midwest.  It is home to down-to-earth, practical people.  We were frugal even before the economic crisis of 2008 hit.  In the summer, I love camping and playing Paintball.  In the fall, the county fairs of Indiana have perfected the art of deep frying all manner of junk food.  Deep fried hot dogs, deep fried Oreos, deep fried Twinkies.  The palate trembles at the thought.  In the winter, though, the weather is so miserable that there is nothing you can do but sit on your keister and wait for spring.  That is bad news for most people, but good news for us work from home types.  If you have to schlep yourself to an office or other workplace, going to work is very unpleasant, but when you work consists of sitting at home and clicking a mouse, the winter is a time of opportunitiesMultilevel marketing (MLM) has been an important part of my transition to working from home full time, and this winter, I am researching and reviewing as many MLM plans as I can so you can make informed decisions about which ones are worth joining.  Today I am reviewing Organo Gold, and while there is no such thing as a perfect MLM plan, Organo Gold is one of the best.

A quick walkthrough of Organo Gold Compensation Plan       

Organo-Gold             

Organo Gold is based in British Columbia and was founded in 2008.  Its founder, Bernardo Chua, grew up in the Philippines and began his business career before immigrating to Canada.  The other leaders of Organo Gold are Holton Buggs and Shane Morand.  It is most known for its specialty coffee and tea beverages, but it also sells nutritional supplements and personal care products.  The signature ingredient in Organo Gold’s products is Ganoderma, which is an ingredient in many of their beverages, and you can also order it as a supplement.  Ganoderma lucidum is a fungus that grows in the Wuyi Mountains in the Fuzhou region in China.  Ganoderma has been rich in antioxidants and has been used in traditional Chinese medicine for millennia.  If you go to the Organo Gold website, you will see that Ganoderma is, indeed, a cool looking fungus.  It looks like something the caterpillar from Alice in Wonderland would sit.

Review of Organo Gold MLM Business Opportunity

At first glance, Organo Gold presents itself as a direct marketing company, similar to Mary Kay, and if you find a customer base that really wants to buy gourmet coffee drinks, it really is possible to sell a lot of units, but Organo Gold does also have the multilevel recruiting aspect to it.  If you just stumbled on this page because you Googled “Ganoderma” or “awesome fungus” or some such, or perhaps even because you Googled “sit on keister Midwest”, and you are not familiar with multilevel marketing (MLM), I will explain.  In an MLM plan, Adam sells specialty coffee from his website and makes a profit of it.  He then recruits Ray to sell the same specialty coffee products, and Adam earns a commission off of Ray’s sales.  Then Ray recruits Simon to sell the products, and both Ray and Adam earn a commission off of Simon’s sales, and so on.  Currently, Organo Gold has over 150,000 distributors in over 40 countries, most of whom were recruited by other distributors.  According to the Organo Gold website, distributors can earn a 50% profit on sales of Organo Gold products.  In addition to profits from product sales and commissions from “down line sales” (sales by distributors you recruited and distributors they recruited), Organo Gold also offers bonuses for high sales volume, successful recruitment, and the like, as do many other MLM plans.

Membership Levels of Organo Gold Compensation Plan

The first step to becoming an Organo Gold distributor is to buy a Business Entry Kit for about $50.  You receive samples of some Organo Gold products, as well as access to several websites you will need to use to do business with Organo Gold.  Purchasing the Business Entry Kit allows you to buy the company’s products at wholesale prices in order to distribute them.  When you join, you are given the rank of Representative.

Marketing Associate:

The next level above Representative is Marketing Associate.  You can reach this level by generating up to 200 personal volumes in sales; unlike some other MLMS, Organo Gold does not impose a time limit for making those sales.  Alternatively, you can advance to the Marketing Associate level by generating up to 50 personal volumes in sales, recruiting two new members, and making them sell at least a single business pack each in a month.

Supervisor:

To advance to the level of Supervisor from the Marketing Associate level, you can sell 1000 units on your own or sponsor up to three more Representatives, generate 50 sales volumes, and get each Representative you recruit to sell a at least one Builder Pack within a month.

Consultant

To advance to the level of Consultant, you must sell 1,000 units (no time limit) or sell 100 units on your own, plus sponsor 5 new members and have each of them sell at least one Builder Pack in a month.

Sapphire

To reach the Sapphire level, you must sell 100 units per month.  The combined volume of your sales and the sales of your down line members (see Adam, Ray, and Simon above) must be at least 14,000 units. Out of this, at least 40% should come from a single lineage leg.  (That means that Ray and the people he recruits must account for at least 40% of the sales volume, while the other 60% can come from other members Adam has recruited.)  Additionally, at least four members you have recruited must have reached the Consultant level.

Ruby

Once you have reached the Sapphire level, you can advance to the Ruby level by selling at least 200 units per month.  Your team’s combined sales must be at least 40,000 per month. At least 40% of it needs to come from a single lineage leg. Additionally, at least six members you have recruited must have reached the Consultant level.

Emerald

Once you have reached the Ruby level, you can advance to the Emerald level by selling at least 200 units per month.   Your team’s combined sales must be at least 80,000 per month. At least 40% of it needs to come from a single lineage leg. Additionally, at least eight members you have recruited must have reached the Consultant level.

 

Diamond

Once you have reached the Emerald level, you can advance to the Diamond level by selling at least 200 units per month.   Your team’s combined sales must be at least 200,000 per month. At least 40% of it needs to come from a single lineage leg. Additionally, at least ten members you have recruited must have reached the Consultant level.

Blue Diamond

Once you have reached the Diamond level, you can advance to the Blue Diamond level by selling at least 200 units per month.   Your team’s combined sales must be at least 500,000 per month. At least 30% of it needs to come from a single lineage leg. Additionally, at least ten members you have recruited must have reached the Consultant level.

Black Diamond

Once you have reached the Blue Diamond level, you can advance to the Black Diamond level by selling at least 200 units per month.   Your team’s combined sales must be at least 1,000,000 per month. At least 30% of it needs to come from a single lineage leg. Additionally, at least ten members you have recruited must have reached the Consultant level. You also need to have recruited at least two teams that have sold 200,000 units each.

Crown Diamond

Once you have reached the Black Diamond level, you can advance to the Crown Diamond level by selling at least 200 units per month.   Your team’s combined sales must be at least 2,000,000 per month. At least 30% of it needs to come from a single lineage leg. Additionally, at least ten members you have recruited must have reached the Consultant level. You also need to have recruited at least two teams that have sold 400,000 units each.

Crown Ambassador

Once you have reached the Crown Diamond level, you can advance to the Crown Ambassador level by selling at least 200 units per month.   Your team’s combined sales must be at least 5,000,000 per month. At least 30% of it needs to come from a single lineage leg. Additionally, at least ten members you have recruited must have reached the Consultant level. You also need to have recruited at least two teams that have sold 1,000,000 units each.

Compensation plan of Organo Gold MLM Opportunity

Organo Gold offers distributors seven different ways to make money.

Retail Commissions:

You can earn a profit of up to 50% on retail sales of Organo Gold products.  Payouts can be daily or weekly.

Fast Track Bonus:

You can earn up to $150 for each Promotional Product Pack you sell.  Payouts are weekly.

Binary Commissions:

When you recruit two teams, you can earn additional weekly payouts.  If Adam recruits Ray and Ray recruits Simon, but Adam also recruits Tim, Tim recruits Umar, and Umar recruits Victor, Adam qualifies for this commission.

Unilevel Commissions:

You can earn bonuses up to nine levels deep based on the sales of your down line members.  That means that id Adam recruits Tim, Tim recruits Umar, Umar recruits Victor, Victor recruits Wendy, Wendy recruits Xavier, Xavier recruits Yasir, Yasir recruits Zack, and Zack recruits Andrew, Adam gets a commission on all of their sales.

Unilevel Matching Bonus:

This is a bonus paid on the sales of a team four levels deep.  In the above line of distributors, Adam can earn this bonus for his sales as well as those made by Tim, Umar, and Victor.

Generational Leadership Bonus:

You are eligible for this bonus when four people you have recruited reach the Sapphire level.

Global Pool:

This bonus entitles you to a share (up to 3%) of the company’s total bonus pool.

Advantages and Disadvantages of Organo Gold Compensation Plan

ADVANTAGES:

  • There is a market out there for the latest health foods and nutritional supplements. You are selling a real product with a specific audience.
  • If you are really good with both recruitment and sales, you can earn a lot of money.
  • Lots of MLMs go belly up in the first or second year, but Organo Gold has been going strong since 2008.
  • Income opportunities provided by Organo Gold are legal and proven methods of gaining financial freedom. New distributors don’t have the burden of establishing the company from baby stages.
  • The levels are named after gemstones, which is neato, because it makes you feel like you are playing one of those smart phone games where you win gemstones. Gamification is a powerful motivator in business, so naming the levels after gemstones was a stroke of genius on Bernardo Chua’s part.
  • You get to set the retail price of your product, which means that the system rewards actual business sense. If you are able to determine an appropriate price for your target market, you will be able to sell a substantial number of products.
  • You get to buy the products at a legitimate wholesale price, unlike some other MLMs.

DISADVANTAGES:

  • It is no simple task to meet the requirements to reach the higher levels of recruitment.
  • The focus on recruiting can be a turn-off for some people. It makes it feel more like a pyramid scheme and less like a business.  It would be better if advancing to the next level could be based on sales or recruitment instead of both.  I n practice, it is very hard to reach the higher levels.  As I have said before on this blog, each of us only has so many relatives, co-workers, and acquaintances we can recruit.
  • Some people are put off by fad foods. There is a niche market for them, but not everyone wants to buy them.  Unless you know where to market Organo Gold products, you will not sell very many of them.

 

Conclusion

I have included Organo Gold on my Top Ten MLMs list because it is such a well established company.  Those of us who have dealt with MLMs for a long time know that the majority of them do not last until their third year.  They make lots of promises and then fold, leaving you with a basement full of useless products.  That said, gourmet coffee infused with some special fungus is not for everyone.  There are lots of people here in Indiana who would never go within ten feet of a fungus unless it were some unobtrusive mushroom on a supreme pizza, surrounded by pepperoni and sausage.  If you are active in the health food scene and you are already involved with a market that goes in for this type of product, then go for it.  It probably won’t make you a millionaire, but sitting on your keister all winter and selling gourmet coffee through your website sure beats treading carefully over the ice bridge between Starbucks and your mind numbing office job.

 

 

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