better-living-global-marketing-logo

Better Living Global Marketing’s penny auction business launched in August of 2012 and are based out of Hong Kong in China.

On the Better Living Global Marketing website, the company states that it’s ‘a subsidiary of MSP Power Marketing‘.

For reasons unknown, the Better Living Global Marketing website has a boatload of information on MSP Power Marketing and it’s lubricant products, but no information on Better Living Global Marketing business itself (other than an unhelpfully long-winded marketing spiel that doesn’t really say anything).

luke-teng-ceo-founder-better-living-global-marketing

MSP Power Marketing (and by association Better Living Global Marketing) was founded in the early 1990s by Luke Teng (right), who credits himself as the CEO of Better Living Global Marketing on the company website.

I wasn’t able to find any information indicating involvement by Teng in another MLM company at an executive level, so Better Living Global Marketing appears to be his first MLM venture.

Read on for a full review of the Better Living Global Marketing MLM business opportunity.



The Better Living Global Marketing Product Line

bidders-paradise-logo

Better Living Global Marketing sell bids for their Bidder’s Paradise penny auction website.

Auctions feature on the Bidder’s Paradise website with a 20 second timer. Each bid placed in an auction resets the timer back to 20 seconds, with bidders able to place bids as long as the timer does not reach zero.

If an auction timer reaches zero, the auction is over with the last bidder to place a bid winning it.

Bidder’s Paradise also incorporate a “special price” function in their auctions. If an auction reaches a pre-determined special price, the auction also ends with the last bidder winning the auction.

Special prices are not disclosed to participating auction bidders, with Bidder’s Paradise only stating that they are ‘less than 50% of Hong Kong retail‘.

Bids for Bidder’s Paradise are only available in packs, which are sold in bundles of 2000 for $1160. For each pack sold Bidder’s Paradise also charge a $15 fee, bringing the total cost of a bid pack to $1175.

Purchased bids are able to be used in all Bidder’s Paradise auctions or given away to other Bidder’s Paradise accounts.



The Better Living Global Marketing Compensation Plan

The Better Living Global Marketing compensation plan revolves around the sale of Bidder’s Paradise bid packs for $1160 to either recruited affiliates or retail customers.

An annual fee (recurring) of $15 is also charged, bringing the total price of each bid pack to $1175.


Reserve Wallet

A Better Living Global Marketing affiliate’s reserve wallet is an electronic wallet from which an affiliate can only purchase Bidder’s Paradise bid packs from.

All of the commissions paid out by Better Living Global Marketing have a reserve wallet component, with any funds placed in the reserve wallet unable to be cashed out directly by an affiliate.

Better Living Global Marketing charge affiliates $11.62 a month from their reserve wallet balance.


Retail Commissions

Erroneously labelled a “retail commission” despite the fact that it pays out if a recruited affiliate purchases a bid pack, Better Living Global Marketing’s “retail commission” is paid out at 18% of the $1160 paid for a bid pack.

This equates to $208.80 per pack sold, with an additional 2% ($23.20) held by the company and placed into an affiliate’s reserve wallet.


Leadership Bonus

The Leadership Bonus makes up 3% of every bid pack sold, and is paid out using a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of the structure with every personally recruited affiliate placed directly under them (level 1).

unilevel-commission-structure

If any of these level 1 affiliates go on to recruit new affiliates of their own, they are then placed on level 2 of the unilevel. If any level 2 affiliates recruit new affiliates they are placed on level 3 and so on and so forth down a theoretically unlimited amount of levels.

Using the above unilevel compensation structure, Better Living Global Marketing pay out 3% of every bid pack sold by any affiliates in a unilevel team. How many levels on the unilevel are counted for the Leadership Bonus depends on an affiliate’s own membership rank:

  • Manager – 3 levels
  • Director – 4 levels
  • Vice-President – 5 levels


The Leadership Bonus is split into two payments, with 2.7% ($31.32) of the 3% total being paid to the affiliate and the remaining 0.3% ($3.48) being put into their reserve wallet.

I did try searching high and low for information on the affiliate membership ranks and qualification criteria required wasn’t able to find anything publicly available.


Business Volume Bonus

The Business Volume Bonus is paid out using a binary compensation structure. A binary compensation structure places an affiliate at the top of the structure with two positions branching out directly under them.

binary-MLM-compensation-plan

These two positions are the beginning of two sides, with each position in turn branching out into a further two positions and so on and so forth.

Each of these binary positions is filled either via direct recruitment or the recruiting efforts of an affiliate’s up and downlines.

As new affiliates are recruited a binary team grows and whenever a Bidder’s Paradise bid pack is sold, it is credited to either the left or right side of the binary (depending on which affiliate sold the pack).

For each bid pack sale matched on both the left and right side of the binary, a $58.50 commission is paid out. $6.50 is also withheld by the company and placed into an affiliate’s “sustainability wallet”.

An affiliate’s sustainability wallets appear to the same as their reserve wallet, with funds available in the wallet only able to be used to purchase more bid packs.

Note that the Business Volume Bonus is capped at 8 bonuses per day per unit. Better Living Global Marketing don’t specify how the cap is worked out, but given the daily limit it appears to be some sort of queueing system.


Profit Sharing

When a Bidder’s Paradise bid pack sold or purchased by affiliates, the affiliate who referred the customer or recruited the affiliate earns a daily commission for 99 days.

This commission is paid out 6 times a week (skipping Sundays), with Better Living Global Marketing matching all Profit Sharing payouts and placing the matching funds in an affiliate’s reserve wallet.


Bid Unit Matrix

Typically if a matrix compensation model is used a company places affiliates in the matrix to fill up positions. In Better living Global Marketing, the company instead creates positions in a company-wide matrix for every Bidder’s Paradise bid pack purchased.

Better Living Global Marketing’s company-wide matrix is identical to a binary, with each position in the matrix splitting into an additional two positions (being a matrix there are no sides).

When a Bidder’s Paradise bid pack is purchased by an affiliate or sold to a customer, a position is created in the matrix. Over time positions underneath the bid pack position will up and for each position under the bought position (capped at a 2×12 matrix within the company-wide matrix), Better Living Global Marketing pay affiliates $3.87 per position.

Each bid pack position has a potential 8,190 matrix positions under it (within the ever-growing company-wide matrix), and thus can generate a maximum of  $31,695 a month if it fills up with bought bid pack positions.



Joining Better Living Global Marketing

Affiliate membership to Better Living Global Marketing appears to be free, however an affiliate needs to buy a bid pack (unit) to get started.

Effectively affiliate membership to Better Living Global Marketing starts at $1175 (the cost of one unit).



Conclusion

The Better Living Global Marketing compensation plan material I cited for this review states that

In August 2012, after witnessing the global penny auction phenomenon, Mr. Teng launched Bidder’s Paradise, a high-end penny auction site and used Better Living Global Marketing as the marketing arm.

Reading between the lines, Luke Teng saw the “success” of Zeek Rewards (the first MLM penny auction) and wanted to replicate it.

Pay particular attention to the launch month, as Zeek Rewards was shutdown that same month and revealed to by the SEC to be a $600M Ponzi scheme. Under the guise of the Zeekler penny auction, the reality of Zeek Rewards is that it was an affiliate-funded money shuffling scheme, with new affiliate investments (bid purchases) being used to pay out ROIs owed to existing affiliate investors.

Replace Zeek Rewards with Better Living Global Marketing and Zeekler with Bidder’s Paradise, and that’s pretty much what you’ve got here.

When Zeek Rewards was shutdown and Better Living Global Marketing started up, the requests for a BehindMLM review of the company began to trickle in.

Upon first learning about the business, I went over to the website and was met with a jumble of Chinese and English. Figuring nobody would take the opportunity seriously (well, nobody who spoke English anyway), I declined to review the company and left it at that.

Sometime over the past few months however, probably as a result of the decline of the revenue-sharing MLM niche in general, Better Living Global Marketing have re-emerged and ramped up their affiliate recruitment efforts.

The Bidder’s Paradise website is still a confusing jumble of Chinese and English however US based affiliates have recorded videos of their own explaining the business, with the intent to expand its English speaking affiliate-base.

In a nutshell, affiliates join Better Living Global Marketing and invest at least $1175 into the business. For their investment, Better Living Global Marketing make the implied guarantee of a positive ROI over 99 days, in addition to the other bonuses and commissions paid out through the compensation plan.

Forced re-investment is made via the aptly named sustainability and reserve wallets. Everything else is converted to numbers on a screen, placed into a third e-wallet and is withdrawable as long as the company has money to pay affiliates out with.

As with Zeek Rewards the front-end of the business is the Bidder’s Paradise penny auction, specifically the notion that it sustains the daily ROI Better Living Global Marketing pays out its affiliates.

Zeek Rewards and every other MLM penny auction after it however has proven that the penny auction side of the MLM companies that run them are not successful.

To date, not one MLM penny auction has taken off on the merits of the penny auction itself. Those companies that have found success have done so on the merits of their compensation plan, which revolve around taking in money from new affiliates and using it to pay out existing affiliates.

Better Living Global Marketing is no different, and that’s exactly how the business is marketed.

Here’s how Better Living Global Marketing present their daily ROI, with ROI projections based on payments made throughout early 2013:

daily-roi-better-living-global-marketing

$8.75 a day ROI with affiliates urged to reinvest after the total 99 returns have been paid out.

For affiliates wondering what investment strategy to use, don’t worry Better Living Global Marketing have you covered:

investment-strategy-better-living-global-marketing

Invest in at the “good option” for $1175 and receive a $1939 twelve month ROI.  Or you can invest in at the “better option” for $3525 and receive a $5884 ROI. Still not enough? The “even better option” only costs $8225 and delivers a $16547 ROI.

What about the Ponzi professionals?

Ladies and gentlemen behold, the “greater option”:

greater-option-investment-strategy-better-living-global-marketing

Buy in for $17,625 and walk away with a 12 month $40,323 ROI.

Oh and it’s totally passive to. Just invest your money, perform some silly rudimentary tasks the company sets and watch your monopoly money balance grow:

passive-investment-chart-better-living-global-marketing

In case you can’t quite make it out, the above table is labelled “Potential Annual Cash Flow with No Recruiting” and details projected Better Living Global Marketing ROIs with little more than an initial investment required by an affiliate.

Such spreadsheets were also common in Zeek Rewards as existing affiliate investors attempted to lure new investors into the scheme.

Despite the history of the MLM penny auction niche revealing otherwise, proponents of Better Living Global Marketing will no doubt attempt to try to convince people that the “success” of the Bidder’s Paradise auctions pays out the ROIs above.

This falls flat on two counts. The first is retail. Who in their right mind is going to drop at least $1175 for bids at Bidder’s Paradise without the attached investment scheme?

And if you’re wondering about the auction activity over at Bidder’s Paradise, affiliates are required to use bids in auctions to qualify for their daily ROI.

20 used bids qualifies affiliates for a daily ROI, with affiliates able to pre-qualify for multiple days in advance per 20 bids they use in the Bidder’s Paradise auctions.

The second count is that, if you accept this is yet another affiliate-funded ROI scheme, every bid sold brings with it a >100% liability for Better Living Global Marketing. In addition to the >100% ROI paid out directly via profit-sharing, there’s also the ongoing liability created via the company-wide matrix (at least $3.87 per month per position in the company).

Where do all these roads lead us to?

One great big Ponzi explosion. Once new affiliates stop joining and investing it’s not going to take long for the liabilities to exceed new money coming in (from affiliates).

When that happens, kaboom.

With the Better Living Global Marketing and its affiliates recommending investors buy in at $17,625 and the company making the projected guarantee of a $40,000+ ROI within 12 months, it doesn’t take a mathematical genius to forecast a collapse well before your typical 2 year Ponzi life-span.

As they say, fool me once, shame on you. Fool me twice, shame on me. Fool me… well to be frankly honest I’ve lost count of how many of these Zeek Ponzi clones have gone bust now.

You’d think what with the staring down the barrel of clawback litigation for any affiliate that made over $1000 in Zeek Rewards people would have learned their lesson, but here we are.