Biz Power Extreme Review: Another recruitment scam
Biz Power Extreme launched on the 2nd of January 2012 and is based in the US state of Florida.
Unlike most matrix-based MLM opportunities, Biz Power Extreme name its admin as a one Mr. Paul Skulitz.
Skulitz appears to have been a member of AutoXTen (source) and at one point was promoting the ‘Mega 10 Success’ business opportunity.
Both of these opportunities are matrix based and offer training tools with no retail offerings. The model used by these two companies appears to be the inspiration behind Skulitz’s company Biz Power Extreme.
As late as January 4th 2012, Skulitz was promoting another MLM opportunity, Skin La-La on his personal blog. From all appearances, Biz Power Extreme appears to be a side project of Skulitz’s rather than a primary business opportunity he is focusing on.
One might even be tempted to suggest that Biz Power Extreme is nothing more than a feeder program for Skulitz’s Skin La-La business.
The Biz Power Extreme Product Line
Biz Power Extreme offer no retail products meaning you have to join the company and pay for membership before receiving anything from the company.
Once membership fees are paid, Biz Power Extreme members receive
- templated capture pages
- access to an autoresponder
- weekly training
- credit to place banner, text and login ads on an inhouse advertising network
- a bunch of marketing guides
- access to 75 products with full resale rights
- ‘Deductr’ mobile phone tax calculator software
The Biz Power Extreme Compensation Plan
The Biz Power Extreme compensation plan revolves around a 3×8 matrix. Starting with you at the top, three legs branch out from under you and each of these legs in turn branches out into three more legs – down 8 levels for a total of 9840 member positions.
As you fill up your Biz Power Extreme matrix, the first few levels will start to look something like this:
Within this 3×8 matrix structure, Biz Power Extreme pay members recruitment and matrix commissions.
Recruitment Commissions
As a Gold Biz Power Extreme member, the company will pay you either
- $5 a month for each member you bring into Biz Power Extreme on a monthly membership or
- a $60 once off commission for each member you bring into Biz Power Extreme on a yearly membership
As a Diamond Biz Power Extreme member, the company will pay you either
- $7.50 a month for each member you bring into Biz Power Extreme on a monthly membership or
- a $90 once off commission for each member you bring into Biz Power Extreme on a yearly membership
Matrix Commissions
For each member on your matrix (either recruited directly by you or your upline/downline through spillover), Biz Power Pro will pay you a monthly commission.
These matrix commissions depend on which level of your matrix the member in question sits on:
- Level 1 = $3 per member (3 members total, $9)
- Level 2 = $3 per member (9 members total, $27)
- Level 3 = $2 per member (27 members total, $54)
- Level 4 = $2.50 per member (81 members total, $202.50)
- Level 5 = $3 per member (243 members total, $729)
- Level 6 = $2 per member (729 members total, $1458)
- Level 7 = $1.50 per member (2187 members total, $3280)
- Level 8 = $2 per member (6561 members total, $13,122)
Note that only Diamond members are able to receive payouts on the whole 8 levels of the matrix. Gold members are only paid commissions down to level 5.
Joining Biz Power Extreme
Biz Power Extreme offers two paid memberships to those wishing to join.
Gold membership costs $29.95 a month and Diamond membership is $39.95 a month.
Both memberships are available for purchase at a yearly level which is discounted at 10% ($323.46 for Gold and $431.46 for Diamond).
Conclusion
With no retail offering there are no products being sold with the Biz Power Extreme Review which means that it’s membership itself to the company that is being sold.
100% of the commissions paid out by Biz Power Extreme are derived from either yearly or monthly membership fees paid by members throwing the legality of Biz Power Extreme’s business model into extremely questionable doubt.
Despite these concerns however, Biz Power Extreme insist they are a legal business. From the company’s FAQ page:
BPX is a legal business licensed in the State of Florida. BPX is owned and operated by Paul Skulitz of Sarasota Florida.
I’m assuming this statement is based on Biz Power Extreme’s assertion that
there are no sponsorship requirements to get paid through the matrix.
With 100% of the commissions being derived from membership fees however, whilst it is true that personally a member doesn’t have to recruit to get paid, the fact of the matter stands that every member inside a Biz Power Extreme matrix has been recruited by somebody.
Whether it’s your upline recruiting or yourself, the point is that somebody was recruited in order for you to get paid.
So, given all this what’s my final conclusion on the Biz Power Extreme MLM opportunity?
Over to you Paul Skulitz, owner of Biz Power Extreme:
(Timestamp 1:24) – If you hear of somebody telling you that you can get into a business, do absolutely nothing and make thousands of dollars, do this:
Run as fast as you can. Run as fast as you can away from them.
Those looking to join Biz Power Extreme would do well to take Skulitz advice and perhaps invest in a good pair of running shoes instead.
Yes this Paul Skulitz and I do own Biz Power Xteme and yes I am in Skin La La and I love the product and the company. It is not a feeder program into Skin La La or any other program I designed Biz Power Xtreme to help fellow networkers in the business that they are doing.
If you stop to look at the products they are capture pages over 158 of them and auto responders to help you in your business. The next product is Deductr a tax software program that shows how much your prospect or recruit can save by being in your home business any home business.
The comp plan is designed to give you the tools for free at some point and make a extra stream of income anything wrong with that. I have worked hard to help people and that is all I want to do help and show how to keep people in your business.
The problem with your business model isn’t the products, it’s the fact that you can’t buy them at a retail level and as such members are purchasing membership to Biz Power Extreme, rather than the products themselves.
Marketing wise your members have to market the opportunity, rather than the products. That’s a huge red flag is a strong factor in assessing the legitimacy of your company.
As you state, the tools are free so what’s being paid for is membership. Operating a company that pays 100% commissions out of membership fees and membership being the only thing that can be marketed is illegal.
I just wanted to share my thoughts on your post regarding BPX.
The Products…
Editable Capture Pages (I Brand Me)
An UNLTD AR System (Price That At Aweber)
weekly training (95% Of People Need It)
credit to place banner, text and login ads on an inhouse advertising network
a bunch of marketing guides (More Education)
access to 75 products with full resale rights (More Ways To Recoop My Costs)
‘Deductr’ Tax Accounting Software (Needed If You Run A Ligit Home Business)
Rather than slam Mr. Paul or his program I will say Thank You Mr. Paul.
1) I was previously paying Aweber over $75 a month just for an AR System that offered far less. Aweber WILL NOT quote you a price for unlimited service unless you call them and I assure you it is over $200mo. BPX at $40 is a flat out steal!!!
2) Paul is promoting or feeding other businesses, BUT AREN’T WE ALL??? It takes 7 different streams of income to become successful. I am using his system to feed my other programs, that is what it is designed for!
3) Deductr. That software is flat out amazing, maybe you should view the Deductr site before you inaccurately comment about their product. We could buy it directly from the Deductr company for $20 a month but they don’t pay to promote it, Paul does however as part of that $40.
Lastly, you commented that BPX gives you nothing before you pay, What supermarket, restaraunt, McDonalds, or any other business is going to give you something for nothing. NONE!!!
The problem in network marketing today is not the program, it is the people and their messed up perception that gives networking a bad name!!!
If you don’t see value in what Mr. Paul Skulitz is offering in BPX you are not a networker, YOU’RE AN IDIOT!!!
The difference is that neither a supermarket, restaraunt or McDonalds pay you commissions for the recruitment of others when you recruit them into the company.
If I hand over money to a supermarket, restaraunt or McDonalds, it’s for a product.
If i hand over money to BPX, it’s for membership with an income opportunity attached. There’s no way to purchase BPX’s products on a retail level.
Of course it’s the programs. If people stopped launching these shallow recruitment games people wouldn’t have such low opinions and expectations of network marketing.
Moreso when you’ve got clowns such as yourself completely missing the point of running a recruitment scam and thanking the creators of one!
@Lee Johnson — of course the products exist, but the fact that you can’t buy it separately means it is mixed with the recruiting scheme, and because it rewards people for recruiting additional people, it is in violation of FTC’s standing pyramid scheme definition.
In a legal MLM, there is ALWAYS separate product / service purchase. You can buy things from a MLM without buying into the “opportunity”. In a purely recruitment scheme, no such separation is available or possible.
I’ll refer you to mlmatty.com or mlmlaw.com and read their MLM Primer / Introduction articles on what makes a MLM legal. BPX with its current business model, is NOT LEGAL, based on my amateur interpretation. I would recommend the owner to consult a MLM attorney as soon as possible.
You can buy them if you want I have had Biz Power System on the internet for over one year selling it for $19.95 for 1000 contacts $29.95 for 5000 contacts and $39.95 for 10,000 contacts.
If you wish to buy the service without being part of Biz Power Xtreme you can. Also you can buy Deductr in the back office for $19.95 a month. So now what do you say if you would look into something before you shoot it down you would know more, Also I have had the comp pan check by the AC first before I launched.
We offer a tool service and training. You get paid a commission for referring members to the service. I also offer my book Mega success Secrets for resale in the back office. And as of today all free members will get the Biz Power System for free but only 250 contacts.
Based on my amateurish opinion, the easiest way is to look at the primary function of a business:
* if it is designed to deliver goods or services, or
* if it is designed to act as an income opportunity, a money making scheme or other similar descriptions.
The first one is designed to attract real customers (even if they become members of a club or whatever), the second one is designed to attract “income opportunity seekers”. There is a big difference in the sustainability of these models.
Real customers are genuinely interested in the products or services offered, and will continue to buy even if they don’t make any money on the opportunity. Income opportunity seekers will quit if they don’t make money.
I may consider some of the “schemes” out there to be legal because of this, even if they’re questionable designed and looks very similar to pyramid schemes. I may also consider some of the “businesses” out there to be illegal.
* Attaching products to a scheme won’t make it more legal, it will only make it “a scheme with products attached to it”.
* Adding the right sets of products or services may make a scheme become more legal, because they may change the primary function of a scheme from “opportunity” to “deliver something of value”.
I haven’t studied this opportunity / business, but from the descriptions here it may look more like a short lived feeder program (or something) than an actual business model? However, it may have been designed as a “temporarily solution” for a specific group of people, making it more acceptable within a specific “community” or something?
Sorry, Paul Skulitz, you seems to be more inspired by “schemes” (like AutoXten) than by real business. Your genuine interest in helping people doesn’t look as “genuine” as you feel it is yourself, but it sure sounds better than “I’m mostly interested in your money”.
But again, I haven’t seen this from the viewpoint of any specific “community” or “group of people”. I’ve used a more general viewpoint through all parts of this comment.
Then your focus for Biz Power Xtreme is completely wrong. The focus of BPX should be to sell your services (and earn affiliate income based on sales by the recruit and his/her downlines). As of right now, it’s just to recruit, and you pay based on recruit, which is again, ILLEGAL.
I wonder if your “AC” is actually versed in MLM law. Why don’t you go ahead and ready those websites I mentioned, and stop thinking of excuses and exceptions for a moment. or are you in too deep to think objectively?
Gentlemen I appreciate your blog and it’s intent, but I believe that your definition of a ‘Recruiting Scheme’ or ‘Pyramid’ is far too wide. I have been practicing law for over 28 years come this march and I have read though the ‘Biz Power Extreme’ website and want to stress that this business fairs out to look 100% legitimate.
I’ve been an avid reader of this blog for quite some time now and while I agree with many of the reviews on here, you are incorrect with your statements regarding the ‘Biz Power Extreme’ program. If you have access to LN, I would like you to take a look at 2004, State of Georgia vs. Piel and this will make more sense to you.
I believe that this blog provides a powerful discussion of all things ‘MLM’. Pointing out one thing Mr. Chang, I do not think that you are qualified to give any kind of expert opinion regarding MLM’s. I have taken a look at your background and it is far from clean.
Mr. Soapbox, even though I do not know what your name is- I can tell from your wording that you are well versed in MLM and applicable laws and statutes. Mr. Chang on the other hand, I believe you are not qualified to give advice on the legalese in regards to MLM or what qualifies as a Legal vs. Illegal opportunity.
Many of the posts and comments that you have written on here Mr. Chang would constitute as on the verge of libel and/or slander in a federal court. Unlike Mr. Soapbox, You are very open and upfront with your name and location and background.
You need to be very careful with what you say as though you may feel like you are just simply defending a cause (for which you obviously have some strong opinions about) but in the end it can come back to bite you.
Instead of just following Mr. Soapbox like a rock and roll groupie, try to branch out a bit and form more of a logical and validated opinion if you are going to give out legal advice.
Now I know that you (Mr. Chang) are probably going to reply with my words in quotes and offer your rebuttal which is fine, but trust that my many years in litigation and law reviews have more weight than just your ‘opinions’.
In MLM Law: ebooks, software, digital items, training tools, video tutorials and so forth do NOT need to be sold separately at a retail level to be considered legal. Also, if the focus of an opportunity is on the making money or recruiting aspect, that does not make it illegal.
A very FINE line exists between a legal mlm and an illegal one. A very fine line. It’s so fine that it is sometimes very hard for organizations such as the FTC to take action on.
So Chang– I suggest you go back to the books and read for a couple weeks so that you understand more the true definition of a recruitment scam.
@Paul
As a member of Biz Power Extreme, can I earn a commission from selling the service (not membership) retail?
The company selling products doesn’t mean a thing when it comes to the income opportunity side of the business, it’s what the members can and can’t do that counts.
As it stands all your members can do to earn a commission is recruit new paid members by marketing Biz Power Extreme membership to them.
Again, if I join Biz Power Extreme can I sell this tool service and training and make a commission on it without selling membership to the company (true retail)?
Actually it’s quite narrow. In the context of MLM you need to have your members selling a product or service (membership is not a service) at a retail level.
If your members can only earn commissions by selling membership to the program (regardless of whether products are attached to this membership) then you’ve got yourself a recruiting scheme.
Might wanna trade in that law degree then…
Why, because you happened to join Biz Power Extreme? Come on mate, I evaluate all MLM companies with the same criteria and Biz Power Extreme completely fails on the ‘am I able to retail any product or service to members without them joining the company?’.
You might be able to sign up and get access to products and services as a free member, but that’s the company offering products and services, not members. As it stands 100% of commissions in Biz Power Extreme are tied up in recruitment and that’s not kosher.
@Mr Field — Your attempt to discredit me through my reputation when I’ve never used my reputation to prove my point makes you the “ad hominem” troll.
I have never claimed to have a law degree, so I’ve relied on opinions of leading MLM lawyers such as Kevin Thompson, Grimes and Reese, or Gerald Nehra.
If you can point out the flaws in my definition and interpretation, I would suspect you have already done so. The fact that you haven’t, leads me to believe you are bluffing.
I have no intention to start a verbal spat on this matter, and turn this into a you vs. me debate. I would suggest you stick to the topic and point out just WHAT makes BPX NOT fit the definition of pyramid scheme as explained by mlmatty.com or mlmlaw.com or similar MLM law websites.
After all you do have 28 years of law experience, as you claimed, yes?
@Darren Field
Don’t complain about “following Oz like a rock’n’roll groupie”? My comment was from the viewpoint of “as a business”, rather than following a specific “standard” for evaluation of a business.
It seems like we have mastered this part, as far as I can see? I used a completely different viewpoint than the others, identifying different aspects of running a business versus running a recruitment scheme.
I also identified “it may have been designed for some specific group of people”, and that my viewpoint didn’t cover all possible circumstances.
This business doesn’t seem to have been designed as a long term solution for income (for the participants), in itself and as a standalone solution.
It may have been designed to cover some specific needs in a very specific market, making it “acceptable” in that market. I wasn’t able to identify neither the needs nor the market, but i didn’t bother to try very hard, either.
The first impression of this is “yet another scheme, designed by a person inspired by schemes”. Parts of this impression is because I don’t have the needs he claims to cover (via products or services).
I don’t see the need to attach an income opportunity to it either, if the products or services are able to cover specific needs in a market (as a long term business).
FYI, there’s no search results for “Georgia vs. Piel” at all. And “Darren Field” yielded about 50 people all across the US, none of them MLM attorneys.
Not a peep from “Darren Field”… I hope he’s studying the relevant info… (probably not)
Guess “Darren Field” 28 years of experience is worthless, eh?
It was strange to me to see some negetive comments over that program . I have known Paul from almost 5 year I do truly say he is one of the most honest people over planet Earth ,so kind and endless helpful.
Program really adds needed tools for networkers to do business online. I product is there and it is well made. Capture pages ,auto responders and the magical tax deductor.
All of that is powerful but how to use it that you will find out in the training that he personally gives.
Education pays the best return of investment. That is the best program by itself and the wonderful enrichment for people having a home base business opportunity.
Thanks Paul and Please, keep the good work running.
@Amr Hassan
As long as the main idea is “training” and “education”, then the business model will be more sustainable, as long as they recruit the right people.
Recruiting income opportunity seekers to a recruitment based business model will usually make it short-lived, more like a “scheme” than a business. That’s why I don’t see the need to add income opportunities to each and every business? A business will first of all need real (retail) customers to be sustainable.
Those matrix-based models he’s using here are usually short-lived, and he seems to have enough experience to know that (from AutoXten and some other previous experiences).
Some of them doesn’t last for more than 3-6 months before they collapse. Pointing out this problem is called “telling the truth”. Trying to hide this problem is usually called “misleading information”.
I’m sure you will find lots of reviews out there being extremely positive to each and every opportunity. We are aimed towards an audience that doesn’t need this false positivity to make a decision.
I have no doubt Paul is a nice guy and all that, but we’re not talking about whether he’s nice guy. We’re talking about his “income opportunity” and how it’s structured like a pyramid scheme with some nice services attached to it instead of a real opportunity.
“The tools you need to generate 100 thousands of leads in the following scams you participate in”?
The idea may work, but it’s designed for a very specific part of the market. It seems to have been designed mostly to attract unexperienced users, looking for “methods” they can use to improve their income rather than “principles”. It’s also aimed towards specific types of matrix-based “schemes”.
It may be a market here, but I don’t think he’s trying to HELP people. A part of the problem (why people need thousands of leads) is that the market is overflooded with marketing efforts. Adding even more efforts will make this problem worse. Helping people to make the market become even more difficult doesn’t seem like a good idea (if you receive this kind of help)?
Then again, I have only seen the video presentation, so I don’t know anything about the “training” and “education” offered.
@Mr. Skulitz — I hope you have consulted a MLM attorney and have him looked over your business model.
You can easily go legit if you will separate BPX (the MLM plan) from the sales of your services, and reward BPX members for sale of your services ONLY. Amway does it, Nu Skin does it, why can’t you?
Instead, you and your fans have wasted your effort trying to find loopholes in the legal definition so you can keep using your existing (very likely ILLEGAL) business plan. Products/Services must be sold to “end user” who are NOT in the company, according to “FTC vs. Omnitrition”. Right now, as is, BPX members’s only business is to recruit more BPX members, NOT to sell your services (it’s touted as a benefit of membership), thus your plan is fundamentally flawed and upside down.
I hope you will see that and correct it ASAP. You seem to want to be legit, and you can easily BE legit, if you will just emphasize the right aspect of your business.