Global Wealth Trade Review: Luxury goods meets MLM
The product ranges marketed through MLM are as diversified as the number of companies selling them. Targeting the high-end luxury goods market, and hoping to bring a little upper-end department store magic to the MLM sector is Global Wealth Trade.
You wouldn’t think there’d be much of a market for luxury end goods in the current global climate so with products priced well into the thousands, is Global Wealth Trade a MLM company even worth looking at?
Read on for a full review of the Global Wealth Trade business opportunity.
Global Wealth Trade launched in 2005 and is headed up by founder and CEO Ramin Mesgarlou (photo right).
Details surrounding Mesgarlou’s MLM history before 2005 appear to be scarce but there is some information out there,
From 2000 to 2001 Mesgarlou worked for 3XS Enterprises on a $42,000 a year salary. 3XS Enterprises
sold club memberships to consumers, entitling them to the privilege of purchasing a wide range of household products at discounted prices.
After being fired in 2001, Mesgarlou took 3XS to court for wrongful dismissal (page 9) and lost.
Other then that, there’s not much out there covering any specifics – Mesgarlou claims to have been involved in the network marketing industry since 1990 and that his family has ‘been in the jewellery-manufacturing business for over 100 years‘.
Presumably Mesgarlou’s family contacts are where Global Wealth Trade source and produce their product range from.
The Global Wealth Trade Product Line
Like a department store, the Global Wealth Trade product line branding is the strength of the company and is what it relies on to drive retail sales.
There’s way too much on offer to go into specifics here, but Global Wealth Trade offer a range of mens and women’s jewelery, handbags, watches, wallets and sunglasses (which GWT calls ‘shields’ for some reason).
Prices start at a few hundred and work their way up to twenty thousand. The most expensive product Global Wealth Trade currently retail I believe is the ‘Mandisa Pendant‘, coming in at $19,815.
Update 9th Feburary 2013 – In mid 2012 Global Wealth Trade revised their compensation plan. See “Global Wealth Trade v2.0 Review: Luxury autoship?” for an up to date analysis of “v2.0″ of the GWT compensation plan.
The Global Wealth Trade compensation plan revolves around a binary compensation structure and additionally pays out several performance and incentive bonuses.
Here’s a run down of the GWT compensation plan;
The retail margin with GWT appears to be around 25%, meaning that you pocket this difference between the wholesale and retail costs.
Retail sales are made to customers who have nothing to do with the GWT business.
Essentially a recruitment bonus with an action requirement, GWT pay members $150 for each new member brought into the business provided this new member completes the support modules offered by GWT (training).
A binary compensation structure places you at the top with two legs branching out from under you. In turn, these two legs branch out into another two legs and so on and so forth.
Here’s a visual of the first few levels of a binary compensation structure:
Within this binary structure, Global Wealth Trade pay you out a commission each time your team makes $3000 in sales.
GWT don’t specify exactly what this commission is, but state that it ranges from $150-$300.
Global Wealth Trade offer members a matching bonus that pays out depending on what rank of membership a member has.
- Gold Members earn 5% on the binary commissions earnt by members they directly sponsor
- Titanium members can increase the Gold member commission to 10%
- Platinum members earn 10% on their directly recruited members binary commissions and 5% on their level 2 (members recruited by those they’ve directly recruited)
Depending on which membership package you bought when you joined Global Wealth Trade, at the end of each month the company gives you credit you can use to purchase products with.
Titanium and Gold members receive $75 a month whilst Platinum members receive $150. This monthly credit can be either spent or cumulatively saved and put towards a product purchase at a later date.
In addition to the bonuses and commissions outlined above, Global Wealth Trade also offer several performance bonuses to their members – although they don’t go into the specifics of each bonus. GWT’s additional incentive bonuses are
- a car bonus
- dream getaway bonus
- fast start milestone bonus
Joining Global Wealth Trade
For those looking to join Global Wealth Trade, there are three membership options to choose from:
- Platinum – $3036 cost, includes $2250 credit to be spent on GWT products
- Titanium – $1491 cost, includes $750 credit to be spent on GWT products
- Gold – $821 cost, includes $100 credit to be spent on GWT products
No matter which membership option you come in on, after your first year with the company there is an annual renewal fee of $138.
When you’re talking products that retail for nearly $20,000, you’re going to definitely want a strong sales focused compensation plan, and on that front Global Wealth delivers.
Being luxury goods with a high markup the retail commissions are pretty decent and although $150-$300 for each $3000 in revenue your team makes in sales doesn’t sound like much, when you look at the average cost of Global Wealth Trade’s products, this isn’t too bad at all (assuming your team can actually make the sales).
The residual bonus did sound a bit dubious, in that it contributed to binary commissions at either $75 or $150 per member in your downline, but given that you have to spend this bonus on product purchases, I think of it more like a monthly autoship the company pays for you.
My main concern would be if you could cash out this monthly payment but seeing as it has to be used to purchased products, I see nothing wrong with it.
I do have a slight issue with Global Wealth Trade’s structuring of membership levels. The main difference between the price points appears to be the store credit you get with the company – and the amount you can earn from the compensation plan.
On its own, store credit is great but in this case it appears to be just an incentive to get people to pay more for membership on the promise they can earn more.
I guess Global Wealth Trade boost annual sales figures by forcing all new members to purchase large amounts of product on signup but I don’t see any disadvantage to members if the commissions percentages stayed the same and they reduced the store credit and inturn membership level prices.
That said, I suppose if you’re going to be retailing products that cost well into the thousands, you’re probably going to want to show your potential clients that you yourself can afford at least some of Global Wealth Trade’s products.
As I see it, the biggest challenge with Global Wealth Trade is going to be the marketing of the product line itself. The luxury goods market is very well established and already highly competitive. I note that the company encourage home ‘Tupperware style’ parties and I think this might be a good indication as to how they expect you to draw business.
Internet wise you’re going to be hard pressed against the big guns and whilst the company suggests trade fairs – again, any trade fair for luxury items is likely to be saturated by the big retail players who have far larger advertising budgets then you, the independent Global Wealth Trade, marketer does.
That leaves the circle of people you know, specifically family, friends, associates, etc. I guess if you come from a well off family or live in a fairly affluent area you could make this work but either way you’re going to have to attract people who not only like what Global Wealth Trade has to offer, but also have large amounts of cash to burn.
In this day an age that’s not only a feat in itself, but even with a decent economy is not something everybody is going to be able to achieve.
Think long and hard about joining this one folks, being luxury goods you’re looking at a pretty significant investment before you might actually start to see some returns.
Personally I’d probably want to have at least $5,000-$10,000 saved up before taking the Global Wealth Trade opportunity out for a test drive. Marketing luxury goods in a retail environment is hard enough… let alone trying to get out there and make it on your own.