Highdef Nation Review: AWIS insurance feeder?
Like most of the world, when I think “highdef” I think television screens that are capable of displaying video ‘with more than 480 horizontal lines (North America) or 570 lines (Europe)’ (Wikipedia).
Whether this somehow got lost in translation with the founders of Highdef Nation the MLM business opportunity or whether they’re just trying to be hip with a snazzy name I’m not sure, but I was somewhat disappointed to learn that Highdef Nation has nothing to do with television.
So what is Highdef Nation all about then? Read on for a full review.
The Company
Based out of Texas in the US, Highdef Nation was launched in October 2012 and was founded by James Dickerson (CEO), Sonu Sandhu, Wavey Lester and Kenny Lloyd (respective photos below).
Described in his company bio as being a “spiritual leader” who does everything he does “with excellence”, James Dickerson is an “MLM Corporate Business Developer” who ‘recently ushered over 56,000 distributors into a company pre-launch in 45 days‘, however no specifics are provided by Highdef Nation.
MLM wise Dickerson (who refers to himself as “Mr. Super Fantastic”) was involved in Javita in 2011 and prior to that was involved in training and coaching MLM affiliates under the brand “Real Talk No Bull”.
Sonu Sandhu started out in MLM with Herbalife under Mel Gill. Gill later went on to launch his own MLM company MyVideoTalk, which Sandhu signed onto as “Vice President of Business Development” in 2005.
After seven years with MyVideoTalk, Sandhu left the company earlier this year.
Wavey Lester’s past MLM ventures include 5Linx, ShoptoEarn, Send out Cards and People String.
In 2010 Lester was involved in wireless MLM company Global Verge, writing an angry letter accusing Global Verge’s management of creating ‘a list as long as the Great Wall of China of unfulfilled promises‘ that ‘caused (damage) to the lives of thousands‘ with some ‘losing their homes because they believed that Global Verge would do what it said it would do‘.
Finally Kenny Lloyd, described by Highdef Nation as an ‘awe-inspiring successful businessman and entrepreneur‘, was heavily involved in Ardyss International (MLM weightloss) for a few years before leaving the company mid last year.
The Highdef Nation Product Line
As a MLM company, Highdef Nation themselves don’t appear to have any retailable products or services. Instead the company markets “health and dental plans”, provided by third-party insurance agencies.
If you visit the “products” section of the Highdef Nation website, you are directed to the domain highdefplans.com “for more details”. The HighdefPlans website however demands affiliate information be entered before it actually shows a visitor any information.
The American Workers Insurance Services (AWIS) logo at the top of the page indicates that they are behind the health and dental plans available through Highdef Nation.
Interestingly enough, AWIS (who claim to be “a licensed insurance agency”) themselves offer a MLM business opportunity on their website. Not surprisingly, “Healthcare Solutions” are marketed as their product.
If you try to view any information about AWIS’ offered plans, you are dumped on the same “please enter the affiliate’s information who referred you” website as the one over at Highdef Nation:
Product wise it appears Highdef Nation are nothing more than resellers of AWIS’ own health insurance product line, with the details of any plans offered kept secret from the general public.
The Highdef Nation Compensation Plan
Highdef Nation offer affiliates retail commissions upon the signing up of non-affiliates to healthcare plans, along with recruitment commissions and bonuses for recruiting new Highdef Nation affiliates.
Retail Commissions
Although details of health plans on offer are not provided, Highdef Nation claim their affiliates can earn $30-$60 for each customer they sign up onto a “healthcare benefit plan”.
Recruitment Commissions
When a Highdef Nation affiliate recruits a new affiliate into the business, the company pays out a “Fast cash/Team-builder Bonus”.
Once again the company provides no specifics, other than stating their recruitment commissions are ‘calculated at 50% of the assigned Commissionable Volume associated with a respective HDN Business Kit‘.
An affiliate recruitment presentation I saw however did state that affiliate’s would receive $50 per affiliate they signed up as a Highdef Nation member for $199.
Residual Commissions
Residual commissions in Highdef Nation are paid using a unilevel compensation structure. This structure places an affiliate at the top of their team, with each personally recruited member placed directly under them (level 1).
If any of these level 1 members recruit new affiliates of their own, they are placed directly under level 1 affiliates, forming level 2 of the original affiliate’s unilevel team.
Using this compensation structure, Highdef Nation pay out a percentage of all downline affiliate earnings, paid down monthly on up to seven levels of recruitment as follows:
- Level 1 – 20%
- Level 2 – 3 to 5%
- Level 3 – 2 to 5%
- Level 4 – 1 to 4%
- Level 5 – 1 to 3%
- Level 6 – 1.5 to 2%
- Level 7 – 1 to 2%
The reason for the varying percentages between levels 2 to 7 are not explained in the Highdef Nation compensation plan material.
Eight membership ranks do exist within the Highdef Nation compensation plan, however their requirements and whether or not they affect residual commissions is not specified by the company in its official compensation plan documentation.
The Mega Start Bonus
Highdef Nation’s Mega Start Bonus is a cash bonus paid out upon achieving specific sales volume and recruitment requirements within 68 months of joining the company.
Requirements are listed bimonthly and with a total payout $60,000 achievable by month 68 if an affiliate and their downline are generating 5 million points in sales volume and the affiliate has personally recruited 12 new Highdef Nation affiliates.
Failure to meet the bimonthly requirements of the Mega Start Bonus forfeit an affiliates chance to claim any future payments as part of the bonus program, even if they’ve previously qualified for bonuses under the plan.
A matching bonus is also available on the earnings of personally recruited affiliate (level 1) earnings in the Mega Start Bonus.
Membership Rank Bonuses
Although the specifics of the eight membership ranks that exist within the Highdef Nation compensation plan are not explained by the company, they do mention a rank achievement bonus payable upon an affiliate reaching certain membership ranks.
These payments are as follows:
- Divisional Leader – $500
- Regional Leader – $1000
- Regional Vice President – $2000
- Executive Vice President – $3500
- Senior Vice President – $7500
- National Sales Director – $15,000
- Executive Sales Director – $25,000
- Presidential Sales Director – $50,000
Car Bonus
Again dependent on the unspecified requirements of Highdef Nation’s membership ranks, the company pays out a monthly car bonus of
- $500 to Regional Vice Presidents
- $1000 to National Sales Directors
- $2000 to Presidential Sales Directors
Joining Highdef Nation
For reasons unknown, it is currently impossible to signup to Highdef Nation using the company website:
Marketing material I have seen from the company however, indicates that Highdef Nation membership will be priced around $199 with no indication of a monthly ongoing membership fee payable.
Conclusion
If I didn’t know any better, I’d say Highdef Nation are simply an affiliate master account of AWIS themselves with the company set up as a feeder into AWIS with its own compensation plan attached.
Within the Highdef Nation compensation plan it also seems entirely possible for affiliates to sign up for $199 and then earn a $50 commission simply by recruiting new affiliates in at the $199 membership level.
HDN Associates receive a Fast cash/Team-builder Bonus for every person they personally sponsor into the HDN opportunity.
Naturally this raises some red flags as this component of the Highdef Nation compensation plan pays out as a pyramid scheme would (on the recruitment of new members).
Product wise Highdef Nation sell nothing of their own other than membership to the site itself. This is itself yet another red flag when recruitment commissions of $50 are on offer.
With AWIS themselves offering a MLM compensation plan and attached income opportunity to their insurance plans (which for some reason cannot be revealed to the general public), Highdef Nation appears to be nothing more than a feeder program with its own attached recruitment driven compensation plan.
I highly doubt anyone is going to sign up to health plans they can’t even view the details of, giving off a strong indication that the Highdef Nation is geared more towards the recruitment of new affiliates rather than sale of health plans.
Infact with membership levels within the compensation plan and health levels both shrouded in mystery and not revealed by the company, the only thing that is explained clearly and upfront by Highdef Nation is that the company will pay you $50 per new member you recruit.
Having only just recently launched, Highdef Nation is definitely an opportunity you’re going to want to closely observe before jumping into.
Update 20th October, 2012 – For reasons not immediately clear (running an obvious pyramid scheme?), it appears that Highdef Nation was indeed nothing more than a signed affiliate of AWIS.
As above, effective October 19th 2012, AWIS has terminated their business relationship with Highdef Nation. Naturally as a result of this, the Highdef Nation MLM business opportunity is no more.
Domain reg was set to private. Not a good sign.
I did a bit more research on the provided address on the Highdef Nation website:
Turns out it’s the exact same address AWIS themselves use:
A Google search reveals multiple addresses at 10878 Westheimer Road, with something called The Mailroom occupying the 10878 Westheimer Road building.
In the Yellow Pages, The Mailroom classify themselves as offering “mail and shipping services” – meaning both Highdef Nation and AWIS’ supplied address is just virtual office space.
Something doesn’t smell right here.
You can view the plans.
Here is how.
This is my website (currently free because I pre-enrolled)
(Ozedit: referral link removed)
Click on products, then click on the link on that page. It takes you to the AWIS site. Then click on “view Association Plans”. The plans are sometimes different for each State and some States dont offer a plan.
They are all VERY limited benefits.
You are right. High Def just hooked on to this with their own MLM so the first people in would get rich by recruiting based on hype.
The owner of AWIS is Shareef Rabie. In order to sign up to be able to recruit and sell (offer) the limited benefit plan I must pay $199 plus $30 per month to High Def.
Here is the terms and conditions I must agree to:
So with no retailable products, the only thing actually purchaseable from Highdef Nation is company membership. And with members being paid recruitment commissions for recruiting new members, this means Highdef Nation fits the definition of a pyramid scheme.
No different to all those pyramid scheme MLM travel clubs that only sell membership. With four co-founders though Highdef Nation should definitely know better.
Google streetview says “The Mailroom” is a UPS Store, i.e. mailbox service. It’s even LESS than a virtual office. UPS store offers the service that people can use “Suite #” to refer to their mailbox. Sounds more official.
http://goo.gl/maps/VqiSY
AWIS is not insurance. It’s “healthcare discount plan”, not the same thing. It’s closer to a buyer’s club than to health insurance.
Here’s a link with plans that seems to work:
http://elitehealth.awiscard.com/support/aboutawis
Even fellow IBOs are calling this a possible fraud, as it had been in prelaunch for MONTHS
http://www.ibosocial.com/amyjacobellis/pressrelease.aspx?prid=146538
I checked the consensus on web and this is basically bogus insurance. It’s NOT insurance, but it pretends to be. When you wrap it with MLM, then wrap another MLM on top of it, you got a monstrocity.
AWIS is borrowing its initials from a real insurance company called First Capital / AWIS, LLC. NOT the same company.
In order to get the “Insurance” from AWIS you not only have to pay High Def for that privilege but you must become a member of NAPP. Here is something interesting about that organization.
The Texas AG sued the NAPP and won. One of the listed directors of NAPP is Mahmoud Rabie. (is he related to the listed owner of AWIS Shareef Rabie)?
You can see more here including links to the actual lawsuit
http://www.ibosocial.com/amyjacobellis/pressrelease.aspx?prid=154592
More red flags: Kristopher Rabie has been cited by FTC before for spam faxing (i.e. junk faxes)
http://transition.fcc.gov/eb/Orders/2004/DA-04-784A1.html
They apparently operate under wide variety of names. The FTC complaint listed like a dozen of them. I checked online and there are a dozen different domains like awiscard, awishealth, awisrx, etc.
This appears to be a disguise for the NAPP, which, as Ed pointed out, was already under a consent order from AG of State of Texas.
I wrote a missive on HighDef Nation:
http://kschang.hubpages.com/hub/Investigating-HiDefNation-is-it-a-real-income-opportunity-or-a-suspicious-scheme-Does-it-even-provide-health-care?done
Suspicious, NOT insurance, MLM comp plan with one illegal component… stay away until resolved.
This is an obvious scam. A 5th grader can see that.
The websites are down only stating:
What should we do?
Wow, what’s going on!
Hmmm…. I knew something was fishy about this…
Guess that’s the end of *that* beautiful relationship…
Update! I posted this on their Facebook Fan Page because I listened in on the “breaking news” call tonight:
I said: “So to my understanding, AWIS is NO longer with High Def Nation? They were not hacked instead they are now with Health Insurance Innovations? Please correct me if I’m wrong. Thanks!”
Answer: “You are right”
Uh, AWIS is no longer with Highdef Nation? I thought it was the other way around? (edit: oh wait I read that wrong, HDN is going with HII)
Health Insurance Innovations don’t appear to be related to MLM. They have however had 52 complaints lodged against them in the last 3 years through the BBB (C rating).
HIIQuote.com (Health Insurance Innovations) is a real agent reselling other insurance and non-insurance coverages, but they mainly sell short term (up to 12 months) policies, and there are a LOT of stuff that’s not covered (i.e. no pre-existing conditions and a whole list of exclusions).
No idea how is High Def related to HiiQuote. Recommendation stays the same: STAY AWAY until this is clarified.
Heck, having to swap providers 3 days before launch ain’t a good sign. 😀
Update!
To get the refund of $199 that you paid to join High Def Nation (if you choose to), you must contact AWIS as the money went to them first, then would go to HDN. Here is the number to get a refund from AWIS: 866-545-2055
HDN is now with Health Insurance Innovations and was stated that HDN will have a new back office set up now with HII.
It’s STILL not kosher to sell insurance when you’re not a licensed agent, no matter who you are with. At least with AWIS, since it ain’t insurance nobody will get into trouble.
I’d take the HII claims with a grain of salt until it’s confirmed with an official website launch.
From the looks of it, Highdef Nation were blindsided by AWIS. This was published on their Facebook page shortly after AWIS pulled the plug:
Side note: The weird thing is on their fan page they informed people to share this with everyone (yesterday 10/19)!!
http://download7.freeconferencepro.com/rec/1281999952-20121018021402-Willie1.mp3
It’s a recorded call with AWIS… Didn’t sound like they were going to pull the plug. Again, this was yesterday. What changed in a day?
I’ll take a stab at it and suggest Mr Google spent a few hours at AWIS yesterday.
Compromised my ***. If a hacker want to play with them he’d put the phone number of FTC or something, and rogue reps don’t have access to the backend.
This is just someone make up **** to explain the pivot.
Well Monday came and went and nothing much happened (other than the Highdef Nation website going down).
On a corporate call yesterday, Highdef Nation was still pushing the “we are going to partner with a new provider” line and claiming that they had not closed. They also claimed they would not change the compensation plan, retaining the pyramid scheme structure that exists.
Highdef Nation revealed that these recruitment commissions are why AWIS pulled the plug (not surprisingly).
Apparently AWIS wanted members to either purchase an insurance plan themselves or get retail customers before recruitment commissions were paid out, with Highdef Nation management refusing to budge on the issue.
As of today the Highdef Nation website is down with the domain parked and displaying spam links.
In other words, AWIS knows how to run a LEGAL MLM biz (remember, Rabie Law, ran by Rhonda Kay Rabie, is family to Shareef Rabie head of AWIS and Michael Rabie head of NAPP) and HighDef Nation heads don’t.
AWIS don’t want to deal with people who don’t understand what’s legal and what’s not. 🙂 Bravo, bravo.
HighDefNation website’s back, completely redone, now shows a counter about 5 days to launch of… something.
You guys have it wrong, AWIS shut the highdef web site down and began contacting the data highdef built. It was a ploy to embarrass them and steal there distributors.
Oh, and by the way when they re launch they now have products. so much for the pyramid talk. 3 days and counting. got to give it to them in less than 2 weeks they recovered from a blindside bombshell!
@Leann — if that’s the narrative they want to explain, they need proof. The fact is HighDef/AWIS offered pay for recruitment, and that is a pyramid scheme characteristic.
Unless you can prove (or they can prove) that AWIS shut down HDN and is using the data to contact all the members so join them directly instead of through HDN this “stealing distributors” charge is rather pointless.
Furthermore, everybody in HDN is in AWIS, because they use the SAME backend. So what exactly was stolen? One could argue that HDN misrepresented itself as an independent org when it’s merely another AWIS affiliate.
As for the relaunch, we will see when we see it. Speculation right now is merely PR to keep your hopes up. There’s nothing to analyze, so no point in arguing whether it’s legal or not. Something that doesn’t exist is neither.
It’s now 01-NOV-2012, and the counter says it still has like 10 hours to go. What timezone are they on?
Timeline went past. It now just says “update in progress”, and nothing.
They released a new “policies and procedures”
http://highdefnation.com/Policies_Procedures/HDN_PP.pdf
But it’s clear they did a mass search and replace with someone else’s document, because it refers to “governing law” of Nevada, when they don’t exist in Nevada.
And their Illinois address is a UPS Store mailbox… just like that AWIS mailbox.
Highdef Nation relaunches website, says nothing about what it does. Still very fishy.
I was HDN and has never been contacted by AWIS except when I called them for my refund of $199. I don’t know all of the details and so far all I have heard was HDN side of the story.
I am just going to continue with an established MLM company because I am tired of the PRE LAUNCH HYPE.
Very happy with this plan. I’m a customer with AWIS, and I’ve used their Dental HMO Insurance Plan,”not discount”, and paid $0 for exam, xrays, and $5 for cleaning.
Also received $50 insurance re-imbursement for a Dr. visit. I also have the $5,000 accident insurance protection, and the $1,000 a day hospitalization benefit.
Policy # is on back of all materials/brochures with US Fire Insurance Company. Called Texas Department of Insurance before I signed up, and all is legit and registered. No problems.
Not Major medical, but good group limited insurance benefits that I can afford. I think most people have not taken the time to learn more, as I did.
I attended a seminar for Highdef Nation two days ago and was not impressed. Whenever I hear “build a team” or anything close to it I am quickly put off as I know it is pyramid building.
I was even more so put off by the speakers lack of information and avoidance of answering direct questions with concise answers. My mind was more made up not to join the more I listened to her speak and avoid eye contact with me.