When Ludaxx first popped up on my radar, I hoped it would be some sort of alien spaceship fusion with network marketing. I have no idea what that actually means, but with the Ludaxx website refusing to divulge any information about the business unless I clicked an affiliate link I let my imagination run wild with all sorts of ideas.

When I bypassed Ludaxx’s silly affiliate referral system, things looked promising as a dramatic score started playing and the Ludaxx marketing video rolled tape (actual screenshot below):

There is a threat…

An epidemic is here…

Everyone is at risk…

It’s in our food…

It is in our drinks…

It is toxic to our body…

We loved it as kids…and became addicted…

But it can hurt us… and destroy our lives…

They had me hooked. Just what on Earth had these aliens done and what was Ludaxx going to have me selling to fight back with? Food and drink cleaning pills? Teleportation devices?! FREAKING LASER GUNS?!? I DON’T CARE, WHATEVER IT TAKES JUST SIGN ME UP NOW!

Moments later however I was somewhat disappointed to learn that Ludaxx had nothing to do with little green men from outerspace, much less an alien invasion.

Well, at least not unless they were invading Earth running around force-feeding everyone sugar. Read on for a full review of the Ludaxx MLM business opportunity.

The Company

Ludaxx was founded in January 2010 by Andrew Lu (photo right) and operates out of the state of Utah in the US.

In founding Ludaxx, Lu appears to have gone into business with his father and brother:

During the “Great Culture Revolution” period, schools were closed in China. Most students were sent to the countryside for “re-education.” Jimmy Lu was one of these students.

At the age of sixteen, Jimmy left his family as an “intellectual youth” and was trained as a “barefoot doctor”. He worked under conditions where sanitation, hygiene and preventative healthcare were relatively unknown.

He learned the basic techniques of both traditional Chinese and Western medicine and became an educator, farmer, and healthcare provider for the people and their animals.

After being taught the power of natural herbs, Jimmy began collecting and growing the herbs himself and encouraged the people to do the same. He saw great success, as demonstrated by the healthy changes of the villagers, farmers, and animals he served.

Jimmy’s focus remained primarily on preventative health through proper nutrition and educating people to take control of their own outcomes.

After years of service as a barefoot doctor, Jimmy took advantage of an opportunity to study material sciences and engineering.

He completed that course of study and then became a licensed attorney in China. He was later the recipient of the Dean’s Scholarship at the University of Utah where he graduated with a Masters in Business Administration.

Jimmy remains sensitive to his earlier training as a barefoot doctor and has conceptualized a product formulation and business plan that combines the best of his experiences in China with current research and technologies.

Along with his two sons, Andrew and Daniel, who grew up with the benefits of their father’s passion, they formed Ludaxx.

Quite the story there I’m sure you’ll agree (no aliens though, damn).

The Ludaxx Product Line

Ludaxx’s flagship product is the sugar blocker ‘F21′. Ludaxx claim that F21 is an

all natural sugar blocker to help limit your blood sugar absorption.

Active ingredients in F21 include L-Arabinose, Konjac–Mannan and polysaccharide PSK.

A bottle of Ludaxx F21 seems to go for around $70-$80 USD. Ludaxx also market an anti-oxidant pill (‘Pearl’, $80 USD) and herbal tea (‘KonLi’, around $55 USD).

The Ludaxx Compensation Plan

Ludaxx offer their members retail, Fast Start and unilvel commissions. The company also offers two bonus pools for members to participate in as well as a generation bonus to extend the seven level unilevel commmissions structure they use.

Retail Commissions

Ludaxx offer retail commissions on product sales. Retail commissions are calculated as being the difference between the wholesale cost of products and the retail cost they sell for.

Fast Start Commissions

Ludaxx’s Fast Start Commissions pay out a 25% Fast Start Commission on any Fast Start orders made by a newly recruited company member. A 10% commission is also paid to the recruiting member’s upline and 10% to the upline’s upline (2 levels above the recruiting member).

Ludaxx Fast Start packs range in price from $36 (‘KonLi Promotion Package’) to $1016 (‘Emerald Business Builder Package’).

Unilevel Commissions

The residual income component of the Luddax compensation plan revolves around a unilevel compensation structure.

A unilevel compensation structure places you at the top and each member or customer you recruit is placed directly underneath you (your level 1). Any members your level 1 recruit then form your level 2 and so on and so forth.

Using this unilevel commission structure, Ludaxx pay out their members residual commissions down seven levels. How many levels a Ludaxx member is paid out on depends on their membership level:

  • Crown Distributor – 5% on levels 1 and 2 (50 PV a month required)
  • Sapphire Crown – 5% on levels 1 to 3 (50 PV and 1000 QV a month required, must have recruited at least three new preferred customers or Crown Distributors)
  • Ruby Crown – 5% on levels 1 to 4 (50 PV and 5000 QV a month required, must have recruited at least three new preferred customers or Crown Distributors)
  • Emerald Crown – 5% on levels 1 to 5 (50 PV and 10,000 QV a month required, must have recruited at least three new preferred customers or Crown Distributors)
  • Crown Diamond – 5% on levels 1 to 6 (100 PV and 20,000 QV a month required, must have recruited at least 4 new preferred customers or Crown Distributors and have at least 3 unilevel legs)
  • Crown Double Diamond – 5% on all levels (100 PV and 50,000 QV a month required, must have recruited at least 4 new preferred customers or Crown Distributors and have at least 3 unilevel legs)
  • Crown Triple Diamond – 5% on all levels (100 PV and 100,000 QV a month required, must have recruited at least 5 preferred customers or Crown Distributors and have at least 3 unilevel legs)
  • Silver Crown Triple Diamond – 5% on all levels (100 PV and 250,000 GV a month required, must have recruited at least 5 preferred customers or Crown Distributors and have at least 4 unilevel legs)
  • Gold Crown Triple Diamond – 5% on all levels (100 PV and 500,000 GV a month required, must have recruited at least 6 preferred customers or Crown Distributors and have at least 4 unilevel legs)
  • Platinum Crown Triple Diamond – 5% on all levels (1oo PV and 1,000,000 GV a month required, must have recruited at least 7 preferred customers or Crown Distributors and have at least 4 unilevel legs)

Note that PV is ‘Personal Volume’ (sales volume you make yourself) and GV is ‘Group Volume’ (sales volume your entire unilevel team makes). From Crown Diamond level, only 60% of your total monthly qualifying GV can come from any one individual unilevel leg.

FastTrack Bonus Pool

The Fast Track Bonus Pool is made up of 5% of all Fast Start Pack sales and 1% of global commisionable sales volume. The Fast Track Bonus Pool is split between all qualifying distributors up to the Crown Double Diamond membership level.

Ludaxx state that qualification for a share in the Fast Track Bonus Pool involved distributors ‘completing a Fast Track enrollment tree’, but don’t actually specific what this is.

Crown Triple Diamond Generation Bonus

The Crown Triple Diamond Bonus expands the seven levels of the residual unilevel commissions by using distributor generations.

Starting at the Crown Triple Diamond level and level 7 of your unilevel organisation, a generation is defined as all the members between level 7 of your unilevel organisation and the first Crown Triple Diamond or higher member found in your unilevel organisation.

Each unilevel leg operates individually and has no bearing on the other legs in your unilevel organisation.

For example, if on one particular unilevel leg you had 15 levels and a Crown Triple Diamond member on level 12. For this particular leg your first generation would be defined as all the members between level 7 and level 12 of this leg. If there was another Crown Triple Diamond member before level 12, your second generation would be defined between level 12 and this level.

Commissions paid out on members in a generation are an additional 3%, with Crown Triple Diamonds earning on one generation, Silver Crown Triple Diamonds earning on two generations, Gold Crown Triple Diamonds on three generations and Platinum Crown Triple Diamonds on four generations.

Crown Triple Diamond Leadership Bonus Pool

2% of Ludaxx global sales are put into the Crown Triple Diamond Leadership Bonus Pool with the company stating that ‘all qualified Crown Triple Diamond Distributors can receive shares in this bonus pool based on results‘.

Ludaxx do not however publicly clarify what these qualification results are.

Joining Ludaxx

Membership to Ludaxx as a ‘Crown Distributor’ is $30 (the cost of the ‘Ludaxx Distributor Startup Kit’). Fast Start Packs can be purchased for at an additional cost but are entirely optional.

Conclusion

The weight-loss niche in MLM is pretty crowded and as a Ludaxx member you’re going to have to work pretty hard to differentiate yourself and Ludaxx’s products from your competitors.

Product wise I think sugar blocking might be a bit of a narrow approach to weight-loss but I guess that’s going to be up to the individual evaluating whether or not Ludaxx’s products are for them.

As far as the compensation plan goes there’s a solid retail offering with ‘preferred customers’ only able to make retail sales. I believe the only qualification to become a preferred customer is a monthly minimum autoship spend (50 PV I think as it’s not specified by Ludaxx in their compensation plan material).

There are recruitment requirements beyond the Crown Distributor membership level however these include preferred customers so I don’t see a problem there.

All in all Ludaxx probably isn’t going to be the easiest product range to market but if you’re confident you know enough people who are conscious about the amount of sugar they consume or feel you could market Ludaxx’s products over the internet, I don’t see any hiccups with this opportunity.

One final bit of advice though, if you do decide to join and sign up as a Ludaxx distributor, you might want to find out why they chose that particular name. I imagine ‘what’s a Ludaxx?’ is probably something Ludaxx distributors get asked quite often.

(Personally I have no idea).