Preservation of Wealth Review: Sale of memberships
Launched in July 2009, Preservation of Wealth revolves around the idea of members being able to purchase ‘precious metals for 5-50% less than everyone else‘, and then reselling them at a profit.
Operating out of the US state of Texas, Preservation of Wealth was founded by company President Justin Davis and IT Director, Randy Garcia (respective photos bottom right).
Justin Davis doesn’t appear to have any recorded history in MLM prior to the launch of Preservation of Wealth in 2009. On his company bio Davis is simply credited as being a “metals investor”.
Likewise for Randy Garcia, nothing turned up indicating a history in MLM prior to 2009. Garcia does however appear to have some experience with MLM backends with his company bio crediting him as being ‘a developer of high level financial accounting software as well as MLM specific software‘. No specific examples are provided.
Read on for a full review of the Preservation of Wealth MLM business opportunity.
The Preservation of Wealth Product Line
Preservation of Wealth has no retailable products or services. All transactions within the company are between the company itself and its members.
There is a “shop” link on the Preservation of Wealth website, however no products are able to be purchased, with each item instead having a “join now” button underneath it advertising company membership.
Bundled with one of Preservation of Wealth’s two membership options is a “benefits network”, which appears to be access to a series of third-party services included under the membership fee charged.
Services members have access to include legal services, identity protection and a financial advice helpline.
The Preservation of Wealth Compensation Plan
Preservation of Wealth offers members recruitment commissions and residual income via way of a binary commissions structure.
Preservation of Wealth members are paid $100 for every “Benefits Package” membership they sell. If any of their recruited members also sell a Benefits Package, the original affiliate also earns $20 for each membership sold.
In order to qualify for binary commissions, a Preservation of Wealth associate must recruit a minimum of three “Benefits Package” members and be generating at least 100 Business Volume on both binary teams. Additionally you and two recruited affiliates in your binary must be generating at least 50 BV a month.
A binary compensation structure places an affiliate the top with two legs branching out from under them. These two positions form the start of two binary teams, left and right.
New members can be added to a binary either via direct recruitment or the recruiting efforts of an affiliate’s downline.
Using the above binary compensation structure, Preservation of wealth pay out $100 each time 300 BV is paired from both your left and right teams.
Paired commissions are capped according to membership rank which, along with their respective qualification criteria are as follows:
- Star Consultant (generate 100 BV a month and recruit 5 consultants) – capped at 25 cycles a week ($2,500)
- Executive (generate 150 BV a month and recruit 10 Consultants) – capped at 100 cycles a week ($10,000)
- 1 Star Executive (generate 150 BV a month and recruit 1 Executive) – capped at 150 cycles a week ($15,000)
- 2 Star Executive (generate 150 BV a month and recruit 2 Executives) – capped at 200 cycles a week ($20,000)
- 3 Star Executive (generate 150 BV a month and recruit 3 Executives) – capped at 300 cycles a week ($30,000)
- 4 Star Executive (generate 150 BV a month and recruit 4 Executives) – capped at 400 cycles a week ($40,000)
- 5 Star Executive (generate 150 BV a month and recruit 5 Executives) – capped at 500 cycles a week ($50,000)
As per the membership rank requirements above, matching binary commissions are paid out at the “Executive” membership level and higher.
After recruiting at least 10 new members (5 on each binary team), Executive members can earn a 10% matching bonus on their personally recruited associate’s earnings.
Once personally recruited reach Executive membership rank themselves, 10% can also be earnt on their personally recruited associates.
The binary matching bonus extends down five levels, with each level being triggered by affiliates reaching Executive membership rank.
If at any time commissions owed by Preservation of Wealth exceed 75% of the BV generated by members, the company caps the earnings of members.
This is done first by culling the matching bonus and then binary commissions until the commissions owed to affiliates drops below 75% of the global weekly BV.
Joining Preservation of Wealth
Membership to Preservation of Wealth is available at three price points:
- Associate – $50
- Benefits Package 1 – $249
- Benefits Package 2 – $399
The specifics between the differences of the two packages available (other than price) were not disclosed on the Preservation of Wealth website.
Conclusion
Looking at the Preservation of Wealth Compensation Plan, from the membership ranks to the commissions paid out everything revolves primarily around the recruitment of new members.
Thus looking mechanically at what Preservation of Wealth members have to do to get paid, it’s pretty obvious that without the recruitment of new members, affiliates aren’t going to earn any money.
Recruitment commissions require recruitment and binary commissions aren’t available until 3 members have been recruited.
This focus on recruitment is only further emphasised in Preservation of Wealth’s own marketing material.
The company states they ‘operate via the sale of memberships‘ and pay their affiliates for ‘simply helping others get involved with us‘. By recruiting new members, Preservation of Wealth affiliates are ‘able to profit through our small membership fees‘.
In summation,
commissions (are) paid directly to our members for their efforts of bringing others into our incredible program, by paying only those who actually bring in others.
In paying affiliates directly on the recruitment of new members Preservation of Wealth pretty much boils down to being a pyramid scheme attached to an irrelevant Numismatic storefront which, doesn’t seem to be available to anyone except company members.
If members are unable to recruit they can’t participate in the compensation plan, however with membership fees being paid annually it’s difficult to gauge the health of the company.
What is for certain though is that, like all recruitment driven opportunities, once the recruitment stops so to will the commissions. Some Business Volume will be generated via members purchasing coins but as a business opportunity that money has to come from somewhere and as far as I can see, it’s via the perpetual recruitment of new members.
October 2nd, 2012 at 6:21 am Justin Davis(Quote)
One of the easiest things to do it sit back and write misinformed information about people you dont know. Unfortunately, this posting is not even remotely close to an accurate description of my company or how we operate.
What is worse, however, is that there was never even a phone call or email to myself or the office to attempt to gather information when writing this “unbiased review” of POW. Does that seem like a prudent way to obtain “unbiased information”.
Not shockingly, the author of this article is hidden in the shadows, probably a comepetitor trying to stop the flux of people from leaving his/her company to join POW.
To the apparently anonymous author of this description, shame on you. The very first sentence you have written about POW is incorrect. The reality of POW is that a large majority of our products sold are retail-able.
We even have large precious metals dealers that buy from us in large volume on a regular basis to retail those products. Guess what… its becuase of our pricing… and every Member of POW has access to that same exact pricing.
You have been brainwashed into the old school way of doing MLM, using stereotypes and molds that haven’t evolved.
Our product line is the exact same coins sold around the world 24/7… we just sell them at a better price. People wouldn’t spend $1,000 or $10,000 or $500,000 without knowing they are getting a good deal. Everybody get their metal and people like you get left behind.
The FACT is that you can sell a Membership. You have to offer a product or service that has value. Several aspects of our products and services were completely left out.
The simple truth is that the only reason why anyone goes to your site is because you capitalize on the fact the MOST MLM’s are there aren’t worth the time to even read the first page of their site, much less join.
POW offers some of the most valuable products on the planet at the best possible price. So does Sam’s Club, so does Costco… There is a reason why we dont have any legal issues, its because we put extra effort into making sure everything we do legal, and beneficial to our customers.
If you, the author of this article, have further questions or comments, please feel free to call my cell phone (Ozedit: contact details removed) or the office. My cell is available to anyone that has legitimate questions regarding POW.
Our legal team has counseled countless MLM’s and if there was a problem, it would have been resolved over 3 years ago.
You may want to call regarding the legal ramifications of what happens when you post information that is untrue and inaccurate.
To the readers: If the person writing this was credible or an authority, we would know who they are…
POW is by design and in practice one of the best MLM’s available to you today. Ask any of our customers or reps.
Justin Davis
President / Founder of POW
(Ozedit: contact details removed)
October 2nd, 2012 at 8:11 am Oz(Quote)
Unless the information provided to the public on the POW website is misleadingly false, then it sounds like the perfect way to get unbiased information.
You don’t need to contact a company to review them, all you need it their business model. I think you’re confusing “unbiased review” with “PR loaded marketing press release full of talking points we provided”.
Strawman argument. Strike 1.
“you just don’t get it…” Strike 2.
And that’s strike 3, “call me for the real story”. I’d rather keep the discussion open and transparent here for all to see and contribute as they see fit cheers. Taking the discussion offline and “hidden in the shadows” is not what BehindMLM is about.
Selling to members is not retail. It’s internal consumption.
Retail is the sale of products marketed by your affiliates between the company and retail customers who are not involved and have no option to participate in the compensaton plan.
Unless your compensation plan material is wrong, this is not possible in POW as the storefronts of members demand that people sign up as affiliates first, before being able to purchase anything.
No. If you run a MLM company that sells membership and pays out commissions on the recruitment of others (which by definition is what selling memeberships is), you’re running a pyramid scheme.
October 2nd, 2012 at 1:41 pm Oz(Quote)
@Justin
President or not if you wish to participate in the discussion you will keep it on topic, that is pertaining solely to the Preservation of Wealth.
Anything else will be appropriately marked as spam.
October 3rd, 2012 at 3:21 am M_Norway(Quote)
@Justin Davis
What’s the difference between the $249 and $399 memberships? What are the additional benefits in the last one?
From the article here:
I didn’t find any other options than “Join Now!” there.
Membership was basically the right to recruit other members into the same opportunity, and to earn commissions on that, directly or indirectly (personally recruited plus 1 level deep).
It was also about the right to earn commissions on Business Volume (selling new memberships, selling numismatic coins).
BV Business Volume (created anywhere in your downline):
* 100 BV for recruiting 1 member (selling 1 benefits package)
* 50 BV for selling 1 numismatic coin
600 BV (300+300 binary) required for 1 cycle, $100 payout.
Numismatic coins (monthly autoship):
1 coin per month $99, 50 BV (to upline)
2 coins per month $97 per coin, 100 + 50 BV (to weaker leg)
3 coins per month $95 per coin, 150 + 100 BV (weaker leg)
The source I used here was a Youtube video, 23:42 minutes long (too long to be used here), uploaded by Carl Willis in August 2011.
Link disabled: youtube.com/watch?v=PHjOnNsM2-I
October 3rd, 2012 at 8:35 am Justin Davis(Quote)
Hi, Norman, not all of my posts are making it on here for some reason.
The difference between the regular and the Olympic package is the 1984-S PR70 Olympic commemorative coin. Both packages come with at cost pricing of metal, LifeLock.
You’ll need a POW storename / sponsor code. Each is fully explained on the site. Neither is necessary to participate in the comp plan. The Olympic coin given can be found on other sites for more than the cost of the entire Olympic package. Lots of value there.
Justin
October 3rd, 2012 at 9:37 am Nathan Belz(Quote)
Maybe it’s because I am new to MLM’s… but I love Preservation Of Wealth. My wife and I are both members and signed up to buy silver (I hear it’s going up, lol!)
We bought silver and what’s awesome is I can put it straight in my IRA.
I understand that some people might think pyramid scheme but my initial research taught me that it isn’t even close…. I think of POW like the Costco of the gold and silver world.
The fact that I get paid if I refer a friend that wan’t to buy gold/silver is even better. Isn’t that basically a rewards program? I manage a promotional products company and we pay referral commissions? Is that a pyramid scheme?
We actually make decent money using POW and a good portion of the people that have used POW through my wife and I did so expressly for the purposes of purchasing silver.
I actually thought it was a cool concept… I can write off all kinds of stuff since it is technically “my own business” so it really just seems to save me money, taxes, pay me back when my friends do something I did, and provide me with services I probably would have bought anyway like lifelock and a few others.
October 3rd, 2012 at 9:46 am Nathan Belz(Quote)
BTW. I was never involved in a MLM until Preservation Of Wealth so I would love some feedback on what I said.. but please be nice…
(Ozedit: removed recruitment spam)
seriously though I would love some honest feedback on my thoughts from everyone!
October 3rd, 2012 at 10:07 am Oz(Quote)
@Nathan
First and foremost these friends are buying membership. So no, it’s not a rewards program.
Except that Costco do not pay out recruitment commissions.
When those commissions are paid out membership fees and you have no retail offering, yep.
Irrelevant.
October 3rd, 2012 at 11:31 am M_Norway(Quote)
Factual information are usually accepted. Marketing claims are usually NOT accepted. Other than that, moderation queue is something that happens to all contributors, e.g. if you have more than 1 external link. That’s why I choosed to disable the Youtube-link in my post.
If the main purpose is to sell coins — through a network or whatever — it should clearly be reflected on the website. But your website mostly reflected the income opportunity.
That is a rather complicated method for retail customers?
Retail customers are people who are interested in the products or services, rather than the opportunity. And they will usually NOT follow a specific “path”. It makes very little sense for retail customers if they first will have to get a specific storename and sponsor code to get access to information.
October 3rd, 2012 at 11:41 am Justin(Quote)
Costco does pay referral commissions.
October 3rd, 2012 at 11:45 am Oz(Quote)
For clarification, I’ve only marked one of Jason’s comments as spam. It was full of attempts at misdirection, legal threats, ad-hominem attacks and baseless accusations against myself.
October 3rd, 2012 at 11:47 am Oz(Quote)
They didn’t the last time I checked. Feel free to provide documented proof that Costco pay cash commissions upon the recruitment of new members though and we’ll go from there.
Note that Costco also sell to non-members (5% surcharge) meaning it has true retail, something POW does not which further invalidates your comparison.
October 3rd, 2012 at 12:24 pm Nathan Belz(Quote)
See bottom lower left promotion…
your comment:
Isn’t this just semantics… lets say I had said Sam’s Club whom doesn’t sell direct retail without memberships (or even let you in the wholesale store for that matter.) is that an accurate comparison? They offer the referral program as well as Costco.
They provide customers with what they describe as “wholesale club values.” This is how POW comes across in their marketing, not “Storefront Retail.”
The storename and network marketing side of the business is strictly optional, just like lifelock, free legal services and other benefits. There is no reason to do it unless you want to.
—we pay referral commissions? Is that a pyramid scheme?
—When those commissions are paid out membership fees and you have no retail offering, yep.
——So as described earlier in this post Sam’s Club is a pyramid scheme. On top of that when I pay advertising money for referrals to superpages/google/facebook for my promotional products business for referrals that must be a pyramid scheme as well?
I will post the links to the membership referral program next so that if they are deleted this post should still be fine.
October 3rd, 2012 at 1:11 pm Oz(Quote)
No idea what you’re talking about. The “cashback” offer on the Costco website is a cashback through Amercian Express.
Furthermore “cashback” is not the equivalent of “paid to recruit”.
If you’re going to make the claim that Costco themselves pay cash upon the recruitment of new members you need to provide evidence of this.
No. Paid to recruit new members != cashback.
Let’s not. Sam’s Club don’t pay cash commissions upon the recruitment of new members.
No it isn’t, it’s included with every membership sold. You have to pay to play.
October 3rd, 2012 at 1:37 pm Oz(Quote)
Right, think I’ve been more then generous here with all the supermarket talk.
First and foremost, pending anyone publishing an MLM business model used by Costco, Sam’s Club or any other supermarket, all comments mentioning them will be marked as spam.
What Costo, Sam’s Club etc. do does not change the fact that POW pay out commissions to recruit new members.
Thus far nobody has provided any documentation showing either Costco or Sam’s Club use a MLM compensation plan, nor that they pay out cash commissions upon the recruitment of new members.
Cashback (offered by anyone) does not equate to commissions being paid out on the recruitment of new members. Period.
Here’s where we’re at:
I can join POW, pay my membership fee and then get paid commissions for doing nothing else other than recruiting new Premium members. I can also earn residual income off the recruiting efforts of my downline.
No products are sold to retail customers and I earn my commissions solely on my own recruiting efforts and that of my downline. Ergo POW fits the definition of a pyramid scheme.
Keep the discussion on topic.
October 3rd, 2012 at 4:24 pm K. Chang(Quote)
For those who don’t bother checking the law… CostCo / Sam’s Club are “buying clubs”, which are operated by even MORE stringent rules than MLM. MLM lawyers specifically says: avoid being classified a buying club as it requires a LOT of paperwork.
I’ll bet you that PoW is NOT registered as a buying club, and thus any claim by you is pointless.
http://www.mlmlaw.com/library/guides/Primer.htm#buying
October 3rd, 2012 at 9:41 pm Ray(Quote)
My understanding is that the residuals are based on actual monthly purchases of the silver, gold, or buillion. Does this change your statement that residuals are based off recruiting?
If there are no coin purchases then there is no residual. There is a one time commision for selling the memebership but that’s the only time you get paid for selling a member ship. All of other monies come from the purchases of coins.
October 3rd, 2012 at 10:40 pm Oz(Quote)
/facepalm.
And let’s not forget the ongoing commissions paid out on the recruiting efforts of those you recruit.
October 4th, 2012 at 3:15 am K. Chang(Quote)
If this is REALLY based on supposedly precious metal and numismatic assets… You may want to look up the GoldQuest/QuestNet pyramid scheme outlawed in a dozen countries and see how close this thing is to that scam.
October 4th, 2012 at 5:03 am M_Norway(Quote)
That’s partly my understanding too, but I had to watch the video first to “get it”. The website only reflects recruitment.
It will make a difference on the over all impression of the business if the primary function is about selling coins and precious metals, rather than selling memberships.
Selling memberships to an income opportunity will usually be a pyramid scheme style of business, and will attract income opportunity seekers rather than real customers.