alphay-international-logoBehindMLM first reviewed Alphay International back in January of 2012.

My biggest criticisms of the Alphay opportunity at the time were the ridiculous affiliate membership costs (up to $2467), and a generally restrictive compensation plan.

It was first brought to my attention that Alphay International had made changes to their compensation plan in January of 2014.

I promptly flagged our Alphay review for an update, only to discover Alphay had ceased offering a copy of their compensation plan on their website.

Making a note of it in BehindMLM’s published review, I left it at that.

A reader informed me mid last year that Alphay were once again providing their compensation plan on their website.

Having flagged the review again for an update, I sussed out the new compensation plan and discovered it was indeed significantly changed.

Today we take a look at those changes, along with a complete review and evaluation of Alphay’s current compensation plan.

Alphay International Affiliate Ranks

There are twelve affiliate ranks in the Alphay International compensation plan.

Along with their respective qualification criteria, they are as follows:

  • Silver – maintain 50 PV a month and have a total downline sales volume of 100 GV
  • Gold – maintain 50 PV a month and have a total downline sales volume of 500 GV (max 50% from any single unilevel leg)
  • Sapphire – maintain 100 PV a month and have a total downline sales volume of 2000 GV (max 50% from any single unilevel leg)
  • Ruby – maintain 100 PV a month and have a total downline sales volume of 7000 GV (max 50% from any single unilevel leg)
  • Emerald – maintain 100 PV a month and have a total downline sales volume of 20,000 GV (max 50% from any single unilevel leg)
  • Diamond – maintain 200 PV a month and have a total downline sales volume of 50,000 GV (max 40% from any single unilevel leg)
  • Key Master – maintain 200 PV a month and have a total downline sales volume of 100,000 GV (max 40% from any single unilevel leg)
  • 1 Star Key Master – maintain 200 PV a month and have a total downline sales volume of 50,000 GV (max 40% from any single unilevel leg)
  • 2 Star Key Master – maintain 200 PV a month and have a total downline sales volume of 500,000 GV (max 40% from any single unilevel leg)
  • 3 Star Key Master – maintain 200 PV a month and have a total downline sales volume of 1,000,000 GV (max 30% from any single unilevel leg)
  • 4 Star Key Master – maintain 200 PV a month and have a total downline sales volume of 2,000,000 GV (max 30% from any single unilevel leg)
  • 5 Star Key Master – maintain 200 PV a month and have a total downline sales volume of 5,000,000 GV (max 30% from any single unilevel leg)

Commission Qualification

To qualify for MLM commissions, all Alphay International affiliates must meet a 50 PV a month requirement. Binary commissions require 50 PV to have been generated over a rolling four-week period.

PV stands for “Personal Volume” and is sales volume generated by retail customer orders (counted at 80%) and an affiliate’s own purchase of product.

Retail Commissions

A retail commission of up to 25% is available on the sale of Alphay International products to retail customers (non-affiliates).

First Order Bonus

The First Order Bonus is a 15% bonus commission on the first order placed by newly recruited affiliates.

Residual Commissions (binary)

A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):

binary-MLM-compensation-plan

New positions in the binary are generated by splitting positions on the previous level into another two positions each, with positions on both sides of the binary filled via the direct and indirect recruitment of new affiliates.

Sales volume across both binary sides is tracked weekly, with Alphay affiliate paid up to 20% on sales volume generated by their weaker binary leg.

How much of a percentage is paid out is determined by how much an Alphay affiliate spends on their first product order, as well as their rank:

  • purchase 175 PV worth of product = 5% commission (capped at $1000 a week)
  • purchase 350 PV worth of product = 10% commission (capped at 2000 a week)
  • purchase 700 PV worth of product = 15% commission (capped at $5000 a week)
  • qualify at the Ruby rank = 15% commission (capped at $7500 a week)
  • qualify at the Emerald rank = 15% commission (capped at $10,000 a week)
  • qualify at the Diamond rank = 20% commission (capped at $15,000 a week)
  • qualify at the Key Master or higher ranks = 20% commission (capped at $25,000 a week)

Residual Commissions (unilevel)

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

unilevel-commission-structure

If any level 1 affiliates recruit new affiliates of their own, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

Alphay International cap payable unilevels at ten, with affiliates paid a percentage of sales volume generated on each level of their unilevel team.

How much of a percentage is paid out is determined by an affiliate’s rank, and what level of their unilevel team the volume was generated on:

  • Silver – 15% on level 1 and 5% on level 2
  • Gold – 15% on level 1 and 5% on levels 2 to 4
  • Sapphire – 15% on level 1 and 5% on levels 2 to 5
  • Ruby – 15% on level 1 and 5% on levels 2 to 6
  • Emerald – 15% on level 1 and 5% on levels 2 to 7
  • Diamond – 15% on level 1 and 5% on levels 2 to 8
  • Key Master – 15% on level 1 and 5% on levels 2 to 9
  • 1 Star Key Master – 15% on level 1 and 5% on level 2 to 10

Unilevel Matching Bonus

The Unilevel Matching Bonus pays a bonus percentage on the unilevel commission earnings of recruited affiliates.

The Unilevel Matching Bonus pays out down five levels of recruitment, with the bonus paid as a percentage of unilevel commissions earned as follows:

  • Silver – 10% match on level 1 earnings (personally recruited affiliates)
  • Gold – 10% match on level 1 earnings and 5% on level 2
  • Sapphire – 10% match on level 1 earnings and 5% on levels 2 and 3
  • Ruby – 10% match on level 1 earnings and 5% on levels 2 to 4
  • Emerald and higher – 10% match on level 1 earnings and 5% on levels 2 to 5

Generational Bonus

The Generational Bonus allows Alphay International affiliates to earn beyond the initially offered ten unilevel levels.

The Generational Bonus pays out via “generations”, with a generation defined when a Key Master or higher affiliate is found in a unilevel leg.

This Key Master or higher ranked affiliate closes off the first generation, with the second generation beginning after them.

If another Key Master or higher ranked affiliate is found in that unilevel leg, the second generation is capped off and the third then begins.

If no additional Key Master ranked affiliates exist, the current generation extends down the full length of the unilevel leg.

Commissions are paid out as a percentage of sales volume generated in a generation, with an Alphay affiliate’s rank determining how many generations they can earn on.

  • Key Master – 5% on the first generation
  • 1 Star Key Master – 5% on the first and second generations
  • 2 Star Key Master – 5% on the first to third generations
  • 3 Star Key Master – 5% on the first t fourth generations
  • 4 Star and 5 Star Key Masters – 5% on all five available generations

Rank Achievement Bonus

The Rank Achievement Bonus is a one-time cash bonus paid out when Alphay International affiliates qualify at Emerald of higher ranks.

  • Emerald (maintained for three consecutive months) – $5000
  • Diamond (maintained for three consecutive months) – $10,000
  • Key Master (maintained for six consecutive months) – $25,000
  • 1 Star Key Master (maintained for six consecutive months) – $50,000
  • 2 Star Key Master (maintained for six consecutive months) – $75,000
  • 3 Star Key Master (maintained for six consecutive months) – $100,000
  • 4 Star Key Master (maintained for six consecutive months) – $250,000
  • 5 Star Key Master  (maintained for six consecutive months) – $1,000,000

Car Bonus & Incentive Trips

Alphay International reward affiliates with a Car Bonus at the 2 Star Key Master rank.

Specific details about the Car Bonus are not included in the Alphay International compensation plan, with the company only stating the following:

At the 2 Star Key Master rank, Alphay recognizes your dedication and exemplary leadership with a Car Bonus.

This is not a lease, it is a clear title to a brand new Alphay Audi.

Emerald and Key Master or higher ranked affiliates also qualify for leadership summits.

Again, no specific information about these summits is included in Alphay’s official compensation plan material.

Joining Alphay International

Aphay International affiliate membership costs are not disclosed on their website.

From what I’ve been able to suss out, the affiliate packs still exist but have been toned down in price as follows:

  • Alphay Builder Pack – $249
  • Alphay Leader Pack – $499
  • Alphay Executive Pack – $999

The primary difference between these packs is residual binary commission rates and products included with the packs.

Conclusion

Alphay International’s current compensation plan is a pretty decent improvement from their last, but it’s still not without some glaring compliance issues.

The most prominent is the use of “pay to play” to set binary commission percentage rates.

The more an Alphay affiliate spends on their first order, the higher a commission they are paid. Otherwise an affiliate is looking at a long road to the Ruby rank, just to earn the base 15% binary commission.

The notion that an Alphay affiliate going to build a downline that generates 7000 GV a month without binary commission qualification however is ridiculous.

Quite obviously the vast majority of affiliates are going to self-qualify for binary commissions via an incentivized initial purchase, which is clearly play to play.

In MLM an affiliate’s commission rates should always be determined by sales performance, as opposed to how much money they themselves spend.

Regulators also use pay to play as an identifiable element in determining whether an MLM opportunity might be operating as a pyramid scheme.

A broader lack of retail sales incentives in Alphay is compounded by the penalty retail sales volume brings.

For reasons unknown, retail sales only contribute to PV at a rate of 80%. An affiliate’s own purchases meanwhile are counted at 100%.

Purely on percentages, Alphay International appear to wholly encourage an affiliate purchasing their PV requirement each month.

These two standout compliance issues are a shame, with Alphay otherwise offering up a much deeper compensation plan.

The lack of disclosure regarding Alphay International affiliate costs is also disappointing.

The combination of a unilevel and binary as primary commission generators is impressive, as usually the two only compliment eachother through a matching bonus (binary pays residual, unilevel is used to match).

All in all though I feel the initial pay to play incentive will likely set the culture of Alphay affiliates, with that being a focus on recruitment of new affiliates.

These affiliates place a large initial order for binary commission qualification, and then satisfy their monthly PV requirements via autoship.

Retail is possible but unlikely, given the lack of retail sales qualifiers or incentives (again I bring up the 80% counted volume disincentive).

An improvement from 2012 definitely, but still a ways to go.