Divvee Review: $9.95 a month for access to discounts?
There is no information on the Divvee website indicating who owns or runs the business.
The Divvee website domain (“divvee.social”) was registered on the 8th of December 2015, with Allen Davis listed as the owner. An address in the US state of Utah is also provided.
As per a Divvee marketing video, Allen Davis is the CEO of the company. Why this information is not provided on the Divvee website is unclear.
Davis (right) has a legal background, which is reflected in his positions within the MLM industry.
As per Davis’ LinkedIn profile, he has served as
- General Counsel, VP of Operations and Chief Compliance Officer for Neways (1997 to 2006)
- General Counsel and VP of Operations for Trivani (2006 to 2010)
- CEO of Qnique (2010 onwards)
- General Counsel and Chief Operation Officer for ForeverGreen International (2012 to 2015)
- General Counsel for TruVision Health (2015 onwards)
Davis ran his own law firm between 2011 and 2015, with Divvee his second stint as an MLM executive.
Davis’ former company Qnique (body wraps) appears to have been shut down. None of the companies’ websites were responsive at the time of publication.
Read on for a full review of the Divvee MLM opportunity.
The Divvee Product Line
Divvee resell cell phone plans from Verizon, AT&T, Sprint and T-Mobile. Full cell plan pricing is available on the Divvee Wireless website @ “divveewireless.com”.
Divvee also run an e-commerce platform, through which third-party products and services can be purchased.
The Divvee Compensation Plan
Divvee affiliates are paid when affiliates in their downline and free and paid customers purchase products through the Divvee network.
Divvee affiliates are also paid to recruit new affiliates and paid customers.
In order to qualify for commissions, five products must be purchased by either an affiliate or their retail customers through the Divvee e-commerce platform.
Customer Acquisition Commission
Divvee affiliates are paid $1 a month for each new Divvee customer they refer.
Customer commissions are paid out as long as customers continue to pay their monthly Divvee fee.
Divvee affiliates are paid $1 a month for each new Divvee affiliate they recruit.
Recruitment commissions are paid out as long as recruited Divvee affiliates continue to pay their monthly fee.
Divvee use a 3×10 matrix compensation structure.
A 3×10 matrix places an affiliate at the top of a matrix, with three positions directly under them:
These initial three positions form the first level of the matrix, with the second level generated by splitting each of the three first level positions into another three positions each (9 positions).
The third level of the matrix is generated in the same manner, by splitting the nine level 2 positions into another three positions each (27 positions).
In this manner all ten levels of the matrix are generated, with a complete 3×10 matrix housing 88,572 positions.
Positions in the matrix are filled via direct and indirect recruitment, with affiliates paid 10 cents a week for each fee-paying affiliate or customer in their matrix (free customers only generate product matrix commissions).
Note that matrix levels must be qualified for, with how many levels a Divvee affiliate is paid out on determined by how many affiliates they have recruited:
- recruit 1 affiliate to qualify to earn matrix commissions level 1
- recruit 2 affiliates to qualify to earn matrix commissions on level 2
- recruit 3 affiliates to qualify to earn matrix commissions on level 3
- recruit 4 affiliates to qualify to earn matrix commissions on level 4
- recruit 5 affiliates to qualify to earn matrix commissions on level 5
- recruit 6 affiliates to qualify to earn matrix commissions on level 6
- recruit 7 affiliates to qualify to earn matrix commissions on level 7
- recruit 8 affiliates to qualify to earn matrix commissions on level 8
- recruit 9 affiliates to qualify to earn matrix commissions on level 9
- recruit 10 affiliates to qualify to earn matrix commissions on level 10
This assumes every affiliate is qualified on all levels of their matrix.
If an affiliate is not qualified to earn on a matrix level where a commission is generated, the affiliate above them has their level qualification requirement reduced by one.
Eg. If you’d normally need five affiliates to earn a commission generated on level 5 of your matrix, but the affiliate on 6 of your matrix doesn’t qualify for a matrix commission, you get the commission if you have 4 recruited affiliates.
This affects qualification criteria for all affiliates above you, till a maximum ten matrix levels have been paid out.
Specifically, if a large number of affiliates in a matrix are not qualified to earn on the lower levels of their matrix, affiliates above them are able to earn commissions beyond the first ten levels of their matrix.
Product commissions in Divvee are paid out using the same matrix compensation structure as affiliate recruitment commissions.
When affiliates in a matrix team purchase a product, each product generates a set commission.
Eg. An item sold through Divvee costs $100, with $10 of that a generated commission per item purchased by affiliates or customers.
The product commission is split across ten levels of the matrix, in the same manner recruitment commission are ($10 divided by ten levels pays out $1 on each matrix level).
Remember an affiliate must be matrix level qualified in order to earn on all levels of their matrix. If they are not matrix qualified at any particular level a commission is generated, that commission passes up to the next upline qualified affiliate.
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):
If any level 1 affiliates recruit new affiliates, 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 2 and so on and so forth down a theoretical infinite number of levels.
Qualifying for unilevel commissions requires a Divvee affiliate to recruit either five or ten affiliates:
- recruit five affiliates and qualify for a 25 cent commission
- recruit ten affiliates and qualify for a 50 cent commission
When a new affiliate is directly or indirectly recruited into a unilevel team, affiliates who qualify for unilevel commissions in the upline are paid either 25 or 50 cents.
Each affiliate in the upline is paid in succession until $3 has been paid out in total (a minimum of six upline affiliates if they were paid 50 cents each).
Note that unilevel commissions are paid out monthly, with payments subject to change based on the unilevel qualification status of affiliates in your downline.
Paid customers do not fill positions in a unilevel team, however commissions paid on their monthly membership fee are paid out in the same manner as monthly affiliate fees.
Affiliate membership with Divvee is $25 and then $9.95 a month.
Putting aside the recruitment commissions for a second, the premise of Divvee can work if they have far more fee-paying customers over affiliates.
Free affiliates are neither here nor there, as they only generate commissions on product purchases.
Logically speaking, if commissions paid out in Divvee were primarily derived from free customer product and/or service purchases, why Divvee pay out recruitment commissions would need to be answered.
As it stands though, until the free customer mobile app is rolled out on September 1st, the legitimacy of Divvee primarily rests on its paid customer to affiliate ratio.
If commissions pushed out on membership fees are primarily affiliates paying $9.95 a month, Divvee is a chain-recruitment scheme.
To assess the likelihood of this, one needs to examine what paid customers are actually paying for.
The hook for customers in Divvee is the $50 or $55 a month cell phone plan. That, as far as I can tell, doesn’t require payment of $9.95 a month.
The $9.95 a month is for access to Divvee’s e-commerce platform, which had better offer different discounts than what free affiliates will get with the app if it wants to compete.
Without getting too much into what doesn’t exist yet, as it stands Divvee customers are expected to pay $9.95 a month for access to discounts.
Would you pay $9.95 a month for access to discounts?
Divvee marketing material put out by affiliates suggests that “everyday” products offered through the Divvee e-commerce platform will be discounted by “up to 40%”.
If that’s even remotely accurate, what affiliate network has Divvee signed up to?
Obviously it’s not their own, as an unknown company doesn’t have that sort of buying power. With most of the $9.95 affiliates and customers pay out each month going to commissions, the affiliate network Divvee have signed up with is either free or low-cost.
Again, are we really expected to believe there’s some exclusive e-commerce platform out there offering 40% discounts on high-demand products?
That people are going to pay Divvee $9.95 a month to access without the attached business opportunity?
Therein lies Divvee’s Achilles’ heel.
The marketing pitch for paid customers is slick, however what is promised doesn’t really add up. Much the less make a strong case as to why customers are going to pay $9.95 each month.
That leaves us with affiliates paying the majority of $9.95 a month fees, which is a compliance disaster given how Divvee’s compensation plan splits that fee.
All the more worrying is Allen Davis’ claim that he has “extensive training in corporate compliance” on his LinkedIn profile.
The MLM companies Davis has served as legal counsel for aren’t small potatoes, so why Divvee has recruitment commissions at all I have no idea.
The argument could be made that even with a near 100% affiliate adoption rate of the $9.95 a month membership, that’s separate from the $25 affiliate fee (which as far as I can tell is not commissionable).
Fair enough, but there’s two points to consider:
- If only affiliates are paying $9.95 a month, it’s a defacto recruitment commission.
- access to discounts is not a product in MLM, you need actual products being purchased.
Sure, products can be purchased through the e-commerce platform, but if revenue flowing into Divvee is dwarfed by affiliate fees each month, that’s a problem.
The types of products Divvee are claiming will be available through their e-commerce platform don’t sound very niche. They’re marketed as “stuff you’re already buying”.
This is interesting because everyday products and services are typically highly-competitive and don’t offer high commission rates. Reason being “everyone is buying them anyway”, so there’s little to no need to incentivize marketing (via affiliate marketing, MLM or otherwise).
How this ultimately plays out will be interesting to watch, with Divvee scheduled to launch on May 16th.
As for what I’m seeing now on the marketing side of things, it’s all about affiliate recruitment. Recruiting ten affiliates (as opposed to generating retail customer sales), unlocks the entire Divvee compensation plan.
That’s not a good sign considering the retail customer side of the business hasn’t even launched yet.
Update November 21st 2016 – In late September Divvee announced their “Rank & Share” opportunity.
BehindMLM reviewed Divvee’s new business model on November 21st.