mbi-internationalBefore we get started, I have to clarify that MBI International the MLM opportunity do not operate from “mbiinternational.com”. This appears to be an unrelated entity.

MBI International the MLM opportunity operate from “mbiv2u.com” and are the subject of this review.

tedy-teow-founder-mbi-internationalMBI International launched in 2009 and is headed up by Tedy Teow (right).

As per Teow’s MBI International corporate bio;

More than 30 years of marketing experience. Lightened up his life, and everyone else too.

He was unwilling to be ordinary that makes him dare to face any new challenges and set up MBI International Group in 2009.

Possibly due to language barriers (MBI International are based out of Malaysia), I was unable to put together an MLM history on Teow.

Earlier this year it appears $2.3 million USD of MBI International funds was seized in Thailand.

Authorities seized foreign currencies worth more than 83 million baht from a leading foreign company in Songkhla’s Sadao district during a crackdown on foreign mafia gangs yesterday.

A combined team of authorities yesterday raided MBI Group, in tambon Samnaktham of Sadao district, said the Special Task Force’s chief Col Paisan Nusung who led the crackdown yesterday.

An initial investigation also found the MBI Group has many subsidiary companies and was suspected of carrying out money laundering activities, police said.

The company has run six hotels, nine apartments, two resorts and several tourist spots including animal farms in Sadao district, with an investment value of 2 billion baht, according to police.

An article in Thai from MRG Online has some additional information and photos.

Read on for a full review of the MBI International MLM opportunity.

The MBI International Product Line

MBI International has no retailable products or services, with affiliates only able to market MBI International affiliate membership itself.

The MBI International website does feature some fifteen “subsidiary” companies, however these don’t appear to have anything to do with the MBI International MLM opportunity.

The MBI International Compensation Plan

The MBI International compensation plan sees affiliate purchase packages, with commissions paid when they recruit others who do the same.

MBI International also pay ROIs through a points-based investment scheme.

Recruitment Commissions

MBI International affiliates are directly paid to recruit new affiliates.

Direct recruitment commissions are paid out as a percentage of funds new MBI International affiliates spend on their affiliate package.

How much of a percentage is paid out is determined by which package the recruiting affiliate signed up with:

  • $100 and $200 packages = 6% recruitment commission
  • $500 package = 7% recruitment commission
  • $1000 package = 8% recruitment commission
  • $2000 package = 9% recruitment commission
  • $5000 package = 10% recruitment commission

Residual Recruitment Commissions (binary)

The first type of residual recruitment commissions MBI International pay out are binary commissions.

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

These initial two positions form the start of both sides, with the second level of the binary team generated by splitting each of the two positions into another two positions each.

In this manner each subsequent level of the binary team houses double the number of positions in the previous level.

Positions in the binary team are filled via direct and indirect recruitment of affiliates.

Commissions are paid out as positions in the binary are filled, using a 1:1 pairing ratio.

Each affiliate package has a corresponding Business Volume (BV) attached to it. The BV is equal to the amount of money spent on an affiliate package.

Eg. The $500 package generates 500 BV.

At the end of each day, MBI International tally up BV generated on both sides of the binary, with affiliates paid a percentage of volume matched on either side.

How much of a percentage is paid out is determined by how much an MBI International affiliate spent on their membership:

  • $100 package = 6% commission (capped at $100 a day)
  • $200 package = 6% commission (capped at $200 a day)
  • $500 package = 7% commission (capped at $500 a day)
  • $1000 package = 8% commission (capped at $1000 a day)
  • $2000 package = 9% commission (capped at $2000 a day)
  • $5000 package = 10% commission (capped at $5000 a day)

Recruitment Commissions (unilevel)

The second type of residual recruitment commission MBI International pay out are unilevel commissions.

A binary 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, 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.

Commissions are paid out as a percentage of membership fees paid by affiliates recruited into the unilevel team.

MBI International cap payable unilevel levels at six, with how many levels an affiliate can earn on determined by how much they spent on their membership:

  • $100 package = 4% on level 1 (personally recruited affiliates)
  • $200 package = 4% on levels 1 and 2
  • $500 package = 4% on levels 1 to 3
  • $1000 package = 4% on levels 1 to 4
  • $2000 package = 4% on levels 1 to 5
  • $5000 package = 4% on levels 1 to 6

Point-based ROIs

MBI International offer affiliates investment in what they call “Game Redemption Credits” (GRC).

GRC is acquired based on how much an MBI International affiliate spends on their membership:

  • $1000 = 560 GRCs
  • $2000 = 1160 GRCs
  • $5000 = 3000 GRCs

MBI International affiliates also appear able to invest an additional $35 into points:

  • $15,000 investment = 9000 GRCs
  • $35,000 investment = 21,000 GRCs

MBI International set a price for each point, with affiliates then converting their GRCs into “units” based on this price.

A split mechanic exists where affiliates are able to double their GRC point-balance before they convert them into units.

Once converted, MBI International adjust the price of units over time. Affiliates are purportedly able to sell the units back to the company at the current price.

Joining MBI International

Affiliate membership with MBI International is tied to the purchase of an MBI International affiliate package:

  • $100 package
  • $200 package
  • $500 package
  • $1000 package
  • $2000 package
  • $5000 package

The primary difference between the above packages is income potential through the MBI International compensation plan.

Conclusion

There’s a lot of pizazz on the MBI International website but not much substance.

The ruse appears to be feigned success through a bunch of possibly unrelated companies, whereas as an MLM opportunity all MBI International offer is chain-recruitment and Ponzi investment.

How much an MBI International affiliate spends on their membership dictates their earning potential. This is “pay to play” and usually a calling card of pyramid schemes.

After they’ve signed up, MBI International affiliates earn commissions by recruiting new affiliates. This is chain-recruitment and most definitely a pyramid scheme.

The second income stream is GRC Ponzi points. Affiliates receive points, which they can double via “splitting”, and cash them out based on a point-value set by MBI International.

There doesn’t appear to be anything specifically pegged to the value of GRC points, however how much affiliates can withdraw is obviously dictated by affiliate recruitment (the rate of new funds entering the scheme).

The mention of subsidiary companies on the MBI International website is intended to create the illusion of a link between the companies and the GRC unit price. There’s no substance to this subtext however, with there being no supporting evidence provided on the MBI International website linking the two metrics.

Logically if MBI International’s subsidiaries were successful companies in their own right, there’d be no need to solicit affiliate investment.

As with all pyramid schemes, once recruitment of new MBI International affiliates dies off, so too will commissions paid out. Issued units will probably continue to increase in value, however affiliates will likely discover issues upon trying to convert the units into real money.

Any difficult would signal an imminent collapse, with mathematics dictating that the majority of MBI International affiliates stand to lose money.