The Perfect Solution Review: Zhunrize reimagined as a pyramid
On their website The Perfect Solution refer to themselves as ‘TPS & Partners Co. Ltd., a Hong Kong based corporation‘.
Heading up the company are General Managers Daniel Yeung (Hong Kong, China), Garry Regier Jr. (US) and Mark Lee (China).
Yeung and Regier appear to have MLM backgrounds, with Lee providing e-commerce connections in China.
Daniel Yeung’s TPS corporate bio credits him with “20+ years in direct sales with over 50,000 team members”.
Possibly due to language barriers, I was unable to independently verify this claim.
Garry Regier’s LinkedIn profile cites him as a “Corporate Sales Trainer” for Zhunrize. Richard Ramos is credited as TPS’ VP of Sales & Marketing and was also involved in Zhunrize.
The SEC shut down Zhunrize for being a Ponzi scheme in late 2014.
On his personal blog Regier (right) also promotes My Lead System Pro, an affiliate marketing MLM opportunity.
Mark Lee’s TPS corporate bio credits him as being
instrumental in identifying right resources in building the cross boarder ecommerce site (ecosko.com) and manage and train the staff and product suppliers for the successful running and operation of the ecommerce site.
At the time of publication the Ecosko website was non-responsive.
Read on for a full review of The Perfect Solution MLM opportunity.
The Perfect Solution Product Line
The Perfect Solution have no retailable products or services of their own.
The company runs three e-commerce platforms, through which third-party products and services can be purchased.
Examples listed in The Perfect Solution marketing presentations include:
- Nutritional Products
- Skincare Products
- Apparel & Shoes
- Designer Brands
- Home and Garden
- … and much much more!
The Perfect Solution Compensation Plan
The Perfect Solution compensation plan is a mix of retail e-commerce sales and affiliate recruitment commissions.
The Perfect Solution Affiliate Ranks
There are six affiliate ranks within The Perfect Solution compensation plan.
Along with their respective qualification criteria they are as follows:
- qualified affiliates – sign up and continue to pay monthly affiliate fee
- MSO – recruit and maintain three qualified affiliates
- MSB – have at least three MSO ranked affiliates in your downline (each in a separate recruitment leg)
- SMD – have at least three MSB ranked affiliates in your downline (each in a separate recruitment leg)
- EMD – have at least three SMD ranked affiliates in your downline (each in a separate recruitment leg)
- GVP – have at least three EMD ranked affiliates in your downline (each in a separate recruitment leg)
A recruitment leg refers to a downline under an affiliate you’ve personally recruited. Each personally recruited affiliate starts a new recruitment leg.
The Perfect Solution pay affiliates 20% of the profit margin on products sold through their replicated e-commerce store front.
Eg. if a $5 wholesale product sells for $6, the profit margin is $1 and an affiliate is paid 20 cents.
Residual store commissions are paid out on up to three levels of recruitment (unilevel):
- Silver affiliates earn 10% on level 1 (personally recruited affiliates), 5% on level 2 and 3% on level 3
- Gold affiliates earn 15% on level 1, 8% on level 2 and 5% on level 3
- Diamond affiliates earn 20% on level 1, 10% on level 2 and 5% on level 3
Daily Sales Bonus Pool
The Daily Sales Bonus Pool is made up of 10% of The Perfect Solution’s daily e-commerce sales.
To qualify for a share in the Daily Sales Pool
- free TPS affiliates must recruit one affiliate or have four retail customers
- paid TPS affiliates must recruit one affiliate or have two retail customers
A retail customer in The Perfect Solution compensation plan is defined as a non-affiliate e-commerce customer who purchased $25 or more in the last month.
Residual Recruitment Commissions
The Perfect Solution are pay residual recruitment commissions via a 2×25 matrix.
A 2×25 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting the two positions into another two positions each.
Subsequent levels of the matrix are generated in the same manner (up to twenty-five positions), with each new level housing twice as many positions as the previous level.
A complete 2×25 matrix houses over sixty-nine million positions.
Positions in the matrix are filled via direct and indirect recruitment of new The Perfect Solution paid affiliates.
Commissions are paid out monthly per affiliate recruited into a matrix as follows:
- Silver affiliates earn 70 cents per affiliate recruited
- Gold affiliates earn 70 cents per Silver affiliate recruited and $1.40 per Gold and Diamond affiliate recruited
- Diamond affiliates earn 70 cents per Silver affiliate recruited, $1.40 per Gold affiliate recruited and $2.10 per Diamond affiliate recruited
The Perfect Solution compensation plan also mentions a company-wide forced matrix. This appears to be a matrix filled based on company-wide affiliate recruitment efforts.
Specific details regarding the size of the matrix and commission payouts are not provided in The Perfect Solution compensation plan documentation.
Monthly Top Performers Bonus
The Monthly Top Performers Bonus is made up of 10% of The Perfect Solution’s company-wide revenue (including affiliate fees).
Affiliates can qualify for a share in the Monthly Top Performers Bonus Pool as follows:
- MSO and higher ranked affiliates – maintain three retail customers
- all other affiliates – maintain fifteen retail customers
Monthly Leadership Bonus
The Monthly Leadership Bonus is three separate pools made up of a percentage of The Perfect Solution’s monthly company-wide revenue.
- SMD affiliates who maintain three retail customers qualify for a share in a 3% monthly pool
- EMD affiliates who maintain four retail customers qualify for a share in a 1% monthly pool
- GVP affiliates who maintain six retail customers qualify for a share in a 0.5% monthly pool
Note that only affiliates who bought in at the Diamond level can qualify for the Monthly Leadership Bonus.
Monthly Presidential Sales Bonus
The Monthly Presidential Sales Bonus is a pool made up of 0.25% of The Perfect Solution’s company-wide revenue.
An affiliate qualifies for a share in the pool by
- buying in at the Diamond level
- qualifying at the GVP rank
- having a downline of over 3000 affiliates and
- maintaining at least ten retail customers
Qualified The Perfect Solution affiliates can earn a 5% matching bonus on commissions earned by two levels of downline affiliates.
To qualify for the Matching Bonus, an affiliate must have bought in at the Diamond level, be at the MSB rank or higher and maintain three retail customers.
Joining The Perfect Solution
The Perfect Solution affiliate membership is available at the following price-points:
- Free Pack – free
- Silver Pack – $500 and then $20 a month
- Gold Pack – $1500 and then $40 a month
- Diamond Pack – $2500 and then $60 a month
There’s not a lot of difference between Zhunrize and The Perfect Solution’s business models.
Both have an e-commerce platform with ties to China and operate as pyramid schemes, however The Perfect Solution is an improvement in some areas.
The most obvious standout are the retail customer requirements. Retail customers can’t be The Perfect Solution affiliates and they must have spent $25 in the previous month to count.
That’s a pretty solid way of demonstrating the retail viability of The Perfect Solution’s platform.
Unfortunately pyramid recruitment and pay to play completely overshadow this difference.
Zhunrize also paid affiliates to recruit new affiliates and while The Perfect Solution is a departure from outright Ponzi fraud, the chain-recruitment elements of Zhunrize’s business model remain intact.
This is a problem because in MLM paying commissions on chain-recruitment equates to a pyramid scheme.
Pay to play is also a strong element to The Perfect Solution’s business model, directly rewarding affiliates based on how much they spent on their membership.
In MLM commissions and bonuses should always be tied to sales performance, not how much an affiliate pays in fees.
As to Daniel Yeung and Mark Lee I can’t say but having gone through the regulatory shutdown of Zhunrize, Garry Regier and Richard Ramos should know better.
There is absolutely no legitimate reason a The Perfect Solution affiliate would pay $2500 for a replicated e-commerce platform store.
And make no mistake, there are echoes of Zhunrize’s Ponzi elements within The Perfect Solution. The monthly Top Performers, Leadership and Presidential Sales Bonuses all recycle company-wide revenue to top affiliates.
Retail customer requirements to differentiate the bonuses from Zhunrize’s offerings, however the flow of money is potentially the same.
The crucial question here is whether The Perfect Solution has a significant retail customer base, or whether the majority of revenue being collected is affiliate fees.
With Diamond membership required to qualify for most of The Perfect Solution compensation plan, I find it highly unlikely that retail orders are going to outweigh affiliates signing up for $2500 and then $60 a month.
Prospective The Perfect Solution affiliates can get an approximation of this by asking your potential upline what their retail customer stats were for the last three or four months.
No retail customers? Run for the hills…