Beep Xtra Review: “Affordable” merchant discounts?
There is no information on the Beep Xtra website indicating who owns or runs the business.
The only identifying information on the Beep Xtra website is the following line taken from the company’s “Terms and Conditions”:
Compensation plan which is on a voluntary basis and exists solely on the world wide web based in the British Virgin Islands only.
The British Virgin Islands of course being an internationally recognised tax haven.
The Beep Xtra website domain (“beepxtra.com”) was registered on the and lists an “Angelos Hadjiphilippou” of “Exevior Technologies Ltd” as the owner, operating out of Limassol in Cyprus.
Exevior Technologies (of which Hadjiphilippou is the owner) is a web-design company, presumably responsible for the coding of the Beep Xtra website and not the owners of the business itself.
One peculiarity exists on the Beep Xtra website on a page they call “strategic partnerships”.
On this page Beep Xtra claim to have ‘a relationship with KaratBars International‘:
Beepxtra has a very special relationship with Karatbars International from Stuttgart in Germany. Whilst at first glance they are completely different companies they share a common philosophy and here is a rare synergistic business relationship.
It is even more rare because the members of both companies can exist separately in each business of Beepxtra and Karatbars International and while this nearly always has a negative effect on one company, the nature of the two businesses means that they actually complement each other’s growth in a constant two way wave.
Members who get involved in Beepxtra are actively encouraged to look at Karatbars.
-Both companies believe and promote the movement of money.
-Both companies benefit when people, shops and businesses join both companies.
-Both companies are committed to honesty of trading and the honest movement of money which leads to long term stability.
-Both companies grow faster when the other has an increase in growth.
In summary Beepxtra believes that every member in Beepxtra would benefit from a membership in Karatbars international.
There appears to be an obvious business relationship here which is not being openly disclosed. I’d flag this as a potential misrepresentation of the Beep Xpress business opportunity.
This concern is only magnified by the lack of disclosure as to who is running and/or owns Beep Xpress itself.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Beep Xtra Product Line
In addition to software installation services charged to merchants, Beep Xtra themselves have no retailable products or services. All commission revenue is generated via a fee charged on transactions taking place within the Beep Xtra merchant network.
The Beep Xtra Compensation Plan
The Beep Xtra compensation plan revolves around revenue generated via purchases from participating Beep Xtra merchants. This revenue is sourced from the 2.75% flatrate fee Beep Xtra charges participating merchants on each purchase made within the network.
40% of that fee goes straight to the company, with the remaining 60% split between affiliate commissions (95% of the 60%), a “national voted charity (2.5%) and “local language support staff” (2.5%).
When a Beep Xtra affiliate completes a transaction in the Beep Xtra merchant network, they generate a cashback which is loaded onto their account. This cashback can be used to pay for or put towards other transactions made within the Beep Xtra merchant network.
When an affiliate signs up a store or other affiliates under them, they earn a percentage of the 60% of the 2.75% fee Beep Xtra charges merchants per transaction.
40% in total is paid out under shop commissions, with
- 20% going to the affiliate who signed up the shop the transaction was made and
- 20% going to the affiliate who handed out the Beep Xtra card used to make the transaction
Beep Xtra Affiliate Membership Ranks
There are six affiliate membership ranks within the Beep Xtra compensation plan and, along with their respective qualification criteria they are as follows:
- Sales Manager – create a Beep Xtra account
- Area Sales Manager – personally recruit at least 3 Sales Managers
- Regional Sales Manager – personally recruit at least 3 Area Sales Managers
- National Sales Consultant – personally recruit at least 3 Regional Sales Managers
- Regional Sales Consultant – personally recruit at least 5 National Sales Consultants
- Global Sales Consultant – personally recruit at least 5 Regional Sales Consultants
The Differential Bonus consists of up to 30% of 55% of 60% of the 2.75% Beep Xtra charge merchants per purchase made within the network.
- Area Sales Manager – 10%
- Regional Sales Manager – 15%
- National Sales Consultant – 20%
- Continental Sales Consultant – 25%
- Global Sales Consultant – 30%
I believe the Differential Bonus is paid out to the affiliate who handed out the Beep Xtra card used to make a transaction, however this is not clarified in the Beep Xtra compensation plan material.
The Leadership Commission pays out a percentage of the 55% of the 60% of the 2.75% Beep Xtra charge merchants per purchase made within the network.
This percentage is paid out down a possible five levels of recruitment, with how many levels a Beep Xtra affiliates is paid on being determined by their affiliate membership rank:
- Level 1 (personally recruited affiliates) – 1%
- Level 2 – 2%
- Level 3 – 3%
- Level 4 – 4%
- Level 5 – 5%
Again, it’s not explicitly specified in the Beep Xtra compensation plan material but I believe the Leadership Commissions are paid out according to the affiliate who handed out the card used to make a transaction.
Ie. If you recruit a new affiliate and a card they handed out was used to make a transaction, you’d earn the level 1 1% commission. If an affiliate they recruited did the same, you’d earn a 2% level 2 commission and so on.
Other than providing a percentage of the World Bonus affiliates can earn, Beep Xtra provides no further information on the bonus.
- National Sales Consultant – 2%
- Regional Sales Consultant – 3%
- Global Sales Consultant – 5%
Presumably the above percentages are three separate global revenue volume pools (10% of 55% of 60% of every 2.75% fee charges goes into the pools), which is periodically paid out to qualifying affiliates equally (one affiliate = 1 share).
Joining Beep Xtra
Affiliate membership to Beep Xtra is free.
Merchants can sign up as affiliates, however they themselves must be signed on as merchants within the network (which attracts an additional fee of between $125 to $400 (see conclusion below).
As as is typical with cashback MLM opportunities, Beep Xtra’s business model will need some time to fully understand. It’s not as bad as say the nightmare that is say Lyoness, but whenever a company starts talking about a percentage of a percentage of a percentage of a percentage as a commission, inevitably people are going to get lost (I know I did).
That said having gone over Beep Xtra’s plan now the basic idea is that merchants foot the bill for the shopping network. In addition to the cashback discount offered (which has to be a minimum 2.5%), Beep Xtra charges merchants a 2.75% fee per transaction within the network, which is the money that is used to pay commissions to affiliates (amongst other things).
It’s worth noting that as a point of reference, if $100 was spent you as an affiliate are going to receive a percentage of the $2.75 fee Beep Xtra receives from the merchant.
Success within the Beep Xtra network revolves around the signing up of merchants, which itself might prove challenging.
If a merchant requires a Beep Xtra supplied tablet to keep track of Beep Xtra transactions, they charge them $400 on delivery. A merchant can reduce this cost by prepaying only $235, however this results in an installation date of anywhere between 30 to 60 days.
If a merchant uses a computer system already, the cost for participation $210 if paid on the day of installation, or $125 prepaid for an installation within 30-60 days.
200 and something cards are included with either installation, with the signing up as an affiliate by a merchant definitely an additional marketing angle, however it should be noted that additional cards to hand out have to be bought first from Beep Xtra.
Cards appear to be sold in the thousands (regular or custom printed), but I wasn’t able to find a firm price on them.
Finally in order to generate revenue within the business, a Beep Xtra merchant has to be willing to offer discounts to Beep Xtra affiliates, and pay Beep Xtra a mandatory 2.75% fee per transaction within the network.
Get through all that and, assuming Beep Xtra affiliates shop at the merchant, that’s where the commissions revenue comes from.
As far as I can see all affiliate commission revenue is sourced from transactions within the network, with there being no attached “Accounting Unit” style component ala Lyoness.
That goes a long way towards the legitimacy of the opportunity, with my only question being that of retail. As I see it retail in Beep Xtra’s model are merchants who don’t also actively participate as affiliates. They provide revenue by way of software installation and then via sales transactions.
If the bulk of merchants who sign up also go the affiliate route, then there’s potentially a question to be raised regarding retail activity within the network. Naturally with merchants being third-parties, their own products do not count as Beep Xtra’s, as all they’re doing is offering access to a discount through the network.
Discounts on third-party products and services alone is not a viable MLM product.
That issue aside, if they can get enough non-affiliate merchants on board then this might be one opportunity to watch. I will say that as it stands it’s definitely one of the more viable (read: non-affiliate funded) cashback MLM opportunities I’ve seen launched to date.
One final note, be wary of a tie in with KaratBars International or any pressure to sign up to the opportunity (or any other opportunities for that matter), simply because you’re a member of Beep Xtra.
The “strategic partner” page on the Beep Xtra website definitely reads like they’re not willing to reveal the full extent of the obvious relationship between the two companies, which raising questions of transparency within the business, raises a potentially serious red flag (potential misrepresentation of the greater Beep Xtra business at large).