Xerveo Review: Tamarind based weight loss
There is no information on the Xerveo website indicating who owns the business, nor are there any contact details indicating which country Xerveo are based out of.
Xerveo’s “about” page on their website simply states:
Our core leadership includes some of the most successful entrepreneurs in America and because of that, we are one of the most well funded companies in the industry.
Meanwhile the company’s website domain would appear to only have been recently acquired, with the domain WHOIS information still showing that of the domain registrar (last updated 26th December, 2011).
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 Xerveo Product Line
Undoubtedly a company’s product line should be the selling point of the company itself, however for reasons unknown the Xerveo website doesn’t go into any specifics about their product.
The company simply states:
Our products support energy, weight loss, relaxation in the evening and everything in between.
and provides a link to further information on the weigh-loss supplement “Garcinia Cambogia”.
According to Wikipedia,
Garcinia cambogia is a subtropical species of Garcinia native to Indonesia.
G. cambogia is used primarily in cooking, including in the preparation of curries. The fruit rind and extracts of Garcinia species are called for in many traditional recipes. In the Indian Ayurvedic medicine, “sour” flavors are said to activate digestion.
Gambooge extracts are an ingredient in some herbal appetite suppressant and energy products, though there is no formal evidence to support its effectiveness. It is used in weight-loss supplements.
Liver toxicity from weight-loss supplements which contain extracts of Garcinia cambogia has been reported.
The Xerveo Compensation Plan
The Xerveo compensation revolves around a 3×18 matrix, as well as providing distributors retail commissions and various bonuses.
There are two membership ranks within the Xerveo compensation plan and, along with their respective qualification criteria, they are as follows:
- Distributor – Make at least $150 in product sales each month, either via self-purchase, recruited distributor purchase or retail sales (including preferred customers)
- Executive Distributor – Either generate $20,000 a month in group (downline) sales volume, or purchase a “Builder Pack” ($1500)
Xerveo pay out a 5% commission on all sales made to both retail and preferred customers.
Depending on which membership level a Xerveo distributor is, they are paid commissions for each member they have in their matrix under them (either via direct recruitment or the recruitment efforts of others).
Distributors are paid $5 per member in their matrix each month and Executive Distributors are paid $6.
Residual Commissions in Xerveo are paid out via the 2×15 matrix. Sales volume is counted from your downline with Distributors and Executive Distributors being paid different percentages of their downline’s sales each month.
- Levels 1 to 5 – 3.33%
- Levels 6 to 10 – 2.26%
- Levels 11 to 15 – 2%
- Levels to 1 to 5 – 4%
- Levels 6 to 10 – 2.26%
- Levels 11 to 18 – 2%
Note that “Distributors” are not paid beyond level 15.
Also note that additional qualification applies to distributors if they wish to earn residual matrix commissions. Both Distributors and Executive Distributors must have recruited at least three new distributors themselves, each of which are generating at least $150 in sales each month.
Fast Start Bonus
For each new distributors who signs up as an Executive Distributor and purchases the “Builder Pack” ($1500 and a required purchase to join Xerveo as an Executive Distributor), the company pays out $425 to the recruiting affiliate.
Paid out on the residual matrix commissions earnt by a distributor’s downline, Xerveo pay out a 10% matching bonus on the residual earnings of all distributors personally recruited (including the sale of $1500 Builder Packs).
Note that distributors who wish to qualify for the matching bonus must have recruited a minimum of 10 distributors and/or preferred customers themselves.
Membership to Xerveo is either $55 to join as a “Distributor”, or $1500 to join as an “Executive Distributor” (including purchase of a Builder Pack).
Both membership options are $55 annually recurring.
Company wise there’s not a lot revealed by Xerveo about who’s behind the company and exactly what their product line is going to look at and be priced at.
If I didn’t know any better, it appears they’re trying to market the commonly available cooking ingredient tamarind as some sort of new weight loss miracle (or “the holy grail of weight loss as Xerveo put it).
Xerveo’s compensation plan is wonderfully uncomplicated so full marks to them for that. Within the plan there’s a distinct retail offering (even if we don’t currently know what the product lineup is), so that’s another plus for the business.
Greater analysis of the compensation plan however does reveal some concerning points. First and foremost is the effective “buy-in” at Executive Distributor level for $1500. You could go for $20,000 a month in sales but let’s not waste our time pretending that’s even remotely viable for your standard distributor.
Buying in at $1500 gives you an increased percentage earning on your direct recruits down 5 levels. It also unlocks levels 16-18 of the matrix but considering level 15 requires 32,768 people to fill, you’re looking at some pretty steep recruiting required before that kicks in.
Perhaps not coincidentally, distributors must be generating $450 a month in sales if they wish to qualify for matrix commissions. $450 just happens to also be the minimum sales required by the three recruited distributors also required to qualify for residual matrix commissions.
Given this, mathematically the Xerveo compensation plan looks set up to strongly encourage the idea of joining at the $1500 Executive Distributor level, paying $150 a month to qualify yourself as “active”, and then concentrating on recruiting new distributors and getting them to buy $150 a month worth of product so you hit that $450 a month residual commission qualification.
The $425 Fast Start Bonus essentially pays Xerveo members for recruiting Executive Distributors so that’s of concern too.
Quite obviously using Xerveo as a recruitment scheme is nothing more than a short-term marketing strategy that isn’t going to get those who follow it very far. If it does wind up being widespread throughout the company though, very quickly people will realise they’re not going to recoup their $150 outlay each month and count their participation as a loss.
One would hope there’s a strong retail/preferred customer focus in Xerveo, however the compensation plan certainly doesn’t appear to be geared towards this. Ultimately the 5% commissions offered on retail sales is comparatively rather poor.
Update 18th December, 2012 – Sometime in early December Ferveo changed their name to “Xerveo”. I haven’t been able to find out why they changed their name, but a lot of the marketing material the company uses still references “Ferveo” so it seems to have not been planned too well.
I also went back and looked at the Xerveo compensation plan and noticed they’d now added direct recruitment commissions, so I’ve added that to the compensation plan analysis too.
In offering “$6 per person if you come in as an Executive Distributor” and $5 per person if you come in as a Distributor”, Xerveo directly pay out on the acquisition of new members, operating as a pyramid scheme would.
Update 10th January 2016 – Following revisions to Xerveo’s compensation plan, BehindMLM has published an updated Xerveo review.