Gatwin Review: Affiliate-based ecommerce app
There is no information on the Gatwin website indicating who owns or runs the business. The company does however provide the following information on it’s IT properties and general locale:
The website gatwin.com is managed by BETRÓVICA S.L., with CIF B 65898256 and address Calle Muntaner 354. Bajo interior. 08021 Barcelona, España.
The file created is located in the Betróvica S.L. registered office, under the supervision of GATWIN S.L., with CIF L709496X and address Edifici Pirineus 1, 4, 3º 2A de Erts, Principat d´Andorra.
The company Betrovica SL runs the website and Gatwin SL run the company itself.
The Gatwin website domain (“gatwin.com”) was registered on the 23rd of May 2013 and lists a Fernando Vila, operating out of Andorra (a European micro-state that is recognized as a tax-haven), as the domain owner.
Further research reveals Gatwin marketing material in Spanish, naming Vila as the CEO (and presumably owner?) of the company:
For whatever reason, Fernando Vila’s name does not appear anywhere on the Gatwin website.
Read on for a full review of the Gatwin MLM business opportunity.
The Gatwin Product Line
Gatwin themselves offer no retailable products. The company’s affiliates are only able to market membership to the opportunity itself, which is free.
Gatwin partner with several third-party companies through affiliate deals, which are then used to display advertising and provide ecommerce services to Gatwin app users.
The Gatwin Compensation Plan
Gatwin use a unilevel compensation plan to pay out commissions to their affiliates.
A unilevel compensation structure places an affiliate at the top of a unilevel team. Each personally recruited affiliate is placed directly under the recruiting affiliate, and make up level 1 of the affiliate’s unilevel team.
If any level 1 affiliates go on to recruit new affiliates of their own, 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 theoretically infinite number of levels.
Gatwin cap payable unilevel levels at 12, with commissions paid out determined by what level a recruited affiliate falls in the unilevel team.
There are two types of commissions paid out via the Gatwin unilevel, advertising commissions (paid out for using Gatwin) and affiliate purchase commissions.
- level 1 – 10%
- levels 2 to 8 – 5%
- levels 9 to 12 – 10%
Gatwin claim to share up to 95% of all advertising revenue generated by the company with affiliates, which I believe makes the above percentages a matching bonus style commissions on “use of Gatwin” commissions earnt by an affiliate’s downline.
Affiliate Purchase Commissions
When affiliates purchase products and services from third-party companies Gatwin has affiliated itself with, the company pays out 95% of the affiliate commission the third-party company pays them.
30% of this commission is paid out to the Gatwin affiliate who made the purchase and the remaining 65% is paid out to an affiliate’s downline.
- level 1 – 10%
- levels 2 to 12 – 5%
Gatwin reward affiliates as they earn more money working the business opportunity.
- Affiliate (earn less than $100 monthly) – can apply for a blue Gatwin-branded Mastercard
- Blue (earn between $101 and $1000 monthly) – unlock chat functionality in Gatwin app and chat to first two levels of downline and a share in a 1% company-wide bonus pool with other Blue members
- Gold (earn more than $1001 a month) – able to chat down five unilevel levels, can qualify for an “annual trip of Gatwin leaders”, car bonus, blue Gatwin-branded Mastercard and a share in a 1% company-wide bonus pool with other Gold members
- Platinum (TBA) – able to chat with all twelve unilevel levels, can qualify for a “VIP trip”, “car rental”, a platinum Gatwin-branded Mastercard and a share in a 1% company-wide bonus pool with other Platinum members
- Centurion (TBA) – qualify for “all travel VIP for Gatwin”, a “luxury car”, a black Gatwin-branded Mastercard and a share in a 1% company-wide bonus pool with other Centurion members
Note that any additional and/or specific qualification criteria for any of the Leaders Program bonuses is not provided in the official Gatwin compensation plan material.
Affiliate membership to Gatwin is free.
With all commissions based around either the generation of advertising revenue within the Gatwin app network or affiliate purchases within the network, there’s nothing inherently problematic with Gatwin’s business model.
Gatwin don’t charge affiliates a membership fee, so even though revenue is generated from affiliates (advertising is third-party revenue), it’s not a payment directly to Gatwin.
If you recruit affiliates into Gatwin, you can advertising revenue but that doesn’t correlate directly to your recruitment efforts (that’s a good thing!).
Traditionally however advertising based MLM social networks haven’t done very well on the revenue front. They don’t tend to make much because advertisers are weary of spending their advertising dollars on an audience who are in it for the money.
On the purchase-revenue side of things, what tends to happen is members find the affiliated company selection too restrictive and this tends to hamper affiliate spending. Purchase commissions are already small and when spread out across twelve unilevel levels get even smaller.
I did find Gatwin’s payout of commissions on purchases to the downline rather interesting. Typically it’s the upline who get paid so that they have a motivation to grow ever-larger teams.
With Gatwin you make a purchase and twelve levels below you get paid, your upline gets nothing. That means when joining Gatwin as a new affiliate, who is above you (at least as far as purchase commissions go) is far more important than who you yourself bring into the company.
Again, a rather interesting take on the typical upline commission system and one that I’m not entirely sure will pay off (no pun intended).
In conclusion, Gatwin can work if a whole lot of people join it, spend money and they then get advertisers on board… but history tells us that’s not likely to happen.