Global Wealth Trade v2.0 Review: Luxury autoship?
Not too long ago I was contacted by a Global Wealth Trade distributor who informed me that the company’s compensation plan had changed significantly since my original review back in January 2013.
At the time the Global Wealth Trade website was down so I wasn’t able to get details of their compensation plan (changed around mid 2012 I believe). Recently however the site is back up and I was able to confirm some changes to the compensation plan that I figured warranted a new writeup and analysis.
Here’s an updated review of the Global Wealth Trade MLM business opportunity.
Not much appears to have changed since I wrote my initial Global Wealth Trade review so if you’re after some background reading on the company and its CEO Ramin Mesgarlou, please refer to BehindMLM’s original Global Wealth Trade review.
The Global Wealth Trade Product Line
Still trading in luxury goods, Global Wealth Trade market jewelry, sunglasses, handbags, wallets and accessories unde the ‘Feri’ brand.
Prices range from under $50 to $129,403 for the “Feri Mosh Majesty” ring.
The Global Wealth Trade Compensation Plan
Compensation plan wise, Global Wealth Trade’s 1.0 model used a binary to reward affiliates, with residual commissions pegged to sales volume generated by two binary teams.
Version 2.0 of Global Wealth Trade’s compensation plan (note this isn’t an official term, I’m just referring to it as v2.0 to avoid any confusion), retains the use of a binary but slightly changes the commission generation criteria.
Instead of raw dollars via sales, GWT now pay using a points system with 5000 points generated in either the left or right binary team paying out $500.
Points are generated either via retail sales, the signing up of new GWT affiliates, monthly membership fees and monthly autoship payments.
As far as personal retail sales, signing up new GWT affiliates, monthly membership fees and autoship payments go, points are calculated at 80% of the wholesale price of items being purchased or fees paid. Even if an item is sold to a retail customer the wholesale price is still used to calculate the points generated.
Points are also generated on consumption and sales made by downline affiliates in the binary, at a reduced rate of 60% of the points generated by the affiliates in the binary.
Previously referred to as the “Support Bonus” but now simply just “wholesale profit”, GWT pay out $50 per new member recruited who signs up with either a Silver, Plangsten, Gold or Diamond package.
Inventory Account Autoship Match
Affiliate Autoship in Global Wealth Trade is referred to as an “Inventory Account” payment.
In a nutshell, GWT affiliates must make a monthly contribution to their Inventory Account which can then later be used to purchase GWT products.
How much of an Inventory Account contribution must be made each month depends on the membership level a GWT affiliate is signed up at:
- Silver – $35
- Plangsten and Gold – $75
- Diamond – $150
An Inventory Account match is also offered on monthly contributions made by affiliates, paid out at a rate of 5%.
GWT’s Car Bonus, vacation incentives and “shopping sprees” appear to be the same as they were under v1.0 of the compensation plan.
Joining Global Wealth Trade
Global Wealth Trade affiliate options have been overhauled in v2.0 of the compensation plan, with the company now offering a $299 “retailer” package, which appears to only offer retail commissions.
Residual Commissions are still offered in a price-tiered manner as follows:
- Silver – $399
- Plangsten – $699
- Gold – $1499
- Diamond – $2999
Note that with required monthly Inventory Account contributions, there are also ongoing fees payable:
- Silver – $35
- Plangsten and Gold – $75
- Diamond – $150
After their first year with the company, GWT affiliates are also required to then pay $194 annually.
With an obviously retailable product line and commissions offered, the retail side of Global Wealth Trade is solid. When combined with the residual commissions paid out though, things start to get a bit murky.
First and foremost it’s noted that GWT affiliates are directly compensated for signing up new GWT affiliates and signing them up on an autoship plan (Silver, Plangsten, Gold or Diamond).
Some commissions appear to be tiered based on which autoship plan an affiliate signs up to, introducing additional concerns over affiliates being required to “pay to play” (pay more, earn more).
Despite offering retail commissions, there appears to be no requirements on the retail side of things nor any incentive to find and sell to retail customers.
Instead, repeatedly referring to their monthly autoship plans as “an investment”,
the marketing focus of Global Wealth Trade in their compensation plan material is to recruit new affiliates, who recruit new affiliates and so on and so forth:
Referred to as the “7 figure plan”, Global Wealth Trade openly suggest that in order to achieve a 7 figure income, all that’s required is the recruitment of new GWT affiliates.
Claiming that on average GWT affiliates bring in $274 a month, GWT suggest that if you bring in just two people, who bring in two people, who bring in two people etc., by the time your binary team has 4096 recruited affiliates in it, you’ll be making $1.07 million USD a year.
In regards to the $274 average revenue generated each month, whilst GWT do disclose they have “between 10,000 to 12,000 affiliates”, the revenue generation amongst these affiliates is not disclosed.
$274 might very well be the mathematical average however if it’s only being generated a small percentage of the affiliate base, the above chart is grossly misleading.
In any case, there seems to be a very real disconnect between emphasis on retail sales and simply signing up affiliates on a monthly autoship program.
The autoship program itself I have no issues with (all paid money can be used to purchase GWT products), however this is not retail revenue and, regardless of what GWT do with the products they buy, is still internal consumption.
As a prospective GWT affiliate I’d be sure to make enquiries with my potential upline as to what percentage of their commissions come out of genuine retail sales to customers (orders placed with the company through the affiliate, as opposed to second-hand sales of IA stock), vs. affiliates on monthly autoship generating points in their binary.
From the marketing presentation on the GWT website it appears as if the latter is the focus of the business. When you consider it’s entirely possible to ignore the retail side of the business and simply earn commissions by paying your monthly autoship fees and signing up new GWT affiliates on monthly autoship, that’s a red flag that’s too big to ignore.
Moreso when you consider that Global Wealth Trade themselves are touting participation in their MLM business opportunity as an “investment”.
Update 5th April 2018 – From early 2018 Global Wealth Trade are going by “Opulence Global”.
As at the time of this update, Opulence Global still operates from the Global Wealth Trade website domain.