Globally Positioned Partners Compensation Plan v2.0 Review
When I first reviewed Globally Positioned Partners back in December of 2014, one of the key issues of concern identified was affiliates being the main purchasers of product.
Earlier this month I was informed that Globally Positioned Partners launched (relaunched?) on April 7th, complete with a new compensation plan.
Figuring the old review was due an update then, here it is.
The Globally Positioned Partners Compensation Plan
Retail commissions are paid out on the sale of all Globally Positioned Partner products to retail customers.
This commission is paid out as 25% of the retail priced charged for each product sold.
Residual commissions in Globally Positioned Partners are now paid out via a unilevel compensation structure (previously a binary).
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any of these 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 theoretical infinite number of levels.
Globally Positioned Partners cap payable unilevel levels at twelve, with commissions paid out as a percentage of sales volume generated on each level of the unilevel team.
How much of a percentage is paid out is determined by what level the sales volume is generated:
- level 1 (personally recruited affiliates – 6%
- levels 2 to 5 – 12%
- levels 6 to 11 – 3%
- level 12 – 12%
Note that in order to qualify for residual commissions, Globally Positioned Partner affiliates must generate at least $50 a month in commissionable volume.
This can be achieved via personal product purchases, retail sales or downline sales (sales of product by personally recruited affiliates).
Joining Globally Positioned Partners
Affiliate membership with Globally Positioned Partners is free.
Whereas the new Globally Positioned Partner compensation explicitly clarifies retail commissions, the issue of affiliates being the only purchasing product persists.
In order to qualify for residual (MLM) commissions, an affiliate has to generate at least $50 a month in commissionable volume.
This can be done via self-purchase, and with an affiliate doing this and recruiting others who do the same, can quickly deteriorate into chain-recruitment.
Ditto qualifying for commissions by relying on downline sales and/or purchases to qualify you for commissions (why this is even a qualifier I have no idea).
The simplest solution to this problem would be to require a portion or all of the $50 a month sales qualifier to be retail sales. $20 retail and the rest qualified using the current qualification criteria would be an acceptable compromise.
The goal is to ensure that some retail sales activity is taking place, as opposed to the totally ambiguous “may or may not be” model Globally Positioned Partners currently have.
As a plus, a retail volume qualifier would also discourage anyone looking to treat GPP as a chain-recruitment opportunity, as it’s simply too additional work (if chain-recruitment is what you’re looking for).
In the interim, prospective Globally Positioned Partner affiliates can verify retail sales by checking how their prospective upline is qualifying for commissions each month.
Worst case scenario they’re qualifying off of their downline’s monthly purchase(s). Slightly less worrying would be them qualifying through self-purchase with no retail activity to speak of.
Ideally you’re looking for retail sales and robust retail activity taking place within their downline (if they have one). Ask to see proof, and don’t accept stories about reselling product to people.
If the retail sales aren’t there on paper, they don’t exist.
All of that said, I do think the unilevel setup is probably going to benefit affiliates more over the binary. It means they rely less on the work of others and don’t have to worry about losing too much volume if one of their binary teams explodes.
Realistically most affiliates are going to be hovering between levels 1 to 5, which provide a pretty decent enough residual percentage commission. Note of course that this comes at the expense of other commissions and bonuses paid out (of which there are none), but is great if you want to focus on sales alone and drive commissionable volume.
In that case the other levels beyond five then serve as a nice bonus if one really wants to build their downline.