LifeProductSolutions Review: E-cigs & recruitment
There is no information on the LifeProductSolutions website indicating who owns or runs the business.
The LifeProductSolutions website was registered on the 6th of August 2013, however the domain registration is set to private.
Social media marketing for LifeProductSolutions appears to be an in-house job, performed by a “Matt Woodhouse”, who identifies himself as the Founder of the company.
Finally although no mention of where LifeProductSolutions is based out is mentioned on the company website, the online storefront does use pounds, indicating that the company is operating out of the UK.
Read on for a full review of the LifeProductSolutions MLM business opportunity.
The LifeProductSolutions Product Line
Are you fed up with the smoking ban???
Are you fed up with having to go out side in the rain every time you want a cigarette?
An electronic cigarette, also known as an e-cigarette, vapour cigarette or an e-cig, is an electrical inhaler that vaporizes a propylene glycol- or glycerin- or polyethylene glycol-based liquid solution into an aerosol mist, simulating the act of tobacco smoking.
LifeProductSolutions market a range of electronic cigarette devices and related accessories, claiming to ‘work with suppliers all over the world‘.
LifeProductSolutions’ products are primarily available through the company’s website, with affiliate’s being given a replicated storefront to market out of.
The LifeProductSolutions Compensation Plan
LifeProductSolutions offer retail commissions on the sale of their e-cigarette products, however the company claims these commissions are not “consistent”, preferring instead to focus on recruitment commissions that can be earnt.
LifeProductSolutions pays out recruitment commissions on the recruitment of new affiliates using a 3×5 matrix.
A 3×5 matrix places an affiliate at the top of the matrix with three positions directly under them (level 1). In turn, each of these level 1 positions branches out into another 3 positions each (level 2) and then so on and so forth down a total of five levels.
Each of the positions in the matrix represent a recruited affiliate, with LifeProductSolutions paying out a monthly commission when a recruited affiliate pays their monthly affiliate membership fee.
How much of a commission is paid out depends on which level of a matrix an affiliate is positioned:
- Level 1 – 1 GBP per position filled (3 positions)
- Level 2 – 2 GBP per position filled (9 positions)
- Level 3 – 3 GBP per position filled (27 positions)
- Level 4 – 4 GBP per position filled (81 positions)
- Level 5 – 5 GBP per position filled (243 positions)
LifeProductSolutions do not mention what they charge affiliates to participate in the scheme each month.
Given that level 5 of the matrix pays out 5 pounds per month though, one would assume the cost of affiliate membership is greater than this.
For these examples we are using income from recruiting members due to it’s (sic) consistent nature, this should not be considered you main stream of income, to insure stability in your team you must consider sales to be your main income source.
The above text appears in bright red lettering on the LifeProductSolutions compensation plan information.
I’m not sure who wrote it or what logic they were using, but asking affiliates to focus on an inconsistent source of income that you then go on to assure them is “stable”, makes little sense.
It also betrays the actual strength of the LifeProductSolutions opportunity, that being the recruitment commissions.
On the product side of things the company offers generic electronic cigarette products that appear to be sourced from third-party wholesale manufacturers in China.
If you Google search the product names or images used on the LifeProductSolutions website, the sources the owner of the LifeProductSolutions opportunity likely uses to stock the company store pop up.
In principle there’s nothing wrong with reselling products sourced from China, however when combined with a recruitment-driven compensation plan obvious red flag issues arise.
First and foremost is the nature of the commissions offered. By charging affiliates monthly membership fees and paying commissions using said membership fees based on how many affiliates have been recruited under an affiliate, LifeProductSolutions ventures over into pyramid scheme territory.
The value and importance of a LifeProductSolution affiliate’s recruited downline within the opportunity is further emphasised with the company permitting the “selling” of downlines amongst affiliates.
Commissions remain with the original recruiting affiliate but any new affiliates recruited within that downline pass over to the affiliate who was sold the downline.
In this sense the actual downline isn’t sold, it’s the promise of new recruits that is being traded amongst affiliates.
Having a big red disclaimer telling prospective affiliates to focus on their replicated stores is one thing, but if they can just ignore retail and generate “consistent” income via recruitment, that’s probably the types of affiliates the scheme will attract to it.
If affiliates at the bottom of the pyramid are unable to recruit new affiliates and stop paying their monthly membership fee then those above them stop earning their monthly commissions. They too then stop paying their fees and before you know it the entire scheme has collapsed.