Phase 4 Global Review: A 4 matrix tall travel club
Phase 4 Global launched in early July 2012 and is based out of the state of Alabama in the US.
The company lists its CEO and founder as a ‘Doc Lett’, however the company’s website domain (‘phase4global.com’) lists a ‘Ken Lett’ (also known as ‘Kenneth Lett’).
According to this highschool football article they appear to be one and the same person, with “Doc” being an old football nickname:
Ken “Doc” Lett quarterbacked Jacksonville State University out of football mediocrity when he led the 1970 team to a 10-0-0 record and a victory over Florida A&M before 35,000 fans in the Orange Blossom Classic in Miami, Florida.
He graduated from Glencoe High School in Glencoe, Alabama.
Ken Lett (also known as ‘Kenneth Lett’, ‘Ken E Lett’ and ‘Kenneth Eugene Lett’) has some experience running a MLM company, having launched ‘Freeway to Success’ back in 2009.
Freeway to Success has no retailable products, with members instead only able to sell company memberships. These memberships have a monthly fee, with Freeway to Success members earning a monthly commission on when paid. The more people they sign up to pay monthly membership, the larger their commissions earnt.
Two years after the launch of Freeway to Success, Lett has decided to launch a new MLM opportunity, ‘Phase 4 Global’. Read on for a full review.
The Phase 4 Global Product Line
Phase 4 Global has no retailable products or services. In the same vein as Freeway to Success, Phase 4 Global members can only market company membership to prospective members.
Each membership doubles as a matrix entry position in the company’s compensation plan, and also has bundled with various travel related third-party services:
- a “Hotel and Resorts Savings” card (internationalvacations.com)
- a “Global Condo” card (condobooker.com)
- access to a “financial calculator” (provider name not supplied)
- a “Global Cruise Reward” card (internationalvacations.com)
- a “Global Executive Travel” card (internationalvacations.com and condobooker.com)
Phase 4 Global state that all travel discount cards bundled with company membership ‘have ‘no cash value‘ and are ‘void where prohibited by law‘. The company does not state which laws the use of their travel cards might be in violation of or why.
The Phase 4 Global Compensation Plan
The Phase 4 Global compensation plan revolves around a 2×3 reverse matrix structure.
A 2×3 matrix has one member position at the top and 14 member positions underneath it, looking something like this:
Newly recruited members (or existing members cycling out of a matrix) are fed into the bottom of the matrix and as the bottom of the matrix (8 member positions) fills up, the member at the top earns commissions.
This is called a cycle and once a matrix is full and the top member has cycled out, the remaining members on the level 2 position are moved to the top of two new 2×3 matrices, with the process repeating itself again (a new level 3 is created with 8 empty member spots that need to be filled again).
There are four such matrices in Phase 4 Global, named Phase 1 through to 4. Membership payment buys entry into the Phase 1 matrix, with subsequent entry into higher matrices given once a member cycles out of a matrix (eg. cycling out of a Phase 1 matrix provides entry into a Phase 2 matrix and so on).
The commissions paid out vary depending on which matrix a member is in and whether or not it’s their first matrix cycle for that phase or not.
- first cycle – $25 on all eight level 3 positions as they fill ($200 total), free re-entry into an existing Phase 1 matrix and free entry into an existing phase 2 matrix
- all other cycles – $45 on the first member position to fill, $65 on the other seven ($500 total) and free re-entry into an existing Phase 1 matrix
- a $25 cycle bonus paid out each time someone you’ve personally recruited cycles out of a Phase 1 matrix.
- first cycle – $50 on all eight level 3 positions as they fill ($400 total), free re-entry into an existing phase 2 matrix and free entry into an existing phase 3 matrix
- all other cycles – $200 on all eight level 3 positions ($1600 total) and free re-entry into an existing phase 2 matrix
- a $75 cycle bonus paid out each time someone you’ve personally recruited cycles out of a Phase 2 matrix
- first cycle – $175 on all eight level 3 positions as they fill ($1400 total), free re-entry into an existing phase 3 matrix and free entry into an existing phase 4 matrix
- all other cycles – $626 on all eight level 3 positions ($5000 total), free re-entry into an existing Phase 3 matrix
- a $500 cycle bonus paid out each time someone you’ve personally recruited cycles out of a Phase 3 matrix
Note that there’s no Phase 5 matrix so all cycles out of Phase 4 matrices pay out the same, that being $2500 on all eight level 3 positions as they fill ($20,000 total) and free re-entry into an existing Phase 4 matrix.
The cycle bonus at Phase 4 is $2500 and there’s also something called the ‘Phase 4 Bonus Pool‘ cycled members get entry into, however no further information is provided on this.
Joining Phase 4 Global
Membership to Phase 4 Global (in reality a matrix entry position) starts at $110 for Phase 1 entry.
Members can either then cycle out via the recruitment of new members (either direct recruitment or recruitment in other matrices that cause existing members to re-enter and fill matrix positions), or buy into the Phase they wish to start earning on (note that the purchase of entry into a higher Phase matrix also covers entry into any Phase levels below it).
- Phase 2 – $410
- Phase 3 – $1,610
- Phase 4 – $5,210
With no commissions paid out on the use of any of the third-party services bundled with entry into each of the four matrix levels in Phase 4 Global, 100% of the commissions paid out are thus derived from the payment of membership fees.
Phase 4 Global themselves admit the cards offered have no cash value and the reality is that membership fees simply cover the cost of commissions paid up to people sitting on the top of any of the Phase matrices at any given time.
Either you can start at Phase 1 and recruit to slowly work your way up (whether you recruit or not is irrelevant, as members must be recruited by someone for you to advance up the matrix), or simply pump money into the system (to pay out commissions on earlier Phases you would have otherwise had to cycle out of) and enter in at a higher level.
Whereas Freeway to Success used a 5×5 matrix and 3 membership levels with monthly membership fees, Lett has reduced the size of the matrix, dropped the monthly fees and simply added another matrix members have to cycle out of to get paid (4 phases).
I’d mention that the bundled services are different this time around (Freeway to Success was a bunch of e-books and some shopping discount cards), but seeing as the use of these services has nothing to do with the commissions paid or how members earn, there’s not much point.
Ultimately Phase 4 Global requires the constant recruitment of new members entering the scheme in order for everyone to get paid, and whereas Freeway to Success had monthly injections of cash into the scheme, Phase 4 Global is a once-off membership payment meaning it’s likely to stall much sooner than its predecessor.