Power Lead System Review: Accelerated leverage?
The Power Lead System went into pre-launch in late July and is set to officially launch in late September 2013. The company’s website domain (“plsfunnel.com”) was registered on the 9th of June 2013 and provides a company address in the US state of Washington.
On a marketing video featured on the Power Lead System Website, it is revealed that the Power Lead System was created by Neil Guess. The video goes on to state that the Power Lead System “runs through” the Priceless Possibilities Marketing Platform, which was founded by Michael Price.
Both Price and Guess appear to be co-founders of the Power Lead System MLM income opportunity.
Simply described in a Power Lead System marketing video as being ‘men with integrity who love god’, both Guess and Price have experience within the MLM industry.
Neil Guess’ MLM experience appears to be limited to the front-end of things, primarily as an affiliate over at Solavei (mobile communications):
Michael Price (right) on the otherhand has been running his Priceless Possibilities business since 1996.
Hello, my name is Michael Price the owner of Priceless Possibilities. My company has invested over 2 Million Dollars since 1996 to create a VERY Powerful Recruiting & Training System that we can Customize to Truly Transform Your Business.
I have also invested approximately $200,000 to learn from people who are the best in their fields such as Tony Robbins, Les Brown, Brian Tracy, Zig Ziglar, and many top Internet Marketing Experts by purchasing their Live Seminars, Books, CDs, and joining Mastermind Groups with the world’s top marketers.
As per the Priceless Possibilities customer testimonial below, at some point Neil Guess was a customer of Price’s business:
Putting two and two together, I’d suggest Guess has come up with the compensation plan behind Power Lead System with Price providing the service backend through Priceless Possibilities.
Read on for a full review of the Power Lead System MLM business opportunity.
The Power Lead System Product Line
So, what exactly is the product?
Think of it like being behind the controls of a space shuttle, only it’s ground-control for building your home based business.
Power Lead System market an ‘all in one marketing system’ that enables users to create custom Google Hangout pages, lead capture pages, video sales pages and video postcards.
There also appears to be an email management component and the ability for users to design custom sales funnels.
Power Lead System charge $29.99 a month for access to their marketing system.
The Power Lead System Compensation Plan
The Power Lead System compensation plan revolves around the sale of the company’s marketing system, paying out commissions via a perpetual 1-up compensation structure.
A typical 1-up compensation structure requires an affiliate to pass up either their first or second sale to the affiliate who recruited them. Thereafter an affiliate keeps the commissions earnt on all additional sales.
Power Lead System require affiliates to pass up the commission generated on their second sale, however this extends out to the 4th, 6th, 8th and 10th sales, continuing on every 5th sale thereafter perpetually (10th, 15th, 20th etc).
In turn, the same numbered sales commissions an affiliates recruited downline generates are passed up to them. With the perpetual fifth sale passed after the first five, the idea is that those who recruit large amounts of affiliates and build large downlines have a large number of monthly subscription commissioned passed up to them over time.
In addition to the perpetual 1-up commissions, Power Lead System also offer a 50% matching bonus on any commissions paid out on commissions earnt by affiliates who are passed up.
Joining Power Lead System
Affiliate membership to Power Lead System is $23.97 a month. In addition to the $29.99 monthly marketing system subscription required of every affiliate, this brings the total monthly cost of all affiliates to $53.96.
Is the PLS a MLM?
Answer: Absolutely NOT … the PLS is a Viral Affiliate program and is not a MLM. You get paid for people on your Front Line (or PAYLine) as well as the people you pass up.
However, due to the Pass Up component of the PLS, you can have viral growth of people passing up people to your frontline which is where you get paid (and very nicely) because you get paid $20 out of the $30 from everyone on your front line.
There’s NO MLM that I’ve ever seen that pays out that percentage of income from your sales.
To Your Success,
Power Lead System Support
I don’t know what the Power Lead Support are smoking but with “front line” just being another word for personally recruited downline, and pass-ups clearly being passed up from a downline, Power Lead System is most definitely an MLM company.
As for never seeing an MLM company that pays out a percentage of income from your sales, guess nobody over at Power Lead System has ever heard of a pass-up compensation plan.
The “accelerated leverage” matching bonus was a noteworthy addition, however it’s not like Power Lead System brings with it some sort of new revolutionary compensation plan. Typically matching bonuses in pass-up plans are paid out on sales that are not passed up, all Power Lead System are doing is paying out the bonus in reverse.
Seriously, you’ve never seen any system like this, ever. The income potential here is staggering, thanks to a breakthrough in commissions called “accelerated leverage”.
Practically speaking I don’t see how it’s much different in the long-run to a kept sale matching bonus. All it means is affiliates earn a little less from sales passed up to them rather than more from those they keep. Overhyped much?
On the compensation side of things, as is typical with the pass-up plans that have started to pop up and gain traction after the revenue-sharing MLM bubble burst, there’s little to nothing differentiating Power Lead System from your typical “pay to play” cash gifting scheme.
Taken from Power Lead System support,
Do you pay out 100% commissions?
Yes, however, not to one person. For example: If you were making a 50% matching bonus on Bob’s payline commission total, then any sale that falls on Bob’s payline, Bob would make $20/mth, and you would make a 50% match, totaling a 100% payout (all commissions are monthly).
With the exclusion of retail subscribers (who cannot be matched on), 100% of the money subscribers are supposedly paying for Power Lead System’s marketing system is in actuality just being shuffled around amongst affiliates.
Taking a step back and looking at the revenue flow into the company, the only money they make is on the $23.97 they charge affiliates each month. A fee that does no more than grant an affiliate permission to earn of those they convince to pay Power Lead System $29.99 a month.
Ultimately the legitimacy of Power Lead System will depend on its affiliates ability to market the company’s marketing system as a stand-alone service, versus simply running around telling people if they pay Power Lead System $53.96 a month they can make money convincing others to do the same.
From a marketing standpoint the counter to this is pushing the viability of Power Lead System on the back of Michael Price’s Priceless Possibilities platform. This however makes little sense as Priceless Possibilities never had an MLM compensation plan attached to it.
As a prospective Power Lead System affiliate the easiest way to ascertain the retail viability of the company’s marketing system would be a quick check of your potential upline’s retail customers versus affiliates.
Too little retail and it’s a safe bet you’re going to find yourself marketing the income opportunity with an attached marketing platform versus the other way around.
The fact that retail sales offer no chance of a matching bonus only increases the chance that Power Lead System will wind up being a company full of affiliates paying eachother.
Why waste your time passing up retail sales when the recruitment of an affiliate you pass up still generates you 50% of their take-home earnings (33% of their sales volume)?
Without the accelerated leverage matching bonus I’d still count affiliate recruitment focus as a red flag to be concerned about, with it and I see little to no incentive for affiliates to focus on retail vs. the recruitment of affiliates.
Especially when you consider the massive emphasis Power Lead System place on the matching bonus.
When coupled with a $23.97 pay to play fee, long-term I’m just not seeing the viability of retail in the Power Lead System.
Once those at the bottom of the pass-up chain can’t recruit they’ll stop paying their monthly fees, this kills the residual pass-up commissions of those above them. They stop paying their monthly commissions (pass-ups commissions are not replaceable once fees stop getting paid), and before you know it you’ve your typical recruitment-dependent scheme collapse.
Priceless Possibilities has most certainly demonstrated value in their marketing system, but with affiliates likely to focus on affiliate recruitment over retail due to the accelerated leverage matching bonus, I believe the Power Lead System’s compensation plan will result in an overwhelmingly affiliate-heavy opportunity.