Power Results Academy Review: Membership training
Power Results Academy launched mid 2012, is based in the US state of Texas (appearing to operate out of a virtual office there) and is headed up by company President, Robert Phillips.
On his Power Results Academy Executive bio, the company claims that Phillips has ‘over 12 years experience in the area of Network Marketing and 6 highly successful years in Internet Marketing’ and that as Power Results Academy President, he ‘oversees the company’s direction and partnerships while still focusing on MAXIMIZING user benefits‘.
MLM history wise Phillips has been a distributor of “Chews4Health International”, marketing chewable health products. Following that Phillips appears to have been involved in various affiliate-based MLM marketing and training opportunities.
On his LinkedIn profile, Phillips (photo right) claims
I struggled for YEARS trying to figure out how to succeed in the MLM/Network Marketing Industry. I was chasing friends and family, cold-calling strangers, buying leads, and getting rejected EVERY DAY, and it finally took it’s toll on me.
So, one day, I just gave up and stopped trying. I was a complete failure and didn’t have a clue as to what went wrong.
But I decided to pick it back up because I really believed in the potential of the MLM/Netowrk (sic) Marketing Industry, even though I didn’t exactly know what I was doing wrong.
That’s when the light came on for me, and I finally realized what my REAL problem was: I wasn’t “marketing” the business!
LOL. Once I figured out the REAL problem, my business turned around almost overnight.
In his profile Phillips claims to have run the website mlmdownlinesecrets.com since June 2008 and the company “Global Success Marketing” since June 2005. With both of these companies being based in the MLM training and marketing niche, they appear to be the precursor to the launch of his latest venture.
Update 10th November, 2012 – Power Results Academy’s Chief Operating Officer, Jason Rose informs me that he is the owner of the company.
Rose is credited on his Power Results Academy executive bio as being ‘a highly motivated and successful entrepreneur‘, and comes from the chiropractic sector of the health and wellness niche. /end update
Read on for a full review of the Power Results Academy MLM business opportunity.
The Power Results Academy Product Line
Power Results Academy offer no retailable products or services. Instead, members of the company are only able to market membership to the company itself.
Bundled with monthly membership to Power Results Academy is access to a series of marketing and training (software and video based).
Membership to Power Results Academy is available at two pricepoints:
- “Premium Training & Software Suite” for $49.95 a month and
- “Springboard Automation Suite” for $99.95 a month
Additionally those that sign up on either membership option can opt to pay a further $299 and receive “over the shoulder training and coaching” via Power Results Academy’s “PRA – Interact Program”.
The Power Results Academy Compensation Plan
With membership being their only product, Power Results Academy offer members a series of recruitment based commissions and bonuses.
Power Results Academy Membership Ranks
Within the Power Results Academy compensation plan there are four membership ranks. Along with their qualifications, they are as follows:
- Silver – recruit 2 new members
- Gold – recruit 15 new members or have 2 Silver ranked personally recruited members in your downline
- Platinum – have at least 200 members in your downline (counted down 7 levels of recruitment) and either have personally recruited 50 new members or have two personally recruited Gold members in your downline
- Diamond – have at least 450 members in your downline (counted down 7 levels of recruitment) and either have personally recruited 120 new members or have two personally recruited Platinum members in your downline
Direct Recruitment Commissions
Power Results Academy pay out members a commission per new member recruited, each and every month that recruited member pays their monthly membership fees.
Which membership option new members sign up for doesn’t appear to matter, with the company paying the same recruitment commission down seven levels using a unilevel compensation structure.
A unilevel compensation structure places a member at the top of the structure, with every personally recruited new member placed directly under them (level 1).
If any level 1 members recruit any new members of their own, they are then placed on level 2 of the initial member’s unilevel team. If any level 2 members recruit any new members, they are placed on level 3 and so on and so forth.
Using this structure, Power Results Academy pay out commissions down 7 levels of recruitment, with how much a member is paid dependent on what level a newly recruited member falls within their unilevel team.
“Premium Training & Software Suite” members:
- Level 1 – $16.50
- Level 2 – $5
- Level 3 – $2
- Levels 4 and 5 – $1
- Levels 6 and 7 – $1.50
“Springboard Automation Suite” members:
- Level 1 – $33
- Level 2 – $10
- Level 3 – $4
- Levels 4 and 5 – $2
- Levels 6 and 7 – $3
“PRA – Interact” Commissions
Given that Power Results Academy’s “PRA – Interact” is a one-time fee, commissions offered on the sale of the product to Power Results Academy members generates a one time commission.
Note that the PRA – Interact commissions are paid out using the same unilevel compensation structure outlined above, but pays out only 5 levels deep:
- Level 1 – $125
- Level 2 – $40
- Level 3 – $25
- Levels 4 and 5 – $10
Platinum Bonus Pool
Each month Power Results Academy take 1% of all the membership fees paid within the company and place them into a Platinum Bonus Pool.
In order to qualify for a share in the Platinum Bonus Pool, Power Results Academy member’s must have achieved the “Platinum” membership rank.
Diamond Bonus Pool
As with the Platinum Bonus Pool, Power Results Academy’s Diamond Bonus Pool is also made up of 1% of the monthly membership fees paid by its members.
To qualify for a share in the Diamond Bonus Pool, Power Results Academy members must have achieved the “Diamond” membership rank.
Note that for Diamond ranked members, both the Platinum and Diamond Bonus pools stack.
Top 20 Bonus
Rewarding their members who generate the most business via membership sales each month (including that of their downline), Power Results Academy put an additional 1% of the total membership fees paid by members each month, paid out equally to the top 20 recruiters company-wide of any given month.
Movers and Shakers Bonus
Again made up of 1% of the total monthly membership fees Power Results Academy collects from members, the Movers and Shakers Bonus rewards Power Results Academy members who recruit at least 10 new members each month.
All members who qualify for the bonus are paid out an equal share.
The Power Results Academy Leadership Bonus is made up of 2% of the total membership fees collected by the company each month. The bonus is paid out in equal shares to all Power Results Academy members who maintain a downline of 700 of more members (direct or indirect recruitment).
Note that counted downline members that qualify a member for a share in the Leadership Bonus are only counted from the first seven levels of a member’s unilevel team.
Joining Power Results Academy
As mentioned earlier, there are two membership options available for those looking to join Power Results Academy:
- “Premium Training and Software Suite” – $49.95 a month
- “Springboard Automation Suite” – $99.95 a month
With nothing more than membership being sold by Power Results Academy and all commissions paid out being sourced out of monthly membership fees members pay the company, Power Results Academy effectively fits the definition of a pyramid scheme.
Members are unable to earn through the Power Results Academy opportunity itself without the recruitment of new members and continued monthly payment of membership fees taking place.
The products bundled with membership, or provided “access” to with membership as Power Results Academy put it (“When you join Power Results Academy (PRA), you get access to the most advanced marketing suite on the market today“), are indeed real however with no retail option available (excluding such customers from the income opportunity and compensation plan), Power Results Academy’s products serve no other purpose than to prop up what is an obvious membership and recruitment driven scheme.
Those who join the company last have to get out there and recruit to earn commissions. If they can’t, they stop paying their monthly membership fees and their upline lose their commissions.
When that happens they too stop paying their commissions and as the net effect of this trickles up right to the top of the pyramid, eventually it collapses.
Those at the bottom of course make no money through the opportunity and suffer a loss. How much they lose depending of course on how many months of membership fees they paid.