The Wealth Masters International Compensation Plan
The Wealth Masters International Compensation plan is a hybrid compensation plan and uses elements of a matrix but combines a point system with it to determine how many tiers deep a consultant gets paid.
The points system determines the rank of WMI’s consultants and directly contributes to their position in the company.
In the following analysis I’ve included the details of WMI’s compensation plan covering the points allocated to their product line, the various consultant levels, the product line direct and tiered commissions on offer and a look at the three bonus pools WMI offers to its consultants.
Finally I’ve provided an alaysis of the compensation plan and highlighted what I believe to be the weaker points of the plan and important information you should consider when going over it.
WMI Product Points
Central to the Wealth Masters International compensation plan is their point system. Each WMI product is assigned a gold or silver point value and these points are used to calculate what ranking a WMI member has.
The point values for WMI’s products are as follows;
MPower Academy = 1 silver point
M1 Academy = 2 silver points
MPower program = 1/2 gold point
M1 Masters Program = 1 gold point
M2 Wealth Conference = 2 gold points
Platinum Program = 3 gold points
M3 Wealth Conference = 3 gold points
Platinum Plus = 6 gold points
WMI Consultant Levels and Qualifications
As mentioned earlier, the points system is used to calculate the consultant rank of WMI members and carries two components, a lifetime once off requirement and then a monthly minimum.
The points required for the various WMI consultant levels are as follows;
Consultant – The Consultant level pays a residual income 1 tier deep and WMI members require a 1/2 lifetime gold point and monthly 1 personal silver point to maintain it.
Senior Consultant – The Senior Consultant level pays a residual income 2 tiers deep and requires 35 lifetime gold points, the maintaining of 5 active Consultants and 2 gold points monthly and 2 personal silver points monthly.
Master Consultant – The Master Consultant level pays a residual income 5 tiers deep and requires 75 lifetime gold points, the maintaining of 5 personally sponsored Senior Consultants, 5 monthly gold points (via product sales) monthly and 2 personal silver points.
Presidential Consultant – The Presidential Consultant level requires that a WMI member be an active Master Consultant for 24 months, be committed to WMI in leadership role, actively supports their team and attends WMI events.
Consultant Bonuses
Designed to reward WMI members who commit to the business, the consultant bonuses offer temporary promotions for a fixed period of time with no monthly requirements. These bonuses are as follows;
A Platinum Purchase – A Platinum Program purchase will entitle a WMI member to be automatically promoted to the rank of Senior Consultant for 6 months.
A Platinum Plus Purchase – A Platinum Plus Purchase entitles a WMI member to be automatically promoted to the rank of Master Consultant for six months.
After the six month promotional period, standard monthly requirements for the level applicably will apply.
WMI Product Line Payouts
MPower
- Retail = $295
- Member commission = $100
- Tier 1 payout = $50
- Tier 2 payout = $25
M1 Masters Program
- Retail = $1995
- Member commission = $900
- Tier 1 payout = $200
- Tier 2 payout = $100
- Tier 3 payout = $100
M2 Wealth Conference
- Retail = $8995
- Member commission = $4500
- Tier 1 payout = $500
- Tier 2 payout = $250
- Tier 3 payout = $250
- Tier 4 payout = $200
M3 Private Wealth Group
- Retail = $13995
- Member commission = $7000
- Tier 1 payout = $750
- Tier 2 payout = $500
- Tier 3 payout = $250
- Tier 4 payout = $250
- Tier 5 payout = $250
Platinum Program
- Retail = $9995
- Commission = $4500
- Tier 1 payout = $500
- Tier 2 payout = $500
- Tier 3 payout = $250
- Tier 4 payout = $250
Platinum Plus
- Retail = $19995
- Member commission = $9000
- Tier 1 payout = $750
- Tier 2 payout = $500
- Tier 3 payout = $250
- Tier 4 payout = $250
- Tier 5 payout = $250
MPower Academy (autoship)
- Retail = $49.95 a month recurring
- Tier 1 payout = $15
- Tier 2 payout = $10
- Tier 3 payout = $5
M1 Academy (autoship)
- Retail = $79.95 monthly recurring
- Tier 1 payout = $25
- Tier 2 payout = $15
- Tier 3 payout = $10
WMI Global Bonus Pools
In addition to direct and tiered commissions, WMI also offer three bonus pools. For each product sale, a proportion of the product cost is donated into each pool. The total proportion per product set aside for the pools are as follows;
- M1 = $100
- M2 = $300
- M3 = $1000
- Platinum = $400
- Platinum Plus = $1400
These contributions are then split amongst three bonus pools;
- 50% of each proportion is placed into the Consultant Pool. To obtain a share in this pool, members must recruit a new consultant to the business who then need to earn at least 1 gold point in their first month. For each new recruit that achieves this, their upline consultant receives one share into the Consultant Pool.
- 25% of each proportion is placed into the Senior Consultant Pool. You must be a Senior Consultant to participate in this pool and you receive one share of the pool for each consultant under you who earns 3 gold points or more in a month.
- The final 25% proportion is placed into the Master Consultant Pool. You must be a Senior Consultant to participate in this pool and you receive one share of the pool for each consultant under you who earns six gold points or more in a month.
Compensaton Plan Analysis
As you can see, member level wise, the WMI compensation plan starts off relatively gently and with a product focus and then branches out to the interesting Presidential Consultant level.
It’s interesting to note that at the Presidential Level there are no monthly sales requirements and the requirements of maintaining the position are a bit (intentionally) vague.
Presumably supporting your team means ensuring they make product sales or new grow their business with new recruits every month but exactly how much you have to do wasn’t clear from the compensation plan itself.
It’s worth noting that as an endgame to the compensation plan, the Presidential Level does offer something worth aspiring to. I mean from a business prospective, what’s better then being paid for simply supporting your team? You’ve done two years of hard work and now it’s time to reap the rewards via residual income.
As attractive as this prospect might be however, ultimately it’s not sustainable and does present the dilemma of what happens if WMI winds up with too many Presidential consultants?
Obviously Presidential is the level everyone in the WMI business will aspire too but if there are too many Presidentials not worrying about making direct product sales themselves, then who’s doing all the selling?
The answer is new recruits and this is subtly how the WMI compensation plan is set up. Either your at the Presidential level not worrying about selling retail yourself, or you’re trying to get there by recruiting new members to WMI.
As with all MLMs where the product and recruitment of new members are inseparable (WMI members are rewarded simultaneously for recruiting and retail of products), the issue of sustainability in the long term arises. Too many Presidential members is not sustainable without a large lower base of new recruits, who if they want to reach Presidential themselves need to contribute to ever growing new recruit numbers who then must also do the same.
This is the price you pay for having a top level tier consultant level that requires no direct selling to remain active.
Product commission wise it’s easy to see that sizeable chunks of the price of the product are offered as direct commissions. With this money not having gone into the R&D of the product, nor contributing to the actual price of the product itself – this raises the questionability of the actual value of WMI’s products.
When you’re talking thousands of dollars in commissions you can’t help but question if the price points for WMI’s product line are artificially high to solely sustain these commission payouts.
This of course brings us to the dilemma of wondering if anyone would then pay such high prices for WMI’s products without the business opportunity attached.
$9000 in commissions might sound great to someone looking at selling the business opportunity themselves, but to a retail customer it’s hard to write the commission off as anything other then an artificial inflation of the product itself.
One final thing I wasn’t too impressed with was the autoship requirement of the MPower and M1 Academy programs. You’ll note that for each of the consultant levels there’s a 2 personal silver point requirement, this is specifically included to maintain autoship for the MPower and M1 Academy programs which both carry silver point bonuses.
I’m always of the belief that if a product is worth it than people will buy it on its own, forcing consultants to buy into it seems like a large diminishing of the value of the two programs themselves.
Unlike some of the other MLM opportunities I’ve looked at lately the recruitment aspect of Wealth Masters International is slightly more balanced in terms of product sales vs. recruitment. Unfortunately though there’s no hiding the fact that their top consultant tier, the Presidential level, is largely dependent on the consultant having recruited and maintaining recruitment of a sizeable team to earn all their money for them.
As I stipulated earlier this is unsustainable on a wide scale and is either indicative of a low success rate in breaking into this consultant level or a reflection of the WMI business’ non-sustainability in the long term.
Either way these would be my two biggest concerns getting into the WMI business today. As always, look past the large commission payments and number crunch exactly what you’re going to need to do to get where you want to be.
No matter how many people you’ve got under you, if all you’re doing is supporting them and sooner or later they want to be in your position – one day all you’re going to be left with nobody to support.
And when that inevitably happens, the money dries up and business starts to collapse.
This is the best article on WMI’s NEW compensation plan (for 2010) which I have found. I tried to find such information in June 2010. The sources I found in June lacked detailed information about the “Gold points” and “Silver Points”and they usually talked about the previous plan.
At WMI’s own website they offer about half of the data. If you would like more information about the compensation plan, you must attend a webinar. 🙁
This article ends up at number 6, if I search “Wealth Masters International Compensation Plan “, or number 4 if I search “WMI Compensation Plan”. The first search results are materials that are obsolete or deficient. You should be pleased if you manage to keep this place in search results.
Thanks M_Norway. It’s a lot of work going over compensation plans and translating them into something that’s easier to understand. Hopefully my work is of use to people researching the business side of WMI.
They’re going to have two new compensation plans out for Opes Partners and WMI Nutrition soon I’d imagine. Hopefully those plans aren’t too complicated!
Very good review of the WMI plan. I had a look at the Presidential level and couldn’t honestly understand it or make a decision on whether it was good or bad.
I think you have made it clear for anyone looking at this long term that the real income is made “front-end” selling the WMI products and not long-term supporting a team (while that might look like the plan – it isn’t really sustainable)… good stuff!