XB-Fit Review: A readily retailable product line
Meat, poultry, seafood, nutrient supplements, weightloss and an energy drink. It might sound like a bit of a mish-mash MLM product offering but all of these products have something in common:
They’re consumable and readily retailable.
The big question is whether or not XB-Fit can back up their product line with a compensation plan that focused members’ commissions on what should be a no-brainer opportunity when it comes to true retail.
Read on for a full review of the XB-Fit MLM opportunity.
XB-Fit currently ask users to ‘Visit this section soon!‘ on the About Us section of their website. However in promotional videos of XB-Fit the company CEO is named as Chris Sannella (photo right).
Under the umbrella ‘XB-Fit All Natural’, XB-Fit appears to have originally launched in June 2009 with a flagship XB-Fit Energy drink product. Since then the company has since branched out into nutritional supplements and more recently ‘all natural food‘.
Prior to 2009 there doesn’t appear to be any information online regarding a possible history of Sannella’s in MLM.
Late last year Sannella appears to have had two run-ins with Florida police. In July Sannella was arrested in Seminole County over an ‘OUT OF COUNTY WARRANT – B’. In August Sannella was again arrested for withholding child support.
Not sure what the story is there but one would hope this didn’t reflect on the management behind XB-Fit in any way.
The XB-Fit Product Line
XB-Fit retail three main categories of products:
‘All Natural Food’
Partnering with supplier ‘Mooresville Meat Center’, XB-Fit claim their food offering is ‘all-natural gourmet food‘ consisting of the ‘highest quality meat, poultry and seafood available in the world‘.
Meat purchased from XB-Fit comes in a variety of packs, ranging from $49-$99.
Here’s an example of what you can expect with XB-Fit’s meat packages, with $99 getting you
- (24) (12 packages of 2) 4-6oz All Natural Boneless Chicken Breasts
- (24) (4 packages of 6) All Natural Chicken Drumsticks
- (2) (1 package of 2) JUMBO All Natural Chicken Breasts
Shipping and handling is extra and XB-Fit ship either Monday or Tuesdays for delivery by the end of the week (west coast US orders are only shipped on Mondays). Naturally the company only ships within the US.
XB-Fit offer two weight loss products:
- XB-Fit Xtreme Lean Metabolic Boost with Fucoxanthin and
- XB-Fit Xtreme Lean Cleanse & Control with Acai & Hoodia
Both weight-loss products are sold together in a $99 pack.
XB-Fit’s nutrient supplement is sold as a 30-day supply and comes in two 16oz Bottles costing $65.
Sold in a case of 24 cans (250ml each), XB-Fit’s ‘ All Natural Nutritional Energy Drink’ comes in at $65.
The XB-Fit Compensation Plan
Members of XB-Fit are offered a 25% commission on all retail sales made through a replicated storefront website provided by the company.
Fast Start Bonus
When a XB-Fit member recruits a new member to the company (not a retail customer), the company will pay them a 10% Fast Start Bonus commission on the first product order made by the new XB-Fit member.
Stock Profit Sharing
Although the Stock Profit Sharing commission uses terminology such as ‘stocks’ and ‘shares, in reality it operates more like a global bonus pool.
Upon recruiting their first two new members to XB-Fit, members are awarded ten shares of stock.
If those two recruited members each recruit two new members of their own, the original sponsoring member is then awarded another forty shares of stock.
As I understand this initial offering of fifty shares of stock in the company is the only way to earn shares within the XB-Fit compensation plan. Any additional shares are then earnt via ‘promotions and contests’.
The cash value of these stock shares is ‘based on the profits of the company‘ however XB-Fit don’t go into any specifics. One would assume they set aside a certain percentage each quarter and pay out members based on the amount of shares they have in the pool.
It is unclear whether the shares, once paid out on are kept by members or need to be earnt again each quarter before the payout.
A binary compensation structure starts off with you at the top and two legs branching out underneath you. Each of these legs counts as a team (A and B) and in turn branches off into two legs itself.
XB-Fit pay out a commission each month using this binary compensation structure based on the amount of matching sales volume it can find for the month within your binary teams.
To make a pair, a particular sales volume must be found in both Team A and B, and once used a sales order cannot be paired with another sales order.
The pairing for sales orders and commissions paid out for each pair is as follows:
- $65 (40cv) order on each side pays $8
- $99 (60cv) order on each side pays $12
- $170 (100cv) order on each side pays $20
- $315 (155cv) order on each side pays $31
Each month these new order pairs are tallied up and XB-Fit members are paid a lump sum commission.
XB-Fit’s binary commissions are capped each month depending on your membership rank:
- Director – $1,500 a week
- Managing Director – $2,000 a week
- District Director – $5,000 a week
- Regional Marketing Director – $10,000 a week
- Senior Marketing Director – $20,000 a week
- National Marketing Director – $30,000 a week
- Executive Marketing Director – $37,500 a week
- Presidential Marketing Director – $50,000 a week
The XB-Fit Matching Bonus is paid out on the binary commissions earnt by all members you personally recruit and members they personally recruit down 5 levels.
Where these members appear on your binary structure doesn’t matter, as the five generations (levels) deep rule overrides your binary structure.
The XB-Fit Matching Bonus pays out as follows:
- 10% on levels 1-3
- 5% on levels 4 and 5
Which levels you are paid out on depends on your XB-Fit membership rank.
- Level 1 – Managing Director or higher
- Level 2 – District Director or higher
- Level 3 – Regional Marketing Director or higher
- Level 4 – Executive Marketing Director or higher
- Level 5 – Presidential Marketing Director
Note that District Director’s Matching Bonuses are capped at 400% of their own binary commissions and Regional Marketing Directors or above are capped at 900%.
XB-Fit Membership Ranks
The binary commissions and matching bonus within the XB-Fit compensation plan are dependent on a member’s membership rank. There are nine membership ranks in total with XB-Fit and along with their relevant qualifications, they are as follows:
- Distributor – Assigned when a new member signs up for $65 (no initial product order), must make at least 40 CV a month in personal sales and only eligible for retail commissions
- Director – Assigned when a new member makes an initial product order of $170, must make at least 40 CV a month in personal sales and have 2 personally recruited distributors in their binary team (1 on each side)
- Managing Director – Assigned when a new member makes an initial product order of $315, must make at least 40 CV a month in personal sales and have at least 4 personally recruited distributors in their binary team (2 on each side)
- District Director – Must make at least 65 CV a month in personal sales, have 6 personally recruited distributors in their binary team (3 on each side) and 10,000 GV from their binary (minimum 3,500 from each side and no more than 40% from any one personally recruited member’s downline)
- Regional Marketing Director – Must make at least 130 CV a month in personal sales, have 8 personally recruited distributors in their binary team (4 on each side) and 25,000 GV from their binary (minimum 10,000 from each side and no more than 40% from any one personally recruited member’s downline)
- Senior Marketing Director – Must make at least 130 CV a month in personal sales, have 10 personally recruited distributors in their binary team (5 on each side) and 50,000 GV from their binary (minimum 20,000 from each side and no more than 40% from any one personally recruited member’s downline)
- National Marketing Director – Must make at least 130 CV a month in personal sales, have 12 personally recruited distributors in their binary team (6 on each side) and 100,000 GV from their binary (minimum 30,000 from each side and no more than 30% from any one personally recruited member’s downline)
- Executive Marketing Director – Must make at least 260 CV a month in personal sales, have 14 personally recruited distributors in their binary team (7 on each side) and 250,000 GV from their binary (minimum 100,000 from each side and no more than 30% from any one personally recruited member’s downline)
- Presidential Marketing Director – Must make at least 260 CV a month in personal sales, have 16 personally recruited distributors in their binary team (8 on each side) and 500,000 GV from their binary (minimum 200,000 from each side and no more than 30% from any one personally recruited member’s downline)
There are three membership options to choose from when joining XB-Fit.
$65-99 Distributor Enrolment
This is the entry-level membership offering and includes a product purchase of either
- $99 for one of XB-Fit’s meat, poultry and seafood packs
- $65 for a case of XB-Fit energy drink
- $65 for a months supply of supplements
- $75 for a XB-Fit weight-loss pack
$249 Business Builder Package
- Poultry starter pack
- Seafood starter pack
- marketing materials
$499 Business Builder Package
- Poultry starter pack
- Seafood starter pack
- beef and poultry pack (presumably 2 additional $99 packs)
- marketing materials
With food, beverage, diet and supplement product offering, XB-Fit is a company solidly grounded in retail product sales and the compensation plan reflects that.
True retail commissions and customers are built into the compensation plan although there is a recruitment requirement even in the lower levels of the plan, it still ties in strongly with product volume which equates to sales.
The ‘Stock Profit Sharing’ is a bit of a worry and if I had any advice for these guys it’d be to change the terminology used immediately. Unless I’m missing something effectively this is a bonus pool but using stock market terminology to describe it is just asking for trouble.
The binary commission earnings are capped which means you do need to recruit at least 2 people to get started with this (Director level). That said the commissions you do earn are off product sales, rather than the mere fact you recruited people so as far as I can see that poses no problems.
Director pays $1,500 a week ($78,000 a year) which I believe is a decent enough cap before the company requires you expand your team to earn more, and even then there’s nothing stopping you expanding this with true retail sales.
With each membership rank comes a team volume increase and eventually you’re going to be relying on your team no matter how much you’re making in retail sales alone. In that sense I don’t think the recruitment requirements (just 16 at the top Presidential Marketing Director’ membership level) are a problem.
Realistically by the time a XB-Fit member gets there they’ll probably have recruited much more than just 16 members into the company anyway.
All in all if you can find a big enough market for XB-Fit’s product line then I don’t see anything with the business model that should prevent you from giving the opportunity a try.
One possible pitfall I can see is the potential trap of having to make orders with the company not for yourself, but as samples to give people to try.
You’d have to factor this into a greater marketing strategy but even then you’d have to make sure you weren’t eating into your own profits too much as this could offset the work you’re putting in vs. the income you’re drawing.
On the other hand obviously it’s one thing to tell people how great the consumable products XB-Fit has and another entirely if you can get them to sample it, the latter I believe being a much more succesful strategy.
Avoid cold sampling and only target your warm market. If you enjoy the products XB-Fit has and can market them to others, you might just build yourself a succesful MLM business here.