Air5 Networks Review: $399 subscription-based streamboxes
Air5 Networks is currently scheduled to launch in June, 2016.
There is no information about the company on its website, with it only displaying a “site maintenance” message.
The Air5 Network lists Matthew Davis as the owner. An address in the US state of Florida is also provided.
Further research reveals Davis listed as a “Manager” of Air5 Networks Holdings, an LLC incorporated in Florida last year.
George Burton and Charles R. Glenn are also listed as Managers of Air5 Networks Holdings. Specific management roles with in the company however are not disclosed.
Despite the lack of publicly available information provided, Air5 Network “founders” are actively promoting the opportunity.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Air5 Networks Product Line
Air5 Networks claim to sell “digital technology products”. This appears to be an OTT stream box that retails for $399.
In broadcasting, over-the-top content (OTT) refers to delivery of audio, video, and other media over the Internet without the involvement of a multiple-system operator in the control or distribution of the content.
The Internet provider may be aware of the contents of the Internet Protocol packets but is not responsible for, nor able to control, the viewing abilities, copyrights, and/or other redistribution of the content. (Wikipedia)
After purchasing the box, one or more bundled services are required to make use of it:
- monthly service = $59.97
- monthly cable service = $79.97
- monthly cable service = $99.97
- monthly internet service = $50
- monthly VOIP service = $14
Although not explicitly clarified, I believe the different monthly cable services are for different amounts of channels.
At the time of publication no technical specifications for the Air5 Networks box were available.
The Air5 Networks Compensation Plan
The Air5 Network compensation plan pays affiliates to sell Air5 Network streamboxes to retail customers.
Affiliats are also paid to recruit new Air5 Network affiliates, with residual commissions paid out via binary and unilevel compensation structures.
Air5 Networks Affiliate Ranks
There are eleven ranks in the Air5 Networks compensation plan.
Along with their respective qualification criteria, they are as follows:
- Silver – sign up as an Air5 Network affiliate or purchase a Bronze or Silver affiliate Enrollment Kit, recruit at least two affiliates (one on either side of your binary team)
- Gold – sign up as an Air5 Network with a Gold Enrollment Kit, recruit and maintain at least two affiliates (one on either side of your binary team) and either sell eight streamboxes or recruit 4 Silver ranked affiliates
- Platinum – sign up as an Air5 Network affiliate with a Platinum Enrollment Kit, recruit and maintain at least two affiliates (on on either side of your binary team) and either sell sixteen streamboxes or recruit 4 Gold ranked affiliates
- Opal – ” Join the business, pay the one-time $99 “non-commissionable” Administrative Fee or purchase an “Optional” Retail Sales Pack”
- Sapphire – generate at least 125 PV a month in subscription volume (includes your own subscription(s))
- Emerald – generate 250 PV in subscription volume (includes your own subscription(s)) and have a unilevel team generating at least $2500 a month in retail sales across six levels (no more than 60% counted from any one unilevel leg)
- Ruby – generate 500 PV in subscription volume (includes your own subscription(s)) and have a unilevel team generating at least $10,000 a month in retail sales across eight levels (no more than 50% counted from any one unilevel leg)
- Diamond – generate 1000 PV in subscription volume (includes your own subscription(s)) and have a unilevel team generating at least $50,000 a month in retail sales across nine levels (no more than 40% counted from any one unilevel leg)
- Blue Diamond – generate 2500 PV in subscription volume (includes your own subscription(s)) and have a unilevel team generating at least $200,000 a month in retail sales across nine levels (no more than 40% counted from any one unilevel leg)
- Red Diamond – maintain at least 125 PV a month (min 75 PV must be retail volume)) and recruit at least four Blue Diamond or higher ranked affiliates, maintain at least four retail customers generating at least 25 CV a month and have a unilevel team generating at least $500,000 a month in retail sales volume across nine levels (no more than 40% counted from any one unilevel leg)
- Black Diamond – maintain at least 125 PV a month (min 75 PV must be retail volume)) and recruit at least four Red Diamond or higher ranked affiliates, maintain at least four retail customers generating at least 25 CV a month and have a unilevel team generating at least $1,000,000 a month in retail sales volume across nine levels (no more than 40% counted from any one unilevel leg)
Note that there are no additional qualification requirements specified for the Opal rank. This doesn’t make much sense seeing as the Silver to Platinum ranks also require the same qualification criteria.
PV stands for “Personal Volume” and is sales volume generated by an affiliate’s own purchases and sales to retail customers.
CV stands for “Commissionable Volume” and is sales volume attributable to the sale of Air5 Networks’ products and services.
In order to qualify for commissions, every Air5 Networks affiliate must sell three streamboxes to retail customers or recruit three affiliates who purchase an enrollment kit.
An affiliate’s own purchase of an optional enrollment package or stream box ($299) can count as one of the three required qualification sales/recruitment of affiliates.
If an Air5 Networks affiliate sells a stream box to a retail customer, they receive a $50 commission.
Services required to use the Air5 Networks stream box attract the following monthly commissions:
- monthly service = $25
- monthly cable service ($79.97 and $99.97) = $25
- monthly internet service = $15
- monthly VOIP service = $10
Air5 Networks affiliates are paid a recruitment commission when new affiliates sign up with an enrollment kit.
How much of a recruitment commission is paid out is determined by how much a newly recruited affiliate spends on their Air5 Networks membership:
- recruit a Bronze Kit affiliate ($399) = $25 recruitment commission
- recruit a Silver Kit affiliate ($699) = $75 recruitment commission
- recruit a Gold Kit affiliate ($999) = $100 recruitment commission
Residual recruitment commissions are paid out on the Silver and Gold Kits as follows:
- Silver Kit – $25 on level 2 (affiliates recruited by your personally recruited affiliates)
- Gold Kit – $50 on level 2 and $25 on level 3
If an Air5 Networks affiliate recruits five affiliates who sign up with an Enrollment Kit, within 25 days of signing up themselves, they earn a $500 recruitment bonus.
There is no limit to the amount of recruitment bonuses an Air5 Networks affiliate can earn (within 25 days of signing up).
Residual Commissions (binary)
Residual binary commissions in Air5 Networks are paid out via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
Each level of the binary has twice the number of positions as the previous level. Positions in the binary team are filled via the direct and indirect recruitment of new Air5 Networks affiliates.
Each week, sales volume is tracked on both sides of the binary team. Sales volume is generated as follows:
- retail sale = 50 BV
- recruit a Bronze Kit affiliate = 50 BV
- recruit a Silver Kit affiliate = 100 BV
- recruit a Gold Kit affiliate = 150 BV
Note that BV stands for “Business Volume” and is PV generated by an affiliate’s downline.
Commissions are paid out as a percentage of sales volume generated on an affiliate’s weaker binary side.
How much of a percentage is paid out each week is determined by an Air5 Network affiliate’s rank:
- Silver – 10%
- Gold – 15%
- Platinum or higher – 20%
When a Gold or Silver affiliate earns a binary commission, the system looks to the upline for a higher-ranked affiliate to pay the remaining percentage out to (up to 20%).
Eg. If a Silver affiliate’s weaker binary side generates 500 BV, they are paid $50, with 10% (another $50) remaining.
The system searches the upline for either a Gold or Platinum ranked affiliate.
If a Platinum ranked affiliate is found, they are paid the full remaining $50. If a Gold ranked affiliate is found, they are paid $25 (5%, equating to their 15% binary commission rate), with the remaining 5% paid out to the first Platinum ranked affiliate in the upline.
Matching Binary Bonus
Air5 Network affiliates earn a percentage match on binary commissions paid to their personally recruited affiliates.
How much of a matching bonus percentage is paid out is determined by an Air5 Network affiliate’s rank:
- Silver – 10% matching bonus
- Gold – 20% matching bonus
- Platinum or higher – 30% matching bonus
Residual Commissions (unilevel)
Residual unilevel commissions in Air5 Networks are paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates go on to recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Air5 Networks cap payable unilevel levels at nine, with commissions paid out as a percentage of generated sales volume on each level.
How many levels an Air5 Networks affiliate can earn on is determined by their rank:
- Opal – 5% on levels 1 and 2
- Sapphire – 5% on levels 1 to 4
- Emerald – 5% on levels 1 to 6
- Ruby – 5% on levels 1 to 8
- Diamond or higher – 5% on levels 1 to 9
A bonus 5% is paid out on the unilevel level that generates the most commissionable volume each month.
Matching Unilevel Bonus
Air5 Networks affiliates earn a percentage match on unilevel commissions paid to their personally recruited affiliates.
How much of a matching bonus percentage is paid out is determined by an Air5 Network affiliate’s rank:
- Sapphire – 10% matching bonus
- Emerald – 15% matching bonus
- Ruby – 20% matching bonus
- Diamond or higher – 25% matching bonus
The Generation Bonus pays an affiliate a bonus percentage of sales volume generated by their unilevel team.
This bonus percentage is paid out on defined generations, with a generation in Air5 Networks defined when an Emerald or higher ranked affiliate is found beyond the first seven levels of their unilevel team.
The first ranked affiliate found after level 7 caps off the first generation, with a payable second generation capped off if another Emerald ranked affiliate is found in the same unilevel leg.
Based on an Air5 Network affiliate’s rank, they are able to earn a 2% bonus on up to four defined generations:
- Emerald affiliates – earn 2% on up to two generations per unilevel leg (defined when Emerald or higher ranked affiliates are found beyond level 7)
- Ruby affiliates – earn 2% on up to three generations per unilevel leg (defined when Ruby or higher ranked affiliates are found beyond level 7)
- Diamond or higher affiliates – earn 2% on up to four generations per unilevel leg (defined when Emerald or higher ranked affiliates are found beyond level 7)
Rank Achievement Bonus
Upon qualifying at the Blue Diamond and higher ranks, Air5 Networks affiliates are paid a one-time Rank Achievement Bonus:
- Blue Diamond – $25,000
- Red Diamond – $50,000
- Black Diamond – $100,000
Global Bonus Pool
5% of monthly service fee paid by Air5 Networks retail customers and affiliates is placed into a Global Bonus Pool.
The Global Bonus Pool is paid out quarterly to qualifying affiliates, based on the amount of shares they have.
Air5 Networks affiliates can earn shares in the Global Bonus Pool as follows:
- achieve Diamond rank = 1 share
- achieve Blue Diamond rank = 2 shares
- achieve Red Diamond rank = 3 shares
- achieve Black Diamond rank = 4 shares
Joining Air5 Networks
Basic affiliate membership with Air5 Networks is $99.99.
An affiliate can also optionally sign up with one of the following three Air5 Networks enrollment kits:
- Bronze Kit – $399
- Silver Kit – $699
- Gold Kit – $999
The primary difference between the Air5 Networks enrollment kits is income potential and bundled streamboxes (no specific numbers provided).
Until June, Air5 Networks is charging $1450 for Founder membership.
Whether Founder affiliates receive any additional incentives is unclear. What we do know though is that a Founder affiliate is paid $200 for each new Founder affiliate they recruit.
This is chain-recruitment, and I believe will set the tone for a mostly recruitment-based opportunity when Air5 Networks launches.
That said, at least some effort has been put into Air5 Networks’ compensation plan to drive retail sales.
If an affiliate has five retail customers on monthly subscription(s), they qualify for either a discount or free monthly service themselves.
This applies to retail customers as well, with retail volume generated applied to the affiliate who signed up the customer bringing new customers into the business.
Retail volume requirements are also present throughout Air5 Networks affiliate rank progression, which is great to see.
Unfortunately recruitment and pay to play present themselves in other areas of Air5 Networks’ compensation plan.
Recruitment commissions present themselves by way of the Bronze, Silver and Gold Enrollment Kits paying out commissions.
These are affiliate only purchases, with affiliates able to earn on the recruitment of new Air5 Networks affiliates.
The Enrollment Kits are directly tied to binary earning percentages, which is clearly pay to play.
In MLM an affiliate’s income potential should solely be attributed to their sales performance, as opposed to how much they paid when they signed up.
Organic rank progression is possible from the $99.95 level, however that doesn’t negate the pay to play nature of the offered Bronze, Silver and Gold Enrollment Kits.
Otherwise Air5 Networks compensation plan looks pretty solid. Unfortunately however recruitment and pay to play issues cannot be ignored nor taken lightly.
As to the streambox product, whereas I’m typically critical of streamboxes that are marketed to facilitate privacy, Air5 Networks’ offering appears to be legitimate.
Through partnership with an undisclosed third-party content provider, the company offers access to internet-based licensed content.
You’re probably going to want to compare Air5 Networks’ subscription costs against what’s locally available in your area though. This is to evaluate whether the subscription costs are competitive, which ties into retail viability.
All in all I’d like to say Air5 Networks attempt to drive retail sales with a solid subscription-based offering is enough, however with the Founder affiliate recruitment, recruitment commissions offered through the compensation plan and pay to play issues, I’m left somewhat doubtful.
That Air5 Networks is being promoted by Founder affiliates with no known information about who owns the company or where it’s based is also of concern.
Approach with caution.