Atomy America Review: Terrible retail customer focus
Atomy launched in the US back in 2010, with the parent Korean company founded by Han-Gill Park in 2004 (sometimes credited as “Han-Kil Park or Han-Gil Park).
From what I’ve been able to suss out, Atomy’s MLM opportunity was launched in 2009. A corporate address in the US state of Washington is provided on the Atomy America website.
Park (right) serves as the CEO of Atomy America, with the company also operating in Japan, Canada, Singapore and Taiwan.
While there’s an abundance of marketing philosophy on the Atomy America website regarding the company, strangely there’s no information about Han-Gill Park himself.
Out of curiosity I jumped onto Atomy’s Korean site but found it to be the same as the American site, in Korean. So that wasn’t much help.
Possible due to language barriers (although it’s strange Atomy themselves don’t provide any information), I was unable to put together an MLM history on Park.
As such Park’s corporate background and MLM history are unknown.
Read on for a full review of the Anomy America MLM business opportunity.
The Atomy America Product Line
Atomy operate in a number of product niches, spanning health and nutrition, personal care (mens and womens), beauty, home care and food.
Unfortunately Atomy do a terrible job of presenting their product range to the general public, with no product information or pricing provided on the Atomy America website.
Despite the Atomy website hosting an online storefront, if a visitor clicks on any listed products for more information only the following message comes up:
Price and PV information will be shown after login.
The required login prompt sees visitors required to log in with Atomy membership details.
The Atomy America Compensation Plan
Atomy’s compensation as presented on the Atomy America website is confusing. A few tables of data containing non-standard terminology is presented, with there being no explanation as to what any of the provided information means.
Relying on Atomy affiliate marketing presentations to supplement the information available on the Atomy website, I’ve done my best to break down the Atomy America compensation plan below.
In order to qualify for commissions, Atomy affiliates must first generate over 10,000 PV.
PV stands for “Personal Volume” and is sales volume generated by sales to retail customers and/or an affiliate’s own purchase of product.
Thereafter to remain commission qualified, an Atomy affiliate must purchase at least one Atomy product every 12 months.
Atomy Affiliate Ranks
There are seven affiliate ranks within the Atomy compensation plan.
Along with their respective qualification criteria, they are as follows:
- Sales Master – min 2,500,000 GV generated on both sides of the binary
- Diamond Master – 1,500,000 or more daily GV generated by weaker binary side, with two personally recruited Sales Master ranked affiliate on either side of the binary
- Sharon-Rose Master – 2,400,000 or more daily GV generated by weaker binary side, with two personally recruited Diamond Master ranked affiliates on either side of the binary
- Star Master – 2,400,000 or more daily GV generated by weaker binary side, with two personally recruited Sharon-Rose Master ranked affiliates on either side of the binary
- Royal Master – 2,400,000 or more daily GV generated by weaker binary side, with two personally recruited Star Master ranked affiliates on either side of the binary
- Crown Master – 2,400,000 or more daily GV generated by weaker binary side, with two personally recruited Royal Master ranked affiliates on either side of the binary
- Imperial Master – 2,400,000 or more daily GV generated by weaker binary side, with two personally recruited Crown Master ranked affiliates on either side of the binary
Note that GV stands for “Group Volume” and is sales volume (PV) generated by an affiliate’s downline.
Residual commissions in Atomy 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):
Positions in the binary are created by splitting positions into another two positions each, with positions filled via the direct and indirect recruitment of new affiliates.
Commissions are paid out on sales volume generated by the weaker binary side, with volume on this side matched up with volume on the stronger side and flushed daily.
Binary commissions in Atomy are pegged to “points”, which are determined by an affiliate’s own accumulated PV and sales volume generated by their weaker binary side (GV)
Note that both PV and GV requirements must be met, otherwise an affiliate is paid at a lower point level.
- 10,000 to 100,000 PV and 300,000 matched GV = 5 points (approx $24 USD payout)
- 100,001 to 300,000 PV and 300,000 matched GV = 15 points (approx $70 USD payout)
- 300,001 to 700,000 PV and 700,000 matched GV = 30 points (approx $140 USD payout)
- 700,001 to 1,500,000 PV and 1,500,000 matched GV = 60 points (approx $280 USD payout)
- 1,500,001 to 2,400,000 PV and 2,400,000 matched GV = 90 poins (approx $420 USD payout)
- 2,400,000 or more PV and 6,000,000 matched GV = 150 points (approx $700 USD payout)
- 2,400,000 or more PV and 20,000,000 matched GV = 250 points (approx $1150 USD payout)
- 2,400,000 or more PV and 50,000,000 or more matched GV = 300 points (approx $1380 USD payout)
Points are cited as being roughly worth $4.80 each, subject to fluctuating value between the Korean Won and US Dollar.
Note that points are rolled over and generated the next day on Sundays and all Korean public holidays.
A matching bonus is available on daily binary commissions earned by an Atomy affiliate’s downline, 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 of their own, 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.
Atomy cap payable unilevel levels at ten, with a 2% matching bonus paid out on binary commissions earned by a unilevel team as follows:
- 300,000 to 699,999 accumulated PV = 2% matching bonus on 3 levels
- 700,000 to 1,499,999 accumulated PV = 2% matching bonus on 5 levels
- 1,500,000 to 2,399,999 accumulated PV = 2% matching bonus on 7 levels
- 2,400,000 or more accumulated PV = 2% matching bonus on 10 levels
Note that the total matching bonus paid out to any Atomy affiliate is capped at 500,000 KRW ($412 USD) a day.
Rank Achievement Bonus
Atomy affiliates are awarded a Rank Achievement Bonus for qualifying at certain affiliate ranks as follows:
- Sales Master – a selection of Atomy products
- Diamond Master – $650 “laptop computer or tablet” plus a selection of Atomy products
- Sharon-Rose Master – $2000 and “2 travel tickets”
- Star Master – $10,000 and “4 travel tickets”
- Royal Master – $50,000, $2000 a month, $1000 a month car rental and “4 travel tickets (10 nights & 11 days)”
- Crown Master – $300,000, $5000 a month, a $64,000 “luxury car” and “4 travel tickets (10 nights & 11 days)”
- Imperial Master – $1,000,000, $10,000 a month, a $78,000 “luxury car”, an “office of approx. 1700 sq. with a personal assistant, a driver” and “4 travel tickets (10 nights & 11 days)”
Note that regarding Rank Achivement Bonus payouts, the Atomy compensation plan states
the total amount of commission to members cannot exceed 35% of total sales income.
Should Rank Achievement Bonuses at any time exceed the 35% cap, payouts to affiliates will be reduced accordingly.
The Master’s Bonus are a series of bonus pools made up of 20% Atomy’s company-wide sales volume.
There are seven Master’s Bonus pools available, with an equal share in each tied to an Atomy affiliate’s rank:
- Sales Master Pool (10% of global sales volume) – paid out equally to Sales Master ranked affiliates
- Diamond Master Pool (5% of global sales volume) – paid out equally to Diamond Master ranked affiliates
- Sharon-Rose Master Pool (2% of global sales volume) – paid out equally to Sharon-Rose Master ranked affiliates
- Star Master Pool (1.2% of global sales volume) – paid out equally to Star Master ranked affiliates
- Royal Master Pool (1% of global sales volume) – paid out equally to Royal Master ranked affiliates
- Crown Master Pool (0.5% of global sales volume) – paid out equally to Crown Master ranked affiliates
- Imperial Master Pool (0.3% of global sales volume) – paid out equally to Imperial Master ranked affiliates
Shares in the Master’s Bonus Pool are paid out twice monthly.
Affiliate membership with Atomy is free, however affiliates must generate at least 10,000 in PV before they are eligible to earn commissions.
If self-funded, Atomy commission qualification works out to about $17.
It is blatantly obvious that retail commissions are non-existent in Atomy.
The company’s website presents a terrible retail customer experience, with neither product descriptions or pricing provided.
Retail customer acquisition is clearly not a focus within Atomy.
Whether or not retail commissions are even possible is unknown, with there being no mention of them in either Atomy’s official compensation documentation or presentations by their affiliates.
What I think we’re looking at here is, to put it bluntly, a product-based pyramid scheme.
It starts with the initial 10,000 PV requirement to earn commissions.
“PV” implies that it can be generated via retail customer orders, but for aforementioned reasons, I’m of the belief that by and large this initial 10,000 PV is generated by an affiliate’s own purchase of product.
The website Atomy Masters is run by Mike Potter, who claims to be ‘the #1 English speaking (Atomy) group here in the USA since April 2014‘.
On Atomy Masters, Potter describes the commission qualification process as follows:
When you first Join Atomy you start out as a Member then with your first purchase of 10k PV to 299k PV you become a Sales Rep.
When going over the Atomy compensation plan, Potter again emphasis an affiliate self-funding their commission qualification (bold emphasis verbatim);
Points only start to accumulate under your left of right groups once you become a Sales Rep which is when you have accumulated 10k personal PV or more.
So when you sign up be sure you purchase at least 10k of products.
The problem with all of this is retail sales are neither required or encouraged.
Basically you sign up as an Atomy affiliate, pay your commission qualification fee and then recruit others who do the same.
PV is accumulated, reducing commission and rank qualification to a flat-fee, with GV generated by recruited affiliates paying their PV fees.
This reduces Atomy’s product line to a means to an end, the purchase of which qualifies an affiliate to earn commissions when subsequently recruited affiliates spend money to qualify themselves.
Retail sales are non-existent, with this model readily identifiable as a product-based pyramid scheme.
Reselling might be brought up to demonstrate the existence of faux retail sales, however what happens outside of the Atomy compensation plan is entirely irrelevant.
Without bona-fide retail sales taking place, money flowing into Atomy is sourced exclusively from affiliates. It follows then that commissions paid out is thus affiliate revenue which, if we look at what Atomy affiliates are doing to get paid (recruiting affiliates who accumulate PV for commission qualification via their own purchases), confirms the product-based pyramid nature of the scheme.
As a prospective Atomy affiliate I’d be first and foremost raising the question of retail with a potential upline. Does it exist? Are they actively taking retail orders from affiliates month over month?
Or are they just earning commissions via recruitment of affiliates who spend money to become and remain commission qualified?
Pending the answer received, approach with caution.