Calorchi Review: Blockchain Marketplace cryptocurrency e-commerce
There is no information on the Calorchi website indicating who owns or runs the business.
The Calorchi website domain (“calorchi.com”) was registered on the 20th of July 2015, however the domain registration is set to private.
A corporate address in the US state of Texas is provided on the Calorchi website. Taken at face value, the Calorchi Independent Affiliate Agreement suggests this is where the company is run out of:
(Calorchi) has its’ home office in Dallas, Texas and will not be collecting sales tax at the time of purchase from any Residents outside of the areas its location requires it to.
Any substantive or procedural rights other than the enforceability of the arbitration agreement shall be governed by the laws of the State of Texas, County of Dallas.
Further research reveals Calorchi affiliates naming Sam Mendez as Founder and CEO of the company:
Mendez first popped up on BehindMLM’s radar as a co-founder of My Shopping Genie back in 2011.
Following a six-month period during which My Shopping Genie failed to pay affiliates, the company collapsed in mid 2012.
In 2014 Mendez reemerged as the co-founder of 15 Winks, a subscription-based mobile dating app.
In our BehindMLM review of 15 WInks I myself didn’t realize Mendez was involved. In researching Calorchi however I came across a marketing pitch for 15 Winks that named Mendez as co-founder:
Recognizing this potential I immediately grabbed one of the Platinum Level Firstmover packages at a cost of $5000.
I spoke with co-founder Sam Mendez on January 1 and he told me that two-thirds of the Platinum Level packages have been sold.
Under the marketing campaign “BeaFirstMover”, 15 Winks solicited investments of $250 to $5000 on the promise of an eventual >100% ROI.
Today the 15 Winks website is still online, however the Alexa ranking for the site suggests the opportunity has long-since collapsed.
Read on for a full review of the Calorchi MLM opportunity.
The Calorchi Product Line
Calorchi operate what they call “Blockchain Marketplace”.
Calorchi is the first ever direct sales marketplace for buying and selling products and services with leading crypto-currencies.
In a nutshell, Blockchain Marketplace is a cryptocurrency e-commerce platform.
The only product currently listed on the Calorchi website is a “hemp product line” called Garden Isle. No retail or wholesale pricing for Garden Isle products are provided.
According to Calorchi, the benefits for third-party merchants who use their platform are
no refunds, no other customer complaints, no further payment services, no savings in advance and additional processing fees.
The Calorchi Compensation Plan
The Calorchi compensation plan pays affiliates when products are purchased through their Blockchain Marketplace.
MLM Commission Qualification
In order to qualify for MLM commissions, a Calorchi affiliate must
- recruit at least two affiliates (one placed on both sides of the binary team) and
- generate $75 worth of product purchases on both sides of the binary team every 90 days
Blockchain Marketplace Commissions
When a recruited affiliate or retail customer spends $75 in the Blockchain Marketplace, the affiliate who recruited/referred them earns $6.
When purchases by a Calorchi affiliate’s recruited affiliates and retail customers totals $1500, the affiliate is paid a $250 bonus.
This $250 bonus is paid each time recruited affiliate and retail customer purchases total $1500, however an affiliate can only earn the bonus once every 90 days.
Residual commissions in Calorchi 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):
The first level of the binary team has two positions. The second level of the binary team is generated by splitting each of the two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated in the same manner as required, with positions filled via direct and indirect recruitment of affiliates.
Affiliate and retail customer purchases are tracked on both sides of the binary team.
When $150 worth of purchases are matched on both sides, a Calorchi affiliate is paid $15.
The Matching Bonus pays a Calorchi affiliate a percentage match on residual binary earnings of recruited affiliates.
The Matching Bonus is 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 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.
- Team Builder qualified Calorchi affiliates are paid a 10% matching bonus
- Global Builder qualified Calorchi affiliates are paid a matching bonus of up to 20%
- Platinum Builder qualified Calorchi affiliates are paid a matching bonus of up to 30%
Calorchi affiliates are paid the matching bonus on each leg in their unilevel team, up until another Matching Bonus qualified affiliate is found in that leg (either a Team Builder or a Global Builder).
To qualify as a Team Builder, a Calorchi affiliate must recruit at least three affiliates who have earned at least one residual binary commission.
To qualify as a Global Builder a Calorchi affiliate must recruit at least six affiliates.
These six affiliates must have each qualified as a Team Builder and have personally recruited at least two Team Builder qualified affiliates themselves.
Global Builder qualified affiliates earn 20% up until the first Global Builder qualified affiliate is found in a unilevel leg.
If a Team Builder affiliate is found, the affiliate earns 20% up until that affiliate and then 10% until a Global Builder affiliate is found in the leg.
To qualify as a Platinum Builder a Calorchi affiliate must recruit at least twelve affiliates.
These twelve affiliates must have each qualified as a Global Builder and have personally recruited at least three Global Builder qualified affiliates themselves.
Platinum Builder qualified affiliates earn 30% up until the first Platinum Builder qualified affiliate is found in a unilevel leg.
If a Global Builder affiliate is found, the affiliate earns 30% up until that affiliate, 20% until a Global Builder affiliate is found in the leg and then 10% until a Platinum Builder affiliate is found.
When binary sales volume totals $2500 on each side of the binary team, a Calorchi affiliate is paid $250.
Marketplace Promoter Rewards
Marketplace Promoter Rewards is a bonus pool made up of 5% of all commissions and bonuses Calorchi affiliates qualify for.
Affiliates can earn shares in the pool as follows:
- earn $10,000 in a 90 day period = 1 share
- earn $20,000 in a 120 day period = 2 shares
Calorchi affiliate membership details are not provided on the Calorchi website.
The legitimacy of Calorchi as an MLM opportunity hinges on whether retail customers will use the platform, as opposed to just affiliates.
In Calorchi’s current state, I’m not personally seeing any incentive for retail customers to use the Blockchain Marketplace platform.
Cryptocurrencies are currencies in and of themselves, which begs the question why Calorchi have set up their own platform.
The devil is in the details;
All Calorchi products and services must be purchased with Calorchi Marketplace Credits, which are purchased exclusively with Bitcoins or other authorized cryptocurrencies.
You, as a Calorchi affiliate or retail customer, convert real money into “marketplace credits”. These credits hold no value outside of Calorchi’s Blockchain Marketplace, and serve as a third-layer between fiat money and cryptocurrencies.
Considering the Calorchi compensation plan is designed around USD, this presents an interesting scenario.
Let’s say you signed up as a Calorchi affiliate and converted 1 bitcoin into marketplace credits. Seeing as the price of BTC fluctuates, how does one weigh the Calorchi compensation plan in USD against bitcoin?
This consideration works both ways, with both Calorchi and its affiliates and retail customers potentially getting screwed on prices via the Blockchain Marketplace.
If the Blockchain Marketplace handled cryptocurrency directly (and had a compensation plan that wasn’t USD focused), this wouldn’t be a problem.
Affiliate commissions are also paid in cryptocurrency, which again could screw affiliates or Calorchi depending on whether the value of the cryptocurrency goes up or down (with respect to USD).
If it goes up, an affiliate is paid less cryptocurrency per dollar.
If it goes down, Calorchi has to come up with more cryptocurrency to pay the same amount owed to the affiliate.
Given the typical volatility of cryptocurrencies, I don’t see this as a stable long-term system.
Another problem in the Calorchi compensation plan is the lack of retail customer qualifiers.
It’s entirely possible for a Calorchi affiliate to sign up, self qualify for commissions by spending $75 a month and then getting paid upon recruitment of affiliates who do the same.
This brings us back to retail viability, which given the hassle of converting real money into cryptocurrency and then into marketplace credits, I’m just not seeing.
The good news is you can quickly ascertain whether retail sales are indeed taking place.
As a prospective Calorchi affiliate, ask your potential upline how much retail sales volume they’re generating each month. Then weigh this against the size of their personally recruited affiliate downline.
Healthy retail sales volume would be a close to 50:50 ratio of retail and affiliate purchase volume.
If there isn’t significant retail volume, then Calorchi is probably operating as an autoship recruitment scheme (affiliates pay $75 to qualify for commissions, paid on other affiliates doing the same).
Finally there’s the lack of affiliate membership costs provided. This isn’t good enough for an MLM company is 2016.
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