DuePoint Review: Financial insurance & eCommerce subscriptions
DuePoint operate in the financial services MLM niche and are based out of Gauteng, South Africa.
DuePoint list five “team members” on their website, however their specific roles within the company are no defined.
Brendan Benfield, Timothy Renolds, Rob Van Der Bijl, Stacey Paul and Jayne Verity are credited with backgrounds in finance and tech.
Jayne Verity is the DuePoint team member credited with MLM experience;
Having developed direct marketing teams both in the UK and in South Africa, she adds extensive knowledge and experience to DuePoint.
Perusal of Verity’s Twitter profile reveals marketing material for The Worlds Biggest Buying Club (2011, now defunct). Other than attendance at a DSA South Africa event in 2015, I was unable to confirm Verity’s MLM credentials.
Read on for a full review of the DuePoint MLM opportunity.
On their website DuePoint claim to be
a division of Constantia Insurance Company Limited, which is a registered Financial Services Provider FSP 31111.
At the time of publication the Constantia website was down. From what I gather though it’s an independent financial advice company based out of South Africa.
Constantia products featured on the DuePoint website include:
- Access Wealth – R100 ZAR a month tax-free investment account and personal accident policy for R299 ZAR ($22.50 USD)
- Wealth Guard – R1.1 million ZAR ($82,898 USD) personal accident cover for R274 ZAR ($20.65 USD)
Wealth Points is a R274 ZAR ($20.65 USD) membership subscription service that provides access to various third-party “buyers’ club partners”.
These partners include voucher providers, an ISP, car dealership, travel agency, home appliance retailer, eCommerce platforms, hair dryer retailer, hair salon and personal fitness trainer.
Although not explicitly clarified on the DuePoint website, I believe each subscription is monthly recurring.
The DuePoint Compensation Plan
When a DuePoint affiliate sells a subscription to a retail customer or recruited affiliate, a R27.50 ZAR commission is generated ($2.05 USD).
This commission is monthly recurring for the life of the subscription.
To qualify for commissions a DuePoint affiliate must sell at least one subscription to three recruited affiliates.
Despite a R27.50 ZAR commission generated on each subscription sale, how much a DuePoint affiliate actually receives is determined by 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.
The amount of unilevel levels a DuePoint affiliate can earn on is based on how many affiliates they’ve personally recruited.
One recruited affiliate unlocks the first level of the unilevel team, two recruited affiliates unlocks the second level of the unilevel team and so on and so forth.
Subscriptions sold on each level of the unilevel team generate a percentage multiplier, which is used to calculate specific commission rates for a subscription payment on that particular level.
- level 1 (personally recruited affiliates) – 200% multiplier (27.50*2) resulting in a R55 ZAR commission ($4.15 USD)
- level 2 – 200% multiplier resulting in a R55 ZAR commission ($4.15 USD)
- level 3 – 100% multiplier resulting in a R27.50 ZAR commission ($2.05 USD)
- level 4 – 80% multiplier resulting in a R22 ZAR commission ($1.65 USD)
- level 5 – 40% multiplier resulting in a R11 ZAR commission (80 cents USD)
- level 6 – 20% multiplier resulting in a R5.50 ZAR commission (40 cents USD)
- level 7 – 8% multiplier resulting in a R2.20 ZAR commission (17 cents USD)
- level 8 and deeper – 4% multiplier resulting in a R1.10 ZAR commission (8 cents USD)
According to a corporate presentation video, DuePoint rewards affiliates who follow a preset career path with XP Rewards.
We believe (the plan) will form the foundation of the duplication and expansion of your channel (downline).
XP Rewards include “holidays, cars, prizes, cash and even tools that will further the development of your channel (downline)”.
XP Rewards are based on points, however DuePoint do not make public the specifics of how points are awarded or for what.
DuePoint affiliate membership is tied to the purchase of one or more subscriptions.
This pegs DuePoint affiliate membership costs between R274 to R847 ZAR a month ($20.65 to $63.80 USD).
Despite its affiliates being paid to sell Constantia Insurance Company Limited and Buyer’s Club subscriptions, the company insists it’s affiliates don’t sell.
As Wealth Engineers of DuePoint you are not involved in the sale of our products and you are not a financial advisor or intermediary for DuePoint.
Your only focus is the development of your channel and the pursuit of your own financial freedom.
DuePoint refer to an affiliate downline as a “channel”, which is obviously built by recruiting affiliates and them purchasing subscriptions.
Building an income with DuePoint is simple but far reaching. As you share the DuePoint system with your peers, colleagues, family and friends you commence the construction of your very own channel.
This occurs through sales, so why DuePoint insist otherwise is a mystery. If not sales, what on Earth are they paying their affiliates for?
The investment aspect of the Access Wealth subscription would appear to be regulated through Constantia Insurance’s Financial Services Provider license, however I’m giving DuePoint the benefit of the doubt here.
Regarding the DuePoint compensation plan, the way it’s presented with different percentage multipliers sounds new, however with a fixed rate per subscription sale could just as easily be presented with actual numbers on each level.
The legitimacy of the plan meanwhile rests on how many DuePoint subscriptions are sold to retail customers.
The eighteen minute official DuePoint presentation I based much of this review on does not mention retail subscription sales once.
The focus is entirely on affiliate recruitment, which DuePoint refers to as a “channel building excercise”.
Throughout the presentation the company is quite blatant about how DuePoint should be marketed;
For the purposes of calculating your returns, these 3 product owners must be linked to you directly as a result of you having approached them in terms of the DuePoint business opportunity.
Putting aside the issue of DuePoint referring to commissions as “returns”, it’s quite clear it expects its affiliates to market the “business opportunity” and not the subscription services.
In this sense the company is correct that DuePoint (apparently) does not involve sales. At least not of a tangible product or service to retail customers.
This potentially puts DuePoint in pyramid scheme territory, if the majority of subscriptions are held by affiliates and not retail customers.
You can verify this with your potential upline, by enquiring how many non-affiliate subscription sales they’ve sold versus affiliate subscriptions.
Approach with caution.