Elepreneurs Review 2.0: It’s time to drop Elevacity
A reader recently wrote in asking about Elepreneurs. They were considering the opportunity but noted BehindMLM hadn’t taken a look at it since early 2018.
Noting changes in the compensation plan, I queued Elepreneurs up for a rework.
Today we revisit Elepreneurs’ MLM opportunity with an updated review for 2020.
In our original review we observed Elepreneurs was closely linked to Elevacity, through their parent company Sharing Services Inc.
At the time Jordan Brock, Robert Oblon and Frank Walters were appointed directors of Sharing Services Inc.
It seems since we wrote our review a legal dispute broke out between Robert Oblon, Jordan Block and Alchemist Holdings LLC.
In a memo provided to Elepreneurs affiliates in February 2020, the company accused Oblon of “gross financial misconduct”.
Courtesy of Troy Dooly’s MLM News Desk;
Robert Oblon was removed from the Board of Directors and stripped of his position of authority as a result of gross financial misconduct.
He voluntarily resigned to avoid punitive legal actions arising from his malfeasance.
Frank Walters resigned from Sharing Services on or around May 2019.
Today Sharing Services Inc. is known as Sharing Services Global Corporation. The company is headed up by CEO John Thatch.
Elepreneurs is headed up by CEO Keith Halls.
Halls was appointed CEO in 2018, and as per his Elepreneurs corporate bio
served as Senior Vice President and Board Member for one of the largest companies in the network marketing industry.
In 2001, Keith did what few corporate executives do, he became an independent distributor so he could directly help more people.
He built several international downlines, totaling more than 500,000 people around the world.
The MLM company Halls an executive in and Elepreneurs seem afraid to mention is Nu Skin.
In 2001 Halls signed on as a distributor with Synergy WorldWide, a pay to play autoship recruitment scheme.
Halls was with Synergy Worldwide for six years.
In 2012 he signed on with Youngevity. Halls promoted Youngevity until he joined Elepreneurs in 2018.
In addition to promoting the company, Halls is/was a Youngevity shareholder.
As part of a legal dispute between Youngevity and Wakaya Perfection, in 2017 Halls was questioned about insider trading.
Rather than answer the questions, Halls pleaded the fifth.
In 2018 there was no mention of retailable products on Elepreneurs’ website.
Since then that’s been remedied, with the company promoting “instant impact products”.
Our products are uniquely designed to elevate the “D.O.S.E. response” in your brain using a proprietary combination of all-natural ingredients.
The more you and your customers take these products, the more happiness and motivation you and your customers can experience.
That’s a whole lotta marketing speak for what is essentially a range of nutritional supplements.
Unfortunately if you want details of Elepreneurs’ products, you have to head over to Elevacity’s website.
Below we’ll separate Elepreneurs’ products into two categories; wellness and skincare.
- D.O.S.E Coffee – “weight managing, mood enhancing, nootropic infused, happy coffee”, retails at $105 for a 4.8 oz tub (137 g)
- D.O.S.E Choclevate – a “delicious chocolate functional beverage”, retails at $105 for a 6.4 oz tub (181 g)
- D.O.S.E Nitro – a “weight managing, mood enhancing nootropic & nitric oxide promoter”, retails at $117.50 for a 3 oz tub (90 g)
- D.O.S.E Zest – “the perfect afternoon pick-me-up”, retails at $105 for a 5.29 oz tub (150 g)
- vanilla chai and georgia peach tea – “contains a proprietary blend of powerful appetite controlling, mood and focus enhancing ingredients”, no retail pricing provided
For some reason all of Elepreneurs’ wellness products are bundled with XanthoMax, a xanthohumol supplement.
Xanthumol comes from hops and can be found in beer. As a standalone ingredient, xanthumol appears to provide a broad range of medical benefits.
That said, there doesn’t appear to be any medical studies specifically pertaining to XanthoMax.
Note that Elepreneurs’ products are also available in $19.95 trial packs.
- Timeless Eye Gel – “eye enhancer reduces the look of wrinkles and fine lines around the eyes”, retails at $55 for a 0.33 oz bottle (10 ml)
- Elier Moor Mud Mask – “anti-aging mask that purifies skin with mud from a sought-after region in Europe”, retails at $27.50 for a box of ten single-use sachets
- Elier Facial Serum – “anti-aging skin care designed to deeply nourish and regenerate at the cellular level resulting in a more youthful look”, retails at $67.50 for an unknown bottle size (not printed)
Elepreneurs’ Compensation Plan
Elepreneurs’ compensation plan combines retail sales with residuals paid through a unilevel team.
Additional rank-based bonus pools are also available.
Elepreneurs Affiliate Ranks
There are thirteen affiliate ranks within Eleprneurs’ compensation plan.
Along with their respective qualification criteria, they are as follows:
- Elepreneur – sign up as an Elepreneurs affiliate
- Star – generate and maintain 80 PV or 240 RPV a month, refer and maintain one retail customer who orders at least 40 RPV a month and generate 1250 GV a month
- Bronze – maintain 80 PV or 240 RPV a month, refer and maintain two retail customers who order at least 40 RPV a month each and generate 2500 GV a month
- Silver – maintain 80 PV or 240 RPV a month, refer and maintain three retail customers who order at least 40 RPV a month each and generate 5000 GV a month (max 90% from any one recruitment leg)
- Gold – maintain 80 PV or 240 RPV a month, refer and maintain four retail customers who order at least 40 RPV a month each and generate 10,000 GV a month (max 80% from any one recruitment leg)
- Platinum – maintain 80 PV or 240 RPV a month, refer and maintain six retail customers who order at least 40 RPV a month each and generate 20,000 GV a month (max 70% from any one recruitment leg)
- Diamond – maintain 80 PV or 240 RPV a month, refer and maintain eight retail customers who order at least 40 RPV a month each and generate 40,000 GV a month (max 60% from any one recruitment leg)
- Black Diamond – maintain 80 PV or 240 RPV a month, refer and maintain eight retail customers who order at least 40 RPV a month each and generate 80,000 GV a month (max 50% from any one recruitment leg)
- Royal Black Diamond – maintain 80 PV or 240 RPV a month, refer and maintain eight retail customers who order at least 40 RPV a month each and generate 150,000 GV a month (max 50% from any one recruitment leg)
- Ambassador – maintain 80 PV or 240 RPV a month, refer and maintain eight retail customers who order at least 40 RPV a month each and generate 300,000 GV a month (max 40% from any one recruitment leg)
- Crown Ambassador – maintain 80 PV or 240 RPV a month, refer and maintain eight retail customers who order at least 40 RPV a month each and generate 500,000 GV a month (max 40% from any one recruitment leg)
- Royal Crown Ambassador – maintain 80 PV or 240 RPV a month, refer and maintain eight retail customers who order at least 40 RPV a month each and generate 1,000,000 GV a month (max 40% from any one recruitment leg)
- Triple Crown Ambassador – maintain 80 PV or 240 RPV a month, refer and maintain eight retail customers who order at least 40 RPV a month each and generate 2,000,000 GV a month (max 40% from any one recruitment leg)
PV stands for “Personal Volume” and is sales volume generated by an Elepreneurs affiliate’s own purchases.
RPV stands for “Retail Personal Volume” and is sales volume generated by personally referred retail customers.
GV stands for “Group Volume” and is RPV generated by an affiliate and their downline.
Elepreneurs compensation plan states that PV is excluded from rank calculation volume, with the exception of Happier and Happiest Packs.
The volume from personal orders (PV) does not count towards Rank Qualifications (with the exception of Happier and Happiest Packs in the first month).
Rank-based Commission Caps
Elepreneurs caps monthly commissions earned by affiliates based on rank:
- Elepreneurs can earn up to $750 a month
- Stars can earn up to $1250 a month
- Bronzes can earn up to $2500 a month
- Silvers can earn up to $5000 a month
- Golds can earn up to $7500 a month
- Platinums can earn up to $12,500 a month
- Diamonds can earn up to $20,000 a month
- Black Diamonds can earn up to $32,500 a month
- Royal Black Diamonds can earn up to $50,000 a month
- Ambassadors can earn up to $70,000 a month
- Crown Ambassadors and higher have no income cap
Although not explicitly stated, I believe the caps apply to all earnable commissions and bonuses.
Elepreneurs pays retail commissions on retail customer purchases.
Retail commissions are 10% to 20%, calculated based on the difference between the wholesale and retail price of products ordered.
Note that retail autoship orders only pay out 10%. Trial packs pay out $10.
Customer Acquisition Bonus
The Customer Acquisition Bonus rewards Elepreneurs affiliates for referring retail customers.
The Customer Acquisition Bonus is a three-tier bonus, calculated monthly as follows:
- refer three or four new retail customers in a month and receive a $25 CAB
- refer five or six new retail customers in a month and receive a $50 CAB
- refer seven or more new retail customers in a month and receive a $100 CAB
Note that in order to count towards CAB qualification, new retail customers must place an 80 PV or higher order.
Elepreneurs pays commissions on the recruitment of new affiliates who sign up with optional packs.
Recruitment commissions are coded and based on how much a newly recruited affiliate spends when they sign up.
- recruit a Happier Pack affiliate and receive $75
- recruit a Happiest Pack affiliate and receive $150
A coded bonus is paid based on tiers, which are in turn tied to Elepreneurs affiliate ranks:
- Elepreneur to Silver are tier 1
- Gold and Platinum are tier 2
- Diamond to Royal Black Diamond are tier 3
- Ambassador and higher are tier 4
Coded bonuses paid out on the Happier and Happiest Packs are as follows:
- Happier Pack tiers 2 to 4 – $12.50 on each tier
- Happiest Pack tiers 2 to 4 – $25 on each tier
The coded nature of the tier commissions sees higher ranks able to collect the difference in commissions paid to lower ranked affiliates in their downline.
If we use the Happiest Pack as an example, $75 ($25 divided by 3) is paid as a coded bonus on each Happiest Pack affiliate recruited.
If a tier 2 ranked affiliate recruits a Happiest Pack affiliate, they receive the $150 base commission plus a $25 coded bonus.
This leaves $50 to be paid out ($75 minus $25).
The system searches upline for either a tier 3 or tier 4 affiliate to pay the remaining coded bonus out to.
If a tier 3 affiliate is found first, they receive their $25 share and system searches further upline for a tier 4 affiliate to pay the remaining $25 out to.
If a tier 4 affiliate is found first, they receive the remaining $50 coded bonus.
Note that anytime a tier 4 affiliate recruits a Happier or Happiest Pack affiliate, they receive the full coded bonus with nothing passed upline ($37.50 and $75 respectively).
Elepreneurs pays residual commissions 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.
Elepreneurs caps payable unilevel team levels at ten.
Residual commissions are paid as a percentage of funds generated across these ten levels as follows:
- Elepreneurs earn 7% on level 1 (personally recruited affiliates) and 6% on level 2
- Stars earn 7% on level 1, 6% on level 2 and 5% on level 3
- Bronzes earn 7% on level 1, 6% on level 2, 5% on level 3 and 4% on level 4
- Silvers earn 7% on level 1, 6% on level 2, 5% on level 3, 4% on level 4 and 3% on level 5
- Golds earn 7% on level 1, 6% on level 2, 5% on level 3, 4% on level 4, 3% on level 5 and 2% on level 6
- Platinums earn 7% on level 1, 6% on level 2, 5% on level 3, 4% on level 4, 3% on level 5 and 2% on levels 6 and 7
- Diamonds earn 7% on level 1, 6% on level 2, 5% on level 3, 4% on levels 5 and 6 and 3% on levels 6 and 7
- Black Diamonds earn 7% on level 1, 6% on level 2, 5% on levels 3 and 4 and 4% on levels 5 to 7
- Royal Black Diamonds earn 7% on level 1, 6% on level 2 and 5% on levels 3 to 7
- Ambassadors earn 5% on levels 1 to 5, 6% on levels 6 and 7 and 1% on level 8
- Crown Ambassadors earn 4% on levels 1 and 2, 5% on levels 3 to 5, 6% on levels 6 and 7, 2% on level 8 and 1% on level 9
- Royal Crown Ambassadors earn 3% on levels 1 and 2, 4% on levels 3 and 4, 5% on level 5, 6% on level 6, 7% on level 7, 3% on level 8, 2% on level 9 and 1% on level 10
- Triple Crown Ambassadors earn 2% on levels 1 and 2, 3% on level 3, 4% on level 4, 5% on level 5, 6% on level 6, 7% on level 7, 4% on level 8, 3% on level 9 and 2% on level 10
Elepreneurs rewards Platinum and higher ranked affiliates with a monthly Leadership Bonus:
- Platinums receive $400
- Diamonds receive $600
- Black Diamonds receive $800
- Royal Black Diamonds receive $1000
Elepreneurs takes 0.5% of monthly company-wide sales volume and places it into the Diamond Pool.
Diamond and higher ranked affiliates qualify for a share in the pool, which is paid monthly.
Shares in the Diamond Pool are calculated pro-rata on GV generated by each affiliate (i.e. their GV contribution as a percentage of the total GV of every qualifying affiliate).
Elepreneurs takes 1.5% of monthly company-wide sales volume and places it into the Diamond Pool.
Ambassador and higher ranked affiliates qualify for a share in two pools, which are paid monthly.
The first is a 0.5% pool, in which an equal share is distributed monthly to all qualifying Ambassador and higher ranked affiliates.
The second is a 1% pool, in which shares are calculated pro-rata on GV generated by each affiliate (i.e. their GV contribution as a percentage of the total GV of every qualifying affiliate).
Basic Elepreneurs affiliate membership is $49.
Optional pack memberships are also available:
- Happier Pack – $299
- Happiest Pack – $549
The difference between the packs and regular Elepreneurs affiliate membership is bundled products.
The reader who first contacted me about updating BehindMLM’s Elepreneurs review opened with Elevacity.
This prompted me to go check Elevacity’s website for an updated compensation plan, wherein I couldn’t find one – much the less any mention of an MLM opportunity.
After reporting back my finding the reader pointed me to Elepreneurs, at which point I remember this was that company.
There’s really no need for two separate websites. Elevacity started off a Travopoly travel niche opportunity, however that doesn’t exist anymore.
By all means keep the Elevacity product branding, but I think it’s time to ditch the separate and confusing company websites.
I noted this in our 2018 review, opening that review conclusion with “I’m not really sure why Elepreneurs exists.”
I don’t see why Elevacity couldn’t have just rebooted itself with a new compensation plan.
Two and a half years later the issue hasn’t been addressed.
Moving onto Elepreneurs’ products, not much has changed since our 2018 review.
One thing I’m not a fan of is the D.O.S.E marketing.
Whilst obviously a play on words, it nonetheless in a *winkwink* way implies medicinal benefits.
None of Elepreneurs’ products are approved for treatment or management of any medical condition.
I feel trying to be smart with acronyms, to imply Elepreneurs’ products are more than they are, is unnecessary and tacky.
The products themselves lean heavily into “happiness” marketing, which I’m not a fan of. I got the impression Elepreneurs see their product range as an alternative to people who aren’t feeling happy (read: depressed).
That again is wading into dangerous regulatory non-compliance territory.
I might be reading too much into the branding, but I don’t believe in coincidences when it comes to marketing and branding.
On the plus side Elepreneurs’ provided figures suggests the product range is a hit with retail customers.
Elepreneurs claims it has
a ratio of nearly 10 CUSTOMERS FOR EVERY 1 DISTRIBUTOR! (409,739 Customers to 42,689 Distributors as of October 31, 2019)
Not clarified is whether those 409,739 customers were active, i.e. had they placed a recent order or is that an accumulated total customer number.
I was initially skeptical whether “customers” included affiliates who’ve since gone inactive, but that doesn’t seem to be the case.
Customer: An individual that buys goods from an Elepreneur either in person or through a personal replicated website without establishing themselves as an Elepreneur.
Elepreneurs’ compensation plan counts retail customers towards rank qualification only if they’re purchasing 40 PV a month.
To be accurate, I think any customer calculations Elepreneurs does should adopt the same PV requirement.
And if they’ve done that, then that’s fantastic!
Something else I was initially flagged as a problem was Elepreneurs allowing 80 PV to qualify, versus 240 RPV.
That is you can either buy 80 PV worth of product, or have to generate three times as much in retail volume if you want to get paid each month.
What I realized as I went through the compensation plan is eventually all affiliates, at least those who progress in rank, are required to refer and maintain retail customers.
This maxes out at eight, which when multiplied by the 40 RPV minimum amount comes to 240 RPV.
I still think the 300% increase in required retail volume could be reduced at the lower ranks, but given the retail customer requirements this isn’t necessarily critical.
I’m definitely not keen on capping earnings based on rank, as someone could be punching above their weight volume wise and having commissions withheld. When you factor in the retail customer requirements however, you could look at it as incentive to personally build your retail customer-base if you want to earn more on your downline.
I’m still in two minds about it as you don’t typically see unilevel-based compensation plans capping commissions based on rank.
One other thing that stood out was the reduced unilevel team percentages.
I know the idea is that deeper levels receive corresponding percentage increases but still, at those depths your relying on people multiple levels down from you to build.
Your own efforts are diminished by reduced percentages, which I imagine can be disheartening.
I saw no mention of the dodgy SHRV Stock Rewards scheme I flagged in our 2018 review, so if that’s gone than that’s a plus.
Speaking of stock, I noted Sharing Services’ sustained losses of $6.9 million dollars in 2018.
As per Sharing Services’ latest annual report, filed on July 8th, 2020,
For the fiscal year ended April 30, 2020, our consolidated net sales increased by $45.5 million, to $131.4 million, compared to $85.9 million for the fiscal year ended April 30, 2019.
Net earnings for 2019-2020 were $2.7 million. Note however that’s down from $21.4 million the previous year.
A few other interesting figures include Elepreneurs citing 24,000 affiliates, down from 42,689 in 2018.
As well as this statement regarding their sales spread;
During the fiscal year ended April 30, 2020, approximately 47% of our consolidated net sales were to recurring customers (which we refer to as “SmartShip” sales), approximately 26% were to new customers and approximately 27% were to our independent distributors.
Not sure if they’re counting affiliates on autoship as “customers” there. The previously cited customer definition is in Elepreneurs compensation plan, not their filed annual report.
One final thing I’ll touch on is how Elepreneurs’ markets its “happy” packs.
I’m not questioning whether “most of” Elepreneurs’ top earners signed up with the most expensive option, but I am questioning why.
The only difference between the Happiest Pack and the other options is bundled product.
There’s no financial benefit, so why would you imply a greater chance of becoming a top earner by spending more when you sign up?
It comes off as slimy and something the FTC might flag as a potential marketing issue from a regulatory perspective.
All in all although I’ve raised numerous critical points, Elepreneurs is a pretty well-balanced MLM opportunity.
You have a solid product line that has demonstrated demand through sales, and a compensation plan that makes a genuine effort to focus on driving retail sales.
Said retail sales are not only encouraged, they’re required and that’s great to see.
There’s always room for improvement; namely consolidation of Elevacity and Elepreneurs, as well as some minor marketing revisions.
Oh and before you gung-ho with the happiness marketing, please try the products first and evaluate whether they actually have any effect on your happiness.
Not sure how you’d quantify that on an individual level, much the less from a marketing angle – but that’s the branding Elepreneurs have opted to go with.
Update 24th February 2021 – Likely seeking to distance itself from founder Rob Oblon, who has gone on to do his own things, Elevacity has rebranded itself as The Happy Company.
Review updated to acknowledge Elepreneurs’ name-change to… The Happy Company. (barf)