1Fashion Global Review: Get paid to dress well?
There is no information on the Fashion Global website indicating who owns or runs the business.
At the time of publication, the Fashion Global website is little more than a placeholder for an affiliate registration form.
The Fashion Global website domain (“1fashionglobal.net”) was registered on the 20th of November, 2015. “Diamond MLM LTD” is listed as the domain owner with an address in the London, UK also provided.
Despite the same address provided on the 1Fashion Global website, the address actually belongs to Virtual Office MadeSimple.
Virtual Office MadeSimple is one of the leading virtual office providers in the UK.
We’ve been providing mail forwarding, telephone answering and fax forwarding services for over 10 years.
The use of a virtual mailing address suggests 1Fashion Global exist in the UK in name only.
Further research reveals 1Fashion Global affiliates naming three co-founders of the company; Esther Padilla, Juan Andres Campos and Francisco Gomez Leon.
Esther Padilla (right) is the CEO of the company appears to be running the show. Her Facebook and LinkedIn profiles list her location as Barcelona, Spain, which is presumably where 1Fashion Global is actually being run out of.
As far back as 2014, Padilla was involved locally in Spain as a lead affiliate in American Commodities Traders.
Alexa ranking for the American Commodities Traders website suggests the scheme has collapsed, but from what I’ve been able to suss out it was some sort of binary options scheme.
Not sure what this is, but here’s what Padilla was up to in mid 2013:
Have you ever seen that with a single investment of € 150 (guaranteed, never lost) can win € 3500 over and over again.
Well, yes, it’s real and it’s happening. I can show you my accounts without problems. (it’s not MLM, we speak of investment).
If you would like information send to your email.
I’m sure it was a legitimate opportunity whatever it was…
For the rest of 2013, Padilla was promoting Global Mobile Network, a recruitment-based MLM opportunity. Before that she was an affiliate with Talk Fusion, marketing video communication packages for thousands of dollars.
1Fashion Gobal appears to be Padilla’s first MLM venture as a company owner.
Read on for a full review of the 1Fashion Global MLM business opportunity.
The 1Fashion Global Product Line
1Fashion Global marketing presentations represent 1Fashion Global’s product line as two clothing fashion ranges; 1Fashion Global and 1Fashion Global VIP.
1Fashion Global is represented as an in-house fashion brand. 1Fashion Global VIP is described as a “high-end fashion at a greatly discounted price” brand.
For the first time in the history in (sic) network marketing, big brands at the best prices accessible through 1Fashion Global.
Big names such as Versace, Dolce & Gabbana, Armani, Valentino, Hugo Boss, Guy Laroche, Fendi, Gianfranco Ferre, Liu Jo, Guess, Gas, Tommy Hilfiger, Calvin Klein, Miss Sixty, Pepe Jeans, Roberto Cavalli and more …
Luxury brands at affordable price!
At the time of publication, no specifics on 1Fashion Global products were available.
The 1Fashion Global Compensation Plan
The 1Fashion Global compensation plan sees affiliates paid to sell 1Fashion Global products to retail customers.
Unfortunately the MLM side of the business however is only geared towards affiliate recruitment and autoship.
1Fashion Global Affiliate Ranks
There are five affiliate ranks within the 1Fashion Global compensation plan.
Along with their respective qualification criteria, they are as follows:
- Bronze – be commission qualified, recruit three affiliates and have a downline generating 1500 GV a month
- Silver – remain commission qualified, recruit six affiliates (2 must be Bronze) and have a downline generating at least 5000 GV a month
- Gold – remain commission qualified, recruit eight affiliates (2 must be Silver) and have a downline generating at least 15,000 GV a month
- Platinum – remain commission qualified, recruit ten affiliates (4 must be Gold) and have a downline generating at least 100,000 GV a month
- Diamond – remain commission qualified, recruit twelve affiliates (4 must be Platinum) and have a downline generating at least 250,000 GV a month
Alternatively, a 1Fashion Global affiliate can purchase the Bronze or Silver ranks as follows:
- Bronze – purchase 100 BV worth of product upon signing up
- Silver – purchase 150 BV worth of product upon signing up
GV stands for “Group Volume” and is sales volume generated by a downline (unilevel team).
To qualify or commissions, 1Fashion Global affiliates must purchase 50 PV worth of product each month.
1Fashion Global marketing material suggests 50 PV is equivalent to €65 to €70 EUR.
PV stands for “Personal Volume” and is sales volume attributed to every 1Fashion Global product.
1Fashion Global affiliates are paid a 10% commission on any clothing purchases made through their replicated online storefront.
An affiliate can increase this percentage to 20% by purchasing 100 BV or more worth of product when they sign up.
The Pool Bonus is a monthly bonus pool made up of 30% of company-wide retail customer order volume.
To qualify for a share in the Pool Bonus, a 1Fashion Global affiliate must be commission qualified and have three retail customer orders placed that month.
For every three retail customer orders placed an affiliate receives one share in the Pool Bonus.
1Fashion Global affiliates are paid to recruit new affiliates.
When a newly recruited signs up and purchases a “package”, the 1Fashion Global affiliate who recruited them is paid 10% of the BV value of the package.
At the time of publication no information about 1Fashion Global’s affiliate packages was available.
Residual commissions in 1Fashion Global 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 recruit new affiliates of their own, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 3 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Commissions appear to be paid out based on recruited affiliates in the unilevel team paying for their monthly commission qualification.
Quoted commissions on recruited affiliate spends each month, payable down ten levels of recruitment, are as follows:
- levels 1 to 5 – €3.50 EUR per recruited affiliate
- levels 6 to 10 – €1.50 EUR per recruited affiliate
The Infinite Bonus permits a 1Fashion Global affiliate to earn on all affiliates in their unilevel team (beyond the ten residual commissions are paid out on).
The bonus is paid out as a percentage of sales volume generated in the downline, with how much of a percentage paid out based on a 1Fashion Global affiliate’s rank:
- Bronze – 2%
- Silver – 4%
- Gold – 6%
- Platinum – 8%
- Diamond – 10%
Rank Achievement Bonus
When 1Fashion Global affiliates qualify at the Gold, Platinum or Diamond ranks, they receive the following Rank Achievement Bonuses:
- Gold – iPhone 6
- Platinum – “a Rolex watch for men or women”
- Diamond – one week expenses paid trip “to the best vacation spots in the world”
The Lifetime Bonus is a pool made up of 2% of 1Fashion Global’s company-wide sales volume.
1Fashion Global affiliates qualify for a monthly share in the pool by qualifying at the Diamond rank.
The Founder Bonus is a bonus pool, available to the first 1Fashion Global affiliates who purchase a “Founder Package” (€1000 EUR).
Once qualified to earn shares in the pool (by purchasing a Founder Package), a 1Fashion Global affiliate earns one share in 5% of 1Fashion Global’s company-wide sales volume each quarter.
Joining 1Fashion Global
Affiliate membership with 1Fashion Global is tied to the purchase of either a Starter Kit (€19.90 EUR) or Founder Package (€1000 EUR).
The primary difference between the two affiliate membership is increased income potential via the Founder Package.
The core problem with 1Fashion Global is the separation of retail volume from the MLM side of the business.
The retail (non-MLM) side of the business is perfectly legitimate. You sell 1Fashion Global products to retail customers and you get paid. There is a pay to play advantage offered but we’ll get into that later.
Unfortunately on the MLM side of things, all you’re left with is a chain-recruitment scheme.
1Fashion Global affiliates sign up and are required to pay €65 to €70 EUR (50 PV) a month to earn commissions.
Those commissions are paid out on other affiliates doing the same, dragging 1Fashion Global into pyramid scheme territory.
Which is a shame, because as evidenced by the Pool Bonus, some effort has gone into encouraging retail sales.
The pay to play I mentioned earlier is also concerning, with it evident in the retail commission variable, purchase of Bronze and Silver Ranks and Founder Kit.
All of the above reward an affiliate financially for spending more when they sign up. In MLM, an affiliate’s income potential should always be determined by their sales performance – not how much is spent when they sign up.
Put all of that together, and with 1Fashion Global you’ve basically got an autoship recruitment scheme.
The retail side of the business has no bearing on the MLM side, which basically survives for as long as new affiliates are getting recruited.
Once recruitment dies down, those at the bottom of the company-wide unilevel stop paying their monthly autoship (no point if they’re not earning anything).
This sees those above them stop earning, which means that eventually they too will stop paying autoship.
This slowly trickles up the entire company-wide unilevel team, with an irreversible collapse triggered once enough lower affiliates stop paying autoship.
That’s a failed business model waiting to happen no matter what you attach it to. Which I feel is reflective in how 1Fashion Global are going abut their prelaunch.
Yeah it’s about clothing and a bunch of designers are named in 1Fashion Global business presentations, but other than that it’s all about the money side of the business.
I have no idea how the clothing side of 1Fashion Global is going to work, and presumably neither do their affiliates.
All they know is purchase 50 BV a month and get paid to recruit others who do the same. How long do you think that’s going to last?