FM World Review: Buy and get paid to recruit affiliates who buy
FM World provide no information on their website about who owns or runs the business.
According to the company’s Polish Wikipedia page, FM World is a Polish company that began as “FM Group”.
FM Group was founded in 2004 by Artura Trawińskiego (Artur Trawinski).
Trawinski (right) is the listed owner of the FM World website domain (“fmworld.com”), first registered in December, 2002.
Why this information is not provided on the FM World website is unclear.
Possibly due to language-barriers (most of the literature available on Trawinskiego is in Polish), I was unable to ascertain Trawinskiego’s MLM history prior to founding FM Group.
Read on for a full review of the FM World MLM opportunity.
FM World Products
FM World market a range of perfumes, body care, makeup, household, coffee & tea and food supplement products.
Other than brief descriptions of each product category, specifics (including retail pricing) are not provided on the FM World website.
The FM World Compensation Plan
FM World affiliates are required to purchase products each month to qualify for commissions. Commissions are paid when they recruit others who do the same.
Retail Commissions
FM World affiliates are paid when products are sold to retail customers.
Retail commissions paid out are the difference between the wholesale and retail cost of products ordered.
Effectiveness Level Commissions
FM World affiliates acquire points when they and their affiliate downline purchase FM World products.
You receive Points for buying selected FM GROUP Products.
When your Sales Group buys the Products, then both you and they receive Points.
Points accumulated each month are used to determine an “effectiveness level” for each unilevel leg:
- 300 to 1199.9 points = Magnolia title and 3% effectiveness level
- 1200 to 3599.99 points = Magnolia title and 6% effectiveness level
- 3600 to 7199.99 points = Magnolia title and 9% effectiveness level
- 7200 to 11,999.99 points = Silver Magnolia title and 12% effectiveness level
- 12,000 to 20,399.99 points = Silver Magnolia title and 15% effectiveness level
- 20,400 to 29,999.99 points = Silver Magnolia title and 18% effectiveness level
- 30,000 or more points = Golden Magnolia title and 21% effectiveness level
The effectiveness level percentage is used to pay a commission on purchases made by personally recruited affiliates.
The effectiveness level commission paid out monthly is a percentage of an FM World affiliate and their personally recruited affiliate’s accumulated points.
Upon reaching a 9% and 15% effectiveness level, an FM World affiliate is given a new position within their unilevel team.
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.
Additional positions within the unilevel team effectively allows an FM World affiliate to increase coverage of points generated by their downline that they can earn on.
Note that to qualify for effectiveness level commissions, an FM World affiliate must maintain 50 points a month per position they have.
Orchid Pool
The Orchid Pools are made up of 8.5% of FM World’s company-wide generated points.
Affiliates qualify for a share in up to four Orchid Pools as follows:
- Pearl Orchid Pool (4%) – have at least one 21% effectiveness level unilevel leg, with the remaining legs together generating at least 20,000 points each month
- Amaranth Orchid Pool (1.5%) – have at least three 21% effectiveness level unilevel legs
- Golden Orchid Pool (1.5%) – personally recruit and maintain at least three Orchid Pool qualified affiliates (any pool)
- Diamond Orchid Pool (1.5%) – personally recruit and maintain at least five Orchid Pool qualified affiliates (any pool)
How much of a share in each pool an Orchid qualified affiliate receives is determined by the following criteria:
- Pearl Orchid – 30,000 points per unilevel leg with a Pearl Orchid ranked affiliate, an affiliates own purchase points and that of their personally recruited affiliates with a less than 21% effectiveness level plus points generated by personally recruited affiliates at ranks lower than Golden Magnolia
- Amaranth Orchid – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with a Amaranth Orchid ranked affiliate, 60,000 points for each group of five unilevel legs with a 21% effectiveness level or 90,000 points for each group of seven, the total number of points generated by personally recruited Pearl Orchid affiliates plus points generated by personally recruited affiliates who qualify at the Golden Magnolia rank
- Gold Orchid – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with an Amaranth Orchid ranked affiliate, 120,000 points per unilevel leg with a Golden Orchid or higher ranked affiliate, 60,000 points for each group of five unilevel legs with a 21% effectiveness level or 120,000 points for each group of seven, the total number of points generated by personally recruited Pearl and Amaranth Orchid affiliates plus points generated by personally recruited affiliates at the Golden Magnolia rank
- Diamond Orchid – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with an Amaranth Orchid ranked affiliate, 120,000 points per unilevel leg with a Golden Orchid ranked affiliate, 150,000 points per unilevel leg with a Diamond Orchid ranked affiliate, 60,000 points for each group of five unilevel legs with a 21% effectiveness level or 120,000 points for each group of seven, the total number of points generated by personally recruited Pearl, Amaranth or Golden Orchid affiliates plus points generated by personally recruited affiliates at the Golden Magnolia rank
Shares in each Orchid Pool are paid pro-rata based on the above point calculations at each applicable rank.
Note that qualifying for the Pearl and Amaranth Orchid pools also grants an affiliate a new unilevel position.
Qualifying for the Golden Orchid Pool grants two positions and qualifying for the Diamond Orchid Pool three positions.
Star Pools
The Star Pools are made up of 3.5% of FM World’s company-wide generated points.
Affiliates can qualify for a share in up to five Star Pools as follows:
- Jasper Star Pool (1%) – personally recruit and maintain at least three Amaranth Orchid and four Pearl Orchid ranked affiliates, as well as have at least seven 21% effectiveness level unilevel legs
- Amethyst Star Pool (1%) – personally recruit and maintain at least two Golden Orchid, five Amaranth Orchid and two Pearl Orchid ranked affiliates, as well as at least nine additional Pearl Orchid ranked affiliates anywhere in your unilevel team
- Malachite Star Pool (0.5%) – personally recruit and maintain at least seven Golden Orchid, two Amaranth Orchid and two Pearl Orchid ranked affiliates, as well as at least eleven additional Amaranth Orchid ranked affiliates anywhere in your unilevel team
- Nephrite Star Pool (0.5%) – personally recruit and maintain at least two Diamond Orchid, five Golden Orchid, four Amaranth Orchid and two Pearl Orchid ranked affiliates, as well as at least thirteen additional Golden Orchid ranked affiliates anywhere in your unilevel team
- Onyx Star Pool (0.5%) – personally recruit and maintain at least three Diamond Orchid, five Golden Orchid and seven Amaranth Orchid ranked affiliates, as well as at least fifteen additional Diamond Orchid ranked affiliates anywhere in your unilevel team
As with the Orchid Pools, shares in the Star Pools are calculated pro-rata as follows:
- Jasper Star – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with an Amaranth Orchid ranked affiliate, 120,000 points per unilevel leg with a Golden Orchid ranked affiliate, 150,000 points per unilevel leg with a Diamond Orchid ranked affiliate, 60,000 points for each group of nine unilevel legs with a 21% effectiveness level, 90,000 points for each group of eleven, 120,000 points for each group of thirteen, or 150,000 points for each group of fifteen, the total number of points generated by personally recruited Pearl, Amaranth, Golden and Diamond Orchid affiliates, an affiliates own purchase points and that of their personally recruited affiliates with a less than 21% effectiveness level plus points generated by personally recruited affiliates at the Golden Magnolia rank
- Amethyst Star – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with an Amaranth Orchid ranked affiliate, 120,000 points per unilevel leg with a Golden Orchid ranked affiliate, 150,000 points per unilevel leg with a Diamond Orchid ranked affiliate, 60,000 points for each group of nine unilevel legs with a 21% effectiveness level, 90,000 points for each group of eleven, 120,000 points for each group of thirteen, or 150,000 points for each group of fifteen, the total number of points generated by personally recruited Pearl, Amaranth, Golden and Diamond Orchid and Jasper Star affiliates, an affiliates own purchase points and that of their personally recruited affiliates with a less than 21% effectiveness level plus points generated by personally recruited affiliates at the Golden Magnolia rank
- Malachite Star – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with an Amaranth Orchid ranked affiliate, 120,000 points per unilevel leg with a Golden Orchid ranked affiliate, 150,000 points per unilevel leg with a Diamond Orchid ranked affiliate, 60,000 points for each group of nine unilevel legs with a 21% effectiveness level, 90,000 points for each each group of eleven, 120,000 points for each group of thirteen, or 150,000 points for each group of fifteen, the total number of points generated by personally recruited Pearl, Amaranth, Golden and Diamond Orchid and Jasper and Amethyst Star affiliates, an affiliates own purchase points and that of their personally recruited affiliates with a less than 21% effectiveness level plus points generated by personally recruited affiliates at the Golden Magnolia rank
- Nephrite Star – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with an Amaranth Orchid ranked affiliate, 120,000 points per unilevel leg with a Golden Orchid ranked affiliate, 150,000 points per unilevel leg with a Diamond Orchid ranked affiliate, 60,000 points for each group of nine unilevel legs with a 21% effectiveness level, 90,000 points for each each group of eleven, 120,000 points for each group of thirteen, or 150,000 points for each group of fifteen, the total number of points generated by personally recruited Pearl, Amaranth, Golden and Diamond Orchid and Jasper, Amethyst and Malachite Star affiliates, an affiliates own purchase points and that of their personally recruited affiliates with a less than 21% effectiveness level plus points generated by personally recruited affiliates at the Golden Magnolia rank
- Oynx Star – 60,000 points per unilevel leg with a Pearl Orchid ranked affiliate, 90,000 points per unilevel leg with an Amaranth Orchid ranked affiliate, 120,000 points per unilevel leg with a Golden Orchid ranked affiliate, 150,000 points per unilevel leg with a Diamond Orchid ranked affiliate, 60,000 points for each group of nine unilevel legs with a 21% effectiveness level, 90,000 points for each each group of eleven, 120,000 points for each group of thirteen, or 150,000 points for each group of fifteen, the total number of points generated by personally recruited Pearl, Amaranth, Golden and Diamond Orchid and Jasper, Amethyst, Malachite and Nephrite Star affiliates, an affiliates own purchase points and that of their personally recruited affiliates with a less than 21% effectiveness level plus points generated by personally recruited affiliates at the Golden Magnolia rank
Joining FM World
Joining FM World requires the purchase of a Starter Pack:
- Mini Starter Pack – £11.50 GBP
- Starter Pack – £48.50 GBP
- Complete Starter Pack – £59.99 GBP
A £6 GBP shipping fee also applies.
Note that in order to qualify for commissions, each FM World affiliate must purchase at least 50 points of product each month.
FM World fail to provide any indication as to what the cost equivalent of 50 points each month is.
Conclusion
Right from the start, it’s clear that retail sales is not a focus of FM World.
The company website only provides vague overviews, with no specific information as to what the company markets and how much its products cost.
As a non-affiliate, I’m probably going to spend about a minute browsing the site before I realize it has no information of use to me.
The core of the FM World compensation plan is the generation of points, which occurs only when affiliates purchase products from the company.
(Points are) assigned to a Business Partner for purchasing the Products. The number of Points is reset each Month and collected again.
Affiliates can resell purchased products but the points commissions are calculated on are derived solely from affiliate purchases.
This is the classic set up of a product-based pyramid scheme.
To ensure points are generated, FM World requires each affiliate to purchase at least 50 points worth of product each month.
Bear in mind 50 points is the minimum, with the company openly encouraging affiliates to buy more to set an example;
If you say that you buy only three bottles of perfume a month, do not expect the people in your (downline) Structure to place huge orders every month…
With “huge orders” generating points used to calculate commissions with, the FM World business opportunity is clearly relying on “pay to play”.
The flip side to this is claims that affiliates will purchase only for self-consumption and resale. Unfortunately with no genuine retail sales taking place however, this is impossible to validate.
This becomes even more of an important point when you consider every product-based pyramid scheme falls back on this rhetoric.
The FM World compensation plan itself is otherwise pretty interesting, with affiliates only able to earn on multiple levels of their unilevel team via additional earned positions. Residuals are paid out via the pools, with both components unfortunately tied to point generation (affiliate purchases).
In the US the FTC has filed legal action against two MLM companies rooted in affiliate purchase of products over retail sales. Both Herbalife and Vemma initially argued affiliates were buying for resale but wound up dropping the defense and settling.
FM World has a very similar business model.
Through accumulated points via affiliate purchases, FM World affiliates with the biggest downlines who purchase the most product make the most money.
When affiliates are the primary purchasers of product in an MLM company, revenue is defacto tied to affiliate recruitment.
Thus it becomes the business opportunity being marketed rather than the company’s products and/or services.
Once affiliate recruitment dies down, typically the opportunity collapses and the majority of affiliates lose money.
Your conclusion “Right from the start, it’s clear that retail sales is not a focus of FM World.” is not accurate.
I have researched FM and have interviewed distributors. They market mostly face to face, home parties, warm market, etc and the products sell great.
The heart of their business is retail. The products are priced to sell and carry a brand name presence in the United Kingdom (not so much here in the USA).
Your anecdotal evidence doesn’t change the fact that FM World’s business model is geared around points, earned only on affiliate purchases.
And the company readily encourages this, suggesting affiliates ensure their recruited downlines put in “huge orders” every month.
You didn’t ask for receipts to check retail volume over the past few months, did you?
All MLMs gear their business model around creating volume. FM does not push “huge orders” – where do you get that from?
I didn’t check receipts I just know about FM – it carries name brand recognition in the UK and the training heavily emphasizes product knowledge and sales.
They build using mainly the party plan – distributors lead with the product and it sells well at retail.
Not all volume is equal. An MLM company with primarily affiliate purchase volume is a pyramid scheme.
From FM World’s own marketing material, as quoted in the review.
Well then your anecdotal stories are meaningless.
I haven’t any FM marketing materials that push huge orders…
That’s nice. Doesn’t change the fact that they exist and were cited by me in my research for this review.
Nothing changes the fact that FM has an outstanding product line and that much of their 100 million dollar annual revenue is retail sales.
They are not a classic pyramid scheme but rather a well established, highly regarding direct distribution company that uses a fine, classic breakaway comp plan that is fair to all producers.
well, except the lack of actual proof.
As Whip stated, you’re going to provide evidence to back up this claim.
I’ve provided facts based on FM World’s marketing and compensation plan. You’ve countered with anecdotal stories and what appears to be figures pulled out of your ass.
Well Martin, I live in the UK and I’ve never heard of FM World.
Also the two biggest forum websites in the UK, Mumsnet and Money Saving Expert, barely mention FM World which suggests to me that you are indulging in hyperbole to big up a little-known company that you have a financial interest in.
Thirdly I have read a number of allegations online that FM World sell fake knock-off copies of (well known) brand name perfumes.
I know someone who is high up in FM World, continually looking for new people but doesn’t actually sell many products.
Also, claims to be earning five figures a month, but still lives in social housing, shops in primark and drives an 02 plate Nissan Micra!
Then there’s one of her cronies who actually put a video on Facebook of her ringing up the tax credit offices to “cancel her claim” because she now makes too much money.
Makes me sick
FM World UK did turn over 10million last year but only made £800000 profit of which the two directors syphoned off
*UPDATE* now she’s been given her *free* dream car, a white 4 year old Mercedes lol, obviously the credit record wasn’t brilliant only had it 2 months and it’s in for a service!! Lol..
Singapore *free* trip in a few weeks saying she’s flying out early to make the most of it….but staying in the airport….whoops lol
Reported her and all her signed up immediate family to hmrc, as apparently they are all making thousands but have jobs haha
I’ll look forward to the updates.
3 compensation plans
DIAMOND ORCHID main account
PEARL ORCHID x 3 accounts
AMARANTH very close on another account
One of the best parts of our compensation plan you can build your own leader legs to max out your £££££
Imagine if you have 12 accounts all at Diamond on average over £20k per month that’s insane !!
Imagine £200k a month that’s even insaner
FROM A FREE OPPORTUNITY
No brainer
Want to start your journey ? I’ll be online tonight setting up accounts and helping you get started.
THIS…..is what we are dealing with!!!!!! £200k a month profit Aaahahaha! Still in your council house…prat!
If you can have twelve accounts in an MLM company it’s quite obviously a scam. In this case a pyramid scheme.
Best of luck with the recruiting. I hope you don’t lose too much when it inevitably dies off (and we never see you again).
Oh and there’s nothing free about an autoship mandatory monthly purchases pyramid scheme. The bullshit income you quoted comes from those you recruit, not thin air.
Thought it was free, you pleb! Told everyone 2 messages ago that all the idiots on the “free” trip had to stay in the airport with no room booked for 3 days
I know, bullshit level 100.
I know the person you are speaking about, a horrible, horrible woman. Now claiming her best earning month is £80000. Husband built her “new garden furniture”, out of old pallets. I mean, come on!
False lips, tits, teeth. Check. Loads in debt. Check. Still claiming benefits. Check. Council house.Check.
Absolutely disgusting company. I left and was hounded and bullied by my up line. I complained to Head Office, they were not interested in the slightest.
Good news is the up line has had her house repossessed by the landlord for not paying the rent. She was telling eveyone she was mortgage free. Technically true I suppose.
She had 90000 in her down line apparently! Lies, Lies and more Lies.
Well, one of the highest reps (Malachite Star Diamond Pearl Orchid Dandelion) or whatever they are called. Who apparently has saved over half a million pounds, is still in her council house and now begging people for orders. Lol.
Someone who is the same level as her now has her accounts published by Hmrc (as she started a limited company to offset any personal liability for any debts). Turned over less than 10k.
Wow what an opportunity!
I joined FM to try and make a few extra pounds. I decided it wasn’t for me, as although I initially sold a few bits to friends and family, I didn’t want to go beyond that, trying to recruit etc.
When I told my upline I was leaving, she got extremely nasty. Calling me names on messenger and leaving vile voice messages. It reported her to FM head office, but they was not interested.
Nicola Martin from Dundee was her name, horrible person.