Genesis Pure Review: Concerns over revenue-sharing

Genesis Pure launched in late 2009 and is based out of the US state of Utah.

Heading up Genesis Pure is Chairman and CEO, Dr. Lindsay Duncan (below right), with the company crediting its existence to Duncan’s ‘many years of hard-won wisdom and expertise in the natural health field‘.

On the executive side of things, Genesis Pure appears to be Duncan’s first MLM venture, with his corporate bio focusing on a career as a “naturopathic doctor” and formulator of “nutritional formulations” for his company “4 Health Inc”.

More recently, Genesis Pure appears to have acquired the MLM company LifeMax, with a 7th of August announcement on Genesis Pure’s Facebook page stating

Our Chairman & CEO Dr. Lindsey Duncan ND, CN recently shared with us some amazing news! Genesis PURE has partnered with Lifemax, a respected network marketing company who is the creator of a top-notch Chia product, Mila.

The exact nature of the “partnership” has not been disclosed at the time of publication, however the LifeMax website is down (redirecting to a currently empty subdomain on the main Genesis Pure domain):

Read on for a full review of the Genesis Pure MLM business opportunity.

The Genesis Pure Product Line

Geneis Pure CEO and Chairman Lindsay Duncan is credited as the “head formulator” of Genesis Pure’s product line, with the company marketing a range of products in the health and nutrition niche.

• Core – capsule and liquid cleanse, detox, “antioxidant protection” and a daily vitamin
• Pure Cafe – an ‘elegant blend of green coffee bean extract and roasted coffee beans‘
• Energy – an energy drink
• GPS – ‘optimize lean muscle mass and quickly refuel and repair the body‘, blood circulation improvement, hydration restorer, e2 “booster” that ‘nourishes muscles and nerves and helps heighten physical performance‘ and a moomiyo (a “thick, sticky tar-like substance“) based “muscle-recovery” formula
• Superfruits – acai berry, noni, mangosteen, goji and multi-fruit based beverage range
• Supplements – organic sulfur, alkaline water concentrate, probiotic, green coffee bean based supplement, immune system enhancement, coral calcium based drink, a ‘liquid dietary cardiovascular support supplement‘, “cell water” and a silver based (40 mcgs per bottle) supplement
• Youth Renew – cream cleanser, toner, anti-aging serum and moisturizer
• Health Trim – appetite chews, a “metabolic boost”, “fasting solution, fruit and fiber mix, ionic blend beverage and protein and fibre shake mix

Note that Genesis Pure do not provide retail prices of their products to the general public on their website.

The Genesis Pure Compensation Plan

The Genesis Pure compensation plan offers affiliates retail commissions, residual commissions via a binary, matching residual commissions via a unilevel and several additional bonuses.

Retail Commissions

Genesis Pure offer retail commissions on all of their products when sold to retail customers (non-affiliate).

Genesis Pure define their retail commissions as the difference between the retail price paid and the company’s wholesale price.

Retail commissions are also paid out on the orders of preferred customers (retail customers who elect for a monthly autoship order in exchange for a discount), with the difference paid out between the wholesale cost of a product and the preferred customer discounted price.

Genesis Pure Affiliate Membership Ranks

There are twenty-three affiliate membership ranking within the Genesis Pure compensation plan and, along with their respective qualification criteria, they are as follows:

• Star – recruit at least two new Genesis Pure affiliates (one on either side of the binary)
• Star 300 – generate at least 300 volume in your weaker binary team
• Star 900 – generate at least 900 volume in your weaker binary team
• Silver Director – generate at least 1500 volume in your weaker binary team and have at least one unilevel leg with a Star 300 qualified affiliate in it
• Gold Director – generate at least 3000 volume in your weaker binary team and have at least two unilevel legs with a Star 300 qualified affiliate in it
• Platinum Director – generate at least 5000 volume in your weaker binary team and have at least three unilevel legs with a Star 300 qualified affiliate in it
• Sapphire Executive – generate at least 7500 volume in your weaker binary team and have at least four unilevel legs with a Star 300 qualified affiliate in it
• Ruby Executive – generate at least 10,000 volume in your weaker binary team and have at least five unilevel legs with a Star 300 qualified affiliate in it
• Pure Ruby – maintain Ruby Executive qualification for at least 2 out of 4 consecutive weeks
• Emerald Executive – generate at least 15,000 volume in your weaker binary team and have at least six unilevel legs with a Star 300 qualified affiliate in it
• Pure Emerald – maintain Emerald Executive qualification for at least 2 out of 3 consecutive weeks
• Diamond – generate at least 20,000 volume in your weaker binary team and have at least seven unilevel legs with a Star 300 qualified affiliate in it
• Pure Diamond – maintain Diamond qualification for at least 3 out of 6 consecutive weeks
• Blue Diamond – generate at least 30,000 volume in your weaker binary team and have at least eight unilevel legs with a Star 300 qualified affiliate in it
• Pure Blue Diamond – maintain Blue Diamond qualification for at least 3 out of 6 consecutive weeks
• Presidential – generate at least 75,000 unilevel team volume
• Pure Presidential – maintain Presidential qualification for at least 4 out of 10 consecutive weeks
• Chairman – generate at least 150,000 unilevel team volume
• Pure Chairman – maintain Chairman qualification for at least 4 out of 10 consecutive weeks
• Ambassador – generate at least 300,000 unilevel team volume
• Pure Ambassador – maintain Ambassador qualification for at least 4 out of 10 consecutive weeks
• Crown Diamond – generate at least 500,000 unilevel team volume, 100,000 volume in your weaker binary leg and have at least unilevel legs with a Blue Diamond in them
• Pure Crown Diamond – maintain Crown Diamond qualification for at least 5 out of 10 consecutive weeks

First Order Bonus

Genesis Pure pay out a First Order Bonus when a newly recruited affiliate places their first product order.

How much of a bonus is paid out (credited as sales volume), depends on an affiliate’s own generated Personal Volume (PV) for that week:

• less than but over 100 PV = 10% bonus
• over 200 PV = 20% bonus

Note that PV can be either an affiliate’s own product purchases or sales volume generated via retail sales.

Residual Binary Commissions

Weekly residual commissions in Genesis Pure are paid out using a binary compensation structure. A binary compensation structure places an affiliate at the top of the structure, with two positions directly under them.

These two positions form the start of two teams, and in turn extend out to another two positions each. This process is repeated down a theoretically infinite number of levels as each binary team grows.

Commissions are paid out via generated volume between the two binary teams, with an affiliate being paid up to 10% of the volume generated by both teams (5% from each team), capped at a maximum of $12,500 a week.

Unused volume on both sides is carried over and used towards calculating the next week’s commissions.

Generation Check Match

Genesis Pure offer a check match on the binary team earnings of all personally recruited affiliates and their downlines.

In order to pay out their Generation check match, Genesis Pure use a unilevel style compensation structure.

A unilevel compensation structure places an affiliate at the top of the structure, with every personally recruited affiliate placed directly under them (level 1).

If any of these personally recruited affiliates go on to recruit new affiliates of their own, they are placed on level 2 of the original affiliates unilevel team. If any level 2 affiliates recruit new affiliates they are placed on level 3 and so on and so forth down a theoretically infinite number of recruitment levels.

Within this unilevel structure, Genesis Pure define generations as being all the affiliates between Silver or higher ranked affiliates. Each unilevel leg is treated as a separate entity, with a generation running to the bottom of the leg if no Silver or higher ranked affiliate is found in that particular leg.

Generation Check Match commissions are paid out at as a floating percentage of an affiliate’s unilevel team, subject to Genesis Pure meeting it’s 55% of all commissionable volume being paid out to affiliates requirement.

Simply put, if more volume is paid out via other areas of the compensation plan, the Generational Check Match bonus percentage will be low. Conversely, if less volume is paid out elsewhere, the Match Bonus percentage will be higher.

How many generations an affiliate is paid out on is determined by their affiliate membership rank:

• Silver Director – 1 generation
• Gold Director – 2 generations
• Platinum Director – 3 generations
• Sapphire Executive – 4 generations
• Pure Ruby Executive – 5 generations
• Pure Emerald Executive – 6 generations
• Pure Diamond – 7 generations
• Pure Blue Diamond – 8 generations
• Pure Presidential or higher – no limit

Revenue-Sharing Pool

If a new affiliate joins Genesis Pure affiliate and makes a product purchase worth at least 300 PV, they qualify for shares in the company’s revenue-share pool.

• 1st category (300 – 899 PV) = 2 shares
• 2nd category (900-1499 PV) = 3 shares
• 3rd category (1500 or more PV) = 5 shares

The Genesis Pure revenue-share pool is made up of ‘2% of the company’s total company commissionable volume‘.

Shares can also be earnt when newly recruited Genesis Pure affiliate make first orders above 300 PV too. How many shares an affiliate earns depends on how much PV their own first order generated, and the PV generated by the recruited affiliate’s order:

• 1st category qualified affiliate – 4 shares for a newly recruited 1st category affiliate, 6 shares for a 2nd category qualified affiliate and 10 shares for a 3rd category qualified affiliate
• 2nd category qualified affiliate – 6 shares for a newly recruited 1st category affiliate, 9 shares for a 2nd category qualified affiliate and 15 shares for a 3rd category qualified affiliate
• 3rd category qualified affiliate – 10 shares for a newly recruited 1st category affiliate, 15 shares for a 2nd category qualified affiliate and 25 shares for a 3rd category qualified affiliate

Leadership Pool

Each week Genesis Pure take 3% of the company’s total commissionable volume and pay it out to their highest ranked affiliates.

Shares in the Leadership Pool are allocated as follows:

• Blue Diamond – 1 share
• Presidential – 2 shares
• Chairman – 4 shares
• Ambassador – 8 shares
• Crown Diamond – 12 shares

Luxury Car Bonus

When Genesis Pure affiliate reach the rank of Pure Presidential, the company pays out a Luxury Car Bonus of $750.

Pure Chairman or higher ranked affiliates receive a Luxury Car Bonus of $1500.

Joining Genesis Pure

Affiliate membership to Genesis Pure is either $37 if a monthly autoship order is created or $47 without.

An annual fee of $27 is payable by all affiliates after their first year of membership.

Conclusion

Genesis Pure has an extensive product range that is obviously retailable by its affiliates, however the overall lack of focus on retail within the company’s compensation is disappointing.

Aside from the act of offering commissions on retail sales, no other part of the Genesis Pure compensation plan is directly tied into retail sales volume.

Affiliates do need to generate a minimum 100 PV a month to qualify for commissions, however this can just be self-purchased products.

The lack of focus on retail within the Genesis Pure compensation plan becomes potentially problematic when one considers the company’s “revenue-sharing” scheme.

In a nutshell, affiliates earn a percentage of how many affiliates they recruit and convince to spend large amount of money on products. How much of a percentage they receive  (via shares) is directly tied into how much money they themselves spent when they first signed up.

Contained within the greater Genesis Pure compensation plan, the revenue-sharing component effectively functions as a mini pay to play scheme.

If it sets the benchmark for how affiliates are brought into the company, it will pretty much shift focus away from retail and dictate that affiliates concentrate on recruiting new affiliates and making big initial orders.

What happens after that doesn’t really matter, as enough affiliates on the 100 PV autoship will still pay out binary team commissions each week.

As you can see, this is all possible with affiliates completely ignoring the retail side of the business entirely. Even the smallest customer requirement built into the affiliate membership ranks or binary commission qualification would have alleviated this issue, however none exist.

As such I’d be extremely careful about joining Genesis Pure under an affiliate who has a large number of 100 PV a month recruited affiliates but little to no retail activity.

Regardless of whether the products are of value or not and there’s a market for them, if the company’s affiliates are focusing on bringing new affiliates into the company via the revenue-sharing commission, that’s something to be concerned about.

And if it’s a widespread problem within the company (ie. the focal point for the bulk of the company’s affiliates as a method to grow their business), then there’s even bigger problems within Genesis Pure than I first thought.

At the company level there’s simply no excuse for offering something like that in the compensation plan. Yes you’re paying out on product orders but the intent behind those orders is painfully obvious – to generate shares for the revenue-sharing pool.

Genesis Pure already has a more traditional bonus pool at the top end of the plan so I’m at a loss to explain why they don’t just abolish the questionable revenue-sharing pool and replace it with a bonus pool that covers the lower-end of the compensation plan.

It might not pay out as much as a “buy-in” revenue-share style bonus but it’d go a long way to removing a lot of existing and potential red flags within the Genesis Pure compensation plan.

 

Update 29th January 2015 – In addition to being sued by the Texas AG over misleading claims about Lindsey Duncan’s professional qualifications, both Duncan and Genesis Pure were fined $9 million dollars by the FTC on January 26th.

The FTC fine came about following an investigation into Duncan after he made false claims ‘that green coffee bean supplements cause significant and rapid weight loss‘.