Global Smart International Review: Global Smart Ads Ponzi launch
From what I can gather, Global Smart International initially launched on or around 2009.
The company initially marketed health and wellness products, with a reboot complete with new prelaunch phase announced recently.
Heading up Global Smart International is CEO and President, Ken Mackovic (below right).
According to Mackovic’s Global Smart International corporate bio;
Ken has more than 40 years worth of experience as an Owner or Master Distributor of several network marketing & direct sales companies, and has developed international sales and marketing teams of more than 250,000 independent distributors.
In the 1970’s, Ken became the youngest Diamond Direct distributor with ‘Amway’ (aka Quixstar International), and had more than 10,000 distributors in his downline.
In the 1980’s, Ken founded ‘Olde Worlde Products’, a small-scale Amway type MLM company. His company had 125,000 distributors who produced more than $100 million in sales, and operated in 5 countries over an 8 year period.
Olde Worlde Products is still active today under a different name with new owners, as a private label manufacturer (non MLM).
In the 1990’s, Ken helped re-launch ‘Pre-Paid Legal Services’ under the name of LegalShield and became an Executive Director before liquidating his assets. He organized and developed well over 24,000 associates in his downline.
In 2004, Ken co-founded ‘NexagenUSA’, an international MLM company with 80,000+ Distributors operating in 9 countries with over $80 million in sales. Ken resigned and sold his interest with NexagenUSA in 2005.
Ken has personally earned over $20 million in this industry. He has also mentored some of the top income earners of all time, such as: Dexter Yager (Amway), Dave Savula (LegalShield), and others that have gone on to make multiple millions of dollars!
In fact, he has directly helped nearly 50 people make a million dollars due to their direct association with him, and hundreds more make six-figure incomes.
Read on for a full review of the Global Smart International MLM opportunity.
The Global Smart International Product Line
Global Smart International initially marketed a range of natural health and wellness products:
- Om Lotion and Gel – “bio conductive energy products that are able to transmit the energy (sound wave) to the skin and body”
- Om Powder – “100% USP/FDA graded ingestible Kaolin Clay Powder, infused with Om technology”
- Om Colloidal Silver – “an all natural, broad spectrum germ fighter that is infused with Om technology”
- Relief Enhanced Energy Chips – “helps stop the pain of sore joints and muscles”
- Slym Enhanced Energy Chip – “helps you to lose weight naturally”
- Vitality Enhanced Energy Chip – “helps super charge your energy”
- Rest Enhanced Energy Chip – “helps you to always get a good night’s rest with total body relaxation”
- Love Enhanced Energy Chip – generate more love (and) trigger emotions”
- Power Enhanced Energy Chip – “helps conduct aweome [sic] male performance”
- Energize Enhanced Energy Chip – “resonates subtle energy (and) enhances performance”
- Slym Magic – “an organic, detoxifying tea that also supports weight loss”
- Slym Magic Clean Sweep Colon Cleanse – “keep your colon squeaky clean”
- Thermo Burn Plus – “a thermogenic, high potency, fat burning product”
- NuJoints – “nature’s most potent joint pain relief formula, containing cartilage structure and anti-inflammatory features”
- Natural V For Him – “an all natural herbal substitute for Viagra and other male performance products”
- Naturally 4 Her – “a highly effective female hormone stimulant”
- Life’s Defense – “helps prevent viral replication in the body and helps mitigate symptoms associated with active viral infections”
- Immuni-Plex Super Concentrate Formula – “created by the Amish (and) helps overcome heartburn, the flu, indigestion, allergies, migraines, harmful stomach bacteria, constipation, indigestion, fussy infants, and so much more”
- Super Vitaplex – “the most complete multi-vitamin & mineral product ever offered”
- Mighty OPC – contains Trans Resveratrol [helps fight aging] and Vitamin D3 [helps fight cancer]
- Zest 4 Life – “get all the energy you need without sugar and calories”
The Global Smart International compensation plan suggests that each product retails at $59.95.
Through the launch of Global Smart Ads, Global Smart International are also now selling online ad-packs.
Each Ad Pack includes 2,000 ad credits that can be allocated to display your 468×60 or 125×125 banner and/or text ads in the company rotator, and will circulate throughout the entire database of “ad viewers”.
“Ad-viewers” are believed to be Global Smart International affiliates.
For 20 ad credits, you can get ‘1’ real ‘human’ 20-second view to your website or webpage, via your banner or text ad, which means that each ad pack can deliver up to 100 real ‘human’ views that must verify each click with a CAPTCHA code.
For 5 ad credits, you can get ‘1’ impression of your banner or text ad throughout the entire GSA site, which means that each ad pack can deliver up to 400 impressions.
And there is no time frame to assign your ad credits as they never expire.
Global Smart Ad Packs also retail for $59.95 each.
The Global Smart International Compensation Plan
The Global Smart International compensation plan sees affiliates required to purchase products each month to earn commissions.
Commissions are paid out on retail sales, with residuals paid out via binary and unilevel compensation structures.
Additional performance-based bonuses are also available, including passive ROIs offered on Ad Pack investment.
Commission Qualification (Active Affiliate)
To qualify for commissions a Global Smart International affiliate must be “active”.
To be active and qualify for MLM commissions, a Global Smart International affiliate purchase at least 30 PV of product a month and recruit others who do the same.
Global Smart International Affiliate Ranks
There are twelve affiliate ranks within the Global Smart International compensation plan.
Along with their respective qualification criteria they are as follows:
- Affiliate – sign up as a Global Smart International affiliate and be commission qualified
- Supervisor – recruit and maintain at least four commission qualified affiliates
- Manager – recruit and maintain at least six commission qualified affiliates, order 60 PV of product a month and generate at least 2500 GV a month in your weaker binary team
- Manager II – maintain at least six commission qualified affiliates, order 60 PV of product a month and generate at least 5000 GV a month in your weaker binary team
- Director – recruit and maintain at least eight commission qualified affiliates, order 60 PV of product a month and generate at least 10,000 GV a month in your weaker binary team
- Director II – maintain at least eight commission qualified affiliates, order 90 PV of product a month and generate at least 25,000 GV a month in your weaker binary team
- Executive – recruit and maintain at least ten commission qualified affiliates, order 90 PV of product a month and generate at least 50,000 GV a month in your weaker binary team
- Executive II – maintain at least ten commission qualified affiliates, order 90 PV of product a month and generate at least 125,000 GV a month in your weaker binary team
- Executive III – maintain at least ten commission qualified affiliates, order 120 PV of product a month and generate at least 250,000 GV a month in your weaker binary team
- Presidential – recruit and maintain at least twelve commission qualified affiliates, order 120 PV of product a month and generate at least 500,000 GV a month in your weaker binary team
- Presidential II – maintain at least twelve commission qualified affiliates, order 120 PV of product a month and generate at least 1,000,000 GV a month in your weaker binary team
- Presidential III – maintain at least twelve commission qualified affiliates, order 120 PV of product a month and generate at least 2,000,000 GV a month in your weaker binary team
If a retail customer purchases Global Smart International products, an affiliate earns a retail commission equal to the difference between the wholesale and retail price.
For adpack purchases, this equates to a $19.95 commission ($59.95 retail minus $40 wholesale).
Preferred customers who wish to purchase Global Smart International products at a discount, must pay a $20 annual fee.
Preferred customer orders pay a $15 commission on physical products and $6 per adpack purchased.
First Order Bonus
The First Order Bonus is a cash bonus of $10 per physical product ordered starting from an affiliate’s third taken order (recruited affiliate or retail customer).
An affiliate’s first two sales are split with their upline (the affiliate who recruited them), paying only $7.50 per physical product ordered.
In turn, affiliates receive $7.50 when affiliates in their downline make First Order Bonus sales.
Adpacks pay out $5.60 from the third order and $4.20 on the first and second.
Note that these are first order bonuses and are only paid on a newly recruited or new retail customer’s first product order.
Residual Order Bonus
The Residual Order bonus is a commission paid out on recurring orders made after 7 days.
The first two recurring orders are paid at a rate of $1.35 per physical product ordered and then $1.80 from the third.
Ad Pack purchases pay $4.20 per pack ordered (first and second recurring sale) and then $5.60 from the the third.
As with the First Order Bonus, recruited affiliates pass up a percentage of their first two commissions to the affiliate who recruited them.
A matching bonus of 50% on Residual Order Bonuses paid to personally recruited affiliates is also available.
Residual Commissions (binary)
Residual binary commission in Global Smart International are paid out via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting each of these two positions into another two positions each.
In this manner subsequent levels of the binary team are generated as required, with each new level housing double the positions of the previous level.
Positions in the binary team are filled via direct and indirect recruitment of Global Smart International affiliates.
At the end of each day sales on both sides of the binary are tallied up. Global Smart International affiliates are paid a commission for each 60 GV matched on either side of the binary.
How much of a commission is paid out per match found is determined by a Global Smart International affiliate’s rank:
- Affiliate – 10% ($6)
- Supervisor – 12% ($7.20)
- Manager – 14% ($8.40)
- Director – 16% ($9.60)
- Executive – 18% ($10.80)
- Presidential – 20% ($12)
Note that Global Smart Initiative daily binary earnings are capped as follows:
- Affiliate – $500
- Supervisor – $1000
- Manager – $2000
- Director – $5000
- Executive – $10,000
- Presidential – $20,000
To qualify for binary commissions, a Global Smart International affiliate must recruit at least two active affiliates (one on either side of the binary).
Additional Binary Positions
If a Director or higher ranked Global Smart International affiliate maxes out their daily commission cap for 30 consecutive days, they qualify for another binary position.
This position is placed within an affiliate’s existing binary team, effectively allowing the affiliate to double up on existing binary volume.
Residual Matching Bonus (binary)
Global Smart International affiliates are able to earn a matching bonus on binary commissions earned by their downline.
Residual Matching Bonuses 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, 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 Residual Matching Bonus pays a percentage match of residual binary commissions paid to affiliates in a unilevel team.
How many levels of recruitment a Global Smart International affiliate can earn on is determined by their rank:
- Affiliate – 10% match on level 1 and 3% match on levels 2 to 6
- Supervisor – 15% match on level 1 and 3% match on levels 2 to 6
- Manager – 15% match on level 1, 3% match on levels 2 to 7 and 2% match on level 8
- Director – 20% match on level 1, 3% match on levels 2 to 7 and 2% match on level 8
- Executive – 20% match on level 1, 3% match on levels 2 to 8 and 2% match on levels 9 and 10
- Presidential – 25% match on level 1, 3% match on levels 2 to 8 and 2% match on levels 9 and 10
Residual Commissions (unilevel)
Residual unilevel commissions in Global Smart International are paid out via a unilevel compensation structure.
This is the same compensation structure used to pay out the Residual Matching Bonus.
Through this unilevel compensation structure, a Global Smart International affiliate can earn on sales volume generated by their downline as follows:
- Affiliate – 3% on levels 1 and 2 and 2% on levels 3 to 5
- Supervisor – 3% on levels 1 and 2 and 2% on levels 3 to 6
- Manager – 3% on levels 1 and 2, 2% on levels 3 to 6 and 1% on level 7
- Director – 3% on levels 1 and 2, 2% on levels 3 to 6 and 1% on levels 7 and 8
- Executive – 3% on levels 1 and 2, 2% on levels 3 to 6 and 1% on levels 7 to 9
- Presidential – 3% on levels 1 and 2, 2% on levels 3 to 6 and 1% on levels 7 to 10
Generated preferred customer volume is paid out separately through the unilevel as follows:
- Affiliate – 10% on levels 1 to 5
- Supervisor – 10% on levels 1 to 6
- Manager – 10% on levels 1 to 7
- Director – 10% on levels 1 to 8
- Executive – 10% on levels 1 to 9
- Presidential – 10% on level 1 to 10
Residual Matching Bonus (unilevel)
As with binary commissions, Global Smart International affiliates are able to earn a match on unilevel commissions their downline earns.
Manager and higher ranked Global Smart International affiliates earn 5% on levels 1 and 2.
Global Bonus Pool
The Global Bonus Pool is made up of 3% of Global Smart International’s company-wide sales revenue.
The Global Bonus Pool is split into four smaller pools, which Manager and higher ranked affiliates can earn shares in as follows:
- Manager – one share in a 0.5% pool
- Director – one share in a 0.5% pool
- Executive – one share in a 1% pool
- Presidential – one share in a 1% pool
Rank Achievement Bonus
The Rank Achievement Bonus is a one-time bonus paid out when a Global Smart International affiliate qualifies at the Manager or higher rank for four consecutive weeks:
- Manager – $100 gift card
- Manager II – eight 1 oz silver American Eagle coins or 8oz of silver bars
- Director – two 1/10th oz gold American Eagle coins or $350 “gold acct”
- Director II – Apple iPhone 6s or MacBook Air or a “luxury designer bag”
- Executive – “2K Spa Day, Family Entertainment or Pro Photography”
- Executive II – “5K Weekend Getaway, Cruise or First Class Airfare for 2”
- Executive III – “10K Shopping Spree, cosmetic surgery or Rolex watch”
- Presidential – “20K Aged Corp with 50K Credit Line or pre-paid life insurance”
- Presidential II – “40K Mercedes, BMW, Lexus, Cadillac or (a) home makeover”
- Presidential III – “100K business, franchise, rental property or retirement acct”
Lifestyle Residual Bonus
Global Smart International affiliates are able to receive a guaranteed income per month, as determined by their rank:
- Manager – $125 a month
- Manager II – $250 a month
- Director – $500 a month
- Director II – $1250 a month
- Executive – $2500 a month
- Executive II – $6250 a month
- Executive III – $12,500 a month
- Presidential – $25,000 a month
- Presidential II – $50,000 a month
- Presidential III – $125,000 a month
Ad Pack Passive ROI
Upon purchasing an Ad Pack for $40, Global Smart International affiliate’s earn “up to” 3% a day ROI (max $18) per Ad Pack invested in.
To earn qualify for the daily passive ROI, a Global Smart International affiliate must view five company-supplied ads every 24 hours.
Ad Pack Shared Pool
The Ad Pack Shared Pool pays affiliates a 75% ROI ($48) on every Ad Pack purchased.
Ad Pack ROI Matching Bonus
Global Smart International affiliates are able to earn a matching bonus on daily Ad Pack ROIs paid to affiliates in their downline.
The Ad Pack ROI Matching Bonus is a 5% bonus paid out down two levels of recruitment.
Joining Global Smart International
Affiliate membership with Global Smart International is $20.
Global Smart International are also currently offering Founder Club affiliate membership.
Founders Club affiliate membership costs $1800 and, through Ad Pack ROIs, is advertised as “paying back” a $3240 ROI.
This represents a $1440 profit per Founders Pack. Founders Club Affiliates also receive a Presidential rank for 90 days.
A Global Smart International affiliate who recruits a Founders Club affiliate receives a $600 commission. $200 is also paid to their immediate upline (the affiliate who recruited the recruiting affiliates).
Each Global Smart International affiliate is able to purchase up to five Founder Packs ($9000 investment that pays out a $16,200 ROI).
As far as I can tell, Global Smart International was a legacy MLM company that wasn’t in the best of shape.
The compensation plan is convoluted and a reflection of the legacy MLM companies Ken Mackovic has previously launched and been involved in.
The Global Smart Ads Ad Pack stuff has only been recently added, in an attempt to tack on a revenue share Ponzi scheme to Global Smart International’s existing opportunity.
Simply put, the Global Smart Ads component of Global Smart International is a compliance nightmare.
Here’s how Global Smart International describe revenue generation for the Ad Pack ROIs:
This company-wide pool reserves a minimum of 5% of all global sales of Ad Packs, to be shared between the total number of Ad Packs in the pool.
On the raw math side of things you’re looking at each $40 Ad Pack investment paying out up to $24, plus the initial amount invested for a total of $66 (165%).
With Global Smart International affiliates the only one viewing ads, and solely for the purpose of qualifying for a daily ROI, the chance of retail customers purchasing Ad Packs is next to none.
What you’re left with is affiliate purchases of Ad Packs fueling ROI payments, making Global Smart Ads a Ponzi scheme.
New money flows into Global Smart International by way of affiliate investment in Ad Packs, with that same revenue used to pay out a 165% ROI.
Tax fraud may also be an issue, with Global Smart International advising;
If you reside in the USA, you will receive a 1099 once this bonus has earned you $600 in a calendar year.
A Global Smart International affiliate might run into troubles with the IRS should they compound their Ad Pack ROI payments by way of reinvestment.
Although the Ponzi fraud attached to Ad Pack investment is by far the biggest compliance issue with Global Smart International, it is not the sole red flag.
The whole Founders Club memberships is clearly a securities offering, with affiliates promised a $3240 ROI on each $1800 investment.
There is no mention anywhere on the Global Smart International website suggesting the company has registered with the SEC.
Nor does Global Smart International or Global Smart Ads appear in the SEC’s Edgar database.
Pay to play is also a prominent issue within Global Smart International’s compensation plan.
Founders Club affiliates purchase the Presidential rank for 90 days.
Affiliates who purchase physical products in bundles of eight, sixteen and thirty-two also receive temporary rank qualification.
This in turn directly impacts their income potential through the Global Smart International compensation plan.
When affiliates are purchasing products to increase their income earning potential, inventory loading becomes an issue.
Global Smart International don’t seem to care about this though, with each affiliate also required to place a minimum product volume order each month.
Global Smart International conduct no checks on whether affiliates stockpile product or actually order products because they tend to use them.
More likely than not the monthly product order requirement is going to be an autoship order, with excess product either given away or stored in a garage.
Another issue is the prevalence of recruitment quotas to advance in affiliate rank. With rank advancement directly tied to binary commission rates and daily payouts, recruitment of new Global Smart International affiliates becomes mandatory.
As to the Global Smart International’s products, some of them are certainly strange.
The energy discs in particular standout, with applying the small plastic discs to different parts of the body promising all sorts of benefits and remedies.
There’s also danger of an FDA investigation, with two of Global Smart International’s marketed containing claims about cancer.
The official Global Smart International product description for Mighty OPC states it
contains Trans Resveratrol [helps fight aging] and Vitamin D3 [helps fight cancer].
Whether Vitamin D3 helps fight cancer or not is not the issue, rather it’s the manner in which Mighty OPC is being marketed.
Clearly the Mighty OPC product description has been written to appeal to someone with cancer looking to “fight” it.
The product description for the Clean Sweep Colon Cleanse casually mentions ‘colon cancer is the #2 killer of men in the US‘.
Again, whether this fact is true or not is not the issue, rather it’s the inference that Clean Sweep Colon Cleanse will help prevent cancer in men.
To summarize, we have an established company whose management appears to have gone off the deep-end.
Regulatory caution has been thrown to the wind, with Global Smart International’s biggest problem the upcoming launch of Global Smart Ads, a full-blown adcredit Ponzi scheme.
On top of that you’ve got recruitment and pay to play issues in the compensation plan, kooky products and claims tying Global Smart International’s products to fighting and preventing cancer.
Coming from a guy who purportedly has “more than 40 years” experience in the MLM industry, it almost feels like a joke.