Globallee Review: Pref customer focus but questionable retail viability
Globallee are based out of Texas and operate in the nutritional supplement MLM niche.
Globallee do provide executive information on their website, although for some reason the company’s co-founders are only presented as “industry experts”.
Further research reveals Globallee’s “industry experts” are co-owners of the company; Mark McKnight (CEO), Lamia Bettaieb (President) and Nauder Khazan (Chairman).
In his Globallee corporate bio, McKnight is credited with
creating and manufacturing products for the direct selling industry for twenty-five years.
McKnight’s LinkedIn bio details his work in the nutritional supplement niche dating back to 1995, as Vice President of Sales and Marketing at ACI “Natural Products”.
In 2008 McKnight appears to have gone solo as a Senior Industry Consultant.
In 2010 he then signed on as President of Healthy Natural, a role in which he oversaw
new product development, key customer relations and overall administrative duties.
In 2017 McKnight returned to independent consulting, up until the launch of Globallee in January 2019.
Lamia Bettaieb was a top earner in World Global Network.
Nauder Khazan first popped up on BehindMLM’s radar in 2011, as founder and CEO of Stiforp.
Stiforp combined useless marketing with pyramid recruitment. The company website is still up today although the status of the business is unknown (the website is just a login page).
In addition to Stiforp Khazan also runs AliveMax, a spray supplement and personal care MLM opportunity.
As with Stiforp, AliveMax still appears to be operational.
Read on for a full review of the Globallee MLM opportunity.
Globallee markets two flagship nutritional supplement products; Eterno and Taka.
Eterno is capsule and cream system that is pitched as
a revolutionary formula that uses natural ingredients to work with your body and produce growth hormone.
Eterno is sold as a retail capsule cream pack for $156.25.
Taka is a drink supplement that Globallee claims is
filled to the brim with antioxidants, superfoods, natural energy, and delicious flavor.
Taka retails for $45 for one box of fifteen single-serve sachets or two boxes for $75.
A product featured in Globallee’s online store but not on their website is Eternity.
Eternity’s brief store product description states it’s a “bio-identical progesterone cream”.
Eternity comes in a 60 ml (2.1 fl. oz.) tub that retails for $79.95.
The Globallee Compensation Plan
Globallee’s compensation plan combines retail commissions with a somewhat cumbersome binary/unilevel hybrid.
Sales volume paid out through Globallee’s compensation plan is split between initial order and residual order volume.
Globallee Affiliate Ranks
There are twelve affiliate ranks within Globallee’s compensation plan.
Along with their respective qualification criteria they are as follows:
- Independent Brand Ambassador – sign up as a Globallee affiliate
- Team Builder – maintain MLM commission qualification and recruit and maintain at least two MLM commission qualified affiliates (one on each side of your binary team)
- Team Leader – maintain MLM commission qualification and recruit and maintain at least two Team Builders (one on each side of your binary team)
- Senior Team Leader – maintain MLM commission qualification and recruit and maintain at least four Team Leaders (two on each side of your binary team)
- Emerald Executive – maintain MLM commission qualification, recruit and maintain at least three Team Leaders (1:1) or nine Team Builders (3:3), and generate 50,000 GV a month for three consecutive months or 20,000 GV-RC a month
- 1-Star Emerald Executive – maintain MLM commission qualification, recruit and maintain at least six Team Leaders (2:2) and at least one Emerald Executive, and generate 100,000 GV a month for three consecutive months or 40,000 GV-RC a month
- 2-Star Emerald Executive – maintain MLM commission qualification, recruit and maintain at least nine Team Leaders (3:3) and at least two Emerald Executives, and generate 150,000 GV a month for three consecutive months or 60,000 GV-RC a month
- Ruby Executive – maintain MLM commission qualification, recruit and maintain at least twelve Team Leaders (4:4) and at least three Emerald Executives, and generate 250,000 GV a month for three consecutive months or 100,000 GV-RC a month
- 1-Star Ruby Executive – maintain MLM commission qualification, recruit and maintain at least one Ruby Executive, and generate 500,000 GV a month for three consecutive months or 200,000 GV-RC a month
- 2-Star Ruby Executive – maintain MLM commission qualification, recruit and maintain at least two Ruby Executives, and generate 750,000 GV a month for three consecutive months or 300,000 GV-RC a month
- Diamond Executive – maintain MLM commission qualification, recruit and maintain at least three Ruby Executives, and generate 1,000,000 GV a month for three consecutive months or 400,000 GV-RC a month
Where I’ve provided ratios in brackets, this is the minimum binary team distribution of recruited affiliates.
GV stands for “Group Volume” and is sales volume generated across an Globallee affiliate’s unilevel team (excludes volume created by spillover).
GV-RC stands for “Group Volume Residual Commissions” and is sales volume generated across a Globallee affiliate’s unilevel team (excludes initial orders, Builder Packs and volume created by spillover).
Note that for GV and GV-RC requirements, up to 50% of required volume can be sourced from any one unilevel team leg.
MLM Commission Qualification
To qualify for MLM commissions all Globallee affiliates must either
- sign up with a Builder Pack; or
- generate 100 PV in a month and personally enroll at least three preferred customers (min 50 PV autoship order each)
Globallee pays a 20% commission on products sold to retail customers.
Note that this excludes preferred customer orders.
A preferred customer is a retail customer who, in exchange for a wholesale discount, has agreed to place a standing monthly order.
Preferred customer retail commissions are paid using 50% of generated sales volume.
Globallee affiliates can earn up to 40% of the 50% of preferred customer order volume.
- Ambassadors (one to four preferred customers) earn 20% on preferred customer order volume
- Bronze Team affiliates (five to nine preferred customers) earn 25% on preferred customer order volume
- Silver Team affiliates (ten to fourteen preferred customers) earn 30% on preferred customer order volume
- Gold Team affiliates (fifteen to nineteen preferred customers) earn 35% on preferred customer order volume
- Platinum Team affiliates (twenty or more preferred customers) earn 40% on preferred customer order volume
Note that the above percentages are coded, meaning up to 40% on each preferred customer order volume is paid out.
If a lower than Platinum Team ranked affiliate generates a preferred customer order, they are paid their rank percentage.
The remaining percentage (up to 40%) is paid to upline higher ranked affiliates.
Platinum Team affiliates receive the full available 40% on their own preferred customer orders, as well as any leftover percentage if found upline.
Globallee affiliates are paid a commission when they recruit new affiliates who sign up with a $299.98 or $499.99 Builder Pack.
- Brand Ambassadors earn a 5% recruitment commission rate
- Qualified Ambassadors earn a 10% recruitment commission rate
- Team Builders earn a 15% recruitment commission rate
- Team Leaders and higher earn a 20% recruitment commission rate
Note that if a newly recruited affiliate doesn’t sign up with a Builder Pack, recruitment commissions are still paid on any products they order when they sign up.
Residual Commissions (initial orders)
Globallee pays residual commissions on initial orders 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 these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
Approximately 50% of the wholesale price of an initial product order (including Builder Packs), is paid out as tracked GV via the binary team.
When 1000 GV is tracked and matched on both sides of the binary team, a $100 “cycle” commission is paid out.
Globallee affiliates are able to earn up to $30,000 a week in residual commissions.
Each time a Globallee affiliate generates ten cycle commissions, they receive an additional $500 Accelerator Bonus.
Finally, Globallee also pays a Matching Bonus on downline residual commissions.
The Matching Bonus is paid down three levels of recruitment (unilevel):
- Team Builders earn a 10% match on level 1 (personally recruited affiliates)
- Team Leaders earn a 15% match on level 1
- Senior Team Leaders earn a 25% match on level 1
- Emerald Executives earn a 25% match on level 1 and 5% on level 2
- 1-Star Emerald Executives earn a 25% match on level 1 and 10% on level 2
- 2-Star Emerald Executives earn a 25% match on level 1 and 15% on level 2
- Ruby Executives and higher earn a 25% match on level 1, 15% on level 2 and 5% on level 3
Residual Commissions (all other orders)
Globallee pays commissions on repeat orders by retail customers and recruited affiliates 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.
Globallee caps residual commissions on repeat orders at six unilevel team levels:
- Brand Ambassadors earn 5% on level 1 (personally recruited affiliates)
- Team Builders earn 5% on levels 1 and 2
- Team Leaders earn 5% on levels 1 and 2 and 10% on level 3
- Senior Team Leaders earn 5% on levels 1 and 2, 10% on level 3 and 5% on level 4
- Emerald Executives earn 5% on levels 1 and 2, 10% on level 3 and 5% on levels 4 and 5
- 1-Star Emerald Executives earn 5% on levels 1 and 2, 10% on level 3 and 5% on levels 4 to 6
- 2-Star Emerald Executives and higher earn 5% on levels 1 and 2, 10% on level 3, 5% on levels 4 and 5 and 10% on level 6
The Infinity Bonus is paid on repeat order volume, using the same unilevel team structure as repeat order residual commissions (see above).
Within the unilevel team, a generation is defined when an affiliate in a unilevel team leg at the same rank or higher than you is found.
This affiliate caps off the generation for that leg. Note that generations are calculated individually for each unilevel leg.
The Infinity Bonus pays a 2% to 5% generation bonus on each unilevel leg.
- Ruby Executives earn a 2% Infinity Bonus
- 1-Star Ruby Executives earn a 3% Infinity Bonus
- 2-Star Ruby Executives earn a 4% Infinity Bonus
- Diamond Executives earn a 5% Infinity Bonus
Unlike residual commissions, there is no depth cap on a generation.
A generation continues in each unilevel team leg up until a same or higher ranked affiliate is found in the leg.
If no such affiliate exists, the Matching Bonus is paid on entire unilevel team leg volume.
Globallee affiliate membership is $49.95.
When signing up, an new Globallee affiliate can also opt to purchase a $299.98 or $499.99 Builder Pack.
Signing up with a Builder Pack automatically qualifies a Globallee affiliate to earn MLM commissions.
Globallee claims their Eterno product
contains a revolutionary formula that uses natural ingredients to work with your body and produce growth hormone.
This is a very specific claim to make, yet Globallee provides no documented evidence to back up their claim.
Taka seems like your standard MLM energy drink offering and comes in at $3 a serve.
I can’t say with certainty why Eternity isn’t featured on Globallee’s website, however it might have something to do with it being a “bio-identical progesterone cream”.
I had to look the term “bio-identical” up as I didn’t know what it meant.
According to the Harvard Medical School;
“Bioidentical” hormones have been promoted as safer and more effective than FDA-approved hormones.
The exaggerated claims go beyond relief of menopausal symptoms, suggesting they are a veritable fountain of youth.
Considering Globallee don’t really promote Eternity, I guess they’re in the clear on that.
One thing they’re not in the clear on though is Eternity’s price.
Bio-identical progesterone cream can be had on Amazon for $15.95 for a 4 oz pump bottle (4 star product rating with 1306 customer reviews).
Globallee want $79.95 for just over half as much product.
Moving onto Globallee’s compensation plan, it’s a bit confusing with the initial/residual order split.
The good news is that there’s are strong retail motivators in the plan, even if there are no specific retail volume requirements.
The closest Globallee comes to retail volume requirements is requiring affiliates who don’t sign up with a Builder Pack to acquire three preferred customers.
On that note there’s a strong emphasis on preferred customers, which makes sense seeing as it’s essentially long-term retail volume.
The 20% to 40% variable commission paid on preferred customer volume, based on total preferred customers, is a great way to encourage preferred customer acquisition.
All of this could however be let down by Builder Pack recruitment.
Globallee’s compensation plan provides two options for MLM commission qualification.
Option A is presented as such:
– Purchase any qualifying “Builder Pack”.
This implies ongoing commission qualification, however a summary towards the end of the plan shows 50 “required PV”.
This is contradictory, considering Option B requires affiliates to “accumulate 100 QV (PV) in one calendar month”.
Not sure what the story is there…
What we inevitably come back to though is the lack of retail viability with Globallee’s products.
If you’re going to market your products as stimulating growth hormone production, you need to back this claim up.
And selling half as much bio-identical progesterone cream for fives time the price is only going to attract naive retail customers – who are only a simple Google search away from realizing they’re being had.
Taka seems reasonably priced but you shouldn’t have to rely on one out of three offered products.
Unfortunately this isn’t something Globallee’s affiliates can address. Rather it’s something that has to be taken into consideration by corporate.
Pending changes to Globallee’s offered product line, I’d approach its MLM opportunity with caution.