Hinode Group Review: Brazilian personal care & supplements
Hinode Group operates in the personal care and nutritional supplement MLM niches.
The company is based out of Brazil and headed up by co-founders Francisco and Mrs. Adelaide Rodrigues.
As per Hinode Group’s website;
Mr. Francisco and Mrs. Adelaide Rodrigues founded Hinode in 1988 from their home garage.
Today, their son Sandro Rodrigues is President of the Hinode Group.
Other children of the Rodrigues’ are also involved in running and management of the company.
One thing to note is that while Hinode Group was founded in 1988, the MLM side of the business didn’t launch until 2008.
Hinode Group primarily operates in and targets Brazil. This is reflected in Alexa estimating that 61% of its website traffic originates out of the country.
Bolivia is another significant market for Hinode Group, accounting for 9% of website traffic.
Read on for a full review of Hinode Group’s MLM opportunity.
Hinode Group’s Products
Hinode Group markets a range of personal care and nutritional supplement products.
Product categories include men’s and women’s fragrances, various personal care creams and what appears to be weight loss themed supplements.
While Hinode Group do list their product range on their website, the company fails to provide detailed information.
If a visitor and potential customer clicks on a product for more information, a personal details harvester pops up:
Of particular concern, Hinode Group’s website is also absent of retail pricing.
Hinode Group’s Compensation Plan
Hinode Group affiliates are paid to sell products to retail customers.
Residual commissions are paid out both via unilevel and binary teams. Additional performance-based bonuses are also available.
Hinode Group affiliates are paid retail commissions on the sale of products to retail customers.
Retail commissions paid are the difference between the wholesale cost and retail price of products ordered.
Hinode Group’s compensation material states this can be as much as 40% on retail orders.
MLM Commission Qualification
In order to qualify for commissions, a Hinode Group affiliate must generate 200 PV a month.
PV stands for “Personal Volume” and is sales volume generated by retail sales and an affiliate’s own orders.
Hinode Group’s Affiliate Ranks
There are twelve affiliate ranks within Hinode Group’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Consultant – sign up as a Hinode Group affiliate and maintain MLM commission qualification
- Master – generate 2000 GV in accumulated weaker binary team side volume
- Silver – generate 5000 GV in accumulated weaker binary team side volume
- Gold – generate 15,000 GV in accumulated weaker binary team side volume
- Diamond – generate 50,000 GV in accumulated weaker binary team side volume
- Diamond Elite – generate 120,000 GV in accumulated weaker binary team side volume
- Double Diamond – generate 200,000 GV in accumulated weaker binary team side volume
- Triple Diamond – generate 500,000 GV in accumulated weaker binary team side volume
- Imperial Diamond – generate 1,000,000 GV in accumulated weaker binary team side volume
- Imperial Two Stars – generate 4,000,000 GV in accumulated weaker binary team side volume
- Imperial Three Stars – generate 8,000,000 GV in weaker binary team side volume
- Titan – generate 18,000,000 GV in weaker binary team side volume
GV stands for “Group Volume” and is PV generated by an affiliate and their entire downline.
First Order Bonus
Hinode Group affiliates are paid the First Order Bonus when newly recruited affiliates place their first order.
The First Order Bonus has a direct and residual component, which is 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.
Hinode Group caps the First Order Bonus at nine unilevel levels.
How many levels an affiliate earns the First Order Bonus on is determined by rank:
- Consultants earn R$220 on level 1 (personally recruited affiliate first orders)
- Masters earn R$220 on level 1, and R$20 on levels 2 to 4
- Silvers earn R$220 on level 1, R$20 on levels 2 to 4 and R$15 on level 5
- Golds earn R$220 on level 1, R$20 on levels 2 to 4, R$15 on levels 5 and 6 and R$10 on level 7
- Diamonds earn R$220 on level 1, R$20 on levels 2 to 4, R$15 on levels 5 and 6, R$10 on level 7 and R$5 on levels 8 and 9
- Diamond Elites and higher earn R$220 on level 1, R$20 on levels 2 to 4, R$15 on levels 5 and 6 and R$10 on levels 7 to 9
Residual Commissions (binary)
Hinode Group pays residual commissions 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.
At the end of each week Hinode Group tallies up sales volume on both sides of the binary team.
Affiliates are paid up to 20% of volume generated on their weaker binary team side, based on signing up with a combo pack and/or rank.
Buying a binary residual commission rate
- new Hinode Group affiliates who sign up with a R$300 Executive Combo pack receive a 10% binary residual commission rate
- new Hinode Group affiliates who sign up with a R$1100 Executive Plus Combo pack receive a 15% binary residual commission rate
- new Hinode Group affiliates who sign up with a R$2200 Executive Top Combo pack receive a 20% binary residual commission rate
Rank-based binary residual commission rates
- Silvers earn a 10% residual commission rate
- Golds earn a 15% residual commission rate
- Diamonds and higher earn a 20% residual commission rate
Residual Commissions (matrix)
Residual unilevel commissions are paid using the same unilevel team structure as the First Order Bonus (see above).
Residual unilevel commissions are paid on sales volume generated on up to nine unilevel team levels:
- sales volume generated on levels 1 to 4 pays out 4%
- sales volume generated on levels 5 and 6 pays out 3%
- sales volume generated on level 7 pays out 2%
- sales volume generated on levels 8 and 9 pays out 1%
Hinode Group pays affiliates a volume bonus on monthly autoship orders placed by personally recruited affiliates.
- Masters earn a 3% autoship commission rate
- Silvers earn an 8% autoship commission rate
- Golds earn a 10% autoship commission rate
- Diamonds and higher earn a 12% autoship commission rate
Diamond Leader Bonus
Hinode Group rewards affiliates for generating Diamond ranked affiliates across the first four levels of their unilevel team.
- Diamonds to Triple Diamonds earn a 3% Diamond Leader Bonus on level 1, 2% on level 2 and 1% on level 3
- Imperial Diamonds and higher earn a 2% Diamond Leader Bonus on level 1, 2% on level 2 and 1% on level 3 and 4
Although not clarified in Hinode Group’s compensation plan, I believe the above percentages are paid on Diamond affiliate downline volume.
E.g. If you’re a Diamond and an affiliate on level 3 of your unilevel team promotes to Diamond, you’ll earn 1% of their unilevel team volume.
Hinode Group’s compensation plan material states the
Super Bonus will be paid for 1% to 2% up to sixth level Diamond Elite Titan.
The Super Bonus sounds like a generational bonus but no further information is provided.
Titan ranked Hinode Group affiliates earn a 0.1% volume bonus on their entire downline.
Hinode Group takes 5% of company-wide sales volume and places it into three Participation Bonus pools.
60% of the 5% is placed into a Diamond, Diamond Elite and Double Diamond pool.
In this pool Diamonds receive one share, Diamond Elites receive 1.5 shares and Double Diamonds receive 2 shares
25% of the 5% is placed into a Triple Diamond and Imperial Diamond pool.
In this pool Triple Diamonds receive one share and Imperial Diamond’s receive two shares.
The remaining 15% of the 5% is placed into an Imperial Two Stars and higher pool.
In this pool Imperial Two Stars receive 1 share, Imperial Three Stars receive two shares and Titans receive three shares.
Note that in order to qualify for the Participation Bonus, an additional 600 PV a month requirement must be met.
Rank Achievement Bonus
Hinode Group rewards affiliates who qualify at the Diamond and higher ranks with the following Rank Achievement Bonuses:
- qualify as a Diamond and receive a Brazilian coast cruise
- qualify as a Diamond Elite and receive a resort trip in Brazil’s north-east
- qualify as a Double Diamond and receive a trip to Cancun
- qualify as a Triple Diamond and receive a trip to Disneyland and a BMW hatchback
- qualify as an Imperial Diamond and receive a trip to Europe and a Range Rover Evoque SUV
- qualify as an Imperial Two Stars and receive a trip to Tahiti, a Rolex watch and Tiffany jewelry (not specified)
- qualify as an Imperial Three Stars and receive a “super car of your dreams”
- qualify as a Titan and receive a Ferrari or Lamborghini
Joining Hinode Group
Basic Hinode Group affiliate membership is R$99.
New affiliates can also opt to sign up via one of three Hinode Group affiliate combo packs:
- Executive Combo – R$300
- Executive Plus Combo – R$1100
- Executive Top Combo – R$2200
The primary difference between the three packs is bundled products and increased commission rates.
Hinode Group pitches itself as “an opportunity to get out of the red”.
Even having launched in 2008 as opposed to starting as an MLM company in 1988, Hinode Group has been around a while.
With age comes experience, although the company makes several critical mistakes. The good news there’s nothing here that isn’t easily remedied.
First and foremost as a potential retail customer, when I click a product on your website I want more information.
Showing me a capture form asking for personal details makes me click off and forget about you and your products.
At present Hinode Group only shows a small photo of a product and its name. This isn’t good enough and needs to be remedied.
From the offered selection and limited information given, Hinode Group has a pretty wide offering. Nothing however really stood out as unique to the company.
I did see mention of a factory in Hinode Group’s marketing material, but whether the company still manufactures its own products is unclear.
On the compensation side of things Hinode Group’s plan is relatively balanced but has a few quirks.
While I have nothing against affiliates making autoship orders and that volume counting towards commissions, explicitly incentivizing autoship invites focus.
That focus typically comes at the cost of retail, which can lead to affiliate autoship recruitment outweighing retail sales.
Hinode Group directly incentivizes recruitment of affiliates on autoship and I think that could go.
What can also go is the “pay to play” baked into the affiliate combo packs.
When you tie commission rates to how much an affiliate spends when they sign up, you incentivize them to spend whether they need whatever else they get for their money or not.
You also cheapen alternative qualification, which in this case is rank.
Pay to play is typically seen in MLM pyramid schemes as a way to encourage internal volume. When combined with downline autoship commissions, it’s not a good look.
I’m also not sure what’s up with the 600 PV requirement. Hinode Group refer to affiliates generating 600 PV a month as “VIPs”.
What’s missing is requiring affiliates to generate retail volume, as opposed to just buying 600 PV a month to qualify for, among other things, “special bonuses” and “exclusive promotions”.
Whereas Hinode Group might be missing retail volume qualifiers however, that doesn’t mean you can’t use it to gauge your potential upline.
Every Hinode Group affiliate has to generate 200 PV a month to qualify for MLM commissions.
What you want to find out is how much of that 200 PV requirement is your potential upline’s own order (if any).
Having an order in and of itself isn’t necessarily a red flag, but if there’s no matching retail then there’s a problem. Especially if that upline expects you do to the same, and then recruit others who do the same.
That’d make Hinode Group a classic product-based pyramid scheme, which you’d want to avoid for obvious reasons.