HLBS Network Review: “Unique and revolutionary” recruitment
HLBS Network’s website provides no information about who owns or runs the company.
The footer of the website provides an address in Slovakia for HLBS s.r.o., revealing the company’s European roots.
As I understand it HLBS Network’s US division operates as HLBS Global Marketing US LLC in Texas.
Corporate records reveal HLBS Network was founded in 2016.
Further research reveals Peter Gabriel citing himself as HLBS Network’s CEO:
According to his LinkedIn profile, Gabriel is based out of Hungary.
Gabriel (right) does have an extensive corporate history but HLBS Network appears to be his first MLM venture.
Past sectors Gabriel has worked in include hospitality, finance and real-estate.
Why HLBS Network executive information isn’t provided on its website is unclear.
With Gabriel being based out of Hungary, it follows this is where HLBS Network is operated from. The Slovakian incorporation would appear to be a shell company.
This is reflected in HLBS Network’s Terms and Conditions;
Considering that HLBS s.r.o. is represented by the HLBS s.r.o. Hungarian Branch, with regard to this document, Hungarian Law is applicable.
Read on for a full review of HLBS Network’s MLM opportunity.
HLBS Network’s Products
HLBS Network’s website details three product categories; cosmetics, functional foods and dietary supplements.
HLBS Network Cosmetics
HLBS Network markets four products in his cosmetics range:
- Citrus+ – “gently cleanses and supports the skin’s quick regeneration and protection”
- LH+ Body – “cares for all skin types with its precious ingredients that balance the skin’s PH level”
- LH+ Face – “a powerful tool in preserving skin youth, it protects against harmful sun radiation and its liposomal technology guarantees delivery of the active principles all the way to the deepest layers of the skin of the face”
- LH+ Spray – “contributes to the skin’s quick regeneration and to its protection”
HLBS Network Functional Foods
HLBS Network markets two products in its functional foods range:
- Chocodream Premium Chocolate – “silhouette sugar free dark chocolate with humic acid and psyllium seed husk”
- Coffee Instant – “specialty coffee with taurine, guarana and inulin”
HLBS Network Dietary Supplements
HLBS Network markets nine products in its dietary supplements range:
- CGS12+ – general health supplement in a “vegan capsule”
- CBR7 – vitamin C supplement with bioflavonoids and rutin
- DPS12 – “daily vegan protein shake”
- IS8 – “a natural raspberry and vitamin cocktail”
- DK5 – “vitamin D3 and vitamin K2 in double vegan capsule filled with olive oil”
- HMAX8 – “the natural ingredients of HMAX8 make the body sturdier and more resistant, they can even improve athletic performance”
- Berry SLM – “supports detoxification, weight loss and provides the body with vitamins”
- AAG1 – “dietary supplement containing astragalus, ginseng and phosphatidyl in vegan capsule”
- HC80 – “food supplement capsules with humic acid and cordyceps”
All of HLBS Network’s products appear to be manufactured in Hungary by third-parties.
Note that HLBS Network do not provide retail pricing for any of their products.
HLBS Network’s Compensation Plan
HLBS Network affiliates earn commissions on retail sales.
The bulk of the compensation plan however is geared towards affiliate recruitment.
To qualify for commissions, HLBS affiliates must generate €100 EUR a month.
This is presented as a required monthly personal spend. Whether retail sales volume qualifies towards the €100 EUR a month requirement is unclear.
HLBS Network Affiliate Ranks
There are three known ranks within HLBS Network’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Affiliate – sign up as a HLBS affiliate and meet commission qualification criteria (see above)
- Team Leader – recruit and maintain seven affiliates
- Manager – qualification criteria not disclosed
Retail and Recruitment Direct Commissions
When a HLBS Network affiliate signs up a new retail customer or recruits an affiliate, they receive a direct commission.
Retail and recruitment direct commissions are paid 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.
Retail and recruitment direct commissions are paid as a percentage of sales volume, generated on referral of a retail customer or affiliate recruitment.
Retail and recruitment direct commissions are paid on up to four unilevel team levels, based on rank:
- 20% on level 1 (personally recruited affiliates)
- 10% on level 2
- 5% on level 3 (Team Leaders and Managers)
- undisclosed percentage on level 4 (Managers only)
The HLBS Pool is, if I’m not mistaken, a binary bonus pool presented in a stupidly complicated way.
Here’s HLBS Network’s official HLBS Pool slide:
Before we get into what the text says, I’ll try to break down the diagram as I understand it.
In the center you have the affiliate. To the right you have “1 TY”. I don’t know what “TY” stands for but the “1” represents their first recruited affiliate.
To the right of “1 TY” we have “1-1”, which I believe represents the first personally affiliate recruited by “1 TY”.
To the right of “1-1” we have “3”, representing the third personally recruited affiliate.
Then there’s “1-3” (third affiliate recruited by “1 TY”), 2-2 (second affiliate recruited by “2”), and “3-1” (first affiliate recruited by “3”).
On the left we have “2” (second personally recruited affiliate), “1-2” (second affiliate recruited by “1-TY”), “2-1” (first affiliate recruited by “2”), “2-1-1” (first affiliate recruited by “2-1”), and 4 (fourth personally recruited affiliate).
Here’s the auto-translated text from the slide above:
- have two active members and receive a share in the Bronze pool
- every Monday you will receive a share of the turnover of 100, 500, or an infinite number of members on the axis from your 2nd member
- it depends on what starting package you have
- the system invests 25% of the net value of each member activity and 10% of the value of customer purchases in the HLBS pool
- as you grow in depths you will get a share of 10%, 15%, or 20% of the pool
As far as I can tell each side of the binary team is filled normally (one position on the left, one on the right).
I don’t know if there’s any significance to the second position on the left, but that’s where the volume paid out on starts.
Volume paid out on is up to 25% of affiliate and 10% of retail customer order volume.
These percentages appear to be tiered. The only qualifier mentioned is “starting package”, suggesting how much a HLBS Network affiliate spends when they sign up dictates their HLBS Pool rate.
What I can confirm is the “100, 500, or an infinite number of members” the HLBS Pool is earned on, is tied to how much an affiliate spends when they sign up:
- Basic tier affiliates earn the HLBS Pool on up to 100 recruited affiliates
- Beginner tier affiliates earn the HLBS Pool on up to 500 recruited affiliates
- Professional and Business tier affiliates earn the HLBS Pool on an infinite number of recruited affiliates
HLBS Network places 10% of newly recruited affiliate volume and places it into the Start Pool.
To qualify for a share in the Start Pool a HLBS Network affiliate must recruit four affiliates in a month.
The more these affiliates spend when recruited, the larger the qualifying affiliate’s Start Pool share:
The more members you register with the largest starting package, the higher your commission will be.
The Start Pool is paid out monthly.
Top Leader Commission (???)
HLBS Network’s compensation plan references a “Top Leader Commission”.
This commission isn’t explained but we do know the more an affiliate spends when they sign up determines their Top Leader Commission rate:
- Basic tier affiliates earn a 50% Top Leader Commission rate
- Beginner tier affiliates earn a 60% Top Leader Commission rate
- Professional tier affiliates earn an 80% Top Leader Commission rate
- Business tier affiliates earn a 100% Top Leader Commission rate
Joining HLBS Network
HLBS Network affiliate membership costs €150 to €2500 EUR.
- Basic – €150 EUR
- Beginner – €300 EUR
- Professional – €750 EUR
- Business – €2500 EUR
In addition to receiving HLBS Network products, the more a newly recruited affiliate spends the higher their income potential.
HLBS Network Conclusion
Your first clue retail isn’t a focus in HLBS Network is the company’s terribly named products.
LH+, CBR7, DPS12, IS8? The products appear to be abbreviations of their ingredients, with no thought put into naming at all.
This lack of retail focus carries into HLBS Network’s compensation plan, which at its core is a pay to play recruitment scheme.
This begins with how much a newly recruited affiliate spending determining their income potential.
Spend more, earn more is the foundation of an MLM pyramid scheme.
While retail commissions are available, the rest of HLBS Network’s compensation plan is geared towards recruitment.
Having 7 members as soon as possible is the primary goal and the right way to succeed as a member.
Recruiting seven affiliates gets you Team Leader. Presumably Manager and any higher ranks require more recruitment.
To qualify for commissions you’re looking at a €100 EUR a month spend. This translates into the bulk of commissions being paid out on recruited €100 EUR or more a month autoship affiliates.
In other words, your typical product-based MLM pyramid scheme.
One thing I’m confused about is the presentation of HLBS Network’s binary-based compensation plan.
The company claims it’s a
linear solution of the system is unique and revolutionary.
it is the first and only system without conflict of interest.
There’s certainly nothing unique and revolutionary about binary-based compensation plan. They’ve been around forever.
What is “unique and revolutionary” is presenting one in a hugely confusing manner. A binary is not a straight-line compensation plan.
All HLBS Network have done is ignore one side of the binary team and restrict commissionable volume a bit on the other.
Granted you’re not limited to matching or ratios – but why not just pay out via a unilevel team then?
That’s essentially what HLBS Network is doing doing, only they’re cutting out a bunch of volume and pretending this is somehow advantageous to affiliates. It’s not.
I can’t speak as to why HLBS Network don’t provide compensation details on their website.
Given HLBS Network is active in the US, hiding blatant violations of the FTC Act might be one reason.
On the subject of transparency, HLBS Network also fail to provide executive information on their website.
This is another potential violation of the FTC Act.
Between HLBS Network wonkily named products and recruitment driven compensation plan, this is one MLM company to avoid.