KZ1 Review: eXfuze rebrands with slimmer product offering
KZ1 began as eXfuze, an nutritional supplement MLM company founded in 2008.
BehindMLM reviewed eXfuze way back in 2013. At the time the company was headed up by co-founder and CEO, Rick Cotton.
At some point Rick Cotton’s brother Don took over as CEO. He held the position until December 2016, at which time health issues saw him step down.
A joint decision between Cotton and the eXfuze Board of Directors saw Robert Kelly appointed CEO.
On October 2017 eXfuze changed its name to KZ1. I was unable to find a reason for the name-change.
At the time of Don Cotton stepping down, Kelley (right)had been with eXfuze for seven years. Cotton credited Kelley with “leading (eXfuze’s) largest market in Japan”.
According to Cotton, Kelley
is a former COO of Apple Japan (a $2 Billion-dollar business) and the CEO of two companies.
I did try to ascertain whether those two companies were MLM related but came up blank.
Read on for a full review of the KZ1 MLM opportunity.
KZ1 details three flagship products; Seven+ Classic, Impaqt Reset ALX and Impaqt Edge.
Seven+ Classic was eXfuze’s flagship product and, as far as I can tell, remains unchanged.
SEVEN+ Classic’s prebiotic whole food extracts and phytonutrients provide vital fiber and polyphenol “food” for the growth of powerful probiotic bacteria such as bifida and Akkermansia.
These microbiota greatly improve the filtering and barrier functions of the gut.
A tight, clean gut, in turn keeps toxins and pathogens from escaping into the bloodstream and helps reverse the tide of modern chronic autoimmune malfunction – with benefits on many, many levels.
Seven+ Classic retails at $106 for a 25 oz. bottle (~740 ml).
Impaqt Reset ALX is a supplement that “supports a more effective immune system, for more efficient allergen management”.
Impaqt Reset ALX retails for $132 for a bottle of 60 capsules (2 month supply).
KZ1 claims its Impaqt Edge supplement is ‘the most revolutionary ‘Multi-Benefit Smart Drink’ health supplement to hit the market”.
Edge is comprised of key nutrients that operate on a cellular level throughout the entire body, especially in the brain.
The magic in Edge lies in a team of key ingredients: curcumin, a vegetable-based DHA (Omega 3 oil), Inositol, Zinc and Beet Extract.
Together, they make an incredible IMPAQT on a myriad of functions in the brain and body.
Impaqt Edge retails at $106 for a box of thirty single-serve sachets.
The KZ1 Compensation Plan
Rather than provide full compensation plan documentation, KZ1 provides a summary on their website.
The following analysis is as complete a breakdown as I could manage from the source material.
Note that I did try to locate a copy of the KZ1 compensation plan from an external source, but was unable to find one.
KZ1 pays retail commissions on the sale of products to retail customers.
Retail commissions are calculated as the difference between the wholesale and retail price of products ordered.
A flat 20% cashback is paid on preferred customer orders.
A preferred customer is a retail KZ1 customer who opts for a monthly standing order, in exchange for a 25% discount.
KZ1 affiliates are paid when new recruits sign up with a Bronze, Silver or Gold Pack.
Specific recruitment commission rates are not provided.
KZ1 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.
A 10% residual commission is paid on sales volume tracked to the weaker binary team side.
Once paid out on, corresponding sales volume is flushed from both sides of the binary team. Leftover volume on the stronger side is carried over.
Note that KZ1 do not clarify how often residual commissions are paid out (typically weekly or monthly).
Director Check Match Bonus
KZ1 pays a matching bonus on residual commissions earned by downline affiliates.
The Director Check Match Bonus is tracked 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.
Within the unilevel team, generations are defined when a Director or higher ranked KZ1 affiliate is found in a unilevel leg.
Note that generations are calculated separately for each unilevel leg.
If a Director or higher ranked downline affiliate is found in a unilevel leg, they cap off the first generation for that leg.
The second generation begins immediately after them.
If a second Director or higher ranked affiliate exists deeper in the leg, they cap off the second generation for that leg.
If not, the second generation of that leg extends down the full depth of the leg.
KZ1 fail to disclose Director Check Match Bonus rates or qualification criteria.
Ambassador Leadership Bonus Pool
KZ1 take 1% of company-wide binary team volume and place it into an Ambassador Leadership Bonus Pool.
Ambassador Pearl and higher ranked affiliates qualify for a share of the Ambassador Leadership Bonus Pool.
Shares are calculated based on acquisition of Ambassador Points.
An Ambassador Pearl or higher ranked KZ1 affiliate acquires Ambassador Points for each week the retain Ambassador Pearl or higher rank.
Ambassador Points are tallied up quarterly, after which the Ambassador Leadership Bonus Pool for that quarter is paid out.
Basic KZ1 affiliate membership is $49.
New affiliates can also sign up with an optional Combo Pack:
- Bronze Combo Enrollment Pack – $250
- Silver Combo Enrollment Pack – $550
- Gold Combo Enrollment Pack – $1050
The primary difference between the Combo Enrollment Packs is bundled KZ1 product.
As far as I can tell Combo Enrollment Packs do not provide any increased potential income benefits.
My first impression of “KZ1” is that it was a terrible name for a company.
It conveyed nothing, and looked more like something I’d find printed on a gas canister.
It certainly didn’t sound like a company name or reveal anything about the KZ1 and its products. Then there’s the KZ1 logo, which at a glance looks like Arabic script.
To be clear I have nothing against Arabic script and that’s not what I’m getting at. But I honestly didn’t recognize the company name in marketing material until I had a hard look at the logo.
Early on in my research for this review I came across this:
“KZ1” is pronounced “crazy one”.
Hands up anyone who figured that out on their own.
Look it’s not an impossible company name and logo to work with, but I do think whoever was in charge of marketing the transition from eXfuze missed the mark.
Moving onto KZ1’s products; I don’t know if it’s because it wasn’t provided or I missed it, but in my original eXfuze review I didn’t cite the retail cost of Seven+ Classic.
With a bit of digging I found retail pricing for a 25 oz bottle of Seven+ Classic at $42.97.
Today KZ1 is selling the same product in the same quantity for $106 – a 146% markup.
I can sort of see Seven+ Classic selling at $42.97 but at $106 a bottle it’s a tough sell.
Similarly Impaqt Reset ALX and Impaqt Edge seem a bit steep for what you’re getting.
At the end of the day Seven+ Classic is a nutritional supplement that has no FDA approved medical benefits.
That said, I came across plenty of nonsense out of Malaysia regarding how Seven+ Classic can be used to treat strokes, gout, diabetes, hair loss, bacterial infections, skin disorders, gastric ulcers, bone fractures, motor sensory neuropathy, thyroid conditions (and who knows what else)…
If you suffer from any of the above – please do not substitute Seven+ Classic for medical advice.
One would certainly hope KZ1 have since cracked down on illegal medical claims.
Moving onto the compensation plan, I get what KZ1 is trying to do with summaries – but it just doesn’t work.
The summaries are detailed to the point you’re inevitably left asking specific questions about payouts, which aren’t provided.
If you’re going to give that much information, there’s no excuse for not also providing a link to a detailed compensation document.
In our eXfuze review I noted that retail was viable but left up to the affiliate.
In KZ1 the Seven+ Classic price-jump puts a big question mark on retail viability.
Without retail, you’re looking at signing up affiliates on packs, and primarily earning on their monthly autoship orders.
Those you recruit then set about doing the same, which ultimately would mean KZ1 is operating as a product-based pyramid scheme.
I can’t call it definitely, but at $106 a bottle I’m just not seeing anybody but KZ1 affiliates coughing up.
Approach with caution.