Lead Lightning Review: Power Lead System rebooted
Power Lead System launched in late 2013 and then… well I’m not really sure what happened.
The domain the company was using (“plsfunnel.com”) is no longer in use today.
In my BehindMLM Power Lead System review, I called out the company’s compensation plan for being too heavily titled towards affiliate recruitment.
Based on a 1-up model, there was little incentive for affiliates to focus on retail sales of Power Lead System’s lead platform.
Neil Guess, the owner of Power Lead System, was initially receptive to this criticism but soon became defensive over how said criticism was worded.
When it was then pointed out that charging affiliates fees for purpose of qualifying them to earn commissions by recruiting affiliates who then pay the same fees, Guess spat the dummy:
Hopefully THIS might make things clearer for YOU…
It’s obvious from your many responses concerning MLM law, rules about affiliates, and even your opinion about floating capture forms, that you are pretty ignorant in Internet marketing and MLM law.
I gotta hand it to you though, when I asked you to show me the law that backed up what you were saying, you never did… you simply came back with a cleverly worded response to appear as if you were quoting from some MLM manuscript.
I’ve been in the trenches of this industry my friend, and until you’ve been there yourself, you and I might as well be speaking different languages.
I won’t be responding or coming back to this site after this, and choose not to read any more of the ‘Word according to Oz’…. I’ve got a business to run!
The law Guess asked to see refers to the payment of recruitment commissions in MLM. Guess appeared to be under the impression that this was legal.
You need cited law to explain to you why an affiliate-heavy company or recruitment commissions or charging affiliates to simply participate in an MLM income opportunity is going to land you in trouble?
Good grief, start by researching every MLM company shut down over the past decade. I would have thought common-sense was enough but you seem to be one of those “I’ll see how far I can push the grey” types. Next you’ll be telling me you’re legal because you haven’t been shut down…
As above, I tried to point out the obviousness of what he was asking to see (citing common-sense that recruitment-driven pyramid schemes are illegal) but to no avail.
Now, roughly a year later Guess is back with Lead Lightning. The precense of the Power Lead System logo on the Lead Lightning website would indicate that this is a reboot:
Has Neil Guess learnt anything pertaining to the legality of recruitment-driven chain schemes this past year?
Let’s find out.
Read on for a full review of the Lead Lightning MLM business opportunity.
The Lead Lightning Product Line
Lead Lightning doesn’t appear to have any retailable products or services.
Instead, affiliates join for $7 and are then bombarded with upsells ranging in price from $29.97 a month to $497 one-time.
Bundled with each of these upsells is unlocked income potential through Lead Lightning’s compensation plans and a series of marketing tools (including the original Power Lead System platform).
The Lead Lightning Compensation Plan
The Lead Lightning compensation plan is a tiered unilevel with qualification-based pass-ups.
Affiliate Fee Commissions (recruitment)
Lead Lightning sell three tiers of affiliate membership. The easiest way to explain the payouts at each level is to separate them and the commissions available:
Regular Membership ($7 )
Regular Membership is $7 and qualifies an affiliate to earn $6 on every Regular Membership affiliate they recruit.
Silver Membership ($29.97 a month)
Silver Membership is $29.97 a month and qualifies an affiliate earn $6 on every Regular Membership affiliate they recruit and $15 a month on every Silver Membership they recruit.
Any Silver Memberships sold by Regular Membership affiliates in the downline of a Silver Membership affiliate are passed up to them (along with the $15 a month commission).
Gold Membership ($53.97 a month)
Gold Membership is $53.97 a month and qualifies an affiliate to earn $6 on every Regular Membership affiliate they recruit and $20 a month for every Silver and Gold.
Any Gold Memberships sold by Regular or Silver Membership affiliates in the downline of a Gold Membership affiliate are passed up to them (along with the $20 a month commission).
A Gold Membership affiliate is also able to receive passed up Silver affiliates if no Silver Membership affiliates exist between the Regular Membership affiliate who made the sale and the Gold Membership affiliate in question.
In addition to the monthly commissions paid out, Lead Lightning also pay upsell commissions on the sale of Diamond and Platinum Memberships.
Diamond Membership ($147)
Diamond Membership (sold in addition to Regular, Silver or Gold Monthly membership) costs $147.
The purchase of Diamond Membership qualifies a Lead Lightning affiliate to earn commissions on the purchase of Diamond Membership by affiliates in their recruited downline.
Each sale of Diamond Membership generates a $100 commission.
A 25% matching bonus is also available on the Diamond Membership commissions earnt by personally recruited affiliates.
As with the monthly memberships, if an affiliate sells a Diamond Membership and have not purchased the Diamond Membership themselves, the sale is passed up to the first affiliate in their upline who has purchased Diamond Membership (along with the $100 commission).
Platinum Membership ($497)
Platinum Membership costs $497 and qualifies an affiliate to earn $400 on the sale of Platinum Memberships to their personally recruited affiliates.
In addition to $400 direct commissions, Platinum Membership also pay $50 when a personally recruited affiliate makes a Platinum Membership sale.
Joining Lead Lightning
Affiliate membership with Lead Lightning starts at $7. Silver and Gold Membership increases this cost to $29.97 and $53.97 a month respectively.
If an affiliate opts to purchase an upsell when they join, they are looking at an additional $147 (Diamond) and/or $497 (Platinum) cost.
Other than the marketing tools bundled with each Membership and upsell, the major difference between them all is income potential via Lead Lightning’s compensation plan.
Power Lead System’s questionable 1-up compensation plan is gone but in its place is a model that’s not much better. At least on the regulatory front.
For starters there appears to be a complete lack of retail within Lead Lightning. I can’t find any mention of it on the Lead Lightning website, nor is there any mention of it in any of the promotional sales video the company has on YouTube.
If this is the case, then Lead Lightning is squarely sitting in pyramid scheme territory.
Hardly surprising given Neil Guess’ request to see a law that stated recruitment-driven schemes were illegal last time we talked, but disappointing none the less.
If there’s no significant retail activity taking place in Lead Lightning, then all that’s happening is affiliates are buying in and getting paid to recruit new affiliates who do the same.
The upsells are effectively additional commission tiers, which require a purchase to participate.
The monthly memberships themselves are raw recruitment incentives, with a purchase required in order to participate.
The basic premise appears to be to tempt a prospect with a $7 offering, blast them with YouTube videos telling them how much money they’re missing out in earnings and then trying to convince them to spend more – not because the bundled products might be great, but because they can earn more.
This screenshot from Lead Lightning’s Gold Membership video sums it up. The text before the message below urged viewers to buy Gold Membership…
Similar messages are interwoven into the other upper-tier membership options, with the lower-tier options instead focusing on earnings you’re passing up on.
As for the bundled products themselves, their value can be measured by the horrendously high markups Lead Lightning have assigned to their “cost”.
- Lead Lightning – $7 charged, $6 of that is a commission payout (85.7%)
- Silver Membership (Master Traffic Academy & Endless Free Leads 8.0) – $29.97 a month charged, $15 of that is a commission payout (50%)
- Gold Membership (Power Lead System Marketing System) – $53.97 a month charged, $20 of that is a commission payout (37%)
- Diamond Membership (The Million Dollar Secret To Getting Unlimited Free Advertising) – $147 charged, $125 (direct + matching) of that is a commission payout (85%)
- Platinum Membership (Social Profit Academy) – $497 charged, $450 of that is a commission payout (90.5%)
As a retail customer, who on Earth is going to spend money purchasing internet marketing tools with 37%+ commission markups?
Nevermind the fact that retail appears to be entirely unavailable to begin with (gee, I wonder why…).
As with all recruitment-driven schemes, once new affiliates stop signing up commissions are going to grind to a halt.
Maybe we’ll see another Power Lead System incarnation next year…