mega-holdings-logoBehindMLM first reviewed Mega Holdings (also goes by Mega Holding) back in 2014.

I was recently contacted by a Mega Holdings affiliate and advised that the compensation plan had significantly changed since then.

Today we take a closer look at the Mega Holdings opportunity as currently offered.

The Mega Holdings Product Line

Mega Holdings has no retailable products or services.

Bundled with Mega Holdings affiliate membership is:

  • 2 year domain registration
  • 2 year web hosting and
  • access to a “website builder”

The Mega Holdings Compensation Plan

The Mega Holdings compensation plan sees affiliates sign up for $600 and get paid to recruit others who do the same.

Mega Holdings Affiliate Ranks

There are nine affiliate ranks within the Mega Holding compensation plan.

Along with their respective qualification criteria they are as follows:

  • Newbie – sign up as Mega Holdings affiliate ($600)
  • Presenter – have two downline legs that have generated at least 1800 BV each
  • Trainer – personally recruit and maintain at least two Presenter ranked affiliates
  • Director – personally recruit and maintain at least two Trainer ranked affiliates
  • Researcher – personally recruit and maintain at least two Director ranked affiliates
  • Leader – personally recruit and maintain at least two Researcher ranked affiliates
  • Top Leader – personally recruit and maintain at least two Leader ranked affiliates
  • Mega Leader – personally recruit and maintain at least two Top Leader ranked affiliates
  • Mega Star – personally recruit and maintain at least two Mega Leader ranked affiliates

BV stands for “Business Volume” and is sales volume generated via the recruitment of new Mega Holdings affiliates.

Each Mega Holdings affiliate recruited generates 600 BV.

Recruitment Commissions

Mega Holdings affiliates are paid a 5% commission on the $600 fee each new Mega Holdings affiliate pays.

Residual Commissions

Residual commissions in Mega Holdings are paid out via a unilevel compensation structure.

A unilevel compensation structure places a Mega Holdings affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

unilevel-commission-structure

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 of the original affiliate’s unilevel team and so on and so forth down a theoretical infinite number of levels.

Each personally recruited affiliate creates a “leg” within the unilevel team. Sales volume is generated in each leg via direct and indirect recruitment of new Mega Holdings affiliates.

For each 1200 BV matched from the strongest unilevel leg against the remaining unilevel legs, a $120 commission is paid out.

This commission is referred to as a “step”, with a Mega Holdings affiliate able to earn 19 steps daily.

In addition to step commissions, Mega Holdings affiliates are also given vouchers, which can be used to sign up recruited affiliates at a discount.

Domain Investment Package

For $100 a year, Mega Holdings affiliates can access a domain marketplace through which they can purchase domains advertised by Mega Holdings and other affiliates.

If the affiliate sells the domain through the marketplace, Mega Holdings charge a 10% fee.

Joining Mega Holdings

Affiliate membership with Mega Holdings is $600 every two years.

Conclusion

When compared to Mega Holdings 2014 business model, overall the opportunity has been simplified.

This would typically be a good thing, however the problem with Mega Holdings is that there is still no retail offering.

The good news is working out why is easy enough.

Nobody is going to pay $300 a year for a domain plus web hosting without an attached income opportunity.

The lack of retail taking place with Mega Holdings makes it a pyramid scheme. And it’s a shame to see this hasn’t changed since BehindMLM’s original 2014 review.

The Domain Investment Package subscription might also raise securities issues, in that it’s clearly being marketed by the company as a passive investment opportunity.

There is no indication on the Mega Holdings website suggesting the company has registered itself with a securities regulator anywhere in the world.

As with all pyramid schemes, once recruitment of new Mega Holdings affiliates dies off the scheme will collapse.

With an initial outlay of $600, a significant amount of recruitment is required just to break even. Losses per individual Mega Holdings affiliate will likely be quite high when the inevitable collapse hits.