ModiCare is owned by Modi Enterprises, a $2.8 billion dollar Indian conglomerate.

ModiCare was founded in 1996 and is headquartered in New Delhi. Today the company claims to have

40 centers across the country that supplies products to over 2,700 cities.

The company is headed up by founder and CEO Samir Modi, grandson of Modi Enterprises founder Gujarmal Modi.

Samir Modi (right) began his business career in 1992, working through Modi Enterprises’ tobacco interests.

After various stints in the Modi Group’s businesses, he launched the network-marketing arm of Modicare in 1996.

The venture began 12 products and 300 distributors.

In 2003, he took over the cosmetics business in Modicare, launching Colorbar Cosmetics for the domestic Indian market in 2004.

Read on for a full review of ModiCare’s MLM opportunity.

ModiCare’s Products

Modicare markets a range of products spanning personal care, home, agriculture, auto, nutrition, health and wellness, jewelry and tech.

The company has too many products to list here individually, however a full catalog with retail pricing is available on ModiCare’s website.

From the sounds of it, ModiCare’s products are designed in-house.

Modicare products are developed by the Company’s own highly experienced technical staff at its R&D centers.

All products are formulated according to international standards and developed in accordance with Indian tastes.

Given the size of Modi Enterprises, I wouldn’t be surprised if the products are also manufactured in-house. Note however that there’s no confirmation of this (at least I couldn’t see any).

ModiCare’s Compensation Plan

ModiCare’s compensation plan pays out on sales volume generated by

  • retail customer purchases;
  • ModiCare affiliate purchases; and
  • recruited ModiCare affiliate purchases.

ModiCare’s primary method of commission payments is points based bonuses, paid out via unilevel team level generations.

ModiCare Affiliate Ranks

There are fourteen affiliate ranks within ModiCare’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  • Consultant – generate 1 to 300 accumulated PV and 25 to 7524 accumulated GV
  • Senior Consultant – generate 301 to 1200 accumulated PV and 7525 to 30,024 accumulated GV
  • Associate Supervisor – generate 1201 to 2700 accumulated PV and 30,025 to 67,524 accumulated GV
  • Deputy Supervisor – generate 2701 to 4500 accumulated PV and 67,525 to 112,524 accumulated GV
  • Supervisor – generate 4501 to 6000 accumulated PV and 112,525 to 150,024 accumulated GV
  • Director (initial qualification) – generate over 6000 accumulated PV and 150,025 accumulated GV, or generate 4800 PV and 120,000 GV in a single month
  • Director (monthly qualification) – maintain 600 PV a month, generate and maintain 1240 PGBV a month and 31,250 GV a month
  • Senior Director – recruit and maintain one Director and generate 600 PV and 27,500 PGBV a month
  • Executive Director – recruit and maintain two Directors, maintain 600 PV a month and generate 22,500 PGBV a month
  • Senior Executive Director – recruit and maintain three Directors, maintain 600 PV a month and generate 15,000 PGBV a month
  • Platinum Director – recruit and maintain four Directors, maintain 600 PV a month and generate 7500 PGBV a month
  • Presidential Director – recruit and maintain six Directors and maintain 600 PV a month
  • Crown Diamond Director – recruit and maintain eight Directors and maintain 600 PV a month
  • Royal Black Diamond Director – recruit and maintain eleven Directors and maintain 600 PV a month
  • Global Black Diamond Director – recruit and maintain fourteen Directors and maintain 600 PV a month

PV stands for “Personal Volume” and is sales volume generated by retail orders and an affiliate’s own purchases.

GV stands for “Group Volume” and is PV generated by an affiliate and their entire downline.

PGBV stands for “Personal Group Bonus Volume” and counts an affiliate’s PV and that of their personally recruited affiliates only.

Retail Commissions

ModiCare pays up to 20% commissions on retail customer product orders.

Retail commissions are paid out as the difference between the wholesale cost and retail price of products ordered.

Accumulated Performance Bonus

The Accumulated Performance Bonus pays on sales volume generated by a ModiCare affiliate and their personally recruited affiliates (PGBV).

  • Consultants receive a 7% Accumulated Performance Bonus
  • Senior Consultants receive a 10% Accumulated Performance Bonus
  • Associate Supervisors receive a 13% Accumulated Performance Bonus
  • Deputy Supervisors receive a 16% Accumulated Performance Bonus
  • Supervisors receive a 19% Accumulated Performance Bonus
  • Directors receive a 22% Accumulated Performance Bonus

The Accumulated Performance Bonus is first calculated by tallying up PV generated by an affiliate and their personally recruited affiliates.

The recruited affiliates are paid their share based on rank, with the difference leftover paid to the qualifying affiliate.

If a Consultant generates 240 PV and 6000 GV (accumulated) in a single month, they receive a 10% Performance Bonus rate for that month.

Director Bonus

ModiCare takes 14% of company-wide sales volume each month and places it into the Director Bonus pool.

The Director Bonus is 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.

Within the unilevel team, generations are defined when a Director or higher ranked affiliate is found in a unilevel team leg.

These affiliates cap off each generation, with lower ranked affiliates in between making up the different generations.

If there is an open-ended generation in a unilevel team leg (e.g. an affiliate is qualified to earn on up to three generations per leg but there are only two), that generation runs the full depth of the leg.

Using this generational structure, ModiCare calculates Director Bonus pool points within the unilevel team each month.

  • Directors’ points are calculated as 6% of their own PV
  • Senior Directors’ points are calculated as 6% of their own PV, 5% of first generations and 4% of second generations
  • Executive Directors’ points are calculated as 6% of their own PV, 5% of first generations, 4% of second generations and 3% of third generations
  • Senior Executive Directors’ points are calculated as 6% of their own PV, 5% of first generations, 4% of second generations, 3% of third generations and 2% of fourth generations
  • Platinum Directors’ points are calculated as 6% of their own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations and 1% of fifth generations
  • Presidential Directors’ points are calculated as 6% of their own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth generations
  • Crown Diamond Directors’ points are calculated as 6% of their own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth and seventh generations
  • Royal Black Diamond Directors’ points are calculated as 6% of their own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth to eighth seventh generations
  • Global Black Diamond Directors’ points are calculated as 6% of their own PV, 5% of first generations, 4% of second generations, 3% of third generations, 2% of fourth generations, 1% of fifth generations and 0.5% of sixth to ninth generations

Again, generations are calculated in each unilevel team leg independent of the other legs.

Once the Director Bonus pool point balance has been tallied up for all qualified affiliates, ModiCare splits the 14% set aside sales volume and pays it out.

Given the dynamic calculations involved, the Director Bonus payouts will differ from month to month.

Leadership Productivity Bonus

ModiCare takes 15% of company-wide sales volume each month and places it into the Leadership Productivity Bonus pool.

Senior Directors qualify for a share of the Leadership Productivity Bonus, using the same points system the Director Bonus is paid out with (see above).

Leadership Productivity Bonus generations are based on the number of Senior Directors in a unilevel team leg.

How many generations are used to calculate ModiCare affiliate’s Leadership Productivity Bonus point balance is based on how many Senior Director legs they have in their downline.

  • Senior Directors with one Senior Director leg count 5% of their PV and 5% from one generation per leg
  • Executive Directors with two Senior Director legs count 5% of their own PV and 5% on up to two generations per leg
  • Senior Executive Directors with three Senior Director legs count 5% of their own PV and 5% on up to three generations per leg
  • Platinum Directors with four Senior Director legs count 5% of their own PV, 5% on three generations and 4% on a fourth per leg
  • Presidential Directors with six Senior Director legs count 5% of their own PV, 5% on three generations, 4% on a fourth and 3% on a fifth per leg
  • Crown Diamond Directors with eight Senior Director legs count 5% of their own PV, 5% on three generations, 4% on a fourth, 3% on a fifth and 2% on a sixth
  • Royal Black Diamond Directors with eleven Senior Director legs count 5% of their own PV, 5% on three generations, 4% on a fourth, 3% on a fifth, 2% on a sixth and 1% on a seventh
  • Global Black Diamond Directors with fourteen Senior Director legs count 5% of their own PV, 5% on three generations, 4% on a fourth, 3% on a fifth, 2% on a sixth, 1% on a seventh and 0.5% on an eighth

Senior Director legs only count if the legs are generation 90,000 GV a month.

Once points are tallied up across all qualifying Senior Director and higher affiliates, ModiCare splits the Leadership Productivity Bonus pool accordingly.

As with the Director Bonus, the Leadership Productivity Bonus point value payout will vary from month to month.

Outbound Travel Fund

ModiCare takes 3% of company-wide sales volume each month and places it into the Outbound Travel Fund.

The Outbound Travel Fund is used to contribute towards company-organized travel incentives.

Senior Director and higher ranked affiliates qualify for a share in the Outbound Travel Fund, which is calculated using Director Bonus points (see above).

Dream Vehicle Fund

ModiCare takes 5% of company-wide sales volume each month and places it into the Dream Vehicle Fund.

The Dream Vehicle Fund is put towards the purchase of a vehicle pre-approved by ModiCare (new cars and two-wheelers with a value of at least Rs. 50,000 are eligible).

Senior Executive Director and higher ranked affiliates qualify for a share in the Dream Vehicle Fund, from the fourth month of continued rank qualification.

The Dream Vehicle Fund is calculated using Director Bonus points (see above).

The monthly Dream Vehicle Fund payout per affiliate is capped at Rs. 100,000.

Dream Home Fund

ModiCare takes 3% of company-wide sales volume each month and places it into the Dream Home Fund.

The Dream Home Fund is put towards the purchase of a home. Although not explicitly clarified in ModiCare’s compensation plan, I take this to mean mortgage payments.

Presidential Director and higher ranked affiliates qualify for a share in the Dream Home Fund, from the frouth month of continued rank qualification.

The Dream Home Fund is calculated using Director Bonus points (see above).

The monthly Dream Home Fund payout per affiliate is capped at Rs. 120,000.

Joining ModiCare

ModiCare does not disclose affiliate membership costs on its website.

I attempted to initiate the sign up process to see if costs were disclosed, however ModiCare demands several layers of personal information.

My own research revealed claims that ModiCare didn’t cost anything to join, however I was unable to independently verify.

What I can state is that it appears ModiCare affiliates are expected to purchase products each month.

This caps out at 600 PV a month from Director. Unfortunately I don’t have a 600 PV to Rs. equivalent.

Conclusion

The primary focus of ModiCare’s MLM opportunity is sign up, purchase products and then recruit others who do the same.

Retail is possible but I’m not convinced it’s viable. Not necessarily from a cost perspective, but rather a company-wide focus.

ModiCare’s compensation plan tells new affiliates:

Confidence comes by doing things yourself. Hence it’s important that you first become a 100% self user of ModiCare products and replace all your current products in your home with ModiCare products.

This makes self-consumption sound optional (albeit strong recommended).

Later in the compensation documentation however, mandatory ModiCare affiliate purchases are referenced:

To qualify for performance bonus, a consultant should do a minimum personal purchase of 300 PV till the end of Supervisor and at least 600 PV from Director level onwards.

If in any case a consultant fails to make the required minimum personal purchase, the Accumulative Performance Bonus earned in that month is carried forward and is released in the month the distributor makes the required minimum personal purchase.

Outside of mentioning retail commissions in one section, anywhere else PV comes up it appears to be self-purchase.

Self-consumption in MLM companies isn’t an issue in and of itself. It becomes an issue when it’s the primary source of revenue generation company-wide.

This happens at the expense of retail sales. An MLM company generating the bulk of revenue internally operates as a pyramid scheme.

I can’t confirm this is happening within ModiCare, but mandatory affiliate purchases at the specific required monthly PV amount doesn’t inspire confidence.

Despite retail appearing to not be a company-wide focus, ModiCare does have a decent refund policy:

If a Customer is not completely satisfied, he/she may return the product to the Modicare Consultant for a 100% refund for the product within 7 days of original purchase.

A Modicare Consultant can return such products back to the company within 30 days of its purchase.

The Product Refund Policy is applicable on saleable products as well as partially used products, wherein not more than 25% of the product has been used.

I’m assuming that also applies to recruited affiliate purchases, although I imagine upline pressure is probably high against doing so.

ModiCare don’t disclose company-wide retail sales volume. And lack of disclosure is a recurring theme.

ModiCare has named its compensation plan the “Samir Modi Azadi Plan”. It is taglined with the promise of “financial azadi for every Indian”.

Azadi, if you’re not familiar with the term, is Persian for “freedom or liberty”.

Albeit in a different language, this is the common “financial freedom” MLM marketing phrase.

Given ModiCare has been around since 1996, surely after almost a quarter of a decade the company has been able to delivery on this promise?

I couldn’t find an Income Disclosure Statement anywhere on ModiCare’s website to verify.

Income Disclosure Statements are pretty common throughout the MLM industry, so it’s odd ModiCare doesn’t provide one.

The company is literally marketing itself on the premise of financial freedom, surely they have the figures to back up that claim?

One other oddity with ModiCare’s compensation plan was reduced volume requirements through rank progression.

Typically one should expect increased volume production (both retail and recruited affiliate) through rank progression.

In ModiCare however required rank volume decrease as you get higher, down to just requiring 600 PV a month.

This gives the impression that success within the company is found by maintain a 600 PV product order, and palming off recruitment to your downline at a certain point.

You recruited them, they’re spending 600 PV or more a month. Now it’s up to them to get out there and recruit affiliates who also spend 600 PV or more a month.

Setting retail volume quotas would go a long way to ensure retail sales are actually being made. Better still an annual Income Disclosure Statement revealing a specific company-wide retail revenue percentage, against affiliate purchases.

Of course if these numbers aren’t favorable, I can see why they’re not provided.

What this means for you as a prospective ModiCare affiliate is you’re most likely going to be recruiting to build your business.

If after twenty-four years retail sales are not a viable way to build ModiCare, then there’s a problem with the opportunity itself.

You should be able to verify this by asking your potential upline how much of their monthly PV rank requirement is their own purchases.

If it’s all or most of it, that affiliate is running their ModiCare as a pyramid scheme.

If this is widespread throughout the company, then as a whole ModiCare is operating as a pyramid scheme.

On the chance you do find an upline who is actively building their ModiCare business through retail, your next step is evaluating the products themselves.

To their credit ModiCare provide a full product catalog on their website, so comparison is straight-forward.

I’m not going to provide any examples because I’m not familiar with the Indian consumer market. Do your own research and evaluate for yourself whether ModiCare’s products are competitive at a retail level.

If they are, trial the “replace your shopping with our products” concept before committing.

Price isn’t the only factor to consider here. The products themselves have to be up to scratch for someone not interested in the MLM opportunity.

Approach with caution.