Multisure Review: Legal and funeral insurance with pyramid recruitment
Multisure claim to be a ‘dynamic 100% South African “born and bred” company started in the year 2000.‘
Denton Goodford is the Managing Director of Multisure, and credited as the company’s “face, head and heart”.
According to Goodford’s Multisure corporate bio, he’s an
ex State Prosecutor and practising Advocate of the High Court of SA.
Denton started MultiSure in 2000, seeing the need in South African for legal cover with a difference.
His vision is to empower others and so he decided to create Multisure as a network marketing business to allow many people to benefit from the business and work towards their own financial freedom.
Goodford doesn’t appear to have an MLM history prior to founding Multisure.
Read on for a full review of the Multisure MLM opportunity.
Multisure market two insurance products, legal and funeral cover.
We have combined two affordable and in-demand financial Products with a Business Opportunity which anyone irrespective of background, education and experience can make use of.
- Legal Assist – “we will provide you with legal advice and assistance when you need it most”, starts at R68 ZAR a month ($5 USD) and increases by 10% annually
- Funeral Assist – “provides you and your family with protection against high funeral expenses in the case of your own death or that of a family member”, starts at R30 ZAR a month for R3000 ZAR singles cover and goes up to R295 ZAR a month for R20,000 ZAR family cover
Full policy details are available on the Multisure website.
Multisure appear to offer their insurance products themselves. The company is a South African Authorised Financial Services Provider (FSP no: 21043).
The Multisure Compensation Plan
Multisure affiliates are paid to recruit new affiliates, with commissions paid out 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.
Multisure cap payable unilevel commissions at four.
Multisure affiliates are paid recruitment commissions down three levels of recruitment in their unilevel team:
- level 1 (personally recruited affiliates) – R50 ZAR ($3.65 USD)
- levels 2 and 3 – R20 ZAR ($1.45 USD)
Insurance Premium Commissions
Multisure pay an 18% commission on insurance premiums paid down four levels of the unilevel team.
The compensation plan documentation states this percentage can increase, but provides no additional information.
Multisure affiliate membership is R110 ZAR ($8 USD).
In order to participate in the Multisure income opportunity, affiliates must also sign up for at least one insurance plan (R30 to R295 ZAR a month).
An additional R120 ZAR fee is charged for each insurance plan a Multisure affiliate signs up for ($8.77 USD).
Multisure operates as a service-based pyramid scheme, with 100% of commissions paid on the recruitment of new affiliates.
Multisure themselves don’t seem too concerned about this, openly advertising they pay commissions on recruitment:
MULTISURE pays a very generous commission to members who recruit others.
Get others to Join Once and Earn Forever – as long as they pay their monthly premiums!
The company also provides a calculator on their website. Estimated affiliate recruitment numbers can be plugged in and the calculator spits out projected income over the next twelve months.
And there’s not even the level of *winkwink nudgenudge* pseudo-compliance one would expect from a recruitment-based MLM company these days.
Here’s how Multisure recommend new affiliates “become an independent Multisure consultant”;
You subscribe to at least one of our products yourself, either LegalSure or FuniSure or both (you can click on Join Now).
From thereon we show you how to effectively market those exact same products to others as well as show them how to set up their own businesses as part of your team.
Requiring affiliates sign up for an insurance premium is “pay to play”. This in turn reduces the Multisure MLM opportunity to signing up as an affiliate, paying a monthly fee and getting paid to recruit other affiliates who do the same.
Unfortunately this negates any value derived from Multisure’s insurance products, reducing them to irrelevant services attached to pyramid fraud.
As with all pyramid schemes, once affiliate recruitment drops off those at the bottom of the Multisure pyramid will cease paying monthly fees.
This will see those above them stop getting paid. If lost affiliates are not replaced, eventually those affiliates will stop paying their monthly fees too.
As this effect trickles far enough up the Multisure affiliate-base, eventually an irreversible collapse is triggered.
Addressing this compliance red flag would be as simple as introducing retail insurance premium sales and requiring at a minimum a 1:1 match with recruited affiliate sales.
Till then, Multisure’s MLM business opportunity operates as a “house of cards” ready to collapse at any moment.