myEcon Review: Third-party products and services & recruitment
myEcon dub themselves the “personal financial success company” and are based out of Atlanta in the US.
Founded in 2005, myEcon is headed up by CEO Larry Gates.
As per Gates’ myEcon corporate bio, he has
20 years of experience in communications, marketing and business operations.
Mr. Gates also has great people skills having spent several years in the financial services industry.
Further research reveals a 2009 blog post by Michael J Smith names Ivey Stokes and Alvin Curry as the original founders of myEcon.
Alvin Curry cites himself as Owner and President of myEcon on his LinkedIn profile. Ivey Stokes cites himself as Executive Vice-President.
Curiously, neither Curry or Stokes are credited by name on the myEcon website.
myEcon, Inc. is a privately held, debt free company based in Gwinnett County, GA, a suburb of Atlanta. The company was founded by a small group of entrepreneurs in 2005.
One possible reason is prior to launching myEcon, Ivey Stokes and Alvin Curry were respectively Chairman and CEO of Maxxis Group.
Maxxis Group, an MLM company launched in 1998, filed for Chapter 7 bankruptcy in 2003.
In 2006, Curry and Stokes were listed as defendants in litigation brought by the appointed Chapter 7 trustee in Maxxis bankruptcy hearings.
Apparently, based on the court document, the trustee sued Stokes, Curry and others for breaching their fiduciary duty, for corporate waste and deepening the insolvency of Maxxis.
In other words, they didn’t act in the best interests of the company.
Larry Gates was a member of Maxxis Group’s Board of Directors and owned shares in the company.
On October 1st 2016 myEcon and Novae merged together.
As per a press-release issued on September 30th;
myEcon and Novae’s executive teams will begin efforts to blend corporate leadership.
Over the next several months, the companies will continue to take steps to integrate systems, marketing, organizations, and culture to create a huge conglomerate that will change the lives of millions across the country.
Read on for a full review of the myEcon MLM opportunity.
The myEcon Product Line
myEcon’s Financial Success Membership includes a Cashflow Manager Software, Identity Theft Protection, Free & Discounted Legal Services, Tax Advice Service & Preparation, and Identity Theft Prevention.
Novae will add Novae Perks, Novae Library, and Novae Travel to this membership and at no additional cost to current myEcon and Novae IBOs
Whereas most of Novae’s products were bundled with “Lifestyle Package” subscriptions, individual retail pricing is provided on the myEcon website:
- ID Defender – $7.99 a month
- Road Assure roadside assistance – $7.99 a month
- Cash Flow Manager – $10.95 a month
- Credit Restoration – $99.95 to set up and then $99.95 every three months
- Family Shield 360 – starts at $13.95 a month
- Cashback Mall (third-party cashback affiliate network) – no cost
- Travel Portal – no cost, redirects to Priceline travel portal
- Daily Ultimate (“liquid multi-vitamin mineral supplement”) – $36.95 a bottle
- Aloe Gano Black Coffee – $16.49 a box
- Aloe Gano Green Tea – $16.99 a box
- Aloe Gano Rooibos Tea – $16.99 a box
- Body One MSM (Methylsulfonylmethane (sulfur) supplement) – $19.95 a bottle
- MSM Lotion (organic sulfur skin lotion) – $24.95 for two 10 fl oz bottles (295 ml)
Novae’s Sprayology products have also been added to the myEcon product range.
The myEcon Compensation Plan
myEcon do not provide a copy of their compensation plan on the company website.
The following analysis is based off a myEcon compensation plan document dated March, 2016.
myEcon Affiliate Ranks
There are six ranks within the myEcon compensation plan.
Along with their respective qualification criteria, they are as follows:
Sales Associate (no MLM Commissions)
- pay $80 and then $10 a month
- pay $179.95 and then $34.95 a month or
- upgrade from Sales Associate for $99.95 and then $34.95 a month or
- sign up as a Sales Associate and generate 100 PV a month in sales
Executive Vice President
- sign up as a Marketing Director and recruit two Managing Director affiliates or
- sign up as a Marketing Director and generate at least 200 PV
Executive Vice President Gold
- have thirty fee-paying affiliates in your baseshop downline (no more than 12 counted in any one generation leg)
Executive Vice President Platinum
- have 200 fee-paying affiliates in your baseshop downline (no more than 50 counted in any one generation leg)
Executive Vice President Infinity
- have 800 fee-paying affiliates in your baseshop downline (no more than 160 counted in any one generation leg)
A baseshop is a myEcon affiliate’s frontline affiliates. Each recruited non-Executive Vice President is placed in a baseshop.
Once that affiliate recruits two new affiliates (which are placed in their upline’s baseshop), they qualify as an Executive Vice President and are removed from their upline’s baseshop.
Executive Vice President affiliates must have to personally recruited affiliates who pay monthly fees in order to qualify for commissions.
Marketing Director affiliates are paid $25 per affiliate they recruit into myEcon.
Any commissions generated by an affiliate’s first two recruited affiliates are passed up to their upline.
Executive Vice President affiliates earn $50 per affiliate they recruit.
The affiliate who recruited them earns a $25 override commission. They also earn 50% of recruitment commissions earned by personally recruited affiliates.
Note that after an affiliate has recruited two affiliates, they are removed from what is referred to the “baseshop” of the affiliate who recruited them.
Once a recruited affiliate has qualified as an Executive Vice President and been removed from their upline’s baseshop, any affiliates they recruit generate a $5 to $30 commission for their upline:
- Executive Vice President affiliates earn $5
- Executive Vice President Gold affiliates earn $15
- Executive Vice President Platinum affiliates earn $25
- Executive Vice President Infinity affiliates earn $30
Finally, each time a myEcon affiliate’s downline grows by seven people, they are paid a $1000 bonus (subject to affiliate retention rates).
Residual Recruitment Commissions
- Executive Vice Presidents earn $1 per month per affiliate down four Executive Vice President generations
- Executive Vice President Golds earn $3 per month per affiliate down five Executive Vice President generations
- Executive Vice President Platinums earn $5 per month per affiliate down five Executive Vice President generations
- Executive Vice President Infinitys earn $8 per month per affiliate down an infinite number of Executive Vice President generations
Sales Associate and Marketing Director = 15%
Executive Vice President = 25% direct, 10% of sales generated by their SA and MD affiliates
myEcon affiliate membership is tied to the purchase of an affiliate package:
- Sales Associate – $80 and then $10 a month (no cashflow manager)
- Marketing Director – $179.95 and then $34.95 a month
The primary difference between these two memberships is income potential through the myEcon compensation plan.
As is typical of MLM companies that sell third-party products and services, myEcon’s compensation plan is confusing. And when you do get your head around it, you’re still left with a headache.
Having gone over myEcon compensation plan documents and multiple affiliate presentations, the gist of the plan is recruit three affiliates (to qualify as an Executive Vice President) and then focus on those in your downline recruiting three affiliates.
Each time a downline affiliate qualifies as an Executive Vice President, you’re left with two affiliates in your baseshop.
Your baseshop is pretty much what myEcon affiliates focus on growing, which happens as downline affiliates qualify as Executive Vice Presidents.
The problem with all of this is that it occurs at the expense of retail sales activity.
While retail sales are possible, the myEcon compensation plan is heavily focused on affiliate recruitment. This is reflected in affiliate presentations of the compensation plan, which place exclusive focus on growing an affiliate’s baseshop.
myEcon products appear to exist solely as commission qualifiers, to satisfy minimum monthly PV requirements.
These requirements could be met via retail sales but that seems unlikely, given how myEcon is marketed and that no retail sales volume is required.
As to the third-party products and services attached to myEcon’s opportunity, they might be mentioned to pique initial interest but after an affiliate is committed to monthly fees are not important.
Use them, don’t use them – just don’t forget to pay your myEcon monthly affiliate fee (which provides access to most of the services).
With respect to the merger with Novae, the similarities between Novae and myEcon are pretty obvious.
Novae affiliates pretty much paid $99.95 a month and focused on recruiting other affiliates who did the same.
myEcon has a lower monthly subscription but otherwise the same recruitment focus.
Alexa traffic estimates for the Novae website suggest a decline over the past year. This is not healthy for an MLM opportunity reliant on affiliate recruitment.
myEcon traffic rose earlier in the year but has been in decline since July, albeit not as drastic as Novae’s decline.
That explains why Novae is being rolled into myEcon and not vice-versa.
The bottom-line for you as a myEcon affiliate is to ascertain whether your potential upline has any retail activity in their personal business.
If they’re income is primarily derived from recruitment (either directly or indirectly), myEcon is operating as a product-based pyramid scheme.
As with all such schemes, once recruitment dwindles beyond the point of no return the scheme collapses.