Provizion Global Review: Autoship pyramid scheme with retail?
Provizion Global operates in the nutritional supplement MLM niche.
Provizion Global is part of LaCore Enterprises. Both companies are based out of Texas and owned by Terry LaCore.
Heading up Provizion Global is CEO Rick S. Nelson (right).
As per Nelson’s Provizion Global corporate bio;
Rick is a direct selling enthusiast and an international business development expert in a career spanning more than 25 years operating in major markets around the world.
His experience includes 12 years residing and working in South Korea and recent projects in the People’s Republic of China, both top revenue markets in direct selling.
MLM companies doing business in China is routinely associated with bribery and corruption.
- Avon copped a $135 million fine in 2014
- Nu Skin copped a $765,688 fine in 2016 (they also paid out $47 million in a related class-action)
- Herbalife copped a $122 million fine in 2020 and two former executives were indicted in July 2022
- Ariix dragged NewAge into bankruptcy and is the subject of an ongoing federal FCPA investigation
Nelson appears to have began his MLM executive career with Nu Skin back in 1989.
In 1995 Nelson was promoted to Director of Corporate Affairs for Nu Skin Korea. In 1998 Nelson was again promoted to Director of Business Development.
Nelson held the role for nine years. He finished up with a brief stint as Director of Market Development & Support for Nu Skin’s Photomax service, ending in November 2007.
During his time at Nu Skin, Nelson claims he
participated in building Nu Skin from a US and Canada only company in 1989 to launching a major Asia Pacific market successfully.
Nelson additionally claims he’s
experienced in complex mainland China business integration. Business relationship, cultural adaptation, systems, process and execution expertise.
I can’t confirm whether Nelson had a role in Nu Skin’s shenanigans in China (or let’s face it, any other MLM company operating in China).
In July 2008 Nelson signed on as Vice President of Business Development as Max International.
Nelson held the role till February 2013, after which he signed up as Vice President of International Development for Univera.
Nelson’s tenure at Univera was relatively short, ending in October 2014.
From 2014 Nelson appears to have focused on introducing businesses to Chinese, Korean and Russian markets through Rick S. Nelson and Associates.
That brings us to Provizion Global’s launch in late 2020.
Read on for a full review of Provizion Global’s MLM opportunity.
Provizion Global’s Products
Provizion Global markets two nutritional supplements; Provizion GSH and Provision Energy.
- Provizion GSH – “a proprietary blend of 22 complimentary ingredients that empowers your body to protect and repair itself at the cellular level”, retails at $69 for a bottle of 60 capsules
- Provizion Energy – “a Peak Performance Concentrated Drink that provides energy, strength and focus”, retails at $119 for 20 servings
Both of Provizion Global’s products are manufactured in house at LaCore Labs.
Provizion Global’s Compensation Plan
Provizion Global’s compensation plan pays on sales to retail customers. Residual commissions are paid via a binary, along with a Matching Bonus via unilevel team generations.
Additional rank specific performance bonuses are also available.
Provizion Global Affiliate Ranks
There are fourteen affiliate ranks within Provizion Global’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- IBO – sign up as a Provizion Global affiliate
- Team Builder – generate and maintain 50 PV and 200 GV in weaker binary team side volume over a rolling four-week period
- Area Team Builder – generate and maintain 100 PV over a rolling four-week period, refer and maintain one retail customer, and generate and maintain 1500 and 2000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 1500 GV from any one recruitment leg)
- Regional Team Builder – maintain 100 PV over a rolling four-week period and one retail customer, and generate and maintain 3000 and 4000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 3000 GV from any one recruitment leg)
- National Team Builder – maintain 100 PV over a rolling four-week period and one retail customer, and generate and maintain 5000 and 7000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 5000 GV from any one recruitment leg)
- Director – maintain 100 PV over a rolling four-week period, refer and maintain two retail customers, and generate and maintain 7000 and 10,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 7000 GV from any one recruitment leg)
- Area Director – maintain 100 PV over a rolling four-week period and two retail customers, and generate and maintain 10,000 and 15,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 10,000 GV from any one recruitment leg)
- Regional Director – maintain 100 PV over a rolling four-week period and two retail customers, and generate and maintain 13,000 and 20,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 13,000 GV from any one recruitment leg)
- National Director – maintain 100 PV over a rolling four-week period and two retail customers, and generate and maintain 15,000 and 30,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 15,000 GV from any one recruitment leg)
- Executive – maintain 100 PV over a rolling four-week period, refer and maintain four retail customers, and generate and maintain 20,000 and 50,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 20,000 GV from any one recruitment leg)
- Area Executive – maintain 100 PV over a rolling four-week period and four retail customers, and generate and maintain 25,000 and 75,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 25,000 GV from any one recruitment leg)
- Regional Executive – maintain 100 PV over a rolling four-week period and four retail customers, and generate and maintain 50,000 and 150,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 50,000 GV from any one recruitment leg)
- National Executive – maintain 100 PV over a rolling four-week period and four retail customers, and generate and maintain 100,000 and 300,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 100,000 GV from any one recruitment leg)
- Ambassador – maintain 100 PV over a rolling four-week period, refer and maintain eight retail customers, and generate and maintain 125,000 and 500,000 GV in weaker and stronger binary team side volume over a rolling four-week period (capped at 125,000 GV from any one recruitment leg)
PV stands for “Personal Volume”. PV is sales volume generated by retail customer orders and a Provizion Global affiliate’s own purchases.
GV stands for “Group Volume”. GV is PV generated by a Provizion Global affiliate and their downline.
Note that in order to count towards rank qualification, retail customers must have purchased at least 50 PV of product over a rolling four-week period.
Retail Commissions
Provizion Global affiliates earn retail commissions on the sale of products to retail customers.
- a 20% commission is paid on online retail sales orders
- a 40% commission is paid on offline retail sales orders
Sponsor Commissions
A 10% Sponsor Commission is paid on product orders by personally referred preferred customers and recruited affiliates.
Preferred customers are retail customers who have agreed to sign up for autoship in exchange for a discount.
Note that after the first year, in order to qualify for Sponsor Commissions a Provizion Global affiliate must order 600 PV worth of product annually.
Residual Commissions
Provizion Global pays residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each week Provizion Global tallies up new sales volume on both sides of the binary team.
A 10% residual commission is paid on weaker binary team side sales volume.
Note that residual commissions are subject to an earnings cap (see “Residual and Matching Bonus Earnings Cap” below).
Matching Bonus
Provizion Global pays a Matching Bonus on residual commissions earned by downline affiliates.
The Matching Bonus is 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.
The Matching Bonus is tracked and paid via Area Team Builder generations.
The first Area Team Builder or higher in a unilevel team leg caps off the first Matching Bonus generation for that leg. The second generation of that leg begins immediately below them.
If a second Area Team Builder or higher exists deeper in the leg, they cap off the second generation, with the third beginning immediately below them.
If there are no Area Team Builders or higher deeper in the leg, the second generation extends down the full depth of the leg.
Using this generational structure, Provision Global pays the Matching Bonus on up to ten generations based on rank:
- Directors earn the Matching Bonus on up to one generation per unilevel team leg
- Area Directors earn the Matching Bonus on up to two generations per unilevel team leg
- Regional Directors earn the Matching Bonus on up to three generations per unilevel team leg
- National Directors earn the Matching Bonus on up to four generations per unilevel team leg
- Executives earn the Matching Bonus on up to five generations per unilevel team leg
- Area Executives earn the Matching Bonus on up to six generations per unilevel team leg
- Regional Executives earn the Matching Bonus on up to seven generations per unilevel team leg
- National Executives earn the Matching Bonus on up to eight generations per unilevel team leg
- Ambassadors earn the Matching Bonus on up to ten generations per unilevel team leg
Note that the Matching Bonus is subject to an earnings cap (see “Residual and Matching Bonus Earnings Cap” below).
Residual and Matching Bonus Earnings Cap
Provizion Global caps residual commissions and the Matching Bonus weekly based on rank:
- Team Builders can earn up to $500
- Area Team Builders can earn up to $1000
- Regional Team Builders can earn up to $1500
- National Team Builders can earn up to $3000
- Directors can earn up to $4000
- Area Directors can earn up to $6000
- Regional Directors can earn up to $8000
- National Directors can earn up to $10,000
- Executives can earn up to $20,000
- Area Executives can earn up to $25,000
- Regional Executives can earn up to $50,000
- National Executives can earn up to $100,000
- Ambassadors have no residual commission and Matching Bonus cap
Of the capped amount, up to $20,000 can be earned as residual commissions.
Presumably this is at the National Executive rank. Provizion Global don’t provide rank-specific residual commission caps.
Rank Achievement Bonus
Provizion Global rewards affiliates who qualify at Team Builder and higher with a one-time Rank Achievement Bonus:
- qualify at Team Builder and receive $25
- qualify at Area Team Builder and receive $50
- qualify at Regional Team Builder and receive $100
- qualify at National Team Builder and receive $200
- qualify at Director and receive $1000
- qualify at Area Director and receive $2000
- qualify at Regional Director and receive $4000, paid out over 2 eight-week cycles
- qualify at National Director and receive $6000, paid out over 3 eight-week cycles
- qualify at Executive and receive $10,000, paid out over 4 eight-week cycles
- qualify at Area Executive and receive $20,000, paid out over 4 eight-week cycles
- qualify at Regional Executive and receive $50,000, paid out over 5 eight-week cycles
- qualify at National Executive and receive $100,000, paid out over 5 eight-week cycles
- qualify at Ambassador and receive $250,000, paid out over 10 eight-week cycles
Note that for Regional Director and higher, rank must be maintained over the eight-week cycle range to get the full bonus.
Lifestyle Bonus
Provizion Global rewards Team Builder to National Director ranked affiliates with a monthly Lifestyle Bonus:
- qualify at Team Builder and receive $25 a month
- qualify at Area Team Builder and receive $50 a month
- qualify at Regional Team Builder and receive $100 a month
- qualify at National Team Builder and receive $200 a month
- qualify at Director and receive $400 a month
- qualify at Area Director and receive $600 a month
- qualify at Regional Director and receive $800 a month
- qualify at National Director and receive $1000 a month
Executives and higher receive the Leadership Bonus in lieu of the Lifestyle Bonus (see “Leadership Bonus” below).
Leadership Bonus
Provizion Global takes 3% of weekly company-wide sales volume and places it into the Leadership Bonus.
Executive and higher ranked affiliates receive shares in the Leadership Bonus based on rank:
- Executives receive one share
- Area Executives receive two shares
- Regional Executives receive four shares
- National Executives receive six shares
- Ambassadors receive ten shares
Additionally, every week Provizion Global selects one preferred customer and Team Builder or lower ranked affiliate to receive one share in the Leadership Bonus.
To qualify the preferred customer and Team Builder or lower ranked affiliate must have either ordered or generated 100 PV in orders over a rolling four-week period for 12 consecutive weeks.
Note that selected preferred customers receive product credit in lieu of a monetary bonus.
Additional Rewards
Provizion Global’s compensation plan states the company
may offer additional awards, such as: mobile phones; tablets; computers; leadership dinners, automobiles; special executive trainings; free registration, travel & lodging for out global & regional conventions; vacations; leadership summits.
No specific qualification information is provided.
Joining Provizion Global
Provizion Global affiliate membership is free.
Provizion Global Conclusion
The weakest part of Provizion Global’s MLM opportunity is its products.
Provizion GSH is essentially a N-Acetyl-L-Cysteine (NAC) and glutathione supplement. It has a bunch of other stuff in it but those are the key ingredients.
Supplements containing NAC are an ongoing regulatory concern in the US. Till the FDA decides otherwise, it is currently illegal to include NAC in dietary supplements (this process is under review).
Glutathione is a common supplement and is readily available everywhere in a bajillion different configurations, most of which are cheaper than Provizion GSH.
LaCore Enterprises recently launched Elomir, whose flagship product is a NAC strip. Unlike Elomir, Provizion Global seems to have kept any outrageous medical marketing claims in check.
For an energy drink Provizion Energy seems massively overpriced, coming in at $5.95 a serve. Yes Provizion Energy contains glutathione but it’s still marketed as an energy drink.
You’re probably better of getting a far more cheaper glutathione supplement and separating your energy requirements.
Typically when we see an MLM company with products that aren’t retail viable, that lends itself to a pyramid scheme.
Here’s where things get interesting.
For all intents and purposes, Provizion market themselves as an autoship recruitment pyramid scheme.
This begins with Provizion Global’s “444 Success System”:
The 444 Success System features prominently in Provizion Global’s compensation plan, with no details provided. Are those retail customers or recruited affiliates? Why are they each buying 120 capsules of Provizion GSH a month?
Here’s Provizion Global’s description of the “444 strategy”, as featured on their website:
When navigating through our compensation plan, we recommend a 444 strategy, structure and system.
Investing your time and efforts to Invite a minimum of four people a day, for at least four days of the week, and then repeating that same activity for 4 weeks, would mean a minimum of 64 people invited in a single month.
Your goal would be Sponsor 4 serious IBO’s, and support each of these new Microbusiness partners to Sponsor their own 4 IBO’s.
With everyone striving to follow this 444 a profitable microbusiness network can begin to develop.
Yeah, that’s a pyramid scheme.
Attached to Provizion Global’s compensation plan is an earnings table, providing specific dollar amounts per affiliates recruited (click to enlarge):
So Provizion Global is an autoship recruitment pyramid scheme, end of review – right?
Not quite. Well I mean it is but there’s more to examine here.
If you’ve been paying attention, you’ll note Provizion Global’s retail customer requirements. These kick in early on from Area Team Builder.
Oddly enough there’s no mention of retail sales anywhere in the 444 strategy. In fact if you followed the strategy, you’d never make it past the second Team Builder rank.
Which makes the recruitment earnings chart provided above grossly deceptive marketing. You can’t obtain the projected earnings if you follow the 444 strategy.
So what’s going on here?
- Provision Global is lying about retail customer requirements and/or not enforcing them;
- Provision Global is incorrectly counting affiliate autoship as a retail customer order;
- Provision Global is violating the FTC Act by massively misleading potential affiliates with unobtainable income potential via its 444 strategy.
I can’t definitively say which is the case here, but all three possibilities are violations of the FTC Act.
Oddly enough, the FAQ section of Provizion Global’s website states:
What countries is Provizion Global currently doing business in?
We are open to the United States and provide not for resale product service in Australia, New Zealand and Canada.
Provizion Global is dead in all of those countries (outside of early joiners in the US profiting off current business activity).
SimilarWeb’s traffic chart for Provizion Global’s website shows, in June 2022, the company recorded less than 600 visits to its website for the month:
For an MLM company, that’s well into non-profitable territory. Then, seemingly out nowhere, we see in July 2022 traffic exploded – relatively speaking.
Of the ~7000 website visits SimilarWeb tracked in August 2022, 82% is from Nigeria – a country Provizion Global doesn’t claim to be operating in.
How strange.
I think one way or another, Provizion Global is being kept afloat by pyramid scamming Nigerians.
If you try to buy Provizion Global products as a retail customer, you can’t even ship to Nigeria – so I don’t even think recruited Nigerians are receiving anything.
Provizion Global’s Nigerian affiliates appear to just be paying a fee each month. This qualifies them to receive commissions on others paying the same fee.
This is an incredibly poor showing from LaCore Enterprises.
As with all MLM pyramid schemes, once recruitment dries up so too do the commissions.
Math guarantees the majority of participants in a pyramid scheme lose money.
