SmartValue, which also goes by “SVPSL”, is an MLM company based out of Delhi, India.

SmartValue describes itself as “a revolutionary idea that has transcended itself beyond the ordinary”.

SmartValue was founded in 2000. I’ve also seen a 2006 incorporation date, suggesting the company operated informally over its first six years.

Heading up SmartValue is Managing Director Shivakumar Krishnamourthy (also spelt Krishnamoorthy).

I’m not 100% sure but I believe Krishnamourthy might be one of SmartValue’s founders.

In addition to Krishnamourthy, SmartValue currently has two other Board of Directors; Boddu Prasad Reddy and Nirmala Arora.

Despite being around for over two decades, SmartValue don’t really provide an official corporate history on their website. I also wasn’t able to peg down what Krishnamourthy was up to prior to SmartValue.

I suspect some of this might have to do with language-barriers as SmartValue focuses exclusively on the Indian market.

To their credit, SmartValue appear to have dodged any regulatory action since their launch – at least as far as I can see in English.

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

SmartValue’s Products

SmartValue claims it markets “100 + High Quality & Value-for-money products”.

That’s far too many products to list here individually. SmartValue however do provide a full product catalog, with retail pricing, on their website.

Product categories featured on Smart Value’s website include:

  • agriculture
  • BSM (SmartValue marketing materials)
  • edibles

  • educational books & DVDs
  • food and beverages
  • health and wellness

  • home care
  • lifestyle and
  • personal care

SmartValue do not provide manufacturing or country of origin details for any of their products.

Also when I clicked “buy now” on any of SmartValue’s products, I was redirected to another website that appeared to be down. Not sure if that’s a temporary glitch or long-running problem.

SmartValue Compensation Plan

SmartValue’s compensation plan is an unnecessarily complicated and convoluted mess.

I’ve done my best to break it down into as simply format as I can below.

Retail Commissions

SmartValue affiliates earn commissions on the sale of products to retail customers.

Retail commissions are calculated as the difference between the wholesale cost and retail price paid. This amount differs depending on the products purchased.

Sales Incentives

To qualify for Sales Incentives, a SmartValue affiliate must generate 100 miles. This is achieved “based on repeated purchase of products personally by you.”

Miles are based on business volume, however SmartValue doesn’t appear to provide a scale.

The Sales Incentive Plan pays out on miles generated by an affiliate and their downline:

  • generate first 900 miles and receive Rs. 4800
  • every 900 miles generated thereafter, capped at 4500 miles total pays Rs. 4700

SmartValue can also opt to split payouts on their first 900 miles, paying Rs. 1600 per 300 miles generated (so three smaller payments till the first 900 miles are reached).

Anything higher than 4500 miles is paid out 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.

Beyond 4500 miles you’re looking at a 1:2 or 2:1 ratio in miles across the binary team. It doesn’t matter which side is double the other.

Rather than just pay out on miles and be simple, SmartValue introduces a “step rate”.

After the first 4500 miles, the Group Sales Incentives earned by you decreases according to the Step-Rate for the given week.

Step-Rate is the Group Sales Incentives paid for each ‘Step’ of 900 miles.

This varies from week to week, and is set such that the overall sales incentives paid by the company is capped at Rs. 45 per unique Mile of sales.

As I understand it this means, starting from a Rs. 4700 baseline, each step of 900 miles paid out on decreases the commission paid out per matched 2:1 or 1:2 mile across the binary team.

Step rates reset every week. SmartValue states they pay out Rs. 3400 per step, which doesn’t mean much considering

  1. the step rate decreases with each step; and
  2. how many Business Points are in a mile isn’t clarified.

Repurchase Plan

SmartValue affiliates earn Repurchase Plan commissions based on generated Business Points (BV).

Each SmartValue product sale or purchase generates BV. The amount of BV varies depending on what product(s) is/are being sold or purchased.

Once BV is understood, calculating Business Points is straightforward: 12,000 BV = 1 Business Point.

The Repurchase Plan pays commissions via the same binary compensation structure used to pay “Sales Incentives” (see above).

Business Volume is tracked across the binary team, and pays out when either a 1:2 or 2:1 ratio of Business Points is reached.

That is 1 Business Point on one side of the binary team against 2 Business Points on the other. Which side of the binary team has 1 or 2 Business Points doesn’t matter.

Using this qualification criteria, the Repurchase Plan pays Rs. 500 per Business Point, up to 5 Business Points a week (so a 5:10 or 10:5 ratio).

SmartValue states that Business Point 6 to 500 generated in a week “will fall under weekly sales volume”, but don’t elaborate any further.

Flagship Bonus

The Flagship Bonus pays a 10% match on Repurchase Plan income earned by personally recruited affiliates.

Retail Consistency Bonus

To qualify for the Retail Consistency Bonus, a SmartValue affiliate must generate 2 Business Points a week for two consecutive weeks.

The Retail Consistency Bonus pays

  1. “extra income” on up to 5 Business Points generated
  2. a “car fund” from 6 to 50 Business Points generated and
  3. a “house fund” on 51 to 500 Business Points generated.

Specific amounts aren’t provided but I believe the qualification applies over a rolling consecutive three-week period.

Recognition and Rewards

SmartValue’s Recognition and Rewards are a little strange. You have three sets of ranks tied to three “recognition plans”.

Effectively SmartValue has three ranking systems and three Rank Achievement Bonuses, all running independent of each other.

I’ve grouped the ranks and corresponding recognition and rewards below, as well as the required active status criteria.

SmartValue Active Qualification

SmartValue states that active qualification is required to qualify for “rewards and recognition”. This appears to refer to Rank Achievement Bonuses, of which there are three tiers.

As provided by SmartValue, here is the active qualification criteria:

An Associate can be considered Active based on the following criteria:

  • He/She should be actively involved in promoting Products & Services of SVPSL.
  • His/Her membership should be in Active status, while calculating the Recognition plan in that Financial Year.
  • He/She should actively participate in Business Promotional Activities like Plan Shows, Training Seminars, Products Training & Company run Programmes.
  • He/She should promote Business Activities, strictly in compliance with the Code of Conduct of the Company.

Based on the level of involvement in the above activities, Company’s decision is final in ascertaining whether an Associate is Active or not and shall be binding on the Associate.

Recognition Plan 1 Plan Ranks

  • Affiliate – sign up as a SmartValue affiliate
  • Super Smart – generate 8 steps annually
  • Silver – generate 16 steps annually
  • Gold – generare 32 steps annually
  • Platinum – generate 64 steps annually and have 3 Super Smart or higher ranked affiliates in your downline
  • Pearl – generate 100 steps annually and have 6 Super Smart or higher ranked affiliates in your downline
  • Ruby – generate 160 steps annually and have 6 Silver or higher ranked affiliates in your downline
  • Sapphire – generate 260 steps annually and have 9 Silver or higher ranked affiliates in your downline
  • Emerald – generate 400 steps annually and have 12 Silver or higher ranked affiliates in your downline
  • Diamond – generate 650 steps annually and have 12 Gold or higher ranked affiliates in your downline
  • Crown – generate 1000 steps annually and have 9 Platinum or higher ranked affiliates in your downline
  • Prince – generate 1500 steps annually and have 9 Pearl or higher ranked affiliates in your downline
  • Imperial King – generate 2300 steps annually and have 12 Pearl or higher ranked affiliates in your downline
  • Ace Ambassador – generate 3000 steps annually and have 12 Ruby or higher ranked affiliates in your downline
  • Elite Ambassador – generate 4500 steps annually and have 12 Sapphire or higher ranked affiliates in your downline
  • Royal Ambassador – generate 7200 steps annually and have 12 Emerald or higher ranked affiliates in your downline
  • Kings Club – generate 10,000 steps annually and have 9 Diamond or higher ranked affiliates in your downline
  • Emperors Club – generate 14,000 steps annually and have 12 Diamond or higher ranked affiliates in your downline
  • Universe Club – generate 20,000 steps annually and have 12 Crown or higher ranked affiliates in your downline

“Steps” appear to be groupings of 450 miles on each side of a SmartValue affiliate’s binary team.

Recognition Plan 1 Rewards

  • qualify at Super Smart and receive a pin and certificate
  • qualify at Silver through Platinum and receive another pin and certificate, as well as a “momento”
  • qualify at Pearl and receive another pun and certificate, another momento and tickets to a SmartValue seminar
  • qualify at Ruby and receive another pin and certificate, another momento and a “national trip”
  • qualify at Sapphire and receive another pin and certificate, another momento and a 2 nights 3 days trip to Thailand
  • qualify at Emerald and receive another pin and certificate, another momento and another 2 nights 3 days trip to Thailand
  • qualify at Diamond and receive another pin and certificate, another momento and an “exotic location international trip”
  • qualify at Crown to Imperial King and receive another pin and certificate, another momento and another “exotic location international trip”
  • qualify at Ace and Elite Ambassador and receive another pin and certificate, another momento and an “exotic location international trip with spouse”
  • qualify at Royal Ambassador to Universe Club and receive another pin and certificate, another momento and another “exotic location international trip with family”

Recognition Plan 2 Ranks

  • Affiliate – sign up as a SmartValue affiliate
  • Super Smart Plus – generate 8 steps and 16 Business Points annually
  • Silver Plus – generate 16 steps and 36 Business Points annually
  • Gold Plus – generare 32 steps and 72 Business Points annually
  • Platinum Plus – generate 64 steps and 144 Business Points annually and have 3 Super Smart or higher ranked affiliates in your downline
  • Pearl Plus – generate 100 steps and 225 Business Points annually and have 6 Super Smart or higher ranked affiliates in your downline
  • Ruby Plus – generate 160 steps and 360 Business Points annually and have 6 Silver or higher ranked affiliates in your downline
  • Sapphire Plus – generate 260 steps and 585 Business Points annually and have 9 Silver or higher ranked affiliates in your downline
  • Emerald Plus – generate 400 steps and 900 Business Points annually and have 12 Silver or higher ranked affiliates in your downline
  • Diamond Plus – generate 650 steps and 1463 Business Points annually and have 12 Gold or higher ranked affiliates in your downline
  • Crown Plus – generate 1000 steps and 2250 Business Points annually and have 9 Platinum or higher ranked affiliates in your downline
  • Prince Plus – generate 1500 steps and 3375 Business Points annually and have 9 Pearl or higher ranked affiliates in your downline
  • Imperial King Plus – generate 2300 steps and 5175 Business Points annually and have 12 Pearl or higher ranked affiliates in your downline
  • Ace Ambassador Plus – generate 3000 steps and 6750 Business Points annually and have 12 Ruby or higher ranked affiliates in your downline
  • Elite Ambassador Plus – generate 4500 steps and 10,125 Business Points annually and have 12 Sapphire or higher ranked affiliates in your downline
  • Royal Ambassador Plus – generate 7200 steps and 16,200 Business Points annually and have 12 Emerald or higher ranked affiliates in your downline
  • Kings Club Plus – generate 10,000 steps and 22,500 Business Points annually and have 9 Diamond or higher ranked affiliates in your downline
  • Emperors Club Plus – generate 14,000 steps and 31,500 Business Points annually and have 12 Diamond or higher ranked affiliates in your downline
  • Universe Club Plus – generate 20,000 steps and 45,000 Business Points annually and have 12 Crown or higher ranked affiliates in your downline

Recognition Plan 2 Rewards

  • qualify at Super Smart and receive a pin and certificate
  • qualify at Silver through Platinum and receive another pin and certificate, as well as a “momento”
  • qualify at Pearl and receive another pun and certificate, another momento and tickets to a SmartValue seminar
  • qualify at Ruby and receive another pin and certificate, another momento, a “national trip” and “two days retail workshop at Delhi”
  • qualify at Sapphire and receive another pin and certificate, another momento, a 2 nights 3 days trip to Thailand and “two days retail workshop at Delhi”
  • qualify at Emerald and receive another pin and certificate, another momento, another 2 nights 3 days trip to Thailand and “two days retail workshop at Delhi”
  • qualify at Diamond and receive another pin and certificate, another momento, an “exotic location international trip” and “two days retail workshop at Delhi”
  • qualify at Crown to Imperial King and receive another pin and certificate, another momento, another “exotic location international trip” and “two days retail workshop at Delhi”
  • qualify at Ace and Elite Ambassador and receive another pin and certificate, another momento, an “exotic location international trip with spouse” and “two days retail workshop at Delhi”
  • qualify at Royal Ambassador to Universe Club and receive another pin and certificate, another momento, another “exotic location international trip with family” and “two days retail workshop at Delhi”

Recognition Plan 3 Ranks

  • Star Retailer – generate 50 Business Points annually
  • Super Retailer – generate 100 Business Points annually
  • Superstar Retailer – generate 250 Business Points annually
  • Mega Retailer – generate 500 Business Points annually
  • Master Retailer – generate 1300 Business Points annually
  • Champion Retailer – generate 2600 Business Points annually
  • Gem Retailer – generate 5200 Business Points annually

Recognition Plan 3 Rewards

  • qualify at any Recognition Plan 3 rank and receive a pin and certificate and “reward”

As to what “reward” is , no specific information is provided for any of the Recognition Plan 3 ranks.

Joining SmartValue

SmartValue affiliate membership is free.

Note that even though its free, SmartValue affiliates must renew their membership annually.

SmartValue Conclusion

On its website, SmartValue pitches itself as

One of the Leading Direct Selling Organization in India selling Health & Wellness, Personal & Beauty Care, Home Care, Lifestyle, Agriculture Products and Educational Books & DVDs.

It’s essentially an Amway clone specific to India. That in and of itself isn’t a bad thing, but there are some pretty severe problems with SmartValue that are hard to ignore.

The product range is probably SmartValue’s strongest drawcard. There’s a lot there.

What I can’t comment on is competitiveness as I’m not familiar with the Indian market.

SmartValue market Vitamin C at Rs. 299 for 60 tablets.

On Amazon India equivalents start at Rs. 270 so, at least for vitamin C, SmartValue seems competitive. Other things not so much.

SmartValue’s “Nourish Crunch Peanut Butter is Rs. 409 for a 340 g jar. Amazon has Kissan Crunchy Peanut Butter for Rs. 352 for 920 grams.

The commerce landscape today, especially ecommerce, is vastly different to what SmartValue launched into back in 2000. While the company does sell a wide range of products, it might not have kept up on the competitive front.

SmartValue’s “educational books & DVDs” product niche raised some eyebrows. There’s nothing overtly branded like the “listen to cassettes” nonsense from decades ago, but the listings are intentionally vague.

“Smart students” sounds an awful lot like a purchasable training aid. Be wary of SmartValue’s educational books & DVDs being pushed too aggressively.

SmartValue’s customer service seems fine, with the company offering a 45 day refund policy.

In case you or your customer find the purchased products or not entirely to your / customer satisfaction, you /customer can exchange the products within 180 days from the date of purchase of the products or you / customer can claim refund of the Product cost within 45 days from the date of purchase by returning the products purchased in saleable condition along with the original invoice.

Note that’s on paper. I don’t know whether SmartValue are fine about honoring their refund policy in practice.

This leads us into SmartValue’s compensation plan, which is an unequivocal nightmare. Part terrible presentation on their website (that’s the official documentation I worked off), and part being complicated for the sake of being complicated.

As a litmus test I’d ask any SmartValue affiliate who might have approached you to explain the compensation plan, even just the basics.

If they stumble, and I can all but guarantee they will, walk away. It’s not worth getting scooped up in a hoop-jumping contest that, even once you’ve pulled it apart, seems largely redundant across multiple aspects.

For starters, why on Earth are there three sets of affiliate ranks and bonuses?! This is just ridiculous and could easily be condensed.

Also why is a “two day workshop in Delhi” listed as a reward? Training your sales force isn’t a reward, if anything it should be mandatory – or with respect to MLM, at least highly encouraged.

Then there’s the whole miles, steps, business points thing. Get rid of it all and run with Business Volume like everyone else. Call it something else if you want to create the illusion of uniqueness but three separate BV metrics is again ridiculous.

What I’m not convinced about and not willing to give SmartValue any benefit of the doubt over is retail sales.

We encourage you to buy and use our products. We are so sure of the quality and value-for-money of these products.

We encourage you to sell our products once you yourself are completely satisfied with them.

How many SmartValue affiliates in practice never make it to that second paragraph?

I think a big part of the not so great retail experience on SmartValue’s website, and complicated to a fault compensation plan is, all affiliates need to understand is, if they sign up, buy products and recruit others who do the same, they’ll get paid.

Again, retail sales are entirely possible in SmartValue…

Merchandising Profit means you can buy the products from the company at an Associate Price (AP) and sell at Maximum Retail Price (M.R.P.) to the customers.

…but there’s a lot to suggest they aren’t a focus.

Here’s SmartValue’s definition of group sales, which is used to calculate residual commissions:

Based on the volume of products purchase by you & your team of IBAs.

Miles are another metric that play a big role in SmartValue’s compensation plan.

Here’s the company’s miles definition layout:

Group Miles: Group Miles are the Miles accumulated to you based on first time products purchase by your team IBA.

100% of the Group Miles (upto first 100 miles)will be accumulated to you for your Group Sales Incentive.

Group MyMiles: Group MyMiles are the Miles accumulated to you based on repeated purchase (after first 100 miles) of products by your team IBA.

100% of the Group MyMiles will be accumulated to you for your Group Sales Incentive as Group MyMiles.

Personal MyMiles: Personal MyMiles are the Miles accumulated to you based on repeated purchase of products personally by you.

100% of Personal MyMiles will be accumulated to you for your Group Sales Incentive.

Group Sales Incentive: Based on the volume of products sold by your team of IBA’s, miles will be accumulated in your IBA id.

Based on the miles (Group Miles and Group MyMiles) accumulated every week, Group Sales Incentive will be paid to you as per the eligibility criteria and as per Group Sales Incentive Plan.

That’s a whole lot of “buy products and recruit others who do the same”. “Group Sales Incentive” mentions “products sold by your team of IBA’s, but not to who.

Pretty much everything above that relies on affiliate purchases at the expense of retail sales.

One last thing is SmartValue’s inherent ability to “change the rules” as they see fit.

An Associate can be considered Active based on the following criteria:

  • He/She should be actively involved in promoting Products & Services of SVPSL.
  • His/Her membership should be in Active status, while calculating the Recognition plan in that Financial Year.
  • He/She should actively participate in Business Promotional Activities like Plan Shows, Training Seminars, Products Training & Company run Programmes.
  • He/She should promote Business Activities, strictly in compliance with the Code of Conduct of the Company.
  • Based on the level of involvement in the above activities, Company’s decision is final in ascertaining whether an Associate is Active or not and shall be binding on the Associate.

SmartValue Limited reserves the rights to add, modify, delete or otherwise change any of the rules, terms, conditions, benefits, and rewards at its sole discretion, with or without notice.

Those are some pretty intentionally vague discretionary criteria. I’m not saying SmartValue are screwing affiliates out of commissions, it just seems odd to include all this with their compensation material.

MLM companies are free to and do change their compensation plan and qualification criteira from time to time. This comes off more like, “we’ll pay you if we want to”.

All in all I’m not convinced retail is a focus within SmartValue. If the majority of company-wide revenue is coming from affiliate spend (regardless of what they do or don’t do with products after they’ve purchased them), SmartValue is operating as a product-based pyramid scheme.

No there are no minimum purchase requirements. No you don’t need to purchase anything to qualify for commissions. No you don’t get paid when you sign someone up for free.

Doesn’t matter. In practice if the majority of revenue generated by an MLM company is coming from affiliates, it’s a defacto pyramid scheme.

Approach with caution.