TH Tronics Review: DealExtreme rebadged as MLM?
There is no information on the TH Tronics website indicating who owns or runs the business.
On the TH Tronics website, the company claims
We are a company engaged in e-commerce since 2005.
Despite this, the TH Tronics website domain was only registered in November of 2014.
Listed as the owner of the TH Tronics website domain is “Thiago Henrique de Brito Nascimento”. An address in the Brazilian state of Sao Paulo is also provided.
Presumably, Thiago Henrique combined with the word “electronics” is where the company derives its name from.
Why Nascimento’s name does not appear on the TH Tronics website is a mystery.
Read on for a full review of the TH Tronics MLM business opportunity.
The TH Tronics Product Line
TH Tronics market a range of what appears to be no-name branded goods of Chinese origin.
Product categories featured on the TH Tronics website include:
- apparel and accessories
- car accessories
- cell phones and accessories
- computers & networking
- consumer electronics
- electrical & tools
- health & beauty
- hobbies & toys
- home & office
- lights & lighting
- others and
- sports & outdoors
The TH Tronics Compensation Plan
The TH Tronics compensation plan pays affiliates to sell products listed on the TH Tronics website. How much of a commission is paid out is not disclosed.
Residual commissions in TH Tronics are paid out using a unilevel style 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):
In turn, if any of these level 1 affiliates go on to recruit new affiliates of their own, they will be 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.
TH Tronics cap payable unilevel levels at six, with how much of a commission is paid out depending on what level a recruited affiliate falls within a unilevel team:
- level 1 – 8%
- level 2 – 4%
- level 3 – 2%
- level 4 – 1%
- levels 5 and 6 – 0.5%
Note that these percentages aren’t a slice of the selling price of the product, but rather the commission TH Tronics receives and then passes on to their affiliates.
Joining TH Tronics
Affiliate membership with TH Tronics is free.
Quite obviously, TH Tronics are using a third-party dropshipping service to populate their offered product catalogue.
This in itself isn’t a problem, but it did set me wondering on who they were using.
I began my search by pasting some of the generic sounding product listings TH Tronics use on their website.
This resulted in multiple listing from DealExtreme coming up:
For the above product in question, DealExtreme were retailing the product for $5.22, TH Tronics for $8.87.
DealExtreme are a well-known e-commerce retailer based out of Hong Kong. They also have a dropshipping program:
Drop shipping is a business model in which the retailer benefits from selling products to customers then ordering products from drop shipping providers (e.g. DX). The only thing you need to do is pass the orders to DX.
At first I thought TH Tronics and DealExtreme might be using the same suppliers, but a peruse of TH Tronics’ Terms and Conditions suggested otherwise.
The entire TH Tronics Terms and Conditions is a copy and paste of DealExtreme’s T&Cs, including “drop off box for return” addresses in the US, Australia, the UK and Hong Kong.
These are DealExtreme return addresses, as provided on their website.
As such it’s pretty clear that Thiago Henrique de Brito Nascimento has signed up as a DealExtreme dropshipping partner. He populates the TH Tronics with products from DealExtreme, and shares commissions paid to him with his MLM affiliates.
Not surprisingly, it is Deal Extreme who have been around since 2005. Why Nascimento disingeniously suggests his own company has been around for as long is a mystery.
In reality, TH Tronics has been set up with little to no effort at all.
The TH Tronic website runs on the free open-source script OpenCart, and the company’s logo has been copied from who knows where:
Those issues aside, the problem with TH Tronic’s business model is that its products are more expensive than those listed on DealExtreme.
DealExtreme’s affiliate program is only single-level, so if you’re going to offer six levels of residual MLM commissions, that money has to come from somewhere.
That somewhere explains why TH Tronics product offerings are marked up compared to what they sell for on DealExtreme.
With the same products offered elsewhere for cheaper, selling to customers as a TH Tronics affiliate isn’t going to be very feasible.