UDS Game Review: Rewards app with heavy inventory loading
UDS Game provides no information on their website about who owns or runs the business.
The UDS Game website domain (“udsgame.com”) was privately registered on December 31st, 2014.
The company appears to have strong ties to Russia, primarily through their Global Intellect Service parent company.
GIS Company appeared on IT markets of Russia and CIS countries on the 2nd of March in 2014.
As a holding company GIS owns two brands: UDS Game and NutriStrike.
Nutristrike’s website is entirely in Russian. The company appears to market a self-branded nutritional supplement.
In a March 2017 fluff-piece, Ted Nuyten’s BusinessForHome cited Viacheslav Ushenin as CEO of Global Intellect Services.
Top leader Viacheslav Ushenin is founder and CEO of Global Intellect Service (GIS) a leading IT company based in Russia.
Prior to Global Intellect Services and UDS Game, Ushenin (right) was a top affiliate in Talk Fusion.
In another 2012 fluff-piece, BusinessForHome cited Ushenin earning $330,000 a month.
BehindMLM reviewed Talk Fusion in 2014 and, based on its $1499 video communication packages, concluded the company had little to no retail viability.
Possibly due to language-barriers, I was unable to ascertain why Ushenin left Talk Fusion.
After leaving Talk Fusion and prior to UDS Game, Ushenin launched Set in Box.
From what I can gather, Set in Box was loosely modeled on Talk Fusion’s video-focused offering:
The company failed but was nonetheless the precursor to UDS Game and Global Intellect Services.
Read on for a full review of the UDS Game MLM opportunity.
UDS Game Products
UDS Game markets a mobile app they claim is
a comprehensive solution for business utilizing the latest mobile app technology along with special tools for business process optimization.
The UDS Game mobile app is a new and innovative method of both attracting and retaining customers.
The UDS Game app is rooted in a points-based incentive system.
UDS Game App is a mobile product that allows users to get discounts simply by generating a QR-code/letter code and to participate in remuneration system in form of bonus points for recommendations to other potential users using UDS Game.
As I understand it points acquired through the UDS Game app can be redeemed through participating businesses.
It isn’t clear if UDS Game points are universal or locked to the participating business they were acquired through.
The free UDS Game app tier is limited as follows:
- can’t send push notifications
- can only add one cashier (store employee ID)
- limited to publishing one news article a week
The full version of UDS Game is sold retail on a subscription basis; either $100 a month or $900 upfront and then $20 a month thereafter.
The UDS Game Compensation Plan
UDS Game’s compensation plan revolves around the sale of app licenses to retail customers and recruited affiliates.
Additional commissions are paid on recurring monthly subscription fees and affiliate membership payments.
A retail commission of up to $400 is paid on each $900 retail UDS Game app license sale.
- affiliates who signed up with a Business package ($1060) receive $200
- affiliates who signed up with a Premiun package ($3060) receive $300
- affiliates who signed up with a VIP package ($5060) receive $400
Ongoing monthly subscription fees are also commissionable:
- Business package affiliates receive $6 a month
- Premium package affiliates receive $8 a month
- VIP package affiliates receive $10 a month
Absent from the UDS Game compensation plan and Partner Agreement are monthly commission rates for the $100 a month retail subscription.
UDS Game affiliates are paid to recruit new affiliates.
How much of a commission is paid out is determined by how much a newly recruited affiliate spends when they sign up:
- recruit a Business package affiliate and receive $90
- recruit a Premium package affiliate and receive $500
- recruit a VIP package affiliate and receive $1000
Residual Recruitment Commissions
Each UDS Game affiliate pays $40 a month to qualify for commissions.
$40 payments by active UDS Game affiliates generates residual recruitment commissions.
UDS Game pays residual recruitment commissions via a 3×7 matrix.
A 3×7 matrix places a UDS Game affiliate at the top of a matrix, with three positions directly under them:
These three positions form the first level of the matrix. The second level of the matrix is generated by splitting these first three positions into another three positions each (9 positions).
Levels three to seven of the matrix are generated in the same manner, with each new level housing three times as many positions as the previous level.
Positions in the matrix are filled via direct and indirect recruitment of UDS Game affiliates.
For each affiliate in the matrix who pays $40 a month in fees, a 10% monthly commission is paid out ($4).
Monthly fees paid to access the UDS Game app generate 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.
Residual commissions are paid out based on points (PV) generated on both sides of the binary team.
Points are generated via retail app subscription sales and affiliate recruitment.
- retail $900 app license sale = 3 PV a month
- Business package affiliate recruitment = 3 PV
- Premium package affiliate recruitment = 10 PV
- VIP package affiliate recruitment = 20 PV
PV, if any, generated via retail sale of the $100 a month app license isn’t specified.
Residual commissions are paid out at a rate of $30 per 1 PV matched on both sides of the binary team.
E.g. if a VIP package affiliate is recruited on both sides of the binary team at the same time (unlikely, but this is a hypothetical), that will trigger a 20 PV match.
20 PV * $30 = $600 residual commission paid out on that match.
Note that the PV source doesn’t matter, as soon as 1 PV is matched on both sides of the binary team $30 is paid out on that match (or multiplies of $30 if more than 1 PV is matched).
The Leadership Bonus is a 10% match on residual commissions earned by recruited affiliates, paid down three levels of recruitment (unilevel).
Quick Start Bonus
The Quick Start Bonus is a recruitment-based bonus, tied to a UDS Game affiliate’s first 30 days with the company.
- if four Business package affiliates are recruited in an affiliate’s first 30 days, they receive a $1000 Quick Start Bonus
- if four Premium package affiliates are recruited in an affiliate’s first 30 days, they receive a $3000 Quick Start Bonus
- if four VIP package affiliates are recruited in an affiliate’s first 30 days, they recruited a $5000 Quick Start Bonus
Each $30 commission earned residually through the binary team is referred to as a “cycle”.
The Auto Bonus is calculated monthly based on the total number of $30 cycle commissions earned in a month.
- earn 20 cycle commissions = $100 Auto Bonus for that month
- earn 50 cycle commissions = $250 Auto Bonus for that month
- earn 100 cycle commissions = $500 Auto Bonus for that month
- earn 150 cycle commissions = $750 Auto Bonus for that month
- earn 200 cycle commissions = $1000 Auto Bonus for that month
- earn 250 cycle commissions = $1250 Auto Bonus for that month
- earn 300 cycle commissions = $1500 Auto Bonus for that month
- earn 350 cycle commissions = $1750 Auto Bonus for that month
- earn 400 cycle commissions = $2000 Auto Bonus for that month
Cycle commission calculation resets each month. 20 cycles is the minimum to again qualify for the Auto Bonus the following month.
Joining UDS Game
UDS Game affiliate membership is $40 a month plus mandatory purchase of app licenses:
- Business (1 license) – $1060
- Premium (5 licenses) – $3060
- VIP (10 licenses) – $5060
Viacheslav Ushenin’s UDS Game apple hasn’t fallen far from the Talk Fusion tree.
Both companies’ business models front-load affiliates with licenses, and this is ultimately likely to make up the bulk of company-generated sales volume.
To be clear, UDS Game has an actual product by way of its app. Is it worth $100 a month perpetually or $900 and then $20 a month?
For comparison I punched “rewards app business” into Google. Two prominent companies that came up were Belly (claims to have 8500 business clients) and Fivestars (13,000+ businesses).
Belly’s “Lite” plan is $159 a month. Fivestars don’t publish rates on their website but discussion on the web pegs the cost of their Basic Plan at almost $300 a month.
The offerings seem similar to what UDS Game’s app offers so in that sense, at least on the surface, UDS Game seems competitively priced.
Unfortunately that is let down by unnecessary inventory loading.
The problem with inventory loading by an MLM company is twofold;
Firstly it requires affiliates to purchase product that may or may not be resold. As far as regulation goes, fees paid by affiliates do not equate to retail sales – regardless of whether purchased product is resold (ref: Vemma and Herbalife).
Secondly commissions are paid on affiliate fees, again regardless of whether purchased licenses are resold.
With license packages tied to affiliate membership, this means that UDS Game is paying recruitment commissions. And if there’s little to no retail selling of licenses going on, that means UDS Game is operating as a pyramid scheme.
Pay to play is also an issue, as retail commission rates are tied to which package a UDS Game affiliate signs up with (i.e. how much they pay in fees).
Although not fool-proof, you might be able to get an idea of what your potential upline’s focus is. What you want to find out is which package they signed up with, and how many of the licenses they received have been resold to active retail clients.
By active I mean retail businesses who are still paying for and using the UDS Game app.
At the Business tier the license should be sold and the business still active. At the Premium tier you want to see at least three of the licenses sold and at the VIP tier six or more.
At the Business tier by wary of a potential upline who has only sold the one bundled license. If they haven’t been able to sell any additional licenses, that is a strong indication they’re focused on recruitment over retail.
One way retail could be addressed in UDS Game is by tying the sale of active retail licenses to commissions. This could be tweaked but let’s start by tying one active retail app license to a 10% increment in total commission earnings.
That is keep the current UDS Game compensation plan, and pay out 10% of commissions earned if one retail license is active.
A second active retail license sale would increase the paid commission rate to 20% and so on and so forth.
Under these rules each UDS Game affiliate would have to sell and retain ten active retail app license subscriptions. Not unreasonable, seeing as that’s exactly how many licenses the $5060 VIP package is bundled with.
Pending changes to UDS Game’s compensation plan to encourage retail sales, I don’t believe there’s enough retail activity going on to match affiliate fee revenue.
This is precisely what went on in Talk Fusion, through which Ushenin was reportedly earning hundreds of thousands of dollars in his prime.
Approach with caution.