VidCommX Review: $5000 video email platform?
There is no information on the VidCommX website indicating who owns or runs the business.
The VidCommX website domain (“vidcommx.com”) was registered on the 4th of April 2014, and lists a “VidCommX General Trading LLC” as the owner. An address in Dubai is also provided, however nothing specific about who owns or runs the company.
Treat this as unconfirmed, but I have seen mention of an Indian address popping up when an affiliate signs up.
Further research led me to VidCommX’s Facebook page, on which I saw a 25th of August update that stated
Hope u all have read my Yesterday’s blogpost : has all the latest updates on what is happening this week in Vidcommx , what to expect and the future !
A link to an Empower Network blog was provided, on which someone called “Salvin Johnston” claims to be the CEO of VidCommX:
Marketing material uploaded by VidCommX affiliates appears to confirm this:
The video the above image was taken from was originally published on Vimeo, it has since been taken down.
Why Johnston does not reveal himself as the owner/CEO of VidCommX on the company website is a mystery.
Also a mystery is whether or not Johnston has been involved in other MLM companies. I was only able to find his name in connection to VidCommX.
Read on for a full review of the VidCommX MLM business opportunity.
The VidCommX Product Line
VidCommX has no retailable products or services, with affiliates only being able to market affiliate membership to the site itself.
VidCommX affiliate membership varies in price from between $100 to $5000.
Bundled with VidCommX affiliate membership is access to a video email platform.
The VidCommX Compensation Plan
The VidCommX compensation plan revolves around affiliates purchasing positions and then getting paid to recruit others who do the same.
VidCommX pay affiliates commissions on the recruitment of new affiliates.
Commissions paid out are a percentage of the affiliate fees charged new affiliates, with how much of a percentage paid out determined by how much the qualifying affiliate spent on their own membership:
- Learners Pack ($100) – 10%
- Intermediate Pack ($200) – 20%
- Professional Pack ($400) – 25%
- Mastermind Pack ($5000) – 50%
Residual commissions in VidCommX are paid out using a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, with two positions directly under them:
These two positions form the start of two binary teams, left and right.
Positions in the binary are filled when an affiliate purchases a membership, with volume from the purchase of affiliate membership tracked on both sides of the binary.
Volume is tracked via points, with each dollar spent on affiliate membership corresponding to one point in the binary.
Note that any points generated via affiliate’s purchasing membership higher than an affiliate themselves has purchased are not counted.
At the end of each day volume is paired on both sides of the binary in 200 point pairs (ie. 200 points from the left side is matched with 200 points on the right).
Unused points carry over until they are matched.
Binary commissions are paid out at a rate of 10% of matched points.
Eg. If two pairs of 200 points are matched, an affiliate earns 10% of 400 points (two pairs of 200 points is counted as 400 points).
Note that a daily binary income cap of $500 applies to Learner, Intermediate and Professional Pack affiliates.
Affiliate membership to VidCommX is tied to the purchase of an affiliate package:
- Learners Pack – $100
- Intermediate Pack – $200
- Professional Pack – $400
- Mastermind Pack – $5000
Note that affiliates can “upgrade” their position, provided they pay the difference between the packages plus an additional 10% fee. This fee is waived when affiliates upgrade to the MasterMind Pack.
In addition to the initial package cost, all affiliates are also charged a $10 monthly or $100 annual participation fee.
Under the guise of $100 to $5000 video email services (really?), VidCommX offer a simply recruitment-driven opportunity.
And on the topic of VidCommX’s purported video email service, I couldn’t help but notice they use Vimeo, YouTube Hangouts and Aweber for their official affiliate communications.
Whatever is bundled with affiliate packages obviously isn’t good enough for the company itself to use.
Nothing is sold to retail customers (good luck getting them to pay $100 for video email, let alone $5000), with all commissions paid out funded by affiliate membership fees charged.
With how much a VidCommX affiliate receives percentage wise per affiliate they recruit tied into their own initial spend, there’s also an additional “pay to play” element to the scheme.
With binary commissions not paying out on higher packages purchased, the obvious idea here is to either encourage affiliates to drop a cold $5000 when they sign up, or work their way up to the Mastermind Package level.
As with all pyramid schemes, once affiliate recruitment slows down the scheme will collapse.
Monthly or annual fees aren’t commissionable, so it’s going to be a rather sudden collapse as commissions are only paid on initial recruitment (and upgrades).
When that happens, anyone who hasn’t recruited enough new suckers into the scheme loses their money.