XinHua For You Review: Formor International merges with supplier
XinHua For You started out as Formor International.
Back in 2015 the company entered a joint-venture partnership with their Chinese supplier, Changsha Xin Quan Xin Lin Biologic Nutrient Supplement Co., LTD.
As per a blog post on the Formor International website;
The name of the newly formed joint-venture company is XinHua International Biological, LLC, operating under the trade name XinHua for You.
We are finalizing the joint-venture by merging the existing ForMor product line and compensation plan into XinHua. ForMor International will now be known as XinHua for You.
Why the joint-venture took two years to put together is unclear. It clearly isn’t finished though, with the Formor International website still up and various social media profiles still using the Formor name and branding.
Even XinHua-branded media is mostly hosted on the old Formor International website domain.
The face behind XinHua For You is founder He Shu Jin.
XinHua For You corporate bio refers to He as a “highly successful business man”.
He was born in a small, farming village in central China, He learned to work hard and value his education. As a young man, he left his small village to find a good job and be able to better support his family.
Because of his strong work ethic, his ability to solve problems, and his leadership ability, he quickly rose to become the head of Ansu, Ltd, a publicly-traded company on the Schenzen Exchange in China.
Then, he founded Hunan Xinhua Pharmacy, Ltd in Changsha, China. This company is a pharmaceutical manufacturing company which supplies over 20,000 retail outlets all over China.
In addition to pharmaceutical products, Xinhui produces traditional Chinese medicines, plant extracts, and much more.
The Chinese government uses many of the processes and procedures Mr. He developed as the standard of excellence by which other companies are measured.
In 2014, he founded, XinHua for You, LLC., an Arkansas-based nutritional supplement company.
Formor International itself was founded back in 1996 by Stan Goss.
On the management side of things, XinHua For You is run by CEO Michael Goss. Michael Goss is the son of Stan Goss and served as President of Formor International.
Having joined the then family business, I don’t believe Goss has an MLM history outside of Formor International and now XinHua For You.
Read on for a full review of the XinHua For You MLM opportunity.
The XinHua For You Product Line
XinHua For You market a nutrition supplement range, manufactured in their Arkansas facility.
Mr. He partnered with the Goss family in Conway, Arkansas. Working together, they invested millions to build a first-of-its-kind state-of-the-art facility in Conway, Arkansas.
In June 2016, the facility was brought fully online and has been ramping up production ever since.
Products listed on the XinHua For You store include:
- Antioxidant Cocktail – “a powerful blend of herbs and other nutrients designed to help overcome the ravages of oxidation and free radicals in the body”, retails at $49.95 for a bottle of 60 capsules
- Cardio Cocktail – “a powerful blend of nutrients containing 5 grams of l-arginine per ounce, plus vitamin D, omega-3 fatty acids, B vitamins, OPCs from grape seed extract, and fulvic minerals”, retails at $89.95 for a 32 fl oz bottle
- Cardio Essentials – “combines the power of L-Arginine, L-Citruline, vitamin D, and other ingredients into a convenient, easy-to-take capsule”, retails at $54.95 for a bottle of 120 capsules
- Colloidal Silver Concentrate – “used for decades in many settings to support life-promoting flora throughout the body”, retails at $39.95 for a 4 fl. oz bottle
- Joint Cocktail – ” a breakthrough formula that supports your body’s joint health”, retails at $54.95 for a bottle of 60 tablets
- Qi Defend – ” a foundational formula you take daily to support and enhance your immune and digestive system”, retails at $54.95 for a bottle of 60 capsules
- Qi Nootropic – “bio-engineered with Bio-Transformational Technology to support and improve cognitive and executive functions”, retails at $59.95 for a bottle of 60 capsules
- Super C Crystals – “helps your body fight stress”, retails at $44.95 for a 340 gram tub
XinHua For You products are also available in multi-pack configurations.
The XinHua For You Compensation Plan
The XinHua For You compensation plan does pay retail commissions, however most of the plan is geared towards recruiting affiliates on a 100 PV or more monthly autoship.
XinHua For You Affiliate Ranks
There are nineteen affiliate ranks within the XinHua For You compensation plan.
Along with their respective qualification criteria, they are as follows:
- Brand Partner – sign up as a XinHua For You affiliate and maintain 100 PV a month
- Ruby – maintain 100 PV a month, recruit and maintain at least two Brand Partners and have a total monthly downline volume of 1000 GV
- Emerald – maintain 100 PV a month, recruit and maintain at least four Brand Partners and have a total monthly downline volume of 2500 GV
- Sapphire – maintain 100 PV a month, recruit and maintain at least five Brand Partners and have a total monthly downline volume of 5000 GV
- Diamond – maintain 100 PV a month, recruit and maintain at least six Brand Partners and have a total monthly downline volume of 7500 GV
- 10K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 10,000 GV
- 15K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 15,000 GV
- 25K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 25,000 GV
- 35K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 35,000 GV
- 50K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 50,000 GV
- 75K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 75,000 GV
- 100K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 100,000 GV
- 125K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 125,000 GV
- 150K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 150,000 GV
- 200K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 200,000 GV
- 250K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 250,000 GV
- 500K – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 500,000 GV
- 1M – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 1,000,000 GV
- 2M – maintain 100 PV a month, maintain at least six personally recruited Brand Partners and have a total monthly downline volume of 2,000,000 GV
PV stands for “Personal Volume” and is sales volume generated by retail orders and a XinHua For You affiliate’s own purchases.
GV stands for “Group Volume” and is PV generated by a XinHua For You affiliate’s downline.
XinHua For You pay affiliates retail commissions when they sell products to retail customers (non-affiliates).
Retail commissions are calculated as the difference between the wholesale and retail price of products ordered.
Examples provided in the XinHua For You compensation plan suggest the ballpark retail commission is about $10.
Retail commissions can be increased depending on how much PV in retail sales they generate each month.
- up to 100 PV in retail orders = standard retail commission rate
- 101 to 200 PV in retail orders = 15% reduction in wholesale volume, paid out as a retail commission bonus
- 201 PV or more in retail orders = 60% reduction in wholesale volume, paid out as a retail commission bonus
When a XinHua For You affiliate recruits a new affiliate who signs up with a First Order Package”, the recruiting affiliate earns a 45% commission on generated sales volume.
Residual commissions in XinHua For You are paid out down two levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) – 15%
- level 2 – 45%
A generation in the XinHua compensation plan is defined when a Diamond or higher ranked affiliate is found in a unilevel leg.
This caps off the first generation in that leg, with the second beginning immediately after.
If a second Diamond ranked affiliate is found deeper in the leg, the second generation is capped off and the third begins.
If no other Diamond or higher ranked affiliates exist in the leg, the last generation in the leg extends the full length of it.
Using this generational structure, a XinHua For You affiliate is able to earn on up to eleven generations per leg within their unilevel team.
- Diamond – 3% on generations one to four
- 10K – 4% on generations one and two and 3% on generations three and four
- 15K – 4% on generations one to four
- 25K – 4% on generations one to four and 2% on generation five
- 35K – 4% on generations one to five
- 50K – 4% on generations one to five and 1% on generation six
- 75K – 4% on generations one to five and 2% on generation six
- 100K – 4% on generations one to five, 2% on generation six and 1% on generation seven
- 125K – 4% on generations one to five and 2% on generations six and seven
- 150K – 4% on generations one to five, 2% on generations six and seven and 1% on generation eight
- 200K – 4% on generations one to five and 2% on generations six to eight
- 250K – 4% on generations one to five, 2% on generations six to eight and 1% on generation nine
- 500K – 4% on generations one to five and 2% on generations six to nine
- 1M – 4% on generations one to five, 2% on generations six to nine and 1% on generation ten
- 2M – 4% on generations one to five, 2% on generations six to nine and 1% on generations ten and eleven
Shared Leadership Bonus
The Shared Leadership Bonus is a coded bonus of up to 10% of sales volume generated within a unilevel leg.
- Ruby affiliates earn a 2% Shared Leadership Bonus
- Emerald affiliates earn a 4% Shared Leadership Bonus
- Sapphire affiliates earn a 6% Shared Leadership Bonus
- Diamond affiliates and higher earn a 10% Shared Leadership Bonus
In a nutshell you earn the Shared Leadership Bonus percentage applicable for your rank.
As affiliates in your downline qualify a the Ruby and higher ranks, they eat into your paid percentage.
The 10% is paid across all levels for an individual unilevel leg. Once your downline of Ruby and higher ranked affiliates eclipse 10% on volume you’d otherwise be paid on, you stop receiving the Shared Leadership Bonus on that leg.
Joining XinHua For You
XinHua For You affiliate membership is $29.95.
A “First Order Package” membership option is available for $199.95. This package auto qualifies an affiliate for commission for three months.
XinHua For You trade heavily on the concept of Chinese medicine combined with network marketing.
The 4th generation products offered by XinHua, are the result of over 30 years and millions of dollars in research and development. The discovery of directional culturing led to the creation of our Bio-Transformational Technology.
This technology is protected by multiple patents-pending in the United States and China making us the only company in the world with a production facility that can deliver this evolutionary raw material.
The process we use to “infuse” the meticulously selected Zaipei strains of Lion’s Mane mushroom with the power and performance of the Chinese medicinal herbs is a closely guarded secret.
To what extent exclusivity plays a part in XinHua For You’s product lines I can’t say, but definitely compare to what’s available locally (you might have to try Asian grocers to get a 1:1 comparison).
On the marketing side of things I was surprised to see XinHua For You label a number of their products as “cocktails”.
A cocktail in the supplement sense typically has a negative connotation, a “cocktail of drugs” for example. Whether this is a language-barrier issue I’m not sure, but marketing a range of nutritional supplements as cocktails may turn people off from the products.
With respect to the compensation plan, sadly XinHua For You appears to be little more than an autoship recruitment scheme. This is a shame, as the compensation plan does have some interesting elements (2 level deep residuals and an eleven level deep generational for starters).
I’m going to preface by stating that while an affiliate is able to qualify for commissions via 100 PV in retail orders each month, it’s highly unlikely.
This is specifically a result of how XinHua For You market their income opportunity.
In order to qualify (for commissions), all you need to do is purchase 100BV worth of products each month.
At no point in the XinHua For You compensation plan material does the company suggest qualifying for commissions via retail sales.
After signing up, XinHua For You specifically recommend an affiliate sign up to autoship:
The first step is to become a Brand Partner and purchase a First Order Package or pay the Application Fee and purchase at least 100BV in products.
Regardless of how large your group and income get, you’ll never need to purchase more than 100BV each month
From there, earning more money and advancing up XinHua For You’s nineteen affiliate ranks is deconstructed into a ‘have at least X people purchasing at least 100BV‘ a month formula.
Diamond – When you have at least 6 people purchasing at least 100BV on your first level and your total group purchases at least
7,500BV in products, which is usually just 75 people or so in your group.
Your XinHua For You “group” is your downline. That is affiliates you’ve recruited, affiliates they’ve recruited and so on and so forth.
What XinHua for you are recommending their affiliates do is autoship recruitment. This is otherwise known as chain-recruitment, which in MLM, at the expense of retail sales activity, constitutes a pyramid scheme.
So crucial is affiliate autoship to the XinHua For You business model, that the company claims it is ‘essential for people seriously growing a XinHua business‘.
In order to take full advantage of the opportunities the Rewards Plan offers, you and your team (recruited downline) need to participate in the Auto-Delivery program.
Pay to play is also an element of the XinHua For You compensation plan, with the First Order Package qualifying an affiliate for commissions for three months.
In addition to that, XinHua For Life heavily market the First Order Package as ‘the simplest, easiest & most economical way to get started’ as an affiliate‘.
The First Order Package contains our best-selling products at the best price, as well as, some special incentives to give the new Brand Partner a head start in their new business.
The First Order Package comes with a rank qualification for three months; this helps new Brand Partners accelerate their earning potential from the very beginning!
Income potential in MLM should always be based on individual and group sales performance, not how much an affiliate spends when they sign up.
Otherwise you end up with marketing pitches like this (from XinHua themselves), which clearly describe a recruitment-driven pyramid scheme:
The First Order Bonus is a great way to put extra cash in to your pocket each and every week by simply introducing new Brand Partners to our company.
When you are on 100BV Auto-Delivery, you qualify to have all First Order Bonus money Direct Deposited in to your account WEEKLY!
Retail sales? What retail sales?
And for people who can’t afford to purchase 100 PV worth of product each month on autoship, don’t worry – XinHua has you covered with “Fractional Brand Partnership”.
We have also developed a program to help those who are struggling to afford 100BV to get involved called “Fractional Brand Partnership.”
This allows a Brand Partner to start with as little 25BV. With a Fractional Brand Partnership, you determine how much of the plan you qualify to receive.
Fractional Brand Partnership pays an affiliate pro-rata (starting at 25%), based on how much they can afford to spend on products each month.
Put all of this together and XinHua For You is an MLM compliance disaster waiting to happen.
I’d normally suggest a prospective affiliate check with their potential upline as to their monthly retail volume, but with XinHua For You there appears to be little point. The business opportunity is clearly geared towards affiliate autoship recruitment.
That said, by all means inquire but don’t be surprised if you receive a puzzled look at the mention of retail sales.
And if your potential upline does claim to be making retail sales each month, ask to see receipts. Don’t get fobbed off with claims they’re reselling products to retail customers as these aren’t recorded retail sales for the purpose of compliance.
In summary, XinHua For You presents itself as an affiliate autoship recruitment scheme. As per the FTC, this would make it a pyramid scheme.
I don’t think the official news agency of China would like their name being used for a pills placebo company…
The products stank before they are still inferior.
To tell a formor distributor look at the color of their skin, if it’s blue they are.
This review is now about five years old. Would be great to have an update.
Regardless of the payplan commission structure I can tell you their one product CARDIO COCKTAIL is a scientifically proven winner and great value for money if you do the research let alone take the product.
I have no dog in this fight and do not want to get into a pizzing contest but CARDIO COCKTAIL is a rock solid killer product scientifically proven.
Do some research on the formulation. You will be amazed.
I am very impressed by the performance for HEART DISEASE and BLOOD PRESSURE.
Do not want to go into detail as I might be crossing a line and violating some sort of law. But it’s a life changing product. Please do research on the formulation.
PS – I am not a distributor or affiliate but wound up here because I was considering it.
If XinHua For You is still operating as an autoship recruitment scheme, what am I updating?
Cool. So where are the peer-reviewed studies then?
Yes, making unsubstantiated medical claims is very much illegal. Go figure.