Zlicense Review: Plastic sleeves that link to med info
Zlicense launched in late 2014 and are based out of the US state of Texas
Listed as company owner on the Zlicense website is Troy Mason.
I went to renew my driver’s license one day, when I noticed three questions on the back of my Texas Driver’s License.
The questions are: Directive to a physician, Emergency Contacts and Allergic Reactions To Drugs.
I asked the DPS officers, where do people store this information? They said to check with the police department.
So, the next day, I went to the police department and they told me to check with the Department of Public Safety or DPS!
Then it hit me! The state of Texas put three questions on the backs of 15 million peoples (sic) ID and Driver’s License… and never set up a system for people to store this important information. ZLicense.com was born this day!
Mason has previously popped up on BehindMLM’s radar as the CEO and President of Gas Club of America.
Launched in late 2012, Gas Club of America is believed to have been Mason’s first MLM venture. The company appears to have been shut down around mid 2013.
Read on for a full review of the Zlicense MLM business opportunity.
The Zlicense Product Line
Zlicense market plastic sleeves that can be fitted over the top of ID cards.
Printed on the sleeves is an access code and link to the Zlicense website.
The idea is that first responders to an emergency search a body for ID, see the sleeve and then access the individual’s medical information on the Zlicense website.
Zlicense sell their sleeves for $19.95 each, which includes one year of medical information storage on their website.
Note that whether or not the sleeves are available at a retail level is unclear, with the Zlicense website only mentioning affiliates purchasing sleeves and then reselling them (external to the MLM opportunity).
The Zlicense Compensation Plan
The Zlicense compensation plan sees affiliates purchase Zlicense sleeves from the company and get paid to recruit other affiliates who then do the same.
In order to qualify for commissions, every Zlicense affiliate is required to
- have made a wholesale purchase within the past year
- have a minimum of 4 customers that have Activated their ZLicense File and
- have $22 or more dollars in your account
Zlicense Renewal Commission
A Zlicense renewal is $19.95 a year, which generates a $10 commission for the affiliate who purchased the sleeve and then resold it.
Zlicense 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 on their membership:
- $49.95 membership = $10 commission
- $99.95 membership = $20 commission
- $199.95 membership = $50 commission
Recruited Affiliate Purchase Commission
Affiliate purchases of Zlicense products generate commissions paid out down two levels of recruitment (unilevel):
- level 1 (personally recruited affiliates) pays a 20% commission and
- level 2 pays 10%
Zlicense have a $50 a month autoship for affiliates, which buys them 6 Zlicense sleeves.
The idea is that these sleeves are then resold, but there is no requirement to do so.
Commissions aren’t paid out directly on autoship orders made each month, but rather through growth of a “VIP Team”.
A Zlicense affiliate’s VIP Team is filled via any of the following three ways:
- personally recruited affiliates are added
- the first two affiliates recruited by the third and onwards personally recruited affiliates are added and
- the first two affiliates recruited by existing VIP Team members are added
As a Zlicense affiliate’s VIP Team grows, commissions are paid at the following milestones:
- 5 VIP Team members = $50 a month
- 7 VIP Team members = $100 a month
- 10 VIP Team members = $200 a month
- 15 VIP Team members = $300 a month
- 25 VIP Team members = $500 a month
- 50 VIP Team members = $1000 a month
- 100 VIP Team members = $2000 a month
- 200 VIP Team members = $4000 a month
- 300 VIP Team members = $6000 a month
- 400 VIP Team members = $8000 a month
- 500 VIP Team members = $10,000 a month
- 600 VIP Team members = $12,000 a month
- 700 VIP Team members = $14,000 a month
- 800 VIP Team members = $16,000 a month
- 1000 VIP Team members = $20,000 a month
There is also a separate “Lifestyle Bonus” payment of $25 to $2500 a month, with the Zlicense compensation plan stating:
Our system counts how many people on your VIP team makes an autoship purchase on the first of each month and makes you that rank for the entire month.
I believe this means Lifestyle Bonus ranking is separate to the autoship commission, instead paying based on how many affiliates purchase autoship rather than the total size of the VIP Team (or in other words, inactive affiliates are purged).
Residual commissions in Zlicense are paid out using a 3×10 matrix.
A 3×10 matrix places an affiliate at the top of the matrix, with three positions directly under them:
These three positions form the first level of the matrix, with the second level generated by splitting each of these three positions into another three positions.
The third level of the matrix is created by splitting level 2 positions into three new positions each, and so on and so forth down a total of ten levels (88,572 positions).
Positions in the matrix are filled via the recruitment of affiliates (either direct or indirect), with $1 paid out each time an affiliate in the matrix purchases a Zlicense product.
Note that the more money a Zlicense affiliate spends on their membership, the more matrix positions they are given:
- $49.95 membership = 1 matrix position
- $99.95 membership = 2 matrix positions
- $199.95 membership = 4 matrix positions
Additional matrix positions are placed directly under an affiliate’s first position, generates commission payouts is not in and of itself a new matrix (it does not create new positions in the original 3×10 matrix).
If a Zlicense affiliate recruits three affiliates, they qualify for a 100% match on matrix earnings generated by personally recruited affiliates.
Zlicense’s 200 Club bonus is made up of 2% of the gross sales company-wide each week.
Affiliates can earn an equal share in the 200 Club bonus pool by contacting at least 200 people about Zlicense that week. This contact must be made through marketing tools hosted in the Zlicense affiliate backoffice
Note that 200 Club qualification is an ongoing weekly requirement.
Founders Club Bonus
The Founders Club Bonus is limited to the first 100 affiliates who qualify, earning them an ongoing share in 2% of Zlicense’s company-wide revenue each week.
To qualify for the Founders Club Bonus, a Zlicense affiliate must recruit ten affiliates.
Affiliate membership with Zlicense at three price-points: $49.95, $99.95 and $199.95.
The primary difference between these membership options is income potential through the Zlicense compensation plan (matrix positions).
One of the cardinal sins of MLM is forcing your affiliates to purchase products to participate in the income opportunity.
Zlicense breaks this rule on multiple levels.
For starters there doesn’t appear to be a true retail offering of the Zlicense plastic sleeve product, with affiliates themselves having to purchase the product and then resell it.
This is problematic as it limits the flow of funds into Zlicense as being sourced only from affiliates. With that in mind, commissions paid out within the Zlicense opportunity are then 100% funded by affiliate funds.
There is no talk of retail sales in the Zlicense compensation plan, however what they are actually talking about is affiliates reselling products they themselves have purchased.
That’s most certainly possible, but it has nothing to do with the Zlicense MLM opportunity per say.
Then there’s the autoship commissions, which unfortunately appears to be little more than a front for chain recruitment.
You pay your $50 a month and then get paid to recruit others who do the same.
There’s no requirement to actually resell the sleeves purchased each month, with revenue generated for commission payouts sourced from an affiliate’s autoship order. This is ass-backwards, with retail customer sales instead what should be providing commission revenue.
Pay to play is also a strong element to the Zlicense compensation plan, evident in both affiliate sign up options and matix commissions.
The matrix commissions are pretty straight forward to explain, with more spent on affiliate membership directly impacting matrix income potential:
Worringly, Zlicense are pretty open about the pay to play nature of their business model, openly advertising that $199.95 affiliate membership “quadruples your income potential.”
Disingenuously, Zlicense also claim there is no cost to sign up as an affiliate:
There is NO COST to become a ZLicense Affiliate. Any money you spend is simply to purchase ZLICENSE sleeves with 1 year of file storage at the wholesale cost of $7 – $10.
Quite obviously retail customers are not going to be signing up for a back office meaning affiliates are the only ones who are going to be purchasing the $49.95 to $199.95 packs.
By default, these are clearly Zlicenses affiliate membership fees.
The one saving grace in the Zlicense compensation plan is the requirement that an affiliate maintain four accounts that have been opened at any given time, but that’s then undermined by this:
Can someone else create a ZLicense file on my behalf?
Yes, BUT it is imperative that the information submitted is 100% verified and checked by you and or your Physician.
Zlicense themselves obviously don’t have the means to verify medical information uploaded to their database. I’d also be willing to bet they’re not too stringent on checking account holder details either.
So what’s stopping a Zlicense affiliate from using the stack of sleeves they’re purchasing, to qualify for commissions, to maintain four active database entries annually.
Heck even the $49.95 affiliate membership option comes with five sleeves, which is more than four required.
Note that I’m not saying all Zlicense affiliates are doing this, just that the potential to do so is there.
And when you consider the very real incentive to treat Zlicense as a chain-recruitment $50 a month autoship scheme – this is a problem.
As to the sleeve product itself, it seems like a decent enough idea. The only thing that stuck out to me though was a lack of internet access rendering the card useless.
I know smart phones are pretty prevalent these days, but are medical staff going to even know what Zlicense is, let alone take on the liability of using medical information sourced from a third-party.
This is further muddied by the fact that Zlicense affiliates are able to sign up and enter information pertaining to third-parties. If information is entered incorrectly by an unrelated third-party, acted on by a medical profession and something goes wrong, who is ultimately responsible?
The affiliate who entered the information (or created the account), the user for letting that happen, the medical staff for not obtaining information from their patient directly or a medical alternative or Zlicense as a company?
All in all I think despite Zlicense being a useful enough concept, from both an MLM opportunity and product standpoint, its execution leaves a lot to be desired.