Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to turn on the light into the world of the mushroom with my Alphay MLM Review. This is an interesting one to be sure and I can honestly say that I don't think I have come across any other mushroom related MLM, Affiliate marketing or dropshipping enterprise before so this could be a fun ride. So, what is Alphay and its mushroom based product line all about? Let's have a look and see…
Note: I am not a member of the Alphay MLM Program (and hence make no commissions from any of the links included within this post). The reason for this is that I prefer to write these posts based on what a newbie would be seeing if they were interested in joining – that way I feel I can make a better judgement on what it is that these companies are offering within their programs.
What is MLM?
Multi-level marketing (MLM) programs are the traditional mainstay of the ‘party plan' world of products such as Tupperware, Mary Kay and Amway etc. and, of course within the supplements market where this brand most probably sits. As mentioned above, there are not a lot of MLM programs out there that deal with mushrooms as a main factor however there are plenty that offer capsules and the like (such as Zija International and Shaklee for example) so to that point, Alphay is not really as different as I originally thought. This is added to the fact that MLMs have also become more popular in recent times – mainly due to the fact that much of the sales and marketing is now being managed online – so companies in other niches are starting to get in on the action.
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The ‘multi level' aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign' into membership arrangements as well.
In short, the process works as follows:
- You join the program, either via referral from another person (known as your up line) or directly through their website.
- You promote the products of the company via parties, workshops or online.
- As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
- That new member is then placed ‘underneath' you in a hierarchical arrangement (known as your down line).
- You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
- If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.
The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.
Alphay MLM Review: Who are Alphay?
Based in Canada, but born out of China, Alphay is a billion dollar company and the “world's largest grower, supplier, and knowledge-base of the Lingzhi mushroom”. The company has dedicated over half a century into the research and cultivation of this mushroom to combine the “wisdom of traditional Chinese medicine and advanced nutritional science to develop ground-breaking products that support health, beauty, well-being, and above all – longevity”
What do they Sell?
In general, Alphay offers a range of supplement capsules based on the cultivation of the Lingzhi mushroom that are incorporated with other ingredients from ancient and modern natural medicines (such as Organic Lion’s Mane, Cordyceps and Schisandra) to assist in the following (which their products are also named as):
- Cellular support
- Balance your health
- Rejuvenate
- Soothe
- Calm your mind
- Nourish
- Revitalize plus
- Cleanse
- Revitalize
They also offer a small range of mushroom blended coffee and teas including:
- Royal Blend tea
- Rich Black coffee
- Caffe Latte
And finally, some ‘lifestyle' products:
- Gemsoles shoe inserts for men and women
- Synergy Deep Sleep Eye Mask w/cover
Capsule pack costs appear to fall into the medium price range of around USD$66 per 120 capsules.
MLM Program outline
The Alphay MLM program calls their members ‘Independent Distributors' who are part of what appears to be a simple program with a common retail and downline commission structure found within most MLM programs with a few bonus options included as well. Their compensation plan is available on their website so here are the basics as I have found them…
Base Commission rate: up to 25%
Down line commission rates: 5 – 15% to 8 levels (level 1 down line is 15% – rank Silver and above)
Minimum monthly spend to qualify for commissions
To qualify for downline commissions, Distributors are required to maintain a status of “Active” via meeting PQV targets of at least 50 per month. This can be made of personal or customer sales. Base retail sales commissions however can be earned without the need to meet or maintain sales targets.
Payment terms: Daily/Weekly/Monthly.
Application required?: Yes, Application form on website.
Purchase requirements to join: Yes
Although not stated on their website that I could find, my research did uncover the following (please comment below if this is inaccurate):
- Joining fee: $35 – access to a personalised website, training and an online office.
- Starter kits: Builder pack: $249 or Executive pack: $999 – From what I can find however, these are not mandatory
Ongoing purchases are not mandatory however the compensation plan does highlight the ability to purchase products at discount and sell at a price set by the Distributor at parties, kiosks, markets etc. meaning some outlays if this path is chosen.
Marketing materials provided: As per joining fee outline above.
Within most MLM programs, rankings and commissions are determined by the total personal qualifying volume (PQV) generated by the Distributor and their down line within a calendar month with points assigned to each product. These point allocations can range from 50 to 100% of the retail price of each product (before tax and shipping) and vary from item to item and currency of sale.
If I am reading the compensation plan correctly (again, comment below if inaccurate), in the case of the Alphay MLM program, PQV is calculated at 80% of the USD retail sales price. This means that if a product is sold for $100 with a PQV of 80, then payments are calculated on $80 of the sale cost not the full $100. Hence, then if a downline commission rate is 15% then the payment to the Distributor would total $12 (i.e. 15% of $80).
Retail sales commissions however appear to be calculated on the full Retail Sales price.
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How can I get paid?
Ok, so from what I can garner from the compensation plan, there are 8 ways in which Distributors can make money when they promote and sell Alphay items. These are fairly straight forward and there are a few of the extra bonuses found in many other MLM arrangements. The 7 payment options for the Alphay MLM program are outlined as follows:
1. Retail Profits
These are the base commissions earned by the general day to day retail sales that Distributors can generate directly via their customers. There are two methods that can be utilized to earn these commissions:
- Sell products to customers via a personalised website for a commission of up to 25%.
- Purchase the products at a discounted rate (up to 25%) and sell at parties, kiosks, markets, shop fronts or social media. Sale prices are at the discretion of the Distributor.
As above, there are no minimum sales targets required to qualify for Retail Profits.
2. Direct First Order Bonus
The Direct Frist Order Bonus, aimed at enticing sales such as starter kits etc. from new members to the program, pays a 15% commission on all first and upgrade orders undertaken by personally sponsored down line members of the Distributor.
To qualify for the Direct First Order Bonus – and all remaining payment options – Distributors must be of ‘Active' status during the current and previous 4 commission weeks.
3. Placement Team Commission
As is common in many MLM programs, once a Distributor starts to recruit members into their down line, they are assigned to one of two legs. At the end of each week, a Placement Team Commission of up to 20% (based on rank) is paid against the lesser leg Placement Team Volume (PTV).
To qualify for the Placement Team Commission, Distributors must be of Active status and have at least 1 personally sponsored down line member in each leg. PTV is calculated on 80% of all first and upgrade orders only.
4. Unilevel Monthly Commissions
As the name suggests, Unilevel Monthly Commissions are Alphay's version of the traditional unilevel commission structures prevalent within many MLM programs. Within the Alphay MLM program, commissions are paid to 8 levels based on the rank of the Distributor as follows:
Distributors must be at rank of Silver and above to qualify for Unilevel Monthly Commissions.
5. Unilevel Matching Bonus
The Unilevel Matching Bonus is a commonly utilised network marketing payment option that rewards Distributors for growing their down line. In this case, bonuses that match the Unilevel Monthly Commissions of sponsored down line members are paid monthly as per below:
Distributors must be at rank of Silver and above to qualify for the Unilevel Matching Bonus.
7. Generation Bonus
The Generation Bonus is paid to Distributors who are able to assist those within their down lines reach the rank of Key Master or higher. For Distributor who themselves reach the rank of Key Master or higher, a commission based on the PQV of the sales of entire generations that develop within their down lines are paid as follows:
A Generation is created when a Distributor anywhere within the sponsor's downline reaches a career title of Key Master or higher and includes their entire group, down to but not including the next Key Master or higher.
8. Rank Achievement Bonus
The Rank Achievement Bonus is another common MLM Payment option that rewards Distributors with once off payments as they advance to the higher rank levels within the programs. In this case, payments are made as per below:
Distributors must be at rank of Emerald and above to qualify for the Rank Achievement Bonus.
Ranking structure
Alphay, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the Alphay MLM program are as follows (note personal and team sales qualification targets as well):
Again, as is common with almost all MLM programs, rank progression is determined by both the number of members within the Distributor's down line, and the total sales made by those members per month. Ranks can rise and fall based on the ability (or dis-ability) to reach the required member and sales targets.
What is good about it?
So, after a good look around the site and looking at all the options I could find, I do like the following:
- Commission rates for base retail sales are good.
- Program is simple and easy to follow.
- Base retail profits can be earned without the need to meet sales targets.
What is no so good about it?
There are also some things to be aware of including:
- There are some joining costs.
- Whilst not mandatory, ongoing demonstration purchases may be required.
- Limited scope of products.
How much can you make?
Alphay does not provide an income disclosure statement on its website however as with most MLM programs, it has to be assumed from the compensation plan that the percentage of members making the upper rank levels – and hence earning a living – is very low (usually less than 1%).
My final thoughts
Look, MLM is not an easy platform to make money in and there is not much that I have seen here to put this program above the many others I have seen. However, the program is pretty straight forward with common commission arrangements and the ability to make sales online or via person to person processes. So if you are a fan of the product with a large customer list at your disposal and the ability to generate good sales via online processes, then the 20 – 25% base commission rates might just appeal here.
Once you have joined, there are not the usual financial pressures of needing to make minimum personal purchases in order to qualify for commissions as long as you can make them within your down line. Although from what I can see, I think if you are going to succeed within this MLM program, you will need to have a good array of demonstration/sales stock on hand. You may also need to bump up your personal purchase quota if customer sales alone are not enough for you to remain ‘Active' and qualify for commissions and/or discounts within a particular month – keeping in mind that one bottle of capsules is going to last a customer 3 months too.
I was unable to locate any negative reviews in terms of non-payment etc. although there were some negative comments (not as many as most others however) about the quality of customer service and the MLM program itself – although it was not really anything that is uncommon in regards to MLM programs or products within this niche.
Conclusion
So there you have it, my honest review and appraisal of the Alphay MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.
Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.
Do you want further assistance with any of the above or need help to build your own supplements based website?
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Until next time
Have fun
Paul
Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price. This may include sales made via Wealthy Affiliate.
Alphay MLM Program
$35.00 +Pros
- Commission rates for base retail sales are good.
- Program is simple and easy to follow.
- Base retail profits can be earned without the need to meet sales targets.
Cons
- There are some joining costs.
- Whilst not mandatory, ongoing demonstration purchases may be required.
- Limited scope of products.