Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to a take look into another site that appears to offer a ‘bit of everything' with my Organo MLM Review. These multi product MLM programs have become quite popular in recent times especially those basing some of their product ranges around coffee. Added to this obviously is the popularity of beauty products and supplements within this realm so with that in mind what is the Organo MLM all about? Let's have a look and find out…
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 beauty/cosmetics and supplements markets. And as MLMs have become more popular in recent times – mainly due to the fact that much of the sales and marketing is now being managed online – companies in other niches (such as coffee) 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. MLM is also often referred to as Network Marketing due to the fact that initial sales are often generated via the personal networks of the program member.
Who are Organo?
With a mission to “change lives by helping people reach new levels of balance, freedom and well-being…”, Organo is a company that has been built as a network marketing operation from the very start. It was founded in 2008 and is based in Richmond BC in Canada with operations in over 40 countries worldwide.
There does not appear to be any information in regards to founders and executive team available on the website.
What do they Sell?
As mentioned above, Organo (also often referred to as Organo Gold or OG) offer a good number of products across three main sub niche categories:
- Gourmet Black Coffee
- King Of Coffee
- Café Latte
- Café Mocha
- Café Supreme
- Hot Cocoa
- Green Tea
- Red Tea
- Espresso Capsules – compatible with Nespresso® Coffee Machines
Body Management – Supplements
- OGX FENIX™ Rich Chocolate
- OGX FENIX™ Creamy Vanilla
- Ganoderma Lucidum
- Spore Powder
- Grape Seed Oil
Personal and Skincare
- G3 Beauty Soap
- OG Smile Toothpaste
- beU – Serum, mask, moisturiser, cleanser
MLM Program outline
The Organo MLM program calls their members independent ‘Distribution Partners' who are part of what appears to be a standard program with a common retail and downline commission structure and a good number of bonus options included. Their compensation plan is available (albeit in a brief and fairly ambiguous version) on their website so here are the basics as I have found them …
Note: Much of this information has been taken from the South African version of the Compensation Plan as that is the only one I could locate via online searches…
Base Commission rate: up to 50%
Down line commission rates: 1 – 5% to 9 levels (level 1 down line is 5% – Rank of Marketing Associate and above)
Minimum monthly spend to qualify for commissions
To qualify for downline commissions, Distribution Partners (DPs) are required to maintain a status of ‘Active' via the generation of minimum PQV targets of at least 50 per month. This can be made of personal or customer sales. Base retail profit payments however can be earned without the need to meet or maintain sales targets.
Payment terms: Daily, Weekly, Monthly, Quarterly.
Application required?: Yes, Application form on website.
Purchase requirements to join: Yes
I was not able to locate any information in regards to joining costs or starting purchase requirements however the compensation plan does refer to Promotional Product Packs which appear to be optional at time of sign up.
Some purchases will also be required if you plan to sell the products via person to person arrangements such as parties, kiosks, or markets etc.
Marketing materials provided: Personalised Website
As with the most MLM programs, downline commissions are determined by the total personal qualifying volume (PQV) generated by the DP and their down line within a calendar month. Most MLM programs manage it this way in that commissions are paid on the points assigned to a product rather than the entire sales total. I have been unable to locate any information as to how Organo calculates its PQV allocations however as an example, if a product retails for $100 and it has an 80 PQV rating (these generally vary from product to product) then the commission is calculated on $80 only. So if a commission rate for a product is 5% then it will generate a $4 commission payment (i.e. 5% of $80).
How can I get paid?
Ok, so from what I can garner from the compensation plan, there are 7 ways in which DPs can make money when they promote and sell Organo items. These are fairly straight forward with a few of the extra bonuses found in many other MLM arrangements. The 7 payment options for the Organo MLM program are outlined as follows:
1. Retail Profit
These are the base profits earned by the general day to day retail sales that DPs can generate via parties, popups, social media or online via their personalized website. Commissions paid are essentially the difference between the DP discount and retail sales prices at rates of up to 50%
No minimum sales targets apply to qualify for Retail Profits.
2. Fast Track Bonus
The Fast Track Bonus is a common MLM arrangement where DPs earn extra payments for personally recruiting new down line members who purchase starter kits of packs. In this case, DPs earn $20 – $120 on each OG Promotional Product Pack sold.
No minimum sales targets apply to qualify for the Fast Track Bonus.
3. Dual Team Bonus
The Dual Team Bonus is a binary type payment where DPs can earn up to 20% of the sales volume of their ‘Pay Leg'. As with most MLM programs, when a DP recruits new down line members they are assigned to left and right legs with commission payments/bonuses generated against the weaker legs – i.e. the leg that generates the lesser revenue amounts.
To qualify for the Dual Team Bonus, DPs must be ‘Active' in the current month and personally recruit at least one active member to each leg.
4. Unilevel Bonus
As the name suggests, the Unilevel Bonus is Organo's version of the traditional unilevel commission structures prevalent within many MLM programs. Within the OG MLM program, commissions are paid to 9 levels based on the rank of the DP as follows:
DPs must be Active and at rank of Marketing Associate and above to qualify for the Unilevel Bonus.
5. Unilevel Matching Bonus
The Unilevel Matching Bonus is another common MLM payment option designed to reward DPs for nurturing a good down line. In this case, Active DPs at rank of Consultant and above earn a percentage of the Unilevel Bonus earned by their personally sponsored down line members up to 4 levels as follows:
6. Generational Leadership Bonus
As a follow on from the Unilevel Matching Bonus above, the Generational Leadership Bonus further rewards those who reach the rank of Sapphire and above for nurturing personally sponsored DPs who also attain the rank of Sapphire and above. In this case, payments are generated to four levels as below:
7. Global Pool
Our final payment option, the Global Pool, is another commonly utilised higher rank payment option where DPs at rank of Ruby and above earn a portion of 3% of the total worldwide company sales volume. These portions are distributed as follows:
Organo, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the Organo MLM program are as follows (note rank levels require recruitment targets to be met as well that are not displayed below):
Again, as is common with almost all MLM programs, rank progression is determined by both the number of members within the DPs 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 entry level sales are good.
- Commissions can be earned without the need to meet sales targets.
- Plenty of products to sell.
What is no so good about it?
There are also some things to be aware of including:
- The compensation plan is a little ambiguous.
- PQV calculations are not clear.
- Company governance and management structure is unclear.
How much can you make?
Organo outlines within its compensation plan that a typical participant in the ORGANO™ compensation plan earns between $0-$599 per annum. They also provide an income disclosure statement as follows:
Within most MLM programs, the percentage of members making the upper rank levels – and hence earning a living – is usually very low at less than 1%. If the figures above are to be taken on face value, then this makes this program a little more advantageous than most others – only just though.
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 personal connections. So if you are passionate about these products, like MLMs with larger product bases, have a sizable customer list at your disposal and the ability to generate good sales via a number of processes, then the 50% base retail profit 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 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.
There are a couple of red flags for me here however. The first is that some of the compensation plan details such as product point calculations and promotional product kit costs are a bit ambiguous or non-existent. The second centres on the fact that there is no outline of any company governance or executive team structure which is often a sign of a less than scrupulous company. I would be obtaining clarification on these two points before joining.
I was unable to locate any negative reviews in terms of non-payment etc. although there were some negative comments 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.
So there you have it, my honest review and appraisal of the Organo 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.
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Until next time
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.