Level Up 247 is a new MLM company offering marketing tools and traffic to small businesses. Today we’re going to take a close look at the Level Up 247 compensation plan and see what it has to offer. You can read an overview of the company HERE.
Level Up 247, like many other companies, claims their plan is revolutionary.
It isn’t.
What it is, though, is pretty straightforward. The company doesn’t have “7 Ways to Get Paid”, which is often a shell game to add more hurdles a rep has to jump over to maximize her earnings.
So let’s dig in:
Activation Fee
When you enroll as an Independent Representative (IR), you’ll pay a $30 Activation Fee to set up your marketing system and back office.
This is common practice in the industry and one I’m not a fan of. These are replicated web sites, requiring no input from IT staff or employees to activate. It happens automatically through the enrollment software. Charging a fee to an IR for signing up generates pure profit for the company and nothing more.
On the upside, this is a one-time fee, not an annual fee. Additionally there is no monthly fee for administration and/or back office which some companies charge. $30 bucks and you’re done.
Is it a deal-breaker? No, not in my book, but it is a minor annoyance.
Fast Start Bonus
As they launch, Level Up 247 offers a single product package for $39.95 per month. I suspect their traffic offering will be an add-on, but we’ll have to wait and see.
In the meantime, they credit 40 BV (Business Volume, the number on which commissions are based) for that package.
When you refer a new customer, you are paid a $25 Fast Start Bonus on the customer’s first order. These Fast Start Bonuses are paid weekly. Future monthly purchases are paid in the Binary part of the plan.
Binary Commissions
Level Up 247 uses a Binary compensation plan.
This means you will build two teams or legs. The first two customers or IRs you enroll are placed on your front line. Future enrollments are placed under existing people. This is true for the people you enroll and the people they enroll, as well.
The advantage to a Binary plan is that you get paid on infinite depth. It doesn’t matter if you have 1000 levels of people under you.
The downside, and it’s a big one, is that you are only paid on the volume of your weaker leg.
The Challenge of Runaway Legs
If you have one or two superstars in one leg, they can be building a large team under you within that leg. If you don’t’ have the same growth going on in your other leg, you’ll suffer what’s called a “Runaway Leg”. Lots and lots of volume that you aren’t getting paid on. Good for the company, however really bad for you.
This also puts you in the position of needing to work more with your weaker team rather than investing time in your strongest members to help them build. This is counter-productive.
I know people have made great incomes in Binary programs. It’s also true that most of the newer companies I see are using a Binary or a modification of it.
I maintain, though, that for the most part, the Binary is a way for the company (any company, not just Level Up 247) to pay the minimum commissions possible. The breakage that occurs due to imbalanced legs, all benefits the company.
Level Up 247 Pays the Small Producer
In this program, you earn $10 each time the computer matches 40 BV on your left leg and 40 BV on your right leg. I like this part, as it lets new people and small producers get paid on their production. By comparison, some plans require $100, $200 or more before you”cycle” and get paid. That leaves money on the table for the new person. Level Up 247 gives even the newest members the opportunity to get paid.
Level Up Bonus
The company pays an additional “Level Up Bonus” when you achieve specific growth milestones.
As you enroll people and place them within your Binary team, the computer also tracks those people within a separate group, your Enrollment Tree.
When you have 10 personally sponsored customers or IRs (your front line in the diagram), you earn a $5 bonus on all new first orders in Tier 2 of your enrollment tree (the people sponsored by your front line).
So if you have 10 personals, regardless of where they are placed on your Binary team, you’ll earn $5 each time one of those people enrolls a new customer or IR.
When you have 20 personally sponsored customers or IRs, you earn a $5 bonus on all new first orders in Tier 3 of your enrollment tree. Tier 3 would be people enrolled by your Tier 2 people.
These are one-time payments on the first order. Future volume is paid through the Binary.
65% Cap
The company does have a protective cap in place of 65%. If, somehow the calculated payout of commissions would exceed 65% of BV, the payout would be capped at that 65%. This is an unlikely event but a prudent protection for the company. No company can pay out more than 65% of its revenue and stay in business.
What’s the Verdict?
On balance, Level Up 247 has a reasonable compensation plan with the potential to make some serious money. I’m not a fan of Binary plans, but they are widely used and lots of people swear by them. For a Binary, this one looks pretty reasonable.
My concern about the company isn’t about the compensation plan.
Level Up 247 is entering a very competitive niche that already hosts companies that have been in the “Marketing Tools” space for years. One company I work with and promote has been in the niche, paying weekly checks on time for 7 years. You can take a look at them HERE, if you want.
They have a wide variety of tools to help you promote your business and they’ve been doing it successfully for a long time. I don’t know that Level Up 247 will be able to compete.
There isn’t a lot of information on their product offering yet, so maybe Level up 247 has something unique that will make them stand out. We’ll see.
I signed up to get notified of their launch. I’ll add new posts as I learn more.
