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Why do businesses which operate solely on the idea of rewarding those who share product information with friends and loved ones have such a bad wrap, when anyone in marketing agrees that word-of-mouth advertising is the most powerful advertising out there?

Well, those who have been in the industry over the last twenty years, including yours truly, have observed a trend that very well may be the cause, if not at least a major contributing factor, to this disgust.

I call it DEFAULT.

We’ve all experienced it. You get a program and fine tune it to your needs. What a joy it is. The sun is shining, the birds are singing. The blossoms are filling the air with fragrance. Then one day something happens and returns all your settings to DEFAULT. And there is no way to retrieve your former settings except by starting at the beginning again. Dark clouds gather. Hours are lost, appointments missed, decisions delayed, emotions run high, and many other things go wrong. All because of DEFAULT.

Nearly all businesses run on the pyramid plan—not just network marketing types. At the top is the CEO, the president, the great leader. He or she has a few trusted associates who help run the show. These operate at the second level of operation, and usually receive a slightly lower pay. They, in turn, have others who report to them. And on it goes until at the very bottom, and at the lowest pay scale, rests the largest group, the factory workers, laborers, cleaner-uppers. To get from the bottom to the top of the pyramid is very rare in conventional business. But everyone knows that this is just the way businesses are run.

Then network marketing comes along and changes the paradigm… so they say.

“We will show you a better way to do business, one where you don’t have to remain at the bottom all your life. You too can enjoy the lifestyle of the CEO, vacation when you want, travel where you want (and in style), have time with your family…” and on and on they croon. Then they draw circles and explain how it all works (on paper).

All goes well… for awhile. Then one dark, dreary day you realize your American Dream, with all the fine-tuned settings you have struggled so hard to make, has gone into DEFAULT. And you find yourself again on the bottom of the pyramid, just like in conventional businesses.

What people don’t know about most network marketing plans is that they are designed to DEFAULT to the conventional pyramid business style, with few at the top enjoying high incomes and those on the bottom groveling, trying to make the system work. This is done by various methods. We will mention only four. They may be called by different names, but I think you will recognize them.

1. Jump-start: knowing that many will never get beyond their initial “buy-in”, they push you to “tell everyone” you can about the opportunity. This gives the company free advertising and some quick profits from the “introduction package” you just bought.

2. Breakage: when you have to give up your “points” or “bonuses” because you didn’t meet some monthly goal. The company keeps the money.

3. Break-away: when you “advance” to a higher level you leave behind some earning potential you had struggled hard to achieve. The company keeps the money.

4. Exhaustion: by requiring constant enrolling of new people the company knows that eventually you will tire and give up. They know the average recruit will enroll only 2-3 people, so they keep the recruiting requirement high. The company now keeps what you worked so hard to build.

These are some of the mechanisms built into most of the network marketing programs out there. Their intent is to cause your business to DEFAULT to the conventional business pyramid.

But the good news is that not all network marketing opportunities do this! Look for those who specialize in helping the “little guy”, who don’t use the mechanisms mentioned above.

UNLIMITED Some plans allow you to sponsor as many people as you want on your first level. These people, in turn, can do the same. Whoever they sponsor would be your second level of income. And when these second level people sponsor someone, the new members would become your third level of income. And on it goes until the company puts a cap on how many levels they will compensate you. Usually the depth (number of levels) on such a plan is low, maybe 4 to 6.

Your income potential is increased in this plan by constantly sponsoring new people and keeping your downline (as they are called) doing the same. The downside to this approach is that it does not encourage much support of one’s downline. Everyone is mostly on their own, trying to get as many first level members as they can.

BINARY In contrast to the unlimited plan, other companies use a binary plan. Your first level can have only two people; though, again, you can sponsor as many as you want. If you sponsor a third person, s/he is placed under one or the other of your first two. And so on. This is called “spillover”. The member that receives a “spillover” into his/her downline gets a certain benefit, though it is different than the one who did the actual sponsoring. The binary plan, in a way, forces you to “help” your downline. Actually, what it really does is encourages your downline to get busy and personally sponsor as many people as possible. They may never get a cent from spillover.

A binary has two legs: a power leg and a pay leg. Spillover goes into the power leg and can go on indefinitely. The income from the startup fee of those you personally sponsor goes to your pay leg. To get paid, the value of the pay leg must be at least 1/3 of a company-set goal (usually $600). The other $400 comes from the power leg. Usually the power leg is not the problem because of spillover from your upline. Once the $600 goal is met, the amount is withdrawn from both legs, a small percent (like 6%) is set aside as “commissions”, and the cycle begins over again. However, if certain criteria is not met, you could lose your entire power leg and have to start over again.

“Playing” the binary game is like playing computer games that have no end. Your only consolation is getting a higher “score” than last time. The problem is, as with the Unlimited plan, that most people tire quickly when it comes to sponsoring (the average is 2.5 people).

MATRIX More recently, binary plans are often combined with a matrix plan (to keep the interest up). A matrix is defined by a set width and depth (unlike the Unlimited plan). Each level is a multiple of some specific number, usually 3 or 4. For example, the first level may have 3 in it. The next level will have 9 (3×3). The third level will have 27 (3×9). And so on.

When a Binary is combined with a Matrix, the Binary often pays on a percent of the signup fee, which is typically somewhere between $150 to $500. The Matrix, however, pays on a monthly autoship ($50 to $100). A small percent of the autoship is divided up to the different levels, thus keeping the level depth somewhat shallow, like 6 to 8 levels deep.

OTHERS There are other innovative plans out there too, but not as popular. However, there is a new kid on the block that is breaking all the MLM “rules”. BioGenX Global is that one. It’s so different you have to really open your mind to new concepts when looking at it because it cannot be interpreted by the normal MLM models described above.

I, and several real brainy people that I know, have reviewed BioGenx Global and are completely floored at what they offer. It’s out of this world! With just 3 personally enrolled people on a $60 per month autoship, a person is qualified to make $1140 per month! The community and global approach are such that it removes competition and promotes individuals helping each other out. The community of marketers help fill your matrix and it looks like the $1140 can actually be achieve in short order (think just 2-3 months, max).

A Global Humanitarian Focus

BioGenx has some interesting features going for it. First is its focus on meeting humanitarian needs world-wide. They say that about 30 percent of their profits will be going towards helping the poor and needy. A tremendous amount if you ask me! Most corporations give only 1 to 10 percent to humanitarian needs. BioGenx, in giving up to 30 percent is way outdoing most companies! This is an interesting feature to the company and its founders.

The People Running the Company Have Values

The second point is that BioGenx is run by people who have values. Since I personally know of one of the founderss and have known of him for several years, I think I can attest to this. The BioGenx administration are people who truly want to make a difference in the world by helping out the little guy. They’ve been there and done that loads of times themselves and are on a personal quest to make a company that serves the average person.

BioGenx’s Products Are Powerful.

Third, their products are certainly flagship. BioGenx’s products are extremely well tested. I’ve check them out best I could and realized one thing about them. They go for the top! One of the products they have is a homeopathic. One lady I talked to told me how it helped relieve shoulder pain that she’d had for a year after only taking the product for a week. There are quite a few testimonies talking about how it’s helped with a variety of health issues.

The Compensation Plan Alone Doesn’t Drive The Company

Fourth, the compensation plan put forth by BioGenx will not be the only driving force. Their products are so hot and so needed that people are going to join simply to get them alone! No joke! The energy and weight loss products are probably going to be the hottest items, in my estimation. People can get their product free if they personally enroll only one other person, so this will be a major driving point for the company.

Here’s My Truly Honest Opinion

After careful review of BioGenx, I certainly do recommend it to stay-at-home moms, single parents, hard-working families, and heavy hitting networkers as well. This is one of those once-in-a-lifetime opportunities that you’ll probably never see again. No joke.

One Word Of Warning

If during its initial year or two of operation people want to join, they’ve got to be extremely patient with the company. BioGenx is a hot, hot, hot home business and as such will see unheard of growth. Logically, it’s going to be real hard to keep up with that growth. So be thoughtful and kind and wait. A good opportunity like this shouldn’t be ruined by complaining people. Be thankful and be patient. When everyone wants to join a company NOW, that’s just how it will be.

I read your review on this company and you said that they were planning on launching in the Fall of 2008. I had heard it was going to be sometime very soon, like within the next week or so. When did you go to this meeting? The reason I am asking is because I had been approached by someone and if you were told one thing and I was told something differently, then there must be a communication error somewhere and I’d like to find out which is true before I join this group.

ANSWER

Thanks so much for the question. That’s what we’re here for. We know from experience what it’s like to be interested in a startup company and have lots of questions that seem unanswered. Hopefully we can help clarify things from what we heard at the last meeting (a couple weeks ago) here in Walla Walla.

BioGenx Global is in their pre-launch (or maybe it’s pre-pre-launch) stage. They were letting people sign until just recently. Now they are waiting to let people sign up until the sign up part of the website is done (hopefully mid-April) so they don’t have to hand-key in applications anymore.

As always, although from everything we’ve looked at, we think this company is out-of-this world product and compensation wise, it still has to prove itself in actual delivery. However, let’s not get critical on that yet. They’re still in the development stages. Because of the tremendous growth BioGenX Global going is going to see because of their industry firsts, we’re going to have to be even easier on them while they try to establish their roots and deal with unheard of growth patterns for a new company.

That’s our honest opinion at this point. Thanks for asking!

We recently went to a meeting in Walla Walla, WA to learn more about BioGenX Global’s products and compensation plan. The meeting presenter was JR, a long-time friend of Dr. Coffy (BioGenX’s President). What an impressive bit of information! We’ve been in several home-based businesses as well as watched first-hand our parents try out loads of them during our growing-up years, and we can honestly say, this BioGenX Global is an industry first!