I received a call the other day from a gentleman that I have known for about 10 years.  He seems to have done well in the Network Marketing Industry and I have to commend him on the fact that he was making relatively “cold calls” on contacts that he had saved for over 6 years.  I had not heard from him during those 6 years until now.

 As I was sitting down to watch a movie, he rang and after a quick hello, he went immediately into this great new opportunity and why I must look at it. He described how the company is taking the industry by storm and that the “key” reason that he joined was that their infrastructure is in place to go global almost immediately.  He touched on the new “straight line” comp plan that helps everyone benefit from the gross volume of the company’s GLOBAL SALES!  This started to turn me off a bit, plus anything too good to be true usually is…

I agreed to take a closer look and after hanging up I realized that he never once asked how I was or what I was doing or if I was even in or out of the Network Marketing world. I chuckled at the irony of his call as I have been focusing on the art of “attraction marketing” and the benefits of building true relationships for the foundation of a successful home based business.  Again, laughing to myself, I knew that he must have not read up on this approach yet.

I did tell him that I would check it out.  This is what I found using the criteria I’ve adoptedfrom Daren Falter and his book “How to Select a Network Marketing Company”.

 
Xyngular is headquartered in American Fork, Utah, and was founded by former XanGo V.P. of Operations, Marc Walker.  Marc’s bio does include a 20-year history in the network marketing industry and most notably, heading up a multi-million dollar international entity (that wasn’t disclosed) and grew sales at a claimed amount of 75% in two years.  Xyngular is already available in the United States and Canada. The company also has deliveries to other countries in a NFR (not for resale) capacity.

The company launched on December 1, 2009.  I found claims from other affiliates stating that they had over 300 people join the company in its first month.  Xyngular has a goal of being released in as many as 36 countries in 2010. (Not sure if that is for resale or not.  If not, I don’t know how “global” that really is?)

The website claims they assembled a team of scientists to comb the world for the most powerful, nutrient dense fruits available.  And because a good fruit, no matter how good it is can only address certain health concerns, it needs to be combined with primary antioxidant pre-cursors and herbal adaptogens to increase its benefit.  Yes, another super juice with a retail price tag of $45.00 a bottle.  They guarantee you will feel a difference no matter what you are currently taking because the combination of the three groups of ingredients in one product causes a synergistic reaction that multiplies the effectiveness of each ingredient.  I’m not making this up; this is their claim.

I have always been reluctant to get too excited about a “Super Juice” even though we know companies like XanGo have had incredible success.  Many feel the surge for super juices is on the decline and in a challenged economy many are unsure about pushing a $34.95 wholesale bottle of anything.  Of course there is also the issue of pasteurization, which in almost 99% of the products we buy, is what we see on the label even if it’s no longer in the product when we consume it.  “Hot Fill” or pasteurization is known to kill or destroy as much as 40% of all the nutrients at the point of bottling, let alone what happens during its shelf live.

The one unique thing I did notice in this particular opportunity was the different compensation plan.  A plan that claims everyone in the company is helping you succeed.  This is because everyone that joins is put in a straight-line organization.  Even though if the plan were truly a straight line it would have issues with regulatory agencies.  However, with further investigation I learned that the straight line is restricted to the overall volume of the company through 12 Global Profit Pools and there are personal enrollment requirements keeping the plan legal.
 
This is the claim I see floating around the Internet:

“The most exciting part however is that everyone in the company is helping you to succeed. Think of how exciting it would be to sign up and instantly have volume show up under you. How exciting would it be for a new Distributor to sign up and instantly see people and volume under them? With Xyngular this is exactly what happens. Because we put everyone in a straight line Xyngular organization, those who signed in before you help you build your business.”

But what they don’t say is that you need to have close to 67 people in your organization that you have personally sponsored or were sponsored by someone you brought in and all 67 must buy one $35.00 bottle a month before you even start to share in the global volume.  Therefore, for most people the straight line will just be something they can look at in their back office and won’t really equate to earnings anytime soon.

It’s a catchy ideal that can sell and has maybe never been done before in just the same way.  The pitch goes like this: “The concept of people helping people worldwide succeed financially, no matter what organization they were enrolled in, and then sharing in the overall success of the company through 12 Global Profit Pools. What this means is that as the company grows globally, everyone profits!”

They also have a $100 quick start bonus and a rapid reward program that pays up to four levels on each case the new distributor purchased in their first month.  (To get all four levels you need to have purchased $396 in your first month and then be on a $320 monthly auto-ship.)  The initial payout is 42% through a conventional 8 level unit-level plan.  They pay another 12% through the Global Profit Pools, but remember you don’t participate in that until you have a monthly group volume of 2,000.  That equates to about 67 people you have personally sponsored or were sponsored by someone you brought in and everyone is buying one $35.00 bottle a month.  This makes the total payout appear to be 54%, which is a fair number in today’s Network Marketing Industry.

What they don’t focus on is that the Rapid Reward of $24 is per case, not bottle.  And to earn the bonus on more than just your first level you need to upgrade from one to four bottles a month.  And the biggest claim of the $100 fast start bonus is not unless you buy the case at $132 plus a nominal Membership fee of $20.  That’s not all, then you need to get FOUR more people to do the same thing and it has to be within the first FOUR weeks of you joining.  We know that most people will only sign up 1, 2 or 3 people ever, and the people that will get four or more general do not do it in the first 4 weeks.  So I see many new distributors getting discouraged quickly as they continue to get their auto-ship of $132.00 plus tax and shipping and don’t get paid the $100 fast start bonus.  Ouch!

So I wouldn’t be to concerned about how quickly they go global or not, first you have to be able to stay qualified for one level at $35 or as much as $264 a month to get all 8 levels of compensation and the first month bought at $396 to get your fast start bonus on 4 levels.
 
If this doesn’t sound confusing and a lot of requirements to capture pay, then you may not agree with me that it’s a recipe for high attrition rates.  If you like the product (Xyngular Super Global Juice) and you can honestly say that you would buy and consume it even if you were not involved in the business opportunity and you are willing to have an auto-ship for $35 to $132 a month for at least 6 months so that you can build an organization of anywhere from 12 to possibly 30 active distributors so that your residual earnings are enough to cover 1 bottle a month of your auto-ship – then dive right in!

What I would rather see you do is, if you have decided that Network Marketing is for you, first secure the talent or ability to attract quality prospects without going broke.  Why get yourself tied into some monthly auto-ship that may just start stacking up in your garage, when the key factor that will make you successful in ANY HOME BASED BUSINESS, is the ability to attract quality prospects.

What if you first focused on learning how to generate 10 leads a day, for whatever business you may want to build, before signing up to Xyngular?  Plus, while building your lead generation system you might just find a better place to direct your 10 leads a day.

As with Xyngular or any other network marketing company, be sure and empower yourself with knowledge and learn how to market yourself on the Internet first.  Be smart and get your horse out in front of your cart with an easy to use lead system for your network marketing company.