So you’ve read my previous blog post on LTW and decided you will still go ahead and ‘invest’ in this ‘opportunity’. How much will it cost and how much will you get back?
I have looked at what information there is online for the payment plan and it is proving difficult. Already, over the last few months there have been big changes in how it works. Whole parts have disappeared.
When you make it to the position of ‘president’ you now only get a house worth £500,000. A few months ago it was £1 million. And the automatic tree seems to have gone. The LTW official page currently has no details on the compensation plan at all. I wonder what it will be updated to?
But that’s ok, because people are told in their contract that the plan can be changed at any time.
I am assuming the current plan is as explained by current LTW members and is displayed on their web pages.
First, you have to join the company and pay £35.
Then you have to start purchasing products. In true MLM style, this is described in PV points. You need 100 points. The cheapest way to do this is to buy a ‘hamper’ for £165. If you chose to buy items individually, it costs over £200. So people buy stuff. This is the sort of haul they end up with.
No fresh food, no frozen food, no fridge items. No bread, eggs, meat, milk, cheese. Not enough there to make many meals at all. This stuff wouldn’t make much of a dent in your shopping list but would significantly add to the bill. Never mind though, it’s not real shopping is it? It’s an investment.
So now we’ve spent £35 on joining and £165 on a hamper and got cupboards groaning with Yazoo and Weetabix and some things you’ve never heard of. You don’t get anything back at this point though. You need to be active for three months. So you buy two more of these hampers over the next two months.
You have now spent £35 and £165 and £165 and £165. You may be leaking Yazoo out of every orifice at this point. The total is £530. You still don’t get anything back though because you don’t have a team. This is MLM. You need a team.
To get a team leading bonus you need to have recruited three people and those people need to have recruited a person each as well. Let’s assume you have managed to recruit these people and they have too. All those 6 people need to earn 100 points in the month that you pay for your third hamper. If one of them drops out or they don’t buy enough, you get nothing.
These 6 people all pay their £35 and each buy a hamper for £165. Between you and these 6 people, £1730 has been spent. From all this, £200 will be given to you. These 6 people won’t get anything until they have been in it for three months and persuaded their downline to buy stuff they don’t need.
If you keep doing this though, you will earn money eventually, right?
Month 3- total spends £530 and £200 back. You are -£330 now.
Month 4- spends £695 and £400 back. Balance -£295
Month 5- spends £860 and £600 back. Balance -£260
Month 6- spends £1025 and £800 back. Balance -£225
Month 7- spends £1190 and £1000 back. Balance -£190
Month 12- spends £2015 and £2000 back. Balance -£15
Month 13- spends £2180 and £2200 back. Balance £20.
It takes 13 months to make £20. And you have 13 tables of this-
And that is only if no one dropped out or forgot to make a payment that month. Just to make sure that doesn’t happen, you had better recruit a whole lot of people to keep it all going.
7 thoughts on “LifeTree World Compensation plan”
You are obviously doing it wrong then.
Ok so you are saying what you are spending per month but in reality, you are simply buying your groceries from another place and not eating them. The idea is you buy your food and eat it. You are redirecting your grocery shopping to another place. So your spend should be on your usual living costs but you are calling it a business cost. You are not money down at all. How can you be if you are buying your food. It is not buying stock. We don’t go to Tesco and say we are down £400 and moan about it. Difference is that LTW pay you back a bonus for shopping and getting others to do the same.
I took my son shopping to Tesco on quite a few occasions. Tesco have never once paid me for doing this.
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Get yourself a Clubcard and they will. And the items you buy will be cheaper too.
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The thing is Dave, the stock that you order from LTW is from a very limited choice of items, most of them unusual stuff, not branded at all. It is cheap, discontinued stock from end of line discount bins. If it arrives at all, it takes weeks and arrives in a poor condition. You then have to pay an extortionate amount for it. The customer service is abysmal. You have to waste £165 on stuff you don’t want and get your friends to do the same, in the hope you will get back just a bit more money than you spent.
in that case could I suggest shopping at M & S or Sainsbury’s and they will happily pay you. :o)
New compensation plan starts 1/10/16 and now costs £199 to join the business.
Click to access Compensation%20Plan%20Oct%202016.pdf