Empower Network, an editorial review of THE review

by louabbott on September 15, 2013

Empower Network is nothing if not controversial.

Since my first look, I have dismissed them as another money-game MLM with very little to recommend them other than a lot of buzz. I got turned off immediately with their pervasive and, IMHO, misleading claim to pay “100% Commissions.”

Empower Network co-founder David Woods

Empower Network co-founder Dave Wood (and girlfriend?)

Editor’s Note: the plan is marketed as a 100% commission plan.  And, it does pay 100% (less fees) if . . . you only count the sales you actually get paid on. But let’s be real here. Of your first 6 sales on every product, you only get paid on half of them.  Wouldn’t that be more like a 50% payout? — from my Empower Network Facts page

That said, I have had very little interest – nor the available time – to do an in depth review. That cannot be said of Len Clements, who once again demonstrated that no one does MLM Network Marketing company reviews better.

By comparison, on the same topic, Len says in his review (and this is just a tiny snippet of his Empower Network comp plan discussion) (Again, bold emphasis is mine.):

Empower Network reps, and founders, love to mock those “primitive” MLM programs that only pay their reps “20%, 30%, 40%, maybe 50% on one level”.173 When Dave Wood made the previous quote he was referring only to commissions earned in

len clements

Len Clements

traditional MLMs paid directly to the seller from that one sale. He, like most Empower Network reps, are loathe to acknowledge how MLMs typically pay on deeper levels. You’ve already been given a clue as to why. In those archaic, “old school” MLMs, if the plan paid, let’s say, 10% down five levels, and you were to amass the same 4×4 progression to 1,364 people (per the example above), you would be getting paid only 10%, that’s true – but on all 1,364 sales! Not 100% on 62 of them and 0% on the other 1,302. Put another way, you would earn 10% of 100% of the sales rather than 100% of 4.55% of the sales.

Bottom line: In this scenario, if both teams produced $500,000 in volume within those five levels, Empower Network would pay you $22,750. The old, obsolete MLM would pay $50,000. This is in spite of Empower Network applying 100% of most product sales volume into the plan and conventional MLMs only 40-50%. I’ve calculated several different progressions and Empower Network always starts to fall behind in total earnings at about the fourth or fifth generation.

If you have any aspirations of being an expert in our industry, and come to a much better understanding of what really are the legal issues that may determine whether any supposedly legal MLM really is or not, I highly recommend you take the time to read the whole report at Len’s Inside Network Marketing Blog.

I took the liberty of posting a couple of paragraphs from the more than 60 pages (when I printed it out and read it) and put in bold some of Len’s most important conclusions – for those who will not spend more than 5 minutes on this topic.

I’m not suggesting Empower Network affiliates don’t apply effort in the creation of their income. They do. So no, it’s not an unregistered security. Nor am I suggesting they are a Ponzi scheme. They are not, nor do I see anything that would even remotely suggest otherwise. So let’s eliminate those two issues right up front. But after a thorough, six month investigation involving a survey of 104 active affiliates2 and a marathon six hour interrogation of CEO and co-founder Dave Wood.3 plus another hour-and-a-half with co-founder David Sharpe, it appears there are still some dark spots on Empower Network’s X-ray, and a couple urgently warrant a biopsy. Having said that, and much to their credit, one of the most troubling diagnoses – let’s call it Acute Adrenocortical Income Claim Carcinoma – seems to have resulted in emergency surgery followed by an aggressive after-care regimen of preventive medicine. Considering the extent to which it has metastasized, the prognosis is guarded.

This is just one example of several where concerns that I raised during the non-public investigative process resulted in a pro-active attempt at resolution. What ever red flags I may present in this review, I am convinced none are deliberate, and all are being, or will be, addressed.

Whether it’s enough, and in time, or too little, too late, only time will tell.

Len also has some interesting videos here. Not to mention a marathon (4 hour!)  interview with Empower Network Founder Dave Wood.

As usual, I enjoyed reading the whole review.  Len does a fabulous, very thorough, very fair, and entertaining job.

 

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{ 10 comments… read them below or add one }

jack January 8, 2015 at 4:43 pm Thumb up 0 Thumb down 0

I was in E.N. for a while, and finally came to the conclusion that it really is just a basic pyramid scheme. The is no real product, and nothing is being sold to customers. You just are buying higher commissions with each level and only make money by selling that concept to others. In other words the whole damn business is based upon 100 percent recruitment. I know its hard to see past the bells and whistles because they make it seem so simple to make money, but really, how can you feel good by conning other people into buying into false hopes. Eventually, the FTC is going to catch up to good ol Dave and Dave and they are going to be the wussies.

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jawabanbagus.com September 13, 2014 at 2:23 am Thumb up 0 Thumb down 0

In recruiting new affiliates, keep in mind
that you will be expected to train those individuals
and provide ongoing support for them. 3) you must believe in yourself (I
have faith that if I continue to work hard, learn more, improve
myself and my skills, and treat others with respect,
that I will build one of the best teams this
company has ever seen). Those who connect with your writing and take the time to contact you are the ones you want in your
business because they have demonstrated their initiative and
leadership skills.

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Roy Harper October 7, 2013 at 5:24 pm Thumb up 0 Thumb down 0

EN isn’t all it seems to be. This is from someone who was in EN, looked diligently at the “products” and found them to come up seriously lacking. Here are some of the issues I personally had with EN:

1- I was told I could promote any business opportunity I desired but when I tried to post other opportunities in sidebar widgets, EN had circumvented the ease of doing so in their WP theme. Sure, I was able to figure out how to do it, but for the blogging “newbie”, it won’t happen. Bottom line, I felt misled.

2- The “training products” are laughers. A more appropriate name for it would have been “The Dave and Dave Self-Promotion Show”. I learned more from Mark Joyner’s free Simpleology course than in EN’s joke of a product. After a couple I simply couldn’t see myself paying for more of this “excellent training”.

3- The compensation plan is a total joke. Tell the freakin’ truth from the beginning. Tell the truth on Capture Pages rather than misleading people from the beginning. I never believed there was a 100% payout, and don’t believe such exists. EN targets people looking for a free lunch, and fails to deliver.

4- EN talks about people having their first $1000 payday, or their first $5,000 payday, but they don’t say that these people many times are generating that payday from one sale and will likely NEVER do it again. I saw the results from the Prosperity Team, and without the high end “product sales” EN wouldn’t even qualify as a strong also ran to most other network marketing opportunities.

5- Much is said about blogging daily in EN. Will that get you to where you want to be? The truth be told, it is highly unlikely that will ever happen. The ones who succeed at EN are the ones who know how to market and have budgets to do so. Don’t believe me? Install Google Analytics on your blog, then look at the results. If you’re not spending money promoting EN, you’ll see poor results. I’ve had self-hosted blogs that ranked better than my EN blog, and did it much quicker myself.

I’m not “bashing” EN. A few have done extremely well in EN. What I’m talking about is telling the truth, the WHOLE TRUTH. Market EN 100% for what it is rather than using half-truth Capture Pages to pique people’s interest.

The truth is that network marketing and Internet Marketing are tough businesses. Not everyone is going to succeed at either. In fact, most will either experience mediocre results or fail as is the case in the insurance business or the real estate business.

EN is just another opportunity that gives people false hope with their approach to business. And it is another black eye on the network marketing industry.

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Scott September 17, 2013 at 4:38 pm Thumb up 0 Thumb down 0

My question to Len and to anyone else… is who cares if there is a usual % taken out for merchant fees?! And why spend the time to write a “bashing” review of a company you probably never signed up with or saw from the inside yourself?

I have made more money (short AND long term) with EN than I have in any other deal… AND I actually get fed REAL marketing training by real people… and not the same, “go talk to your friends and family stuff”.

Usually… if someone writes a negative review of something… they are trying to get you into THEIR deal (or newsletter, buy their book, get on their list, etc.)

EN’s been going strong for almost 2 years now… and they have been getting their ducks better in a row the entire time.

So if any of you REALLY want to know what EN is all about… just join yourself to see it from the inside… and make up your own mind of it you feel it’s for YOU!

I’m sorry for ranting here… but these ridiculous “negative reviews” is just so silly, and further worsens prospects ideas to what may be best for them. Do your own thing, and quit bringing good people down.

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Roberto Santana September 17, 2013 at 12:39 pm Thumb up 0 Thumb down 0

The reason Pass-up programs don’t perform well is that the great majority of people who get into an MLM never sponsor more than ONE person. Another large percentage of MLMers only ever sponsor 2 or less (I believe that number is over 90%, I don’t have a copy of that survey right now).
Run the numbers, it’s not a good picture.
So the fact that EN is doing so well really surprises me.

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Steve Thomas September 16, 2013 at 12:24 pm Thumb up 0 Thumb down 0

One final comment, people seem to be getting hung up on the 100% commission thing.

You’re told that three of your first five sign ups are ‘pass ups’, and thereafter it’s one in five. You’re told there are merchant costs, and you know the Master’s Course works out at about 86% commission.

That’s fine by me. What I love about EN is the ability to write and share things – that’s what I’m passionate about. When I sold lotions and potions, I really didn’t have a clue whether the medical arguments were right or wrong. I had no background in that, and so had to reiterate the ‘company line’ parrot fashion.

As for flogging electricity via an MLM, well that failed to light my fire.

But I love promoting EN. It ticks my boxes. And that’s what’s important.

It doesn’t really matter whether this compensation plan is better than that one or vice versa. What matters is that you do what fires you up, and you get rewarded for your efforts.

I know several people who got involved promoting Agel because Randy Gage became a distributor. But it didn’t ‘do it’ for them, so their business was doomed to failure because they were trying to build something for which they had no real passion or enthusiasm about.

I think there’s plenty enough opportunities out there for us all to have a very comfortable lifestyle. We don’t need to go about bashing one business over another.

Steve

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David Johnson September 16, 2013 at 10:48 am Thumb up 0 Thumb down 0

From a purely analytical perspective, it would seem Empower Network is skirting the line of legality.

The product line offered is so they can be legal. The main objective though is to market the Empower Network opportunity so you can make large upfront commissions on the sale of these products.

Realistically, I bet a miniscule percentage of Empower Network members will actually review the digital products beyond a few minutes. The main reason they joined was to earn fast huge checks. Obviously Empower Network would argue they can’t be held responsible if members won’t consume their products.

Of the hundreds of YouTube videos I’ve seen from Empower Network members, not one of them is touting the product material and/or how it has changed their life. Most are pushing the large payouts per sale of the opportunity.

Once Empower Network gets big enough, there will be a State Attorney somewhere in need of a career boost who will take them on.

I have a friend in the same type of business structure where the company focus is basically the same as Empower Network. I offered Len’s review to her but she’s not interested because their program is DIFFERENT.

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Roberto Santana September 16, 2013 at 6:04 am Thumb up 0 Thumb down 0

My main problem with EN when I looked at it was the “Product”. But I also find it ridiculous how they can say they pay you 100% commissions, when you are passing up sales.

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Michael Eisbrener September 15, 2013 at 8:43 pm Thumb up 2 Thumb down 1

The “Product” is a wordpress blog that you can do 100x more with at Wordpress.com! The usual suspects are making a mint!!

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Steve Thomas September 16, 2013 at 12:11 pm Thumb up 0 Thumb down 0

Michael, your comment is misleading.

The blog currently is a modified WordPress blog that’s designed for newbies to get up and running quickly. Many people are simply put off sorting out a full WP blog for their businesses, and so it was devised as a quick and easy solution.

Empower Network version 2.0 makes the process easier for people and businesses to set up a blog, even from mobile devices.

The other products are a complete online marketing tutorial that will help people get to grips with the online marketing world. This is designed to be affordable, not the tens of thousands of dollars some of the big name gurus charge.

Various other products are thrown into the mix, like the Big Idea Mastermind’s ’30 Days To $10k’ program. These are designed to give people the knowledge how to succeed online – even with your BizOp!

Steve 🙂

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