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