Sherman's Wealth Marketing Tips

So you heard about Success University. Lets have a look at the business side of things and what it takes to break even.

You'll need your thinking cap.

Compensation Plan – Since Success University is a network marketing company, you get compensated for referring others to the company. Once you get the ball rolling with Success University, you get paid for every 6 person cycle that forms in your downline. Success University pays you well when you can get pass the initial stage. If you don't get pass the initial stage and personally refer 6 persons, then have those 6 persons stay active and also start working hard, you will not earn any profits from the 7 month on and will be losing money from the 1st month.

Here's a typical example:

Lets say you refer 3 person at the start who join the business at $149.50 + $55.00 each (if no price changes). That earns you a fast start commission (around $19.99 per pax), but you won't qualify to earn that 6 cycle commission because you only have 3 persons in your downline. When in the 4 month you don't refer anyone, then you won't earn a commission. 5th month passes and you won't earn any commissions when someone joins, while you continue to pay the membership (your upline still earns though so long as you form part of their 6 personally enrolled members), then in the 6 month you refer 3 persons, you now qualify to earn the 6 person cycle commission, because you have a total of 6 personally enrolled members which covers the 2 months you did not enroll anyone (1 person for each month until 6 months). Your commission for the 6 person cycle is about $40+, not yet to cover your monthly membership which is about $55+. In other words, for 6 months, you would have spent $149.50 + $55 x 6= $479.50. Your commissions for referring just 3 person in the 1st 3 months then 3 person in the 6th month is $40 + (4×20) = $120 (not counting the commissions you lost when you referred no one for 2 months).

So that means you've lost $359.50. (ie 479.50 – $120)

The only time you're considered "reasonably safe" is when your downline starts to get their 6 and this must be done in the 1st month you're with Success  University. Otherwise, you'll find yourself able to earn a commission this month, then unable to earn a commission the next because you're fluctuating around the 6 active members cycle.

Once you have referred 6 active persons, you get to earn a commission for life, so long as those 6 personally sponsored members don't leave your organisation.  Anyone else in your group that refers and creates a 6 person cycle earns you commissions. This is where if you have 6 hardworking members, you will continue to earn an income that just keeps growing.

6 is the magic number!

In my view, Success University is a do-or-die MLM. There is a life time to the amount of success education one can receive. So after some time, the sustaining factor is to make money from the business, rather then the products. Products that you can use for life are mobile phone subscriptions, domain names or food consumables. Education, well there is a limit to it. Once you have a degree in lets say accountancy or law, you won't need to study law again so you stop paying for tuition fees.

How You Get Paid – Success University pays using a Global Cash Card. This card if dormant withdraws money from your internet banking account. Whenever you withdraw money as well, it also deducts money from your bank account. This is another problem that I see and unless Success University finds a way to allow its members to accumulate commissions before withdrawing, many SU members will pay their tuition fees and leave after 3 months, the best will stay till around 9 months to try to get 6 front line members, which is still insufficient to pay for the membership, not to mention the banking withdrawal and dormant fees deduction which comes to around $5 per mth.

More Typical Examples: Success University fees is around $55/mth. Most actually pay around $149.95 (one time) + $55 (per mth) at the start to earn double commissions. Banking Fees where your comissions are stored costs $5/mth. Any withdrawals will cost about $5 and if you have a withdrawal fee charge, you won't be charged bank dormant fees. So yes it makes sense to withdraw your commissions every month.

In order to do this, you MUST earn more then $100/month, so you'll be in profit after all the little deductions from everywhere. Lets look at the numbers on a "per month best case scenario" basis where you actually managed to refer 6 persons in your 1st month with Success University.

Your Success University and Cashcard transaction fee cost: ($149.95 + $55.00) +($5.00) = $209.95

Compulsory 6 active members in your downline to earn the 6 cycle commissions: You earn $160 your 1st month (you get this only if you paid $149.95 for the one time business upgrade. So you earn $40 from the 6 person cycle and $20 x 6 in fast start bonus cash, assuming best cash scenario that your 6 members all paid $149.95 instead of the normal membership)

$209.95 – $160. You're still $49.95 deficit. This is not taking into account any money you spent in advertising, or adwords, or stuff like that. Its the pure business aspect of how much you made even though you referred 6 persons to Success University and met their qualifications to earn a commission with them for life. Which as you can see, its not easy if you have no existing base or contacts to leverage on.

You will succeed in Success University's business only if your downline are powerful network marketers with existing teams in other business that join this business. Or there is a proper plan to grow this business and targets to meet.

So long as you have a plan to get pass that intial hurdle within the 1st month, and those you enroll are powerful marketers, you will be safe and can expect to earn a huge commission on autopilot with the 6 person cycle compensation plan that goes to infinity.

You cannot expect to build Success University slowly, because your commissions do not accumulate, its a build 6 persons quickly and make sure those 6 start building, or you will surely lose money. This to me is the strangest part. If I referred 6 persons to a business, I should expect to break even immediately. In Success University's case, you will still find yourself in $49.95 in deficit unless your downline starts building.

Here's a target you must meet if you decide to join Success University: Refer 6 in your 1st month, and you'll still lose $49.95 in your 1st month. You MUST refer 6 in your 1st month and have those 6 refer 6 in their 1st month, only then are you safe and in profits. You'll have 42 persons in your downline and counting just the 6 person cycle commissions will earn you around $280/mth.

There is no try and see in Success University, either you build quickly in your 1st month with Success University or I would recommend you try something easier to earn your 1st 6 figures online.

To your success!

Sherman Choo

This entry was posted on Tuesday, August 12th, 2008 at 1:44 pm and is filed under Case Study.