Company: National Wealth Center (NWC)
Current CEO: Peter Wolfing
Startup Cost: $25
The company was originally named ‘Infinity Downline’ when it began in 2009 and since 2014 has become known as ‘National Wealth Center’ (NWC). The founder is a guy named Peter Wolfing who owns a number of companies and websites, one of the most well known is Multiplex Systems Inc.
NWC itself is a global multi level marketing company with a range of products such as self development, wealth management, fitness products and various business and wealth development products.
The Product Range
There are seven products on offer within this company in total. Four of these are once only purchases ranging from $250-$7500 and three of them are monthly subscriptions ranging from $25 p/m to $100 p/m.
7 NWC products Personally, I thought there was no where near enough information on the website about these products. There is a short sales video but it doesn’t go into much detail and only gives a very brief description on what they’re all about.
I don’t know about you but if I’m paying for something I want to know what I’m getting before I buy.
The Business Opportunity
Normally when I do mlm reviews I have access to a compensation plan in which I analyse and break down to explain to people what’s involved. In this case there was nothing to off other than a short sales video which was pretty useless.
So I did what any self respecting blogger would do… spent hours trawling through the Internet reading reviews, complaints, articles and YouTube videos. I learnt a lot about the compensation plan and how the whole thing is structured as a result so I eventually got what I needed.
I also did a bunch of number crunching and even drew up a ‘mind map’ so I could get a visual grasp on the nuts and bolts of all of this so I could illustrate everything. Yeah I know… I probably went a tad overboard! I guess I was intrigued by this compensation plan and wanted to know if it was really as good as some of these reps and the company were saying.
The National Wealth Center Compensation Plan
The first thing I liked about this business model was there are no ranks or monthly buying commitments beyond $25 per month to be in this business and stay active. It’s not like most mlm structures in this way that require heavy monthly purchasing.
Note: Depending on which monthly subscription you buy will determine your earnings capability, but for the sake of this review I am just going to go with the $25 monthly option and calculate everything based on every recruit doing the same. Don’t worry, all will be explained.
This system operates on a 2 Up downline model whereby you recruit 4 people on your first level and give away recruits’ 2 and 4 to your up line sponsor. The best way to understand this is to think of it as you NEVER make any money out of legs 2 and 4 or ANYONE they enrol, down to infinity.
You only ever make money on your directly sponsored legs 1 and 3 and from recruit 5, 6, 7, 8 and so on wide. For this article I am only going to focus on the first 4 so it doesn’t get confusing and this is the way they encourage everyone to build their businesses.
So for this review just know that you get paid on legs 1 and 3 infinite levels deep.
You are encouraged to build you organisation by simply recruiting 4 people, who then get 4, who teach their 4 to get 4 and so on. They call this the ‘power of 4’ or something, but that’s besides the point. Here’s a mind map I created to illustrate what I’m going on about…
Black Line: People you refer directly
Blue Line: People that go to your sponsor
Green Line: People that go to you when your referrals ‘pass up’ their referrals
Here’s a zoomed in version of this to show you more detail and help you grasp this fully, the red circle indicates which recruits you actually get paid on…
So out of a total of 170 paying recruits in legs 1 and 3 you get paid a commission on 30 of those recruits each month.
How The Real Numbers Look
Numbers don’t lie right? That’s what the reps are telling people and it is true of course, provided you are getting the WHOLE story. The above examples should help you get a bit of a grasp on how the 2 up downline system works but the real question you are probably asking yourself is, does this mean I am going to make a decent income?
The answer is you ‘could’ make a decent income out of this but in my opinion it’s not going to be anywhere near as simple as the company suggests. In fact not even close. The following screenshot was taken from a YouTube video made by a NWC rep and while his numbers are correct, they simply don’t tell the full story.
He claims that anyone could get to 50k per month within 10 months working full time at this and I’ve seen other reps tell the exact same story. This leads me to believe this kind of training is coming from the top, but I cannot confirm this.
Here are the real numbers of how your downline is going to look as you progress (click to enlarge).
Column 1: levels in your downline, in this case I just went to 10 but it goes on infinite levels deep
Column 2: number of people in total throughout all 4 legs are on that particular level with everyone following the ‘power of 4 plan’
Column 3: how much each level makes you in total
Column 4: total amount you will earn on all levels to that point
Column 5: money you are making on each rep in your entire downline across all 4 legs
Since you only get paid on legs 1 and 3 you can simply halve the 2nd column to calculate the total number of reps on legs 1 and 3. The income columns are the same even after doing this since they have been calculated on your paid legs, 1 and 3. The writing in red simply ads up all levels to that point, so the total number of reps.
I’ve highlighted level 7 because that’s the point at which I consider it to be a full-time income, just over 6k per month recurring. Anyway, by the time you get to this ’10 month mark’ as the rep suggests in the video, their would have to be between 699,050 and 1,398,100 people in your organisation!
Why did I say ‘between’ these numbers? Because you don’t get paid on your 2nd and 4th legs so it doesn’t really matter what they are doing. They could have a handful of people and it wouldn’t matter to you. The 1.398 million is if all 4 legs each got 4 who got 4 down to 10 levels.
Anyway, the point is that in order to make $51,150 per month you would absolutely need to have 699,050 people in legs 1 and 3 since these are the legs you get paid on.
Let that sink in for a moment folks…
You need almost 700,000 people in your downline (legs 1 & 3) within 10 months to make the 50k they are talking about!!! I'm sorry, but this is ridiculous. Even after 10 years that’s an insane number.
Anyone that knows mlm or Internet marketing (heck anyone with a heartbeat) will tell you that that is incredibly unlikely, maybe even impossible. Yet that is what these reps are telling people. I am not kidding. Also, how sustainable is this given there are only so many people in the world willing to join somehting like this? Not very.
I guess that’s why I felt the need to elaborate on this review so much, to show people the facts that the company is not. I’m starting to see why they don’t provide the full comp plan but rather, provide simplified overview that does NOT paint the full picture.
UPDATE: I recently reviewed another company called PayCation, which I am NOT affiliated with, and what I found was really quite profound. Using the exact same number of recruits on level 7 (see chart above) and plugging them into their compensation plan will make you $172, 776 per month… PayCation comparison
The most you could hope to make with NWC is $6,350 per month on 7 levels. If everyone you recruited into NWC purchased the $100 level instead of $25, then the best case scenario would be $25,400.
So for the same amount of recruiting you would earn 27 times more in PayCation than in NWC. Again, I am not a rep for either of these companies. This is just a random example that struck me as I was doing the review yesterday and thought I’d come back and let you guys know.
Another thing about this compensation model is how rapidly the commissions decrease as you go down the levels, which they do not mention. You are really only getting paid 5 cents per recruit on level 10 when you do the math, this shows how the idea of an infinite downline is not so desirable.
I have to agree with the company reps though, numbers don’t lie.
So to re-cap, in order to make 50k per month you need almost 700 thousand people in legs 1 and 3 and the total amount you’re getting paid for each rep works out to about 5 cents. The further you go down the levels the less you make on each person and the more people you need to recruit.
But that’s fine because doesn’t the whole system just work on auto-pilot if you get 4 people? No. That is a fairy tale and I cannot overstate this enough. If this was true, everyone would be rich.
The ‘Get 4 Who Get 4’ Myth
One of the great things about mlm is that you can recruit people who then go off and recruit people so you can potentially build an organisation leveraging other peoples work. People certainly do make money this way, that is a fact.
The biggest misconception within this company is how you can just get 4 people who get 4 people and everyone will continue getting their 4 people and building your empire. In a perfect world where everyone was motivated and continued paying their $25 per month that would work.
Here’s the thing, that doesn’t happen in reality! In reality you will spend an enormous amount of time recruiting and hustling family and friends trying to get them into this and a lot of them will say no. The ones that do stay have to be making money or they will inevitably leave.
You need to be continuously recruiting or it will become a chain reaction of people dropping out. If the people at the bottom don’t do anything and don’t take action then they will quit, then their sponsor stops making money and so they quit and so on. The point is you need to be constantly motivating people and putting them in your downline. I’m not saying it’s impossible, but I think it’s important to understand the facts before joining something like this.
The good thing is you will break even on your first sale so you’re only real risk is your time and any money you put into advertising. Also, you can recruit people onto your first level infinitely wide so you can make money this way. But my biggest beef is with the whole ‘get 4 who get 4′ to make $50k in 10 months’ rah rah. As you can see, it’s not quite that simple.
No doubt this could work if you had a good lead generation website set up and you absolutely could create a decent income with enough effort, but if you are not getting leads for free through the search engines, you’re going to be need to pay a lot of money for advertising and learn Internet marketing using paid strategies.
You’ll either need paid or free traffic to succeed with this and believe me, you won’t make much chasing friends and family.
What I Liked
- There’s no ranks or qualifying volume to stay active
- You can break even on your first sale
- It only costs $9.95 admin fee and $25 per month to get started
What I Didn’t Like
- Serious lack of detailed product information on the website
- No detailed compensation plan provided on the company website
- The $25 per month will NOT teach people how to get targeted traffic to build thier business
- The ‘get 4’ myth and how it is being promoted is clearly misleading in my opinion
I think people with enough knowledge of Internet marketing could definitely use this to make money and the initial risk factor is pretty low. That said, after analysing the numbers it’s safe to say these guys aren’t telling people the full story about the compensation plan. The amount of money you really earn when you start building your downline is incredibly low given the ‘2up’ model the company embraces.
Again, I think you could make money but you need to know how to recruit and recruit very consistently. The ultimate question at this point is… is this the best use of your time and money and are there better alternatives? I think there are way better options for people to consider personally. Whatever you decide, I hope this review has proven helpful to you!