Third-Party Products and Services and Recruitment
myEcon, based out of Atlanta in the United States, has dubbed themselves the “personal financial success company”.
Founded in 2005, myEcon is run by CEO Larry Gates.
Gates’ myEcon corporate bio reads that he has:
“20 years of experience in communications, marketing and business operations. Mr. Gates also has great people skills having spent several years in the financial services industry.”
Upon further research, it has been revealed that a 2009 blog post by a Michael J. Smith names Ivey Stokes and Alvin Curry as the two original founders of myEcon.
Alvin Curry quotes himself as Owner and President of myEcon on his LinkedIn profile. Ivey Stokes quotes himself as Executive Vice-President.
Oddly, neither Curry nor Stokes are recognized by name on the myEcon website.
“myEcon, Inc. is a privately held, debt free company based in Gwinnett County, GA, a suburb of Atlanta. The company was founded by a small group of entrepreneurs in 2005.”
But there’s a catch…Prior to launching myEcon, Ivey Stokes and Alvin Curry were respectively Chairman and CEO of Maxxis Group.
Maxxis Group is an MLM company which was launched in 1998 and subsequently filed for Chapter 7 bankruptcy in 2003.
“In 2006, Curry and Stokes were listed as defendants in litigation brought by the appointed Chapter 7 trustee in Maxxis bankruptcy hearings. Apparently, based on the court document, the trustee sued Stokes, Curry and others for breaching their fiduciary duty, for corporate waste and deepening the insolvency of Maxxis. In other words, they didn’t act in the best interests of the company.”
Larry Gates was a member of Maxxis Group’s Board of Directors and owned shares in said company.
Hmmm….on October 1, 2016 myEcon and Novae merged together.
As stated in a press-release issued on September 30th:
“myEcon and Novae’s executive teams will begin efforts to blend corporate leadership. Over the next several months, the companies will continue to take steps to integrate systems, marketing organizations, and culture to create a huge conglomerate that will change the lives of millions across the country.
“myEon’s Financial Success Membership includes a Cashflow Manager Software, Identity Theft Protection, Free & Discounted Legal Services, Tax Advice Service & Preparation, and Identity Theft Prevention. Novae will add Novae Perks, Novae Library, and Novae Travel to this membership and at no additional cost to current myEcon and Novae IBOs.”
While most of Novae’s products were tied together with “Lifestyle Package” subscriptions, individual retail pricing is provided on the myEcon website as follows:
- ID Defender – $7.99 a month
- Road Assure roadside assistance – $7.99 a month
- Cash Flow Manager – $10.95 a month
- Credit Restoration – $99.95 to set up and then $99.95 every three months
- Family Shield 360 – starts at $13.95 a month
- Cashback Mall (third-party cashback affiliate network) – no cost
- Travel Portal – no cost, redirects to Priceline travel portal
- Daily Ultimate (“liquid multi-vitamin mineral supplement”) – $36.95 a bottle
- Aloe Gano Black Coffee – $16.49 a box
- Aloe Gano Green Tea – $16.99 a box
- Aloe Gano Rooibos Tea – $16.99 a box
- Body One MSM (Methylsulfonylmethane (sulfur) supplement) – $19.95 a bottle
- MSM Lotion (organic sulfur skin lotion) – $24.95 for two 10 fl oz bottles (295 ml)
In addition, Novae’s “Sprayology” products have been added to the myEcon product range.
myEcon Compensation Plan
Strangely, myEcon does not provide a copy of their compensation plan on the company website.
However, the following study is based on a myEcon compensation plan document dated March of 2016.
There are 6 ranks inside of the myEcon compensation plan.
Together with respective qualification criteria, they are as follows:
Sales Associate (no MLM Commissions)
- pay $80 and then $10 a month
- pay $179.95 and then $34.95 a month or
- upgrade from Sales Associate for $99.95 and then $34.95 a month or
- sign up as a Sales Associate and generate 100 PV a month in sales
Executive Vice President
- sign up as a Marketing Director and recruit two Managing Director affiliates or
- sign up as a Marketing Director and generate at least 200 PV
Executive Vice President Gold
- have thirty fee-paying affiliates in your baseshop downline (no more than 12 counted in any one generation leg)
Executive Vice President Platinum
- have 200 fee-paying affiliates in your baseshop downline (no more than 50 counted in any one generation leg)
Executive Vice President Infinity
- have 800 fee-paying affiliates in your baseshop downline (no more than 160 counted in any one generation leg)
A baseshop is a myEcon affiliate’s frontline affiliates. Each recruited non-Executive Vice President is placed in what they call a baseshop.
When that affiliate recruits 2 new affiliates, which are then put in their upline’s basesho), they will qualify as an Executive Vice President and are detached from their upline’s baseshop.
Executive Vice President affiliates must have 2 personally recruited affiliates who pay monthly fees in order for them to qualify for commissions.
Marketing Director affiliates are paid $25.00 per affiliate who they recruit into myEcon.
Any commissions produced by an affiliate’s first 2 recruited affiliates are delivered up to their upline.
Executive Vice President affiliates earn $50.00 per affiliate who they recruit.
The affiliate who recruited them earns a $25.00 override commission. In addition, they earn 50% of recruitment commissions made by personally recruited affiliates.
Note: after an affiliate has recruited 2 affiliates, they are then detached from what is referred to the “baseshop” of the affiliate who recruited them.
When a recruited affiliate has qualified as an Executive Vice President and been removed from their upline’s baseshop, any affiliates they recruit produce a $5.00 to $30.00 commission for their upline:
- Executive Vice President affiliates earn $5
- Executive Vice President Gold affiliates earn $15
- Executive Vice President Platinum affiliates earn $25
- Executive Vice President Infinity affiliates earn $30
Lastly, every time a myEcon affiliate’s downline gets bigger by 7 people, they are paid a $1000.00 bonus, subject to affiliate retention rates.
Residual Recruitment Commissions
- Executive Vice Presidents earn $1 per month per affiliate down four Executive Vice President generations
- Executive Vice President Golds earn $3 per month per affiliate down five Executive Vice President generations
- Executive Vice President Platinums earn $5 per month per affiliate down five Executive Vice President generations
- Executive Vice President Infinitys earn $8 per month per affiliate down an infinite number of Executive Vice President generations
Sales Associate and Marketing Director = 15%
Executive Vice President = 25% direct, 10% of sales generated by their SA and MD affiliates
myEcon affiliate membership is completed by the purchase of an affiliate package:
- Sales Associate – $80 and then $10 a month (no cashflow manager)
- Marketing Director – $179.95 and then $34.95 a month
The main difference between these two memberships is income potential through the myEcon compensation plan.
myEcon – Bottom Line?
Representative of MLM companies who sell third-party products and services, myEcon’s compensation plan is somewhat confusing. The best part, when you do finally get it, you are still left with nothing but a headache.
The idea of the plan is to convert 3 affiliates (to qualify as an Executive Vice President) and then put emphasis on those in your downline recruiting 3 affiliates.
Every time a downline affiliate qualifies as an Executive Vice President, you are left with 2 affiliates in your baseshop.
Your baseshop is pretty much what myEcon affiliates emphasis on growing, which happens as downline affiliates qualify as Executive Vice Presidents.
What does this matter? The problem is that it occurs at the expense of retail sales activity.
While retail sales are slightly possible, the myEcon compensation plan is deeply focused on affiliate recruitment. This is mirrored in affiliate presentations of the compensation plan, which puts exclusive focus on growing an affiliate’s baseshop.
myEcon products appear to exist exclusively as commission qualifiers, to satisfy minimum monthly PV requirements.
These requirements could be met through retail sales but that seems extremely unlikely, given how myEcon is marketed and that no retail sales volume is mandatory.
With regard to the third-party products and services involved with myEcon’s opportunity, they might be mentioned in order to begin initial interest. However, after an affiliate is committed, monthly fees are not important.
myEcon – Conclusion
Use them, don’t use them – just don’t forget to pay your myEcon monthly affiliate fee (which provides access to most of the services).
And, the merger with Novae – well, the similarities between Novae and myEcon are pretty apparent.
Novae affiliates paid $99.95 a month and focused on recruiting other affiliates who did the same.
myEcon has a lower monthly subscription but otherwise has the exact same recruitment focus.
Alexa traffic estimates for the Novae website propose a decline over the past year. This is not at all healthy for an MLM opportunity reliant on affiliate recruitment.
myEcon traffic rose earlier in the year but has been declining since July, although not as drastic as Novae’s decline.
That would explain the reason that Novae is being rolled into myEcon and not vice-versa.
Bottom line – as a myEcon affiliate, you need to determine whether your impending upline has any retail activity in their personal business.
If their income is chiefly derivative of recruitment (either directly or indirectly), myEcon is, without a doubt, operating as a product-based pyramid scheme.
As with all such schemes, once recruitment dwindles beyond the point of no return the scheme ultimately collapses.
WakeUpNow is a decent example of an MLM affiliate subscription-based compensation plan going bust.
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