Head on the heels of the crazy rush to Wave 4 companies, there are now a few companies
touting the fact that they are “Wave 5.” Are these companies really Wave
5? What is a “Wave 5” company?
Some brief history will prove helpful here. Each new “breakthrough”
respective to what a compensation plan does was called a “wave.” Here, we
will not necessarily refer to the first company to establish a wave, but some of the most
recognized or both. Amway and Shaklee, the great founding companies in MLM are
called Wave 1 companies. Herbalife was a “Wave 2” company, paying down
over more generations, with “easier” breakaway requirements and stocking and
selling systems for networkers. Melaleuca and Nutrition for Life are “Wave 3”
companies, innovating “matrix” plans giving the average networker more support
from upliners, allowing direct purchases from the company in smaller amounts like $40 -
$50 total to get bonuses.
That brings us to what has been the hottest rage for the past several years. “Wave 4.” Wave 4 is refers to companies like the Twin Labs subsidiary that pays 15% on the first level, 45% on the 2nd level, and up to 15% to INFINITY. Again, most of these companies require just $40 - $60 of purchases direct from the company to qualify for initial bonuses. The novelty and excitement of “Wave 4” was to be able to earn hundreds of dollars monthly with just 5 - 10 distributors, and still have the potential for a large check with up to 15% to infinity.
In fairness, there are two types of firms that constitute “Wave 4” marketing. Industry experts also point to the “new wave” of progressive binary companies, like a Usana as a “Wave 4” company. You will get no argument from me here. Who in their right mind will argue with success?!! All of these companies, and many similar rising companies that claim to be among one of these “waves” if in business for more than five years may be a very safe home for you. You are better off with one of these types of firms that have been around for five or more years than risking your fate with a new, unproven, albeit exciting start-up firm.
Is a Wave 4 firm better than a Wave 1 firm? It depends on you. A Wave 1
firm like Amway offers undeniable stability, and hundreds of products to choose from -
products that have been proven over time and have been found to be in steady demand
because you use them daily. They are price competitive, often from $10 - $20 a
bottle or less. The drawback is that everyone knows who they are, and the
compensation system seems difficult and unlucrative for the average person. Wave 4
firms certainly have more lucrative compensation plans for the average person. The
drawback is that most of these companies only have 10 - 30 products, give or take a few,
and the products are often priced very
high - $20 - $40 per bottle.
Now comes the big questions: So what constitutes a “Wave 5” firm, and what firm is truly Wave 5? Each wave has attempted to make it easier for the average person and builder alike to make more money and have higher retention. The “distributors” in most companies are principally buyers, and you must have a “retail” customer to satisfy legal requirements. The “pain in the neck” has always been having to take the time to deliver to a customer for relatively small profits - even when you make as much as a 40 - 50% commission above your purchase price. Wave 5 companies eliminate this problem by allowing customers to buy one of any item direct from the company, and they send you a commission check - a 40 - 50% commission check. Wave 5 companies pay this 40 - 50% commission on the FIRST level, on as little as one item, whereas Wave 4 companies only paid the 40 - 50% commission on the 2nd level, and usually require 3 or more bottles or items. That’s quite a difference in being both customer and distributor friendly, isn’t it?
Wave 5 companies also offer the benefits of Wave 1 companies, the large, diversified
product line that includes proven, high demand products from personal care and skin care
to household products and nutritionals. A true Wave 5 company will have 80 - 100
products or more, and have the value oriented products that are $10 - $20 a bottle or even
less.
One last thing to look for on the product side of a true “Wave 5” company, is if
the wholesale price and the BV (Bonus Value) or CV (Commission Value) price are the same.
When the wholesale price and the BV price are the same, it is much easier to meet
bonus requirements and calculate earnings. For example, a 16 ounce bottle of SLS and
dye free shampoo might cost you $10 wholesale, and give you a $10BV. In other
companies, the shampoo might cost $9 for 8 ounces, and have a $7 BV. A true Wave 5
company will have at least 10 - 20 everyday, high demand products that have identical
wholesale and BV prices. This means that if you must do $100BV to get maximum
bonuses, you can do $100BV by spending no more that $100 total wholesale. (Most Wave
4 companies have a $100BV requirement, and you end up spending $120 - $140 or more just to
do $100BV.)
Wave 5 companies will still pay a distributor or marketing rep the 45% on the 2nd level also. How can they pay 45% on customers on the first level, and still pay 45% on marketing reps or distributors on the 2nd level? Is it a trick? No. Wave 5 companies do not pay upline members a lot on customers - most of the commission goes to the actual enroller, as it should. This then, easily allows 45% to still be available on the 2nd level to be earned on reps or distributor purchases on this level also.
Another very important difference of a true “Wave 5” company is that it will
pay 25 - 30% UNBLOCKABLE on the third level, and continue with up to 30% to Infinity.
A true Wave 5 company only will require about 5 first level reps at about $100 to
earn around 15% or more in infinity bonuses. Wave 4 companies usually require around
twelve on the first
level, versus just five in a Wave 5 company. Wave Five companies will outpay Wave
Four companies in Infinity pay for the same effort, and still recognize and reward true
builders by offering up to a dozen segments of Infinity Pay, where the industry standard
is just 3 - 6 segments. The fewer the segments, the more quickly you can be
“blocked” and lose infinity bonuses. Obviously, with twelve segments, it
takes a lot longer to block a serious builder from pay than when there are just three.
The last but important difference of a true “Wave 5” company is that it will pay the serious builders over at least 5 generations, and have generation bonuses of 10% or more. Some companies only have 2 or three generations of pay, which again, limits the income of more serious marketers.
Ideal Solutions meets all the needed criteria of a “Wave 5” company, and at present is perhaps the only true “Wave 5” company in network marketing. Being the first to set the standard for an entire new wave, like previous well-managed companies that reached out and set a new standard, growth in the early stages has been nothing less than spectacular. It will continue to be until the competition once again catches up, (and it always does) and offers similar benefits.
To summarize, it’s Wave 5 if it offers among other benefits the following MAJOR benefits:
1. Allows customers to order one of any item direct from the company on a toll free number.
2. Allows both reps and customers to order one of any item direct from the company over the internet.
3. Pays 40 - 50% on these customers, right on the FIRST level, so part-timers can make money.
4. Pays 40 - 50% on 2nd level distributors or reps.
5. Has nearly 80 - 100 or more high demand products, costing just $10 - $20 or less per bottle.
6. Provides 10 - 20 or more products that have identical wholesale and BV prices.
7. Offers 25 - 30% in Infinity Bonuses, with the 25 - 30% third level being UNBLOCKABLE.
8. Provides at least a dozen segments of infinity, to reduce the income losses due to blocking.
9. Gives at least 10% in generation bonuses, over at least 5 generations.
10. Provides access to your group volumes and genealogy reports daily on the internet.
IF YOU DO NOT FIND ALL OF THESE TEN MINIMAL ELEMENTS, THE COMPANY IS NOT TRULY A WAVE 5 COMPANY. Your success likely won’t come as easily or rapidly if these elements are missing. The more elements that are missing, the more difficult it will likely be to successfully work your opportunity. I hope this review of history, and update on what currently is available will prove helpful to you, the network marketer, whether you are part-time or full-time. Network marketing is such a fun, exciting business... especially if you know how to find the right wave, and ride it! The surf is up!! Go catch the right wave for you!!!
Warm regards,
Colin White
Go to a Wave 5 Company Opportunity
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This page was updated 09/26/01