Here is a snapshot of the Compensation Plan Overview video. There are numerous videos over-viewing Organo Gold that can be found on personal web pages by distributors, and YouTube. Below is a video still-shot of Holton Buggs explaining the concept of the Dual Team. Here, at 0:29 seconds, Bugg’s is emphasizing the idea that a distributor can make “infinite” commissions by recruiting an “infinite” amount of distributors in their downline.
Take a look at the image below from an article titled, “The Pyramid Structure of Multi-Level Marketing – Why it IS a Scam” from www.consumerfraudreporting.org.
With straightforward mathematics, one can see that there is a matter of time and number of recruits that will lead to an inherent collapse (similar to a stock market bubble). Organo Gold’s dual team concept will make this process slower by using a multiplying factor of 2. Naturally there will be a lot of “snapped branches” on the “placement tree” (pyramid) from the distributors who “quit” during the expansion. Once it reaches the deepest level of market penetration,the only way Organo Gold business is able to survive is by signing up new distributors. Members at the top, tip of the pyramid will get paid, but there will be a high turnover or “churn” rate at the bottom of the pyramid (who are they going to sell products to? The only other option is to keep selling the “dream”).
“Is Organo Gold a Recession Proof Business Opportunity”?
At the coffee jazz mixer’s and distributor meetings, I noticed a common theme (that everyone is tired of where they are right now, and want to experience financial freedom, and have more time to do the things they love). These people are Organo Gold’s ultimate market.
“The problem with the MLM “income opportunity” model is that the product (the “unlimited” income opportunity) is bogus. It does not exist. And, “unlimited” expansion, the foundational principle of MLM, is impossible. The promise offered to consumers is illusory. The pyramid model in which each person recruits more “below” must always place the vast majority in the lower ranks where a recruitment-based income – by design – can’t be possible. For a very few to be profitable, nearly all others cannot be. As the limits of the falsely advertised “unlimited” expansion are reached, those in the bottom lose their investments. They quit the schemes in large numbers usually within a year and then are replaced with new hopefuls. The “business” continues as long as the schemes can find new recruits (investors). Bad economic times produce many new potential recruits. Bad times for products are good times for sellers of hopes and dreams and purveyors of “independence, be-your-own-boss, can’t-get-fired, 20-hours-a-week-for-financial-security, anyone-can-do-it” income schemes.” – Robert L. FitzPatrick (in his article, “Has MLM Corrupted Avon?” from pyramidschemealert.org )