The Company: SPX Nutrition
Founder: Rick Wall
Startup Cost: $40
In this article I want to talk about the SPX Nutrition business opportunity and whether or not it is something genuinely worth pursuing. They claim to be different from other companies and that this is a chance to be part of something great, but is this really the case? I'm not so sure.
This health and wellness mlm company was founded in 2014 by Rick Wall who has years of experience in the business arena. The products are primarily weight loss supplements designed to suppress appetite and increase energy. The company is not BBB registered and does not appear to be a member of the DSA (Direct Selling Association).
To me this company offers nothing new in the way of products. Every mlm company I come across in the health and wellness space claims to have the secret sauce to our optimal health and well being. That said, the products may be good and since I haven't tried them I will not judge them as being ineffective.
I will say that personally I am skeptical of these kinds of products (for good reason) and that the health claims they are making have not been evaluated by the FDA.
Buy some products, share the love and build an empire as a result. Easy right?
In the sales video on their website Rick claims that it's relatively easy to earn unlimited income since they do all of the hard work for you. Apparently you can just "sit back" and build your team and share the product.
I'm sorry, but that is simply not true... building an mlm business takes a lot of hard work and determination, just like any business. There's also a lot of flashy pictures of mansions, sports cars and piles of cash which are all red flags and definitely not the most ethical way to promote a legitimate company.
Building a profitable business takes a lot more than sitting back and the fact that this guy has over 30 years expereience as a business coach means he is deliberately misleading people with that kind of statement in my opinion.
The ironic thing is that he states SPX is all about "bringing ethics back into the mlm industry"... I'm not so convinced this is what they are really trying to do after what I have seen.
The Compensation Plan
One of the things he also says is about how they are different to a lot of mlm companies in terms of a monthly auto-ship requirement. This has some truth from what I can see but I'll get to that in a moment, for now let's look at how you can earn.
How You Can Earn
FOB (first order bonus). How much you earn really depends on what level you 'buy in' at. If you buy the basic $40 starter pack you'll only earn 35% commissions on your first level, the $120 pack allows this plus 5% on your level 2 and the $240 pack opens up three levels of commissions. This is based on the first order a customer or rep you recruit places.
Team Commissions. As you recruit people into your downline you have the ability to earn commissions on what they purchase. The higher rank you achieve the deeper the levels of commission you can earn in your organisation. Your downline is infinitely wide and 7 levels deep.
Bonuses. There's a few different kinds of bonuses on offer throughout the compensation plan and really only start taking effect as you get right up into the higher ranks of the company.
Getting Started & Remaining Active
To get started will cost you anywhere form $40-$240 depending on which starter pack you buy.
Remaining active requires a rep to maintain 40 PV every month, which equates to about US$40 per month. This isn't as bad as some companies but once you hit rank level 4 (Manager) this will double to $80 per month. This can be offset by your customers order volume though like most companies.
What I Liked
- The company put a fair bit of information about the opportunity on their website which makes it easier to evaluate
- The cost of maintaining your business is not as high as some mlm's
- They provide a reasonable amount of training other than just warm market approach in the back office
What I Didn't Like
- The products have no credible third party backing or endorsement
- They are not BBB accredited, FDA approved or a member of the DSA
- The sales and marketing approach is very hype based
- The main website is immediately focussed on the opportunity rather than the product itself
I liked that the company allows reps to promote the business by using methods other than just recruiting family and friends but unfortunately the training is not very solid in my opinion. There's a lot of general ideas on promoting that once combined will be only moderately effective and high in cost.
One thing I saw confirmed my thoughts on the companies shady marketing approach even further in the back office training...
This is downright misleading and deceptive in my opinion and should not be taught to legitimate business owners, it is far from ethical. You are not hiring anyone, you are recruiting them.
Overall this is definitely not the best mlm company I have reviewed for a number of reasons. The biggest thing that turned me off was when Rick implied the whole thing would be easy, since they do all of the hard work. That is utter nonsense. Building ANY business, especially an mlm, takes a lot of hard work and dedication. It is anything but easy and he would have to know this.
The mlm industry as a whole has an already high failure rate of between 97-99% and some companies choose to be transparent and actually share the average rep earnings publicly. Given Rick's claims of 'bringing ethics back into mlm' you would think his company would take the lead here and avoid some of the tactics they are using.
It's not to say that you cannot be successful with a company like this, but I don't recommend buying into the hype that it will all be super easy and quick to make lots of money. That is not real.