Welcome to my Genistar review!
Is Genistar a scam? Or is it legitimate?
You might have these conflicting thoughts as you contemplate whether to invest in the company’s business opportunity or not.
If this is your concern, then you have come to the right place.
In this review, I will be providing you an analysis of the company’s compensation plan and help you determine if it’s the right investment for you.
So without further ado, let’s begin…
What is Genistar?
Genistar is an MLM (Multi-Level Marketing) company that sells financial services that include medical insurance, life insurance, pension assistance, etc.
The company is based in the United Kingdom and was founded in 2007 by Jeff Lestz.
I won’t be discussing their products any further since our main focus is whether their business opportunity is a legitimate source of income. Or is Genistar a scam?
Let’s continue to find out…
The Genistar business opportunity
The primary distinction of Multi-Level Marketing is their complex and almost incomprehensible compensation plan.
It is very convoluted that it seems like you’d need an expert finance person to decipher the entire thing.
However, Genistar is a little different because it seems like they are unwilling to disclose their compensation plan.
It looks to me that they want you to signup first and pays the initial membership fee before they reveal how their business opportunity.
This is kind of a little turn off as well because potential investors look into the compensation plan before they join.
Referencing to this important document it somehow helps them determine whether it would work for them or not.
But for MLMs, you only have to take note two factors when it comes to where its income streams are based—
- Retail sales – they provide retail commission based on the packages you sold.
- Recruitment – it is the bread and butter of MLMs because it is the basis of most of their income.
Businesses engaged in MLMs make their compensation plan as complicated as possible to prevent potential recruits from asking any question.
And to completely save their selves and successfully persuade someone to join, they would just show you how high your income would be if you join them.
It may sound a little sketchy, but effective nonetheless.
In the following section, I will briefly explain the income streams of their business opportunity based on what I’ve gathered…
What are its income streams?
Since Genistar is not willing to disclose their compensation plan to a mere spectator like us, let’s just evaluate whatever is available.
Anyway, the mechanics of every MLM around are essentially the same. The gimmicks and some features may change, but you still have to recruit new MLM consultants to succeed in such a business model.
Retail sale is what differentiates Multi-Level Marketing from Pyramid Scheme.
Having retail merchandise to sell makes MLMs look like a direct selling company.
Retail commissions are simply the income based on every sale the consultant makes.
The basic commission percentage is 25% for the first level ranks. But it becomes higher as the consultant advance in rankings as well.
Recruitment is the bread and butter, or to put it in a more accurate term, the lifeblood of Multi-Level or Networking Marketing.
The entire pyramid structure will eventually collapse if no consultants are coming in. It is because the profits of the MLM operation are mostly based on the membership and monthly payments of the consultants.
In addition, the profits are also dependent on how each consultant performs in terms of recruiting and making company sales.
Unfortunately, this is as far as we can go because there are no more details regarding how this commission works.
MLMs usually give out one-time bonuses every time an MLM consultant reaches a milestone.
As far as I know, Genistar rewards five ranks, which start a representative up to the level of executive vice-president.
The FTC, however, says that only 1% of people who join MLMs succeed. Yes, it is that rare!
I will explain more about this in the following sections.
How much will it cost me to join them?
In order to become a Genistar representative, you need to contact first the company and settle the membership fee, which would cost you $140.
And then, you also have to take note that unlike other MLMs, Genistar doesn’t sell tangible retail merchandise.
What they sell are financial services and insurance plans. And based on my understanding, you have to take some sort of training before you can sell these packages to someone.
And yes, Genistar does provide training. And after you’ve passed the qualification examination, it is then that you can represent their company.
The summary of the program are as follows—
- 5-day training
- Live observation of interviews with clients
- After these two initial steps, you have to take the qualifying examination and pass it.
The examination includes 50 items that the potential representative has to obtain at least a 70% rate to pass. If failed, the test can be repeated for four more tries after the first test.
Also, the manual that the representative has to study is about fifty pages long.
But if you want a higher and more stable source of income, then you have to check out the following description—
Is Genistar a reliable source of income?
Success in MLMs is extremely rare!
According to research conducted by the Federal Trade Commissions, they found that 99% of people who join MLMs incur losses than gain any profits.
This instance was elaborately discussed in Jon Taylor’s book, “Multi-Level Marketing Unmasked.”
It was further added that MLMs fail to meet expectation because of two factors—
Have you heard of the term Garage Qualified?
It is a special term used to describe MLM consultants that tend to over-purchase company products for the sake of improved or maintaining personal volume.
Although it was not implied, most MLMs require its members to pay monthly fees and autoships.
This becomes problematic if the consultant is not earning any sufficient income, and they are still paying monthly fees for them to keep their status.
As a result, the consultant may end up loses money to fund the business opportunity. Thus, it leads them to become inactive or drop it altogether.
As mentioned, recruitment is what keeping the entire structure of MLMs active.
Imagine this scenario—if the consultants at the very bottom of the network were unable to recruit new consultants continuously, they wouldn’t earn anything because they are at the very bottom.
In addition to this, they still have to settle monthly membership fees to keep their status in the organization.
With no money coming in and still pretty much obligated to pay monthly fees, the MLM consultant eventually loses money and then quits the business.
And this cycle continues up until the next level, and then the next, and so forth and so on.
It will continue until the structure eventually collapses.
As you see, this is how flawed their business model is.
They are technically legitimate because they have retail merchandise or services to offer, which makes them sort of operating a direct selling company as well.
Doing MLMs is a company’s way to deal with the competition and save money from marketing expenses.
But if a company believes in the quality of service that provides and that it could help a lot of people, then why not just focus on the service instead of putting people at risk of losing money.
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Is Genistar a scam?
I didn’t find any reason to believe that Genistar is a scam or pyramid scheme.
I think that they are a legitimate Multi-Level Marketing that specializes in selling insurance and other financial services.
But again, some might argue that MLMs are essentially a pyramid scheme that disguises themselves as a direct selling company.
Although I agree to some degree, they are technically different in terms of legality.
Multi-Level Marketing is legal in most countries because they offer something of value in return for the payment of their membership fees.
On the other hand, a pyramid scheme works similarly like an MLM except that it has no something of value to exchange for your membership fees.
Therefore, it makes them a very risky investment.
What I Don't Like About Genistar
Compensation plan not disclosed
The company seems to be not willing to disclose their compensation plan unless you register and settle the membership fees.
Expensive products and membership fees
The services that they offer are a little costly. The $140 membership fee may not be that much to some, but inconvenient nonetheless.
No BBB credential
Despite being in the business for a long time, they do not have a BBB profile as of yet.
The Better Business Bureau, or simply known as the BBB, is one way people check the credibility of a company.
Not having one doesn’t immediately conclude that the company fraudulent in any way. But it may significantly impact the decision making of potential recruits.
Success is recruitment-based
It’s really not about the services. For you to succeed in this business model, you have to recruit new consultants continuously.
What I Like About Genistar
They’ve been in the business for a long time.
But this doesn’t necessarily mean that they are an overall good business to invest in. Most MLMs usually start out great and then eventually collapses.
I hope my content has provided you sufficient information in answering the question—is Genistar a scam? Or is it a good source of income?
Although Genistar is technically legitimate, I still don’t recommend them or any MLMs for that matter.
As you see, the success rate is very slim, and the likelihood of losses is much more probable than having any gains.
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Well, that’s just about it!
Thank you for taking time off and reading my Genistar review!
I hope to see you next time!