You are reading this Life Tree World review probably because someone is trying to sell you this ‘opportunity’ to get paid while you shop. It is good that you are exercising due diligence before committing your self.
It is a UK based online shop that utilizes network marketing to promote its products. There is a once off joining fee of £35 to become a member. Shoppers get 2% discount or is it cash back if they are members hence the phrase ‘get paid 2 shop’. It’s more like, paying to be a loyal customer of Amazon to qualify for a 2% discount on total purchases.
To be regarded as an active member, you are expected to buy groceries worth £165 each month = 100 points and earns you £3.30 commission.
Once you enroll 2 active members below you, you qualify to earn commissions off your down-line’s purchases. Eventually as your down-line grows, you end up getting free groceries each month. Remember, you are also part of someone’s down-line and you will be buying the person above you groceries.
Already, l have some burning questions; is Life Tree World a Pyramid Scheme or a legit Multi-level marketing (MLM) company? Are the products not overpriced so as to reward members?
Anyway, read on as l will be answering these questions.
Life Tree World, How It Works.
As said a above, you pay £35 to join. You will then recruit other people to join the LTW below you. Once you get 2 paid up members you qualify to earn 1% commission from their own sales. That is £1.65 if they purchase the mandatory products equivalent to 100 points or £165.
If the people you recruited, recruit others below them…. You earn a commission of ½% off their purchases.
Membership upgrade also depends on your shopping consistency each month.
What is Good About LTW?
- You earn while doing what you always do: shopping and referring friends to do the same.
- The joining fee is very low (£35) and there is no annual renewal fees.
- It is a relatively new MLM company and there are still lots of people to bring in.
- If you are good at network marketing, you can end up enjoying free groceries off your ‘friends’.
What is Bad About LTW?
- It is only for UK residents at the moment which means there is Geographical limitation on the number of people who can join the MLM. Even if every adult in UK would buy at Life Tree World shop, eventually thousands who will be the last join will not have anyone to recruit. There are plans to expand the business to other countries though.
- The commissions suck. Earning 2% commission on forced purchases of £165 per month = £3.30, you will need 11 months * £3.30 to recover your joining fee of £35. The 1-½% downline commissions are really not worth annoying your friends for. You get surely get discounts elsewhere worth those commissions and even the joining fee.
- There are cash back shops such as Quidco and Top Cashback where you can reap the same benefits without paying for the privilege to shop.
- You are forced to purchase products only from LTW to meet your quota even if at times you do not need them. I am not sure if you don’t have to repurchase products equivalent to any refunded amount.
- It can ruin relations as your loved ones realize that you recruited them so that you can get free groceries off their forced purchases. One thing l really hate about network marketing – selling products to people you care for which they don’t need to earn a commission.
- There are complaints that the products are overpriced. Compare prices of each product in the starter pack with other online shops and share your findings.
- You are not building your own business. If the business is found at fault, like Vemma, it will get closed and you loose everything that you have worked for.
Life Tree World Products.
It claims to be adding more than 300 products each month. It looks like any other online shop such as Amazon. The categories include Beverages, Confectionery, Health and Hygiene, House Hold items, Electricals, Babies and Kids and so forth. There is also a category for new products.
Life Tree World Compensation Plan.
MLM compensation plans are often complicated and include difficult to explain binaries or matrix. Those complex compensation plans allow owners to get their piece of the pie without telling you they are doing so.
1. Active Member – £35 joining fee plus £165 per month (100 points).
2. Qualified Life Member – 2 active LTW members below you for 1 month. Earn 2% on own purchases, 1% from 3 members below you and ½% on other members from the 3rd member down to the 10th member.
3. Become Senior Star Distributor (SSD) – Create a third leg and with six active members below you, you start enjoying free groceries.
4. Team Leader – if all your 6 downline members reach the SSD level. Earn £750 per month.
5. Senior Team Leader – with your immediate downlines now Team Leaders, you are elevated to STL and start earning £2 000 per month.
6. LTW Single Pool – l didn’t get this one very well but it is essentially pulling points together in a sort of profit sharing arrangement.
7. LTW Team Director – If you repeat the process from level 2 down to 6, you end up being an LTW Team Director earning £5 000 per month and then Regional Director earning £10 000 per month. We all know that only 1% out of thousands of members reach this stage.
Well, there you are. You can now do the maths. 3. SSD = 6 AM, Team leader = 3 SSD (18), Senior Team Leader = 3 TLs (54), Team Director = 3 STL (162), Regional Director = 3 TDs (486). This is not accurate because there is somewhere along the line when you must go back to level 2 and duplicate your results. Not everyone will buy into the hype and sooner or later, the market will saturate.
You can read the detailed LTW compensation plan PDF, if your are interested in joining this opportunity or rather responsibility.
Is Life Tree World a Pyramid Scheme.
I have reached the most controversial part of the review. l want to make it clear that no-one knows if a Network Marketing company or MLM has crossed the thin line and has become a pyramid scheme. For instance, LTW must maintain the stipulated ratio of ‘inside sales’ vs ‘sales to real customers’. If there are more inside sales than there are outsides sales, it automatically becomes a pyramid scheme.
Therefore, unless you can show proof that the sales are balanced as prescribed by the regulating authorities, stop parroting that LTW is a legit MLM. There is always controversy on whether, sales to affiliates can be regarded as sales to consumers given that most join the opportunity just for the 2% money back. For now, lets give LTW the benefit of doubt and assume they have not yet reached the tipping point.
Life Tree World Direct Selling Association (DSA).
According to the LTW website, it is registered with DSA which is an association representing most MLM companies in United Kingdom. Affiliation to the association does not mean that the company is operating legally in any way. Some MLMs still get closed by regulating authorities even if they are members of DSA. Unfortunately, as one prominent MLM attorneys, Kevin Thompson suggested – MLMs are good at formulating policies which they don’t implement.
Should you join Life Tree World?
Well, they say ‘greed can NOT be tamed’. It is now entirely up to you. I have provided the information that could take you hours to search for on a platter. The ball is now in your court. Remember, you can cancel membership within 14 days and get your refund in case you were pressured into joining the program.
Would you ordinarily buy groceries using the same amount and from the same shop each month? Let alone, have the shop select the groceries for you? If there was NO opportunity or rather responsibility to recruit your ‘loved ones’ and let them pay your groceries? (Food for thought). Remember buying individual items is cheaper than the prepackaged hamper that you are forced to buy to earn points.
Remember,no matter how hard you will work, if the business model is flawed nothing will come out of it. As more negative reviews of Life Tree World start popping up on the first page of Google the more difficult it will become to convince people to join you.
Kindly share your opinion and experience with LTW in the commentary box below? l did my part!