Is Global Wealth Trade worth all the hype?

Global Wealth Trade allows consumers to buy luxury fashion house items directly from the designers and manufacturers through its Independent Luxury Consultants (LCs). LCs earn commissions on the products they sell, along with commissions based on the sales of new LCs who join the company under their sponsorship. The company’s VIP customer program offers consumers rebates based on dollars spent.

Ramin Mesgarlou founded Global Wealth Trade in Ontario, Canada, in 2005, and since then, the company reports that it has LCs operating in 150 countries. The stated mission of Global Wealth Trade is to make 1,000 millionaires by 2025 (although they don’t say how close they are to that goal!). Global Wealth Trade touts itself as “the fastest expanding luxury designer fashion house in the world since 2008” on its website. Bestcompany reports that annual revenues range from $1-$5 million (1).

Signup cost: $169 CDN ($131 US) and up
Global revenue: $1-$5 million annually
The good: High-end products mean independent consultants aren’t in direct competition with a lot of other similar direct sellers.
The bad: Lots of nickel-and-dime fees could really eat into commissions.

Google Trends
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Products

Global Wealth Products offers three signature luxury brands, plus a line of branded merchandise for luxury consultants.

  • POSH – jewelry line features rings, earrings, necklaces, and bracelets made from metals and beadwork of various styles, from y-necklaces to chandelier earrings; this looks like the company’s trendier line
  • FERI – higher-end jewelry and accessories line feature sterling silver pieces, leather handbags and wallets, phone cases, belts, shoes, eyeglass frames, and sunglasses
  • FERI MOSH – highest-end line of 19k and 21k gold jewelry, including a bridal collection, plus shoes, and handbags
  • GWT Promo – Ramin Mesgarlou’s own “Forensic Networker” training CD program and related products for business (apparel, business supplies, etc.)

Opportunity

Independent Luxury Consultants (LCs) are set up with Virtual Designer Malls where their customers can shop directly for luxury goods direct from fashion houses. LCs earn commissions from these purchases. LCs can also purchase luxury goods directly at wholesale prices and keep the difference when they sell products at retail prices (which they can set themselves). LCs also earn commissions based on the sales of the LCs who join Global Wealth Trade under their membership.

It’s important to note that Global Wealth Trade – as a Canadian company – operates using Canadian currency exclusively. There’s a one-time sign-up fee to join the company as a LC. All fees and payments to the company are plus tax.

LCs get an online shopping website (Virtual Designer Mall or VDM). Individuals can join, and the company welcomes partnerships and corporations, too. LCs join under the “Enroller” who first introduced them to GWT. LCs who are Enrollers have leadership expectations toward new members with regard to support and training. Once LCs achieve a minimum in Diamond Virtual Designer Malls, they can earn a shopping spree and “diplomat” status; it’s unclear what distinguishes a “Diamond” VDM, however, it’s possible that it’s related to sales volume. Bringing a minimum number of LCs on board and assisting them in getting to diplomat status can earn Enrollers additional rewards and perks (e.g., cruise, car).

There are four levels of enrollment: Retailer $169, Siledium $699, Gold $1,899, and Diamond $3,599, with corresponding (increasing) levels of IA points. IA points can be used toward product purchase, and any amount due in excess of IA points used gets paid directly by credit card or from commissions. LCs can pay for upgrades to next higher level of membership; downgrading to lower level of membership is possible but a fee is charged.

LCs pay a monthly fee towards the accumulation of IA points (amounts due vary by level, from $35 for 28 points to $150 for 120 points). Missing a payment means the LC loses the group commissionable sales volume for the month (and any commission that goes along with it). IA points can be used to cover up to 50% of product purchase price (i.e., if you buy $100 of product, you can use max of 50 IA points, and pay for the remaining $50 by credit card).

LCs pay an annual renewal fee ($69-$194, depending on membership level).

LCs are not required to purchase and hold inventory. They can refer customers to their personal website (VDM) for purchases. Retail website prices are set by the company. LCs who buy and re-sell inventory directly to customers can set their own retail prices. There is no re-selling of product through retail stores.

Global Wealth Trade permits LCs to hold home parties, work trade shows, or operate mall stands on a temporary basis only. There is no selling permitted through flea markets. In these instances, LCs are not permitted to sell FERI brand products with any other product lines. Global Wealth Trade doesn’t establish “territories” for its LCs; sales can come from anywhere.

Payments to LCs are made weekly, and only through the company’s “e-wallet”; there is a $5 charge each time a payment is made. Money can be withdrawn from there.

The Good

The company’s history – as reported on its website – shows a consistently expanding product line over time. Global Wealth Trade also discusses its plans for expansion over the next ten years online.

Unlike many direct selling companies, LCs have the freedom to set their own retail prices for products they purchase at wholesale and re-sell directly to consumers. There are no required purchases, and LCs are not required to hold and store their own inventory.

Global Wealth Trade supports charities like UNICEF’s Nepal Relief 2015 campaign, SickKids Foundation, and CAN Fund.

The Bad

Reviewing the company’s policies and procedures manual online indicates that LCs are charged a lot of fees for various services as the cost of doing business, including getting paid.

LCs are required to pay for IA points monthly but they can only use a limited number of IA points to cover product purchases, with remainder to be paid by credit card.

Global Wealth Trade’s website boasts that LCs can earn a 75% payout (which I suspect sounds like the exception, rather than the rule). No prices for products are provided online; shoppers are referred to their LC for prices in every case. Website content indicates that prices begin at roughly $50 and go up.

Recap

Global Wealth Trade offers some real pluses and minuses for prospective members. For example, 2016 saw significant product expansion for company’s 10th anniversary, according to the company website. Global Wealth Trade is also actively planning for its next ten years, with a posted plan to expand product lines to include luxury skincare,cosmetics, luggage, couture apparel.

The exclusivity of Global Wealth Trade product lines is a plus – Global Wealth Trade sells only its own designs, and LCs are the only folks from whom consumers can purchase these items. Compared with the ubiquity of direct selling opportunities in health and wellness and related fields, the high-end luxury market is fairly niche, and may mean less competition for independent sellers working with Global Wealth Trade.

On the other hand, while some administrative fees are understandable, it seems excessive to have to pay the company in order to get paid, only to have to still transfer those funds to your own bank account from what amounts to a company account held for you.

The high-end nature of Global Wealth Trade’s products makes it hard to tell if this is a good opportunity for an individual without talking to someone – either a LC or a company rep directly. Although that suggests the old adage is true: if you have to ask, then you probably can’t afford it. But maybe you can still sell it…

via http://mlmcompanies.org/global-wealth-trade/

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