Opphoppin’ Olive skypes us every so often, breathlessly enthusiastic over the latest greatest opportunity she has found.  In two years, she’s joined three nutrition companies and dabbled in Forex trading. 

This time it was the Chuggalugga Company planning to expand with a new recruiting system called Chuggalugga-90, a financing program that is creating a firestorm in the US and has been approved for Canada and the Philippines and she’s been mulling it over for nine weeks and she was wondering if we’d heard anything about it in our neck of the woods and if we haven’t, she’ll be in a good position to do things, and quack, quack, quack.

Between stories of the sudden successes of others and several scenic side trips, Olive told us …

  • You can get in at the $400 level for just $60, and Chuggalugga pays out $120 + $60 + $20 + $48 for each $60 sale.
  • You can earn $10k per month with just 200 people in Chuggalugga.
  • The autoship of $129 did not start for 90 days.
  • She did not know the name of the financing company.

We did some quick math  …

  • $120 + $60 + $20 +$48 = $248 which is considerably more than $60.
  • Each person would generate $10000 ÷ 200 = $50 per month to Olive.
  • Binaries pay commissions to many people on the same volume.  Just three payments of $50 would be $150, considerably more than the $129 per person autoship.

Olive’s responses were enlightening – not for the math, but for an insight into what happens to our minds when we substitute enthusiasm for analysis.  She explained that …

  • Chuggalugga can pay out $248 from a $60 sale because of the financing company.
  • She did not know the name of the financing company because it was probably a trade secret.  Just think about what would happen if other network marketing companies knew of their loan source! This would definitely create trends!
  • Even though she owns a financial services company (not listed in the Yellow Pages or on the internet), she does not have to know all the details of every arrangement she takes part in.
  • Chuggalugga can pay out much more than $150 on a $129 autoship because of the check matching bonuses on your top two money earners and the extra 12% paid out on the strong leg too and the coding infinity bonuses and quack, quack, quack …

We suggested that this whole plan might have been designed and financed by David Copperfield, but the sarcasm was lost in the swirl.   We realized that if we were to learn enough to help Olive, we’d have to call the Chuggalugga Company directly.

We reached the head of Rep Support, Vacant Vicky, who informed us …

  • The $60 was the first payment to be followed by three payments of $120, allowing a person to join at the $400 level and start earning commissions right away.
  • She was not sure what would happen if Chuggalugga paid out the full commissions to the upline and then the new rep reneged on the loan.
  • The Chuggalugga-90 system was a separate third party financing group but it was also part of Chuggalugga.
  • The owner of Chuggalugga-90 was … ready? … Some Guy Named Dave!

Hmm … that meant that Some Guy Named Dave was making only $20 for attracting and financing broke people into the deal ($60 + three payments of $120 = $420).  That hardly seemed like enough for all his trouble.  Even more confused, we visited the Chuggalugga-90 website to learn that Some Guy Named Dave …

    • Owned and operated his own lead vending company.
    • Would sell you business building packages at $15, $30, or $45 per month.
    • And best of all … this deserves a line of its own …

Some Guy Named Dave is the Master Distributor of The Chuggalugga Company!

That means …

  • Vacant Vicky, head of rep support, does not even know the name of the master distributor, or the nature of the arrangement between him and the company.
  • Some Guy Named Dave is luring people into Chuggalugga by offering a loan.  He is making little on the loan, it seems, but will make lots later.
  • Some Guy Named Dave is double dipping.  He will be earning commissions from their sales in his downline, and he will be collecting $15, $20, or $45 per month from those using his system.
  • Make that triple dipping, as he will also be selling them batches of useless leads.

This is the same kind of business model and conflict of interest that gets companies into trouble regularly – uplines making money from tools.

In the Five Pillars, number one is company management experience with integrity.  This model will appeal to many people, especially when money is tight, but you’ll have to be the judge of whether Some Guy Named Dave is being ethical.

You can learn how to avoid dubious deals in this free report, Big MLM Lies.

Bob and Anna Bassett

Tom ‘Big Al’ Schreiter’s 25 Skills
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