A recent entry to the MLM industry Xocai is betting that the sweet tooth consumers have for chocolate products when combined with financial opportunity will be the killer one – two punch that drives the company to MLM mega growth.
Now over the years I have been in MLM I have seen just about every type of product from 3-d cameras to panty hose promoted, but chocolate?
The business opportunity from Xocai products is all about a popular product, chocolate. This chocolate is promoted as extremely high in healthy antioxidants, and it is marketed through an MLM program. Here are things of interest about the program and the corporation.
Xocai – The Company
Founded in 2004 MXI Corporation manufactures and markets the Xocai products. The President and co-founder of the corporation is Jeanette Brooks. Jeanette has a successful history with other corporations, as well as an extensive teaching education. She has founded Pure De-Lite Products, Yurika Foods, and Phoenix International Corporation.
The CEO and co-founder of Xocai is Andrew Brooks. He has a Masters in Business Administration and in Spanish. His interest in developing weight loss products for those with diabetes has been a driving force in his successful sales and marketing career. He is also the co-founder of Pure De-Lite Products.
The Xocai chocolate products are promoted as a healthy chocolate product, but they are also enhanced with other beneficial ingredients such as blueberry and acai berry. These berries are very high in antioxidants, which help the body in many ways. As your cells work they use oxygen. However, this oxygen eventually breaks down and destroys cells before their time. Antioxidant compounds help to prevent cell break down and this good for the immune system and promotes weight loss.
It would stand to reason of course that Xocai chocolate products would be simple to sell. Almost everyone loves chocolate and customers can select solid chocolate items like squares and peanut butter cups. The company also offers chocolate packs and drinks. All products are free of preservatives and safe to eat.
Xocai Compensation Plan
Xocai uses a Hybrid-Binary type Network Marketing compensation plan. In today’s MLM market more and more companies are using this beefed up variation of the standard MLM binary comp plan.
A hybrid-binary is a blend of using a Binary and a Unilevel compensation plan at the same time for paying bonuses.
The binary part of the Xocai comp plan is pretty standard and allows you to only have 2 open positions below you so when you sponsor someone you place them in either the left or the right leg and then once those are filled the next people you sponsor will have to go downline from those you just sponsored giving the famous “binary spillover” effect that tends to attract a lot of MLM hopefuls to companies that use the binary payment structure.
Since you get the benefit of begin able to count all the volume that is below you even if you did not put it there, what could be better than that?
Of course the problem is that the new person who enrolls just to take advantage of being downline from a top recruiter soon learns that no matter how much volume is below them they get paid based only on the volume that they create in the other leg.
With the Xocai comp plan they pay 10% based on the volume in the lesser leg.
Now one of the other benefits of the binary pay plan that Xocai uses is that you can get paid as deep as the leg goes so you don’t’ have to worry about levels. However there is a limitation on volume in the Xocai comp plan, so you can only be paid on lesser leg volume up to $10,000 per week in earnings and then it cuts off.
Well I guess that’s not a bad weekly paycheck.
Keep in mind that there is also a “Cap” on commission payments in almost all binary programs.
Since in a binary such as Xocai uses, one of the huge benefits is the fact that in an active leg there can be a huge amount of spillover volume and that everybody in that leg can in fact tap and get paid on the same volume, companies have to limit how much they actually pay out or they can find themselves in certain circumstances actually having to pay out more than they earned.
So the binary “Cap” is designed to prevent this, and according to the compensation plan rules the company is obligated to only pay out a maximum percentage of the revenue and that’s it. Once they reach that cap in any given month they distributors only receive a pro-rated percentage of what they should have received based on the cap.
With Xocai the cap amount is 50% which is actually a little on the conservative side for a hybrid-binary, since many companies go as high as 65% to 70%.
Also I if you have your eyes on the big dollars with Xocai, you can get around the $10,000 per week issue on binary commissions because they allow you to enroll with 3 business centers and by placing those other 2 centers below you in your binary legs you can now build 4 total legs and you can generate up to $10,000 per week in commissions in each business center effectively tripling your Xocai income to a max of $30,000 a week.
That of course is a much better neighborhood.
The “Unilevel” part of the Xocai compensation plan kicks in when the people you have personally sponsored get busy and become an executive distributor, and then based on your own rank can earn a “commission check match” on what they earn in basic binary commissions.
This match is shown to be an 8% check match going down 7 levels of executives in the Xocai comp plan.
Actually once you wrap your head around it you will find it does make sense and there can be a lot of money in a hybrid-binary plan as evidenced by companies like MonaVie and eXfuze, who used a very similar plan to power their success.
One of the top earners there Brig Hart, when MonaVie was at its peak, was generating by some accounts just short of a million dollars a month in income.
Now of course Xocai does offer some other bells and whistles such as fast start bonuses when you enroll someone new and they buy product and they also have bonus trips to exotic locations and a car program, just in case the money alone is not enough to motivate you.
Xocai Review Summary
Well it actually looks like a pretty “sweet” deal.
Sorry I just couldn’t resist it….. “Chocolate”, “sweet deal”, you get the idea.
So what does the future hold for a chocolate products MLM such as Xocai? Well there are pluses and minuses to all deals of course.
On the plus side, one of the biggest problems to holding on to your check once you have built an MLM is that is that if the 50%+ of distributors that will drop out don’t keep ordering the product then your check goes down and they only way to maintain it is aggressive long term sponsoring.
With a chocolate product Xocai actually may have some very good consumption longevity.
On the business side, of course all newer MLM’s such as Xocai tend to prosper since the network marketing industry has a insatiable appetite for “new” deals.
However once the glow has worn off a new deal, and its business as usual, it can be hard for a company to keep up the momentum and compete with the new arrivals in the MLM marketplace.
Now when the chocolate idea was brand new of course it was a mover, however I am not sure about long term.
Now of course we could say that for any company in MLM.
Xocai has done very well in the past and looks at least for the present to be continuing that growth.
The bottom line is of course that no matter what MLM you build you need to power your success with a lot of leads rather than relying on the remote chance that you will find a killer producer in your warm market or lurking around the grocery store.
The best way to do that in today’s market is to learn how to use the internet to leverage your business and generate leads. There are several very good MLM online marketing systems such as My Lead System Pro that can give you the boost you need to map your course to top earner status.