Follows is an independent review of LabActive.
LabActive is brand new on the MLM scene, but maybe not particularly that new at all. At this point, we still don’t know much about them, and their pre launch site is small help. But here’s what we do know.
The company is branding themselves as a health and well being company, which is “developing premium products built to fuel your active lifestyle”.
At the time of this writing, they’re offering 2 products:
efusjon, a healthy energy drink, which was the main product of a very debatable now-defunct MLM company from 2009.
And R1, a meal replacement shake.
Energy drinks and protein shakes are definitely not new for the social marketing industry, therefore I would not envision the products will have any thing to do with the success or failure of this new venture.
It will likely all be about attempting to build on the legacy of the original efusjon organisation, and their short but always interesting existence.
Management
Rob Towles, Managing Director, was the founder of efusjon. Towles had a background as a distributor in internet promotion before beginning that company.
Frank W. Borst, President. Borst has a substantial resume of executive management and consulting. Any prior ties to network marketing are unclear.
The (Apparent) Gameplan
With the exception of the protein shake addition, the new company seems to simply be a reincarnation of the old.
A pre-launch offering was mailed last week to roughly 70,000 previous distributors, selling $950 memberships from 3,800 people. This would total a startup cash inflow of $3.61 million to sell the top spots in the matrix.
The network structure is a “community overlap matrix”, that permits a distributor 3 spots on his first row, then 7, 15, 31 and the like. The tempting feature of this comp plan is it’s “overlap” feature, where you share in the matrices of your “neighbors” in the matrix.
While perplexing to demonstrate, the main point is that the comp plan creates an opportunity to get something for nothing… Always a strong incentive in any M.L.M operation, and doubtless a key element in the explosive expansion that was seen using this very same comp plan previously.
Further, there aren’t any ranks and no sponsoring needs, which is a big difference from the first plan, wherein a rep was mandated to have 3 active, personally enrolled members so as to receive commissions. LabActive announced the removal of this requirement. We must wonder about removing all prerequisites for sponsoring, as it is the bread and butter of any network marketing company. Time will tell whether it proves to be a profitable feature.
Although the compensation plan structure is known, the payouts, in terms of defined dollars and/or percentages, still has to be released.
The Future
Will it thrive? Or will it crash and burn like version 1?
One thing is true. People love an exciting do-nothing-and-get-rich plan, regardless of whether they’re once bitten. We will have to see if LabActive makes it, but I predict many will try it once again.
Karyn Weger is a top MLM Coach both on and offline. Her unusual style combines normal strategies with leading edge methodologies, to generate lots of hungry network marketers to her business, without troubling loved ones, and without humiliation or rejection. She teaches this potent system to eager network marketers who want to explode their LabActive or other social marketing business.