HLBS Community’s web site gives no details about who owns or runs the corporate.

The footer of the web site gives an tackle in Slovakia for HLBS s.r.o., revealing the corporate’s European roots.

As I perceive it HLBS Community’s US division operates as HLBS International Advertising US LLC in Texas.

Company information reveal HLBS Community was based in 2016.

Additional analysis reveals Peter Gabriel citing himself as HLBS Community’s CEO:

In response to his LinkedIn profile, Gabriel relies out of Hungary.

Gabriel (proper) does have an intensive company historical past however HLBS Community seems to be his first MLM enterprise.

Previous sectors Gabriel has labored in embrace hospitality, finance and real-estate.

Why HLBS Community govt info isn’t offered on its web site is unclear.

With Gabriel being primarily based out of Hungary, it follows that is the place HLBS Community is operated from. The Slovakian incorporation would look like a shell firm.

That is mirrored in HLBS Community’s Phrases and Circumstances;

Contemplating that HLBS s.r.o. is represented by the HLBS s.r.o. Hungarian Department, with regard to this doc, Hungarian Legislation is relevant.

Learn on for a full evaluation of HLBS Community’s MLM alternative.

HLBS Community’s Merchandise

HLBS Community’s web site particulars three product classes; cosmetics, useful meals and dietary dietary supplements.

HLBS Community Cosmetics

HLBS Community markets 4 merchandise in his cosmetics vary:

• Citrus+ – “gently cleanses and helps the pores and skin’s fast regeneration and safety”
• LH+ Physique – “cares for all pores and skin varieties with its valuable components that steadiness the pores and skin’s PH stage”
• LH+ Face – “a strong device in preserving pores and skin youth, it protects in opposition to dangerous solar radiation and its liposomal know-how ensures supply of the energetic rules all the best way to the deepest layers of the pores and skin of the face”
• LH+ Spray – “contributes to the pores and skin’s fast regeneration and to its safety”

HLBS Community Useful Meals

HLBS Community markets two merchandise in its useful meals vary:

• Chocodream Premium Chocolate – “silhouette sugar free darkish chocolate with humic acid and psyllium seed husk”
• Espresso Immediate – “specialty espresso with taurine, guarana and inulin”

HLBS Community Dietary Dietary supplements

HLBS Community markets 9 merchandise in its dietary dietary supplements vary:

• CGS12+ – normal well being complement in a “vegan capsule”
• CBR7 – vitamin C complement with bioflavonoids and rutin
• DPS12 – “each day vegan protein shake”
• IS8 – “a pure raspberry and vitamin cocktail”
• DK5 – “vitamin D3 and vitamin K2 in double vegan capsule crammed with olive oil”
• HMAX8 – “the pure components of HMAX8 make the physique sturdier and extra resistant, they will even enhance athletic efficiency”
• Berry SLM – “helps cleansing, weight reduction and gives the physique with nutritional vitamins”
• AAG1 – “dietary complement containing astragalus, ginseng and phosphatidyl in vegan capsule”
• HC80 – “meals complement capsules with humic acid and cordyceps”

All of HLBS Community’s merchandise look like manufactured in Hungary by third-parties.

Notice that HLBS Community don’t present retail pricing for any of their merchandise.

HLBS Community’s Compensation Plan

HLBS Community associates earn commissions on retail gross sales.

The majority of the compensation plan nevertheless is geared in direction of affiliate recruitment.

Fee Qualification

To qualify for commissions, HLBS associates should generate €100 EUR a month.

That is offered as a required month-to-month private spend. Whether or not retail gross sales quantity qualifies in direction of the €100 EUR a month requirement is unclear.

HLBS Community Affiliate Ranks

There are three identified ranks inside HLBS Community’s compensation plan.

Together with their respective qualification standards, they’re as follows:

• Affiliate – join as a HLBS affiliate and meet fee qualification standards (see above)
• Staff Chief – recruit and keep seven associates
• Supervisor – qualification standards not disclosed

Retail and Recruitment Direct Commissions

When a HLBS Community affiliate indicators up a brand new retail buyer or recruits an affiliate, they obtain a direct fee.

Retail and recruitment direct commissions are paid by way of a unilevel compensation construction.

A unilevel compensation construction locations an affiliate on the high of a unilevel workforce, with each personally recruited affiliate positioned instantly underneath them (stage 1):

If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel workforce.

If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.

Retail and recruitment direct commissions are paid as a proportion of gross sales quantity, generated on referral of a retail buyer or affiliate recruitment.

Retail and recruitment direct commissions are paid on as much as 4 unilevel workforce ranges, primarily based on rank:

• 20% on stage 1 (personally recruited associates)
• 10% on stage 2
• 5% on stage 3 (Staff Leaders and Managers)
• undisclosed proportion on stage 4 (Managers solely)

HLBS Pool

The HLBS Pool is, if I’m not mistaken, a binary bonus pool offered in a stupidly sophisticated manner.

Right here’s HLBS Community’s official HLBS Pool slide:

Earlier than we get into what the textual content says, I’ll attempt to break down the diagram as I perceive it.

Within the middle you might have the affiliate. To the proper you might have “1 TY”. I don’t know what “TY” stands for however the “1” represents their first recruited affiliate.

To the proper of “1 TY” now we have “1-1”, which I consider represents the primary personally affiliate recruited by “1 TY”.

To the proper of “1-1” now we have “3”, representing the third personally recruited affiliate.

Then there’s “1-3” (third affiliate recruited by “1 TY”), 2-2 (second affiliate recruited by “2”), and “3-1” (first affiliate recruited by “3”).

On the left now we have “2” (second personally recruited affiliate), “1-2” (second affiliate recruited by “1-TY”), “2-1” (first affiliate recruited by “2”), “2-1-1” (first affiliate recruited by “2-1”), and 4 (fourth personally recruited affiliate).

Right here’s the auto-translated textual content from the slide above:

• have two energetic members and obtain a share within the Bronze pool
• each Monday you’ll obtain a share of the turnover of 100, 500, or an infinite variety of members on the axis out of your 2nd member
• it will depend on what beginning bundle you might have
• the system invests 25% of the web worth of every member exercise and 10% of the worth of buyer purchases within the HLBS pool
• as you develop in depths you’ll get a share of 10%, 15%, or 20% of the pool

So far as I can inform either side of the binary workforce is stuffed usually (one place on the left, one on the proper).

I don’t know if there’s any significance to the second place on the left, however that’s the place the quantity paid out on begins.

Quantity paid out on is as much as 25% of affiliate and 10% of retail buyer order quantity.

These percentages look like tiered. The one qualifier talked about is “beginning bundle”, suggesting how a lot a HLBS Community affiliate spends once they join dictates their HLBS Pool charge.

What I can verify is the “100, 500, or an infinite variety of members” the HLBS Pool is earned on, is tied to how a lot an affiliate spends once they join:

• Fundamental tier associates earn the HLBS Pool on as much as 100 recruited associates
• Newbie tier associates earn the HLBS Pool on as much as 500 recruited associates
• Skilled and Enterprise tier associates earn the HLBS Pool on an infinite variety of recruited associates

Begin Pool

HLBS Community locations 10% of newly recruited affiliate quantity and locations it into the Begin Pool.

To qualify for a share within the Begin Pool a HLBS Community affiliate should recruit 4 associates in a month.

The extra these associates spend when recruited, the bigger the qualifying affiliate’s Begin Pool share:

The extra members you register with the most important beginning bundle, the upper your fee can be.

The Begin Pool is paid out month-to-month.

High Chief Fee (???)

HLBS Community’s compensation plan references a “High Chief Fee”.

This fee isn’t defined however we do know the extra an affiliate spends once they join determines their High Chief Fee charge:

• Fundamental tier associates earn a 50% High Chief Fee charge
• Newbie tier associates earn a 60% High Chief Fee charge
• Skilled tier associates earn an 80% High Chief Fee charge
• Enterprise tier associates earn a 100% High Chief Fee charge

Becoming a member of HLBS Community

HLBS Community affiliate membership prices €150 to €2500 EUR.

• Fundamental – €150 EUR
• Newbie – €300 EUR
• Skilled – €750 EUR
• Enterprise – €2500 EUR

Along with receiving HLBS Community merchandise, the extra a newly recruited affiliate spends the upper their earnings potential.

HLBS Community Conclusion

Your first clue retail isn’t a spotlight in HLBS Community is the corporate’s terribly named merchandise.

LH+, CBR7, DPS12, IS8? The merchandise look like abbreviations of their components, with no thought put into naming in any respect.

This lack of retail focus carries into HLBS Community’s compensation plan, which at its core is a pay to play recruitment scheme.

This begins with how a lot a newly recruited affiliate spending figuring out their earnings potential.

Spend extra, earn extra is the inspiration of an MLM pyramid scheme.

Whereas retail commissions can be found, the remainder of HLBS Community’s compensation plan is geared in direction of recruitment.

Having 7 members as quickly as attainable is the first purpose and the proper strategy to succeed as a member.

Recruiting seven associates will get you Staff Chief. Presumably Supervisor and any larger ranks require extra recruitment.

To qualify for commissions you’re taking a look at a €100 EUR a month spend. This interprets into the majority of commissions being paid out on recruited €100 EUR or extra a month autoship associates.

In different phrases, your typical product-based MLM pyramid scheme.

One factor I’m confused about is the presentation of HLBS Community’s binary-based compensation plan.

The corporate claims it’s a

linear answer of the system is exclusive and revolutionary.

it’s the first and solely system with out battle of curiosity.

There’s definitely nothing distinctive and revolutionary about binary-based compensation plan. They’ve been round eternally.

What’s “distinctive and revolutionary” is presenting one in a massively complicated method. A binary will not be a straight-line compensation plan.

All HLBS Community have executed is ignore one facet of the binary workforce and prohibit commissionable quantity a bit on the opposite.

Granted you’re not restricted to matching or ratios – however why not simply pay out by way of a unilevel workforce then?

That’s basically what HLBS Community is doing doing, solely they’re reducing out a bunch of quantity and pretending that is one way or the other advantageous to associates. It’s not.

I can’t converse as to why HLBS Community don’t present compensation particulars on their web site.

Given HLBS Community is energetic within the US, hiding blatant violations of the FTC Act is likely to be one motive.

With regards to transparency, HLBS Community additionally fail to supply govt info on their web site.

That is one other potential violation of the FTC Act.

Between HLBS Community wonkily named merchandise and recruitment pushed compensation plan, that is one MLM firm to keep away from.