Xowii Reivew – MonaVie Lawsuit, Evlov Merger, What’s Up With Xowii?

Well Xowii has had a lot of action in its short life so far, so let me bring you up to date on what is happening with this hopeful in the world of Network Marketing.

Xowii is a new MLM company that launched its operations in late 2009 and is headquartered in Costa Mesa, CA.

Xowii did some very good launch promotions and got way ahead of the curve for a new MLM company, generating almost $15 million in sales in their first year and enrolling about 20,000 distributors.

We are talking some Wow numbers here, that is very good production for a new network marketing company.

Xowii is the brain child of co-founders Richard Kelly and James Christiansen and entered the market with a product line that targets what is projected to be a huge trillion dollar exploding health and nutrition market powered by the aging of the baby boom.

Their product line XOWii Energy, XOWii Thin, and XOWii Ultimate all revolve around their key ingredient called “Coffee Fruit”.

Now I am somewhat of a coffee aficionado, and I love my Starbucks but I have to confess I had never heard of Coffee Fruit?

According to the Xowii website Coffee Fruit contains various polyphenols providing antioxidant, anti-inflammatory, energy-enhancing, immune-promoting and cell-protection properties.

Wow I knew I liked coffee for some reason!

Now for those of you not in the know (like me), coffee fruit is a cherry-like fruit that grows on tree, but the coffee you drink in the morning is the seed inside the “fruit”.

I learn something new every day.

So Xowii took this miracle fruit that Starbucks totally missed and it was off the races.

Now one of the reasons for the aggressive growth is probably because Xowii developed a really aggressive Binary Compensation plan.  It’s actually one of the more inventive I have seen using this MLM business model.

Xowii Compensation Plan

In the Xowii Binary compensation plan you can receive income in several ways including a Fast Start Bonus, Binary Team Bonus of up to 12% on the lesser leg, Free Autoship Bonus, Executive Check Match, Rank Advancement Bonus, Car Bonus, Empowerment Bonus Pool, Leader Bonus Pool, and Diamond Run Bonus Pool.

Whew, that a lot of bonuses!

Now some of the really creative parts of this MLM compensation plan are that you can receive not only receive a Fast Start Bonus when you sign someone up, but when someone you have sponsored signs someone up you get an almost matching bonus and that also goes for your new 2^nd level team members when they sponsor someone.

Now generally a MLM Binary compensation plan offers this matching bonus (a form of the famous MLM Coded Bonus) or an Executive check match of some sort (like eXfuze or MonaVie)  but Xowii actually offers both.

Another very creative part of their MLM binary compensation plan is the once you have 4 personally sponsored reps on autoship, your Xowii autoship is free.

Now you mix that in with all the various bonus pools they also offer and you can see why I call this plan aggressive.

Now before you get all excited and blaze a path to your nearest Xowii distributor to sign up there are a few things you need to know.

With MLM Binary compensation pay plans, since you could in theory be paying multiple commissions a few thousand levels deep on the same leg, all companies who use this structure place a “Cap” on total commissions paid.

Now generally these “Caps” are around 55% or so and it means that a company will never have to pay out more than 55% of its monthly revenues in commissions that month regardless of how many people are trying to tap the piggy bank.

If the “Cap” is exceeded in a monthly pay cycle, then everyone’s checks get reduced by a certain percentage. I have seen some companies who did not plan their MLM compensation plan well sometimes pay out as little as 65% of what they should have paid out.

Ouch!

Look, trying to figure out how to pay compensation on multiple levels of production and give out the most possible gets pretty complicated and even if a company runs computer simulations there still can be some flaws that crop up later.

Let’s face it a network marketing company has to have enough to pay its bills so the “Cap” structure works well for an MLM binary company.

Enough on compensation plans, let’s talk about the interesting stuff now.

Xowii Lawsuit

Xowii recently was sued by MonaVie for apparently for trying to recruit distributors away from them?

Now I am not sure why MonaVie figures they own those distributors but defending a major lawsuit even if it has no merit can be very expensive.

So now fast forward to January of 2011 and suddenly Xowii announces that they are merging with a company called Evolv Health.

Now there are many ways to spin this but as a matter of practice in the MLM industry, healthy growing network marketing companies do not merge with other companies. It is generally a sign that they are suffering financially or there are other problems.

Now it could be the cash drain of a lawsuit or unhappy investors or who knows. The bottom line here is that overall it’s a good looking company but future prospects may be uncertain.

Whether Xowii will end up continuing to run as a separate company or their distributor base will simply be merged into Evolv Heath remains to be seen.

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