Philip Reitcheck | greentrees

Leaf International Review

Jun 18th 2013 at 6:39 PM

After two requests from people on my list asking me about the Leaf International, I have decided to do a review on the program.  Leaf International is another "passive" MLM profit sharing program based on both text and banner advertising (much like AddWallet).  They also state that they sell a web site builder software. The URL is "preleaf.com" which was registered on September 7th, 2012,  set to expire on September 7th, 2014, and the site owner as being Magnar Kongestol from Norway.  No information on the website states who owns or runs this program.

When I go to the Leaf International support page it shows that they have eight employees, with Magnar Kongestol listed as a "Official Rep".  The only history I could find on the people listed as "Official Rep.'s", was that Mr. Kongestol was listed as the Chairman of the Board for the now "failed" MLM company called Goodle Adz.  Goodle Adz "failed" only a few months after its launch.

How Does Leaf International Work? The program sells text and banner advertising through the “Leaf Advertising Network” including both “Website Optimizer” and “Leaf Search”.  The "Website Optimizer" uses rotators to rotate web sites from affiliates and customers.  Leaf Search" is stated on the web site as being a internal search engine that offers an additional traffic source for affiliate web sites.


Basic affiliate cost to Leaf International is $48 annually, but to earn matrix commissions you must also pay an additional $38 to $148 a month.  There are four affiliate types:
Starter– $48 annually fee.
Manager– a minimum of five recruited affiliates with each having two affiliates, a total of at least 15 affiliates in your down line, $20,000 sales volume from each matrix leg and a total $100,000 in sales from your down line.
Executive- a minimum of ten recruited affiliates with each having two affiliates, a total of at least 30 affiliates in your down line, $50,000 sales volume from each matrix leg and a total $500,000  in sales from your down line.
Senior Executive- a minimum of fifteen recruited affiliates with each having two affiliates, a total of at least 45 affiliates in your down line, $100,000 sales volume from each matrix leg and a total $1,500,000  in sales from your down line.
NOTE- The site does not state if the sales volume qualifications are monthly or annual requirements.

The daily rebate (which most affiliates are joining for) works like this.  For each dollar of advertising purchased by an retail customer or affiliate, they are rewarded one Ad Credit.  Advertising cost a minimum of $50 and is capped at $10,000 a day   Affiliates are then paid daily (profit sharing) based on their total amount of Active Ad Credits.  To receive this Daily Rebate (profit sharing) affiliate’s must qualify by first surfing at least 20 other member sites each day using the “Website Optimizer", rating all sites (a minimum of three must be given advanced feedback), and post one ad on the Internet promoting the Leaf program. 

Qualified affiliates earn a daily percentage (profit share) on the number of Active Ad Credits they have and by their affiliate level: Starter– 1.5%, Manager– 2.2%, Executive– 3%, and Senior Executive – 4% daily.  Active Ad Credits expire after 90 days.  The program requires a minimum of  20% of all Daily Rebate earnings to be used to repurchase more advertising to continue to growing an affiliates Active Ad Credit balance. Note that if an affiliate wishes to actually cash out any of their daily earnings, they must have personally signed up at least one active affiliate.

Retail commissions are paid out at a rate of 25% for sale of the web site builder software and 10% on advertising sales to retail customers.  Commissions are also paid on retail sales made by an affiliate’s down line.  It is paid out as 10% on the web site builder sales and 5% on advertising sales from your referrals (level 2) and  5% on web builder sales and the following for advertising sales by your referrals referrals (level 3) (Starter – no commission, Manager – 2%, Executive – 3.5%, Senior Executive – 5%).  A bonus is offered to affiliates who sell a larger percentage of web site builder software sales to retail customers, allowing their total commissions to grow up to 150%.

The 3x9 forced matrix commissions are paid as follows. Each new affiliate that you sign up are placed in a  3×9 forced matrix.  The matrix with three positions directly under you (level 1) and then three positions under each of these affiliates (level 2), and so on down 9 levels (making a total of 29,526 total positions in the matrix).  Since it is a forced matrix, affiliates can come from you or from your up and/or down lines. To qualify for matrix commissions, you must signed up a minimum of three affiliates and pay a monthly fee between $38 to $148.  Matrix commissions are paid out as a percentage of each affiliate’s monthly fee as follows: Matrix Levels 1, 2, & 6=4%, Matrix Levels 3, 7, & 8=5%, and Matrix Levels 4, 5, & 9=6%

The compensation plan list prices of the web site builder software are between $68 (premium) to $138 (e-commerce) per month.  I could not find any additional information on the “web site builder software” so I can not tell you if it worth what Leaf is charging for it or not.

My Option..... Just like any "passive" daily profit sharing program,  90% plus of all affiliates are joining just for the daily profit sharing part of the program. And it does not make any difference if the program is trying to hide their profit sharing or comp plan behind "fake" retail customer's, matrix's, and/or some product like web site builder software or advertising services.  Most likely 100% of all daily profit sharing and matrix commissions are being paid out with affiliate money and "passive" type programs like this are always shut down by government agencies as a investment program.  Which is why almost 100% percent of them always "fail".

Lets look at my first RED FLAG, the advertising product.  Since only Leaf International affiliates will be viewing these ads, in order to qualify for their Daily Rebate (profit share), there is NO organic or targeted advertising value to this advertising (unlike a program like BannersBroker's advertising).  And this is what retail advertisers are expecting for their advertising dollar, which makes getting retail advertisers not very likely.  Leaf also offers advertising on its Leaf Search search engine, but who is going to be using that given it only found on the Leaf web site?

Second RED FLAG is the web site builder software.  With a cost of between $68 to $138 per month (there are lots of good web site builders that are either free or cost less than 1/2 of this, on the Internet), this appears to be nothing more than a token offering as the program is rewarding affiliates who get just 5 or 10% in retail sales.  This means that Leaf International is expecting 90 to 95% of their income to come from affiliate money.  Even though Leaf management is trying to show compliance by give the appearance that they are pushing the retail side of the program to affiliates, only expecting 5 to 10% in retail sales will not hide the "passive" part of this program from government agencies.

Third RED FLAG is the Daily Rebate and this is what government agencies will consider the "passive" part of this program.  With every dollar spent on advertising equaling one Ad Credit, affiliates are being paid a Daily Rebate (ROI) based on the total amount of advertising sales that day.  Noting the lack of value of this advertising to retail advertisers, this Daily Rebate (ROI) is going to be largely paid out of affiliate money.  This means the Daily Rebate (profit sharing) will be affiliates earning a daily return, based on how much they themselves have invested or re-invested in Ad Credits and convinced others to do the same.

This makes the true incentive for affiliates to purchase additional Ad Credits (with the 90 day retirement) with the expectation it will pay out more money than they have themselves invested, not the advertising itself.  Which explains the $10,000 daily investment cap in advertising sells, which makes no sense if you are truly planning on selling to retail advertising customers.  If this was true, why would you limit advertising purchases?

True Leaf International is attempting to make the program appear "legitimate" by capping their affiliates from investing or re-investing more than $10,000 daily and restricting affiliate’s from withdrawing more money than the revenue they have created from purchases made by their personal retail customers or any affiliates they have directly referred.  But most affiliates will get around this limitation by just signing up "fake" retail customers and using their earnings to purchase advertising through these "fake" retail customers, then use the advertising for their own use.

These withdraw limits might help balance the amount of withdraws by affiliates by offering just "funny money" profit sharing to most affiliates, except those who succeed in signing up referrals who invest or set up "fake" retail customers.  But it’s still suffers from the problem that all "passive" programs have, unless new referral investments are coming in, there’s nothing to pay out.

If you remember what the old Goodle Adz program looked like, it’s clear to see where most of the parts of Leaf International comes from.  But despite the attempt to present a more "legitimate" program this time around, Magnar Kongestol still winds up offering a program that primarily pays out a daily profit share from mostly newly invested affiliate money.  Add the monthly fee-based matrix, some "crap" about charities, withdraw limits, and the old Goodle Adz program looks pretty much like this new Leaf International program.

If you have a large list to sell this program to, you can probably make some money from this program before it "fails".  Of course when your list members who join cannot get their money back, because of the withdraw limitations, you will probably end up with a much smaller list that will be willing to trust you in the future.  Otherwise I would advise you to stay out of this income program "mess", as it is a NO WIN income program for most people

Just My Option,
Philip Reitcheck
greentreesmlm@gmail.com

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