Philip Reitcheck | greentrees

Zinzino Review

Aug 13th 2013 at 2:10 PM

This is my review of the Zinzino MLM program.  Its primary revenue source is from coffee, beverage syrups, chocolate, Espresso machines, coffee cups, carry-bags, and tea sales.  The program originally launched in 2007 and its main company parent is Zinzino AB based out of Gothenburg, Sweden.  Its CEO is Bergheim Petterson and program URL is "zinzino.com".  Their main target group is the European market, with

Norway currently accounting for 35% of its sales.   Each Zinzino MLM program is operating as separate child subsidiary, of the Zinzino AB company, in each countries that it is offered in.

In 2009, Zinzino Nordic AB was acquired by Zinzino AB.  On September 20, 2010, Zinzino AB was listed on the Aktietorget stock exchange.  In 2011, Zinzino AB launched its Zinzino MLM program, expanding with companies in Estonia and Lithuania.  In 2012, companies were also launched in Latvia and Iceland.  I cannot find any history on CEO Petterson having any MLM experience, indicating that this is his first venture into the MLM field.

How Does Zinzino Work? Affiliate membership starts at 30 EUR, with affiliates able to purchase starter packs price from 499 EUR to 1795 EUR each.   Coffee ranges from Luxury, Exclusive and Premium and is sold in boxes, ranging in price from 6.75 EUR (12 pods) to 8.50 EUR for Premium blends. They also sell a range of teas (6.75 EUR for a box of 12 pods), along with beverage syrups (7.50 EUR a bottle), confectionery chocolate, and Espresso machines (269-1020 EUR).

The Zinzino comp plan primarily is from the purchase of products, giving affiliates volume credits and points.  Affiliates must qualify for monthly commissions with regular affiliates having at least (4) four active customers and a personal auto-ship order that worth at least 10 credits.  Executive affiliates must have at least (10) ten active customers and a personal auto-ship order that worth at least 20 credits.  An “active customer” is defined as a customer who has purchased at least 3 credits worth of product, over the last 90 days.

There are (16) sixteen affiliate membership ranks and they are as follows:
Partner – Qualified to earn on up to 450 points in their first 90 days and needing only retail sales thereafter.
Bronze – 4 active customers, a maximum of 450 points in binary commissions each week.
Silver – Generate 750 credits in a month, a maximum of 450 points in binary commissions each week.
Gold – Generate 1500 credits in a month, a maximum of 450 points in binary commissions each week.
Executive – 10 active customers, generate 3000 credits in a month, earn on a maximum of 750 points in binary commissions each week.
Platinum – Generate 6000 credits in a month, earn on a maximum of 750 points in binary commissions each week.
Diamond - Generate 12,000 credits in a month, earn on a maximum of 1050 points in binary commissions each week.
Director - Generate 24,000 credits in a month, earn on a maximum of 1350 points in binary commissions each week.
Crown - Generate 48,000 credits in a month, earn on a maximum of 1500 points in binary commissions each week.
Royal Crown - Generate 80,000 credits in a month, earn on a maximum of 1350 points in binary commissions each week.
Ambassador – (2) income centers with each producing 20,000 in credit volume each month and having a 100,000 credits balance.
Royal Ambassador - (2) income centers with each producing 30,000 in credit volume each month and have a 150,000 credits balance.
President – (3) income centers with each producing 40,000 in credit volume each month and have a 200,000 credits balance.
Elite President - (3) income centers with each producing 80,000 in credit volume each month and have a 500,000 credits balance.
Global President - (3) income centers with each producing 160,000 in credit volume each month and have a 1,000,000 credits balance.
4 Star Global President – (4) income centers with each producing 200,000 in credit volume each month.

When a customer (either affiliate or retail) purchases a product off the “partner price list” the program pays out a Cash bonus (currently only the espresso machines are listed on the Cash bonus price list).  Cash bonus ranged from 15 EUR (customer spends 205 EUR) to 110 EUR (customer spends over 1,000 EUR).

Monthly commissions are paid out using a 2Xunlimited binary matrix which places an affiliate at the top of matrix with two positions directly under them.  These two matrix positions form the start of two legs, a left and right.  Each leg branches out into two more positions and so on and so forth, down a unlimited number of levels.  The volume generated within each matrix leg is used to calculate an affiliate’s monthly commission by squaring off the volume generate between the two legs (left and right) against each other.  The number of credit points an affiliate is able to earn on is determined by their affiliate membership rank as follows; Bronze, Silver and Gold affiliates – up to 3000 credit points; Executive and Platinum affiliates – up to 5000 credit points; Diamond affiliates – up to 7000 credit points; Director affiliates – up to 9000 credit points; and Crown and higher affiliates – up to 10,000 credit points.  Also the commission percentage is determined by how many credit points an affiliate’s down line generates each month; up to 300 countable credit points – 7.5%; up to 2000 countable credit points – 10%;  and 2001 or more countable credit points – 15%.

There are (3) tiers of Team bonuses that are paid out to affiliates who have a specified number of active customers who generate a specified number of purchase credits each month.  A-Team bonus- affiliates with at least 25 active non-affiliate customers that generate a minimum of 125 credits a month qualifies for a 10 EUR bonus for each new customer they sign up.  Pro-Team bonus – affiliates with at least 50 active non-affiliate customers that generate a minimum of 250 credits a month qualifies for a 20 EUR bonus for each new customer they sign up. Top-Team bonus - affiliates with at least 100 active non-affiliate customers that generate a minimum of 500 credits a month qualifies for a 30 EUR bonus for each new customer they sign up.

The Fast Silver bonus pays out a 300 point bonus to affiliates that have at minimum of (4) active customers  and sign up (2) new affiliates that generate a minimum of 750 credit points in the their first 30 days.  Affiliates who qualify for the Fast Silver bonus or have a 20 credit auto-ship order, 150 customer points, 10 active customers, have A-Team bonus qualification or are ranked Platinum or higher, also qualify for double credit points on all new affiliate and customer auto-ship orders.

The Residual Credits bonus pays out double credit points on all orders, excluding Enrolment Credit bonus orders, to affiliates that qualify for the A-Team bonus, or have a 20 credit auto-ship order, 500 customer points, and at least 10 active customers, or is ranked at Director or higher.

The Rank Achievement bonuses is paid out to affiliates that reach the Director and above affiliate membership ranks as follows; Diamond – 2500 EUR (paid out over 5 months); Director – 5000 EUR (paid out over 5 months); Crown – 10,000 EUR (paid out over 10 months); Royal Crown – 15,000 EUR (paid out over 10 months); Ambassador – 25,000 EUR (paid out over 10 months); Royal Ambassador – 50,000 EUR (paid out over 20 months); and President – 100,000 EUR (paid out over 20 months).  Note- If an affiliate loses their rank, they lose their monthly Rank Achievement bonus.

Customer Acquisition bonus are from new customer or affiliates purchasing starter kits when they join, as follows; 500 credits from each matrix leg – 200 point bonus; 1500 credits from each matrix leg– 400 points bonus; 3500 credits from each matrix leg– 600 points bonus; and 7500 credits from each matrix leg– 1000 point bonus.

The Crown Volume bonus is paid out to all Crown or higher ranked affiliates who have generated at least 10,000 credits in one matrix leg.  The bonus is paid out as a percentage of the total matrix leg volume as follows; Crown 1%; Royal Crown 1.5%; Ambassador 2%; Royal Ambassador 2%; President 3%; Elite President 4%; Global President 5%; and 1 Star Global President 5%.

A Car bonus of 1000 EUR per month is available to all Diamond or higher ranked affiliates and a Director Trip bonus (which is an annual “educational trip”) is available if an affiliate meets on of the following (3) qualifying ways, qualify as a Director affiliate within the first year or reach 400 credit points in one matrix leg & 1000 credit points in the other matrix leg or qualify as a Crown affiliate.

My Opinion..... After looking at hundreds of different MLM comp plans over the years, I must admit that this is one of the most complicated one I have ever looked at.   This MLM program starts with a basic 2Xunlimited matrix plan and then starts to just pile bonus after bonus on top of it, for no other reason then to "over reward" the top 2% of Zinzino affiliates.  Between the cash bonus points, credit points, balanced customers, customer points, customer acquisition points, euro points and 16 affiliate membership ranks there’s just too much "crap" in this comp plan.

Even the basic 2Xunlimited matrix comp plan could be a nightmare for most affiliates.  First customer & affiliate purchases generate credit points, which are then added into the 2Xunlimited matrix legs, which are then converted into euro-points (which fluctuate between 0.90 EUR and 1.1 EUR per euro-point), that finally earns a percentage as cash.

The other problem that I have seen is the pricing of the company’s products.  After checking with the Rombouts independent website at “rombouts.co.uk” and comparing its prices with what Zinzino is charging, I cannot see how an affiliate will ever sign up a new "informed" customer.  Example- The Brasilia coffee (12 pods) is only 3.47 EUR at Rombouts vs. 6.75 EUR through Zinzino (94% more expensive) and the OH Espresso Machine is only 232.15 EUR at Rombouts vs. 269 EUR at Zinzino (16% more expensive).  And when you add in the bulk discounts the Rombouts site are offering and the price difference is even larger.

On the plus hand, the MLM program does pass the "legit" test as it does have "real" marketable products and the requirement "real" retail customer sells, for affiliates to earn money.  Which cannot be said about most of the MLM programs that I have reviewed.  Plus they seem to be promoting the customer side more then the affiliate side of the company, which is also good thing.

But considering the complicated comp plan and the overpriced products, I feel that most affiliates would have a hard time selling this MLM opportunity to all but the most experienced online marketers.  In my opinion, I feel that it would be much easier to just join a MLM program like JubiRev and sell their Gourmet JubiMax Coffee ($31.99 for a 24 bag customer auto-ship price) if you are wanting to get in the MLM gourmet coffee niche.

Just My Opinion,
Philip Reitcheck
greentreesmlm@gmail.com

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