Monday, July 24, 2017

The fatal flaw of NHT Global

NHT Global is an MLM that pretty much has it all: the experience, the trusted name, good products, steady growth, a solid compensation structure, qualified and talented upper level management.

If you were to describe an archetypal MLM, they would be it.

So have I been involved?

This video explains everything:


Make sense? Either way, here’s the full review on NHT Global.

Overview

NHT Global, also known as National Health Trends Corp, has been around since 2001. They’re a subsidiary of parent company Natural Health Trends Corp, which has been around for about 25 years now.

So, these guys are no newbies. Sitting at #54 on the DSN’s list of the top 100 MLMs in the entire world, they’re in it to win it.

Headquartered in California, this company expanded globally pretty quick. Within less than a year in operation they’d already moved into Canada, Australia, Puerto Rico, and New Zealand. Now they’re  in over 40 countries worldwide.

Chris Sharng, the President of NHT Global, is pretty impressive. He’s held numerous high level positions with some of the biggest corporations in the world, including Vice President of International Finance at Mattel. Scott Davison, their CFO and Senior VP, has been with NHT for 13 years and counting. Before that, he worked for communications giants such as IP Communications and Celion Networks. He holds a Masters degree in Professional Accounting from the prestigious University of Texas at Austin.

NHT Global is a member of the Direct Selling Association, and they have an A+ rating with the BBB. They are publicly traded on the New York Stock Exchange as NHTC.

Unlike a lot of older MLMs that peak and then plateau for a while, NHT Global’s growth hasn’t stalled. In fact, it’s skyrocketed.

Just in the past two years, this company has managed to grow exponentially. Their stock shares are now worth around $28.8. Back in January of 2014, they were worth just $3.2. The company peaked in late 2015, with their stock reaching over $50 a share.

They’re pulling in great numbers lately, hitting $287.7 million in annual revenue in 2016. [1] It’s pretty obvious that NHT Global isn’t going anywhere.

How much does NHT Global cost?

You need to buy a Business Builder Pack to enroll, which will cost you $100. There’s also an annual fee of $50/year.

You’ll need to make your first order in order to activate your account. To qualify for the entire compensation plan, you’ll then have to sponsor two direct recruits who enroll and activate their accounts.

Products

NHT Global does general eCommerce, which means they sell a little bit of everything: beauty products, nutritional products, skin creams, you name it.

However, their products can generally be broken up into three main categories: NHT Global Beauty, NHT Global Herbal, NHT Global Wellness, and NHT Global Lifestyle.

NHT Global Beauty

Their beauty products don’t consist of cosmetics so much as skincare products. They’ve got items like a Botanical Hand Protector, an Age Defying Hair Mask, and their Skinindulgence line of anti-aging creams.

NHT Global Herbal

Their herbal supplements include LivaPro is for liver support and detoxification, Cordyceps  Mycelia is for kidney function and sleep improvement, and Purus supports heart health.

NHT Global Wellness

This category is where most of NHT Global’s products fall. They’ve got probiotics, stem cell supplements, omega-3 fatty acids, noni juice, fiber supplements, energy boosters, and more.

NHT Global Lifestyle

NHT Global only has two lifestyle products, but they’re pretty unique. LaVie is a red wine alternative made from red grapes from the Bordeaux Region as well as aloe very and raspberries. It’s meant to provide you with the health benefits of drinking a glass of wine a day without having to consume alcohol. ALURA LUX is one of their top-selling products. It’s a paraben-free lubricant with menthol and L-arginine.

Compensation Plan

NHT Global calls their compensation plan “the most retail-oriented compensation plan in history”.

I don’t know about that, but it is definitely more retail focused and less recruitment heavy than a lot of plans out there.

You get retail profits with NHT Global, which means that you purchase their products on wholesale at discounted prices, and then you sell them individually at marked up retail prices. You get to pocket the difference. The exact markup isn’t specified.

Based on your sales numbers, you might also qualify for extra bonuses.

The two-team infinity compensation system is the binary portion of their compensation plan, which lets you earn a commission on the sales of your stronger leg ranging from 5% to 20% depending on your rank.

Generational Bonuses at NHT Global are decent. They let you earn residuals off the sales of your direct recruits, up to 3 levels down, and they range from 3% to 18%. They also offer matching bonuses up to 3 levels deep, depending on your rank.

Recap

Look – there’s nothing wrong with this company.

But there’s nothing new and exciting about NHT Global. There’s no oomph. There’s no hype. There’s no…potential to win big $$$.

Just look at their earnings disclosure statement. Only 41% of their distributors were even eligible for commission in 2016. That means that over half of them didn’t earn a single penny, let alone pay back their initial investment. Only 1% made over 25,000 for the entire year, which is barely over minimum wage in some places.

Joining NHT Global might get you a little extra cash here and there if you’re lucky, but you’re never going to get wealthy with them. You’re highly unlikely to even earn enough to cover your phone bill.

If it’s financial freedom you seek and you like automated ways to build passive income, there are better ways.

(and you can trash those old MLM habits, too)


via http://mlmcompanies.org/nht-global/

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