Devide was launched mid-2018 and is registered in Malta. The team consist of people from Sweden and Denmark. The company don’t really have a product, their vision is to promote brands using ‘brand ambassadors’, the initial products are a watch and sunglasses. To become a brand ambassador you need to purchase a package that cost 1 195 euro, this will include a watch (so no one can argue that you get real value for your money).
A new approach
Instead of the traditional MLM approach Devide will setup additional businesses that will promote and sell their brand products. The sale will take place in regular shops, so there is no MLM product pushing, the only thing you can push in Devide is their brand ambassador box. This is a new and different approach in MLM, you are getting very close to a pyramided scheme but since people do get a product it is probably on the legal side.
Strangely enough, you would imagine that the brand ambassadors would promote the products; the Devide business will use millions on marketing their products, and even sponsor celebrities. So what they need the brand ambassadors for is unclear. But they clearly need the revenue the MLM people contribute with as they run campaigns with massive extra bonuses if people spend more than the minimum 1 195 euro.
The pay plan concept of Devide seems to use a model very familiar to the WGI business model (MLM gambling company back in middle of 2000): you need to invest 30% of your income in profit points which you later can trade (sell) (WGI used virtual stocks). These points will some miraculous way go up in value, normally this means that the company set a value based on their greed, and later on when the trading opens people can figure out the market price (often way less than most believed). The profit points will be rewarded with 50% of any dividend that Devide decides to pay out to its shareholders. So in reality profit points are shares, but to get around complicated regulations Devide has named it profit points. If this was a crypto business it would be referred to as Devide coins – same idea but different names.
Devide pay commissions in a binary plan where you need 50-50 balance to get paid, plus matching bonus in up to 2 levels (12 referrals). The binary pay-out is set on how many people you have referred in each side, 2+2 give maximum pay.
Once you have a minimum of 2 million bonus points in the binary you are eligible for lifetime bonuses. 10% of Devide’s turnover is assigned to an internal investment fund and shared as:
- 2M Bonus Points in balance gives 1 part
- 4M Bonus Points in balance gives 2 parts
- 8M Bonus Points in balance gives 3 parts
When it comes to profit points Devide use the unique success of Daniel Wellington as their example on how much money people will earn holding profit points. We see why it’s cool to use this one example, but the reality for most people in retail is that margins are small and sales far from as good as one hoped for. Time will show how profitable the profit points actually will become, but if they were such a great deal why did they make it mandatory to buy them?
Devide seem like a new approach to MLM, and it might be. But their pay plan is close to a copy of one of the biggest MLM failures of the mid 2000’s, WGI. Strangely enough these internal ‘stock markets’ never last, simply as when there are no more people willing to pay more for something than what its worth the internal market collapses. And this one side of the business takes all of the business down with it.
As a note, you can only pay your for your brand ambassador purchase by bank transfer. Payments are made to a third party financial company. Seem their bank on Malta is not too happy about the MLM approach. Nothing new about this, all the MLM scams are making banks nervous.