LabActive – efusjon Has Risen from the Dead
LabActive is new on the MLM scene, but perhaps not really that new at all. At this point, we still don’t know much about them, and their pre-launch website is little help. But here is what we do know.
LabActive – Premium Brands for the World
“LabActive” is branding themselves as a health and wellness company, which is “developing premium products designed to fuel your active lifestyle”.
At the time of this writing, they are offering two products:
efusjon, a healthy energy drink, which was the flagship product of a highly controversial now-defunct MLM company from 2009. You can read a lot more about the efusjon history here.
And R1, a meal replacement shake.
Energy drinks and protein shakes are certainly not new for the network marketing industry, thus I wouldn’t predict that the products will have anything to do with the success or failure of LabActive.
It will likely all be about trying to build on the legacy of the original efusjon company, and their short but always interesting existence.
Rob Towles, CEO, was the founder of efusjon. Towles had a background as a distributor in network marketing prior to starting efusjon.
Frank W. Borst, President. Borst has a long resume of executive management and consulting. Any previous ties to network marketing are unknown.
The (Apparent) Gameplan
With the exception of the protein shake addition, LabActive appears to simply be a reincarnation of efusjon.
A pre-launch offering was emailed last week to approximately 70,000 former efusjon distributors, soliciting $950 memberships from 3,800 people. That would total a startup infusion of $3.61 million to sell the top spots in the matrix.
The network structure is a “community overlap matrix”, that allows a distributor 3 spots on his first row, then 7, 15, 31 and so on. The enticing feature of this compensation plan is it’s “overlap” feature, where you share in the matrices of your “neighbors” in the matrix.
While confusing to demonstrate, the bottom line is that the comp plan creates an opportunity to get something for nothing… always a strong motivator in any MLM operation, and no doubt a key factor in the explosive growth that efusjon saw using this very same comp plan.
Further, there are no ranks and no sponsorship requirements, which is a departure from the original plan, wherein a distributor was required to have 3 active, personally sponsored reps in order to receive commissions. LabActive announced the removal of this requirement. We have to wonder about removing all requirements for recruiting, as it is the life blood of any network marketing company. Time will tell whether it proves to be a successful feature.
Although the comp plan structure is known, the actual payouts, in terms of actual dollars and/or percentages, has yet to be released.
The Future of LabActive
Will LabActive succeed? Or will it crash and burn like efusjon, version 1?
One thing is true. People love an exciting do-nothing-and-get-rich plan, even if they are once bitten. We’ll have to see, but I predict many will try it again.
To Your Success!
- Karyn Weger