Hello and welcome to my Alphay review! Are you looking for ways to generate some online income in your retirement? Are you interested in health products that are a little different than the hundreds of others out there? Alphay is a multi-level marketing company that has been around for a long time with its roots in Chinese Medicine.
I am not a distributor for Alphay but I am your cyberspace investigator. My mission is to find products and services and research them for you so that you have information to make a decision as to whether you might be interested in joining a company to make some income. We have to beware of all things on the internet because many so-called opportunities turn out to be just another way to lose your hard-earned money. We don’t have the time to waste on chasing pipe dreams and phony lavish lifestyle claims, do we? So, what is Alphay? Can a mushroom MLM make moolah for you?
Let’s find out.
What Is Alphay?
Alphay International was founded in 2002 and is headed by Hui Chen who oversees a line of products that include mushroom-based health supplements, coffee, tea, and lifestyle items that are sold by a network of over 100,000 direct sellers using the MLM business model. There are only 27 companies that have been allocated a direct selling license in China and Alphay is the only one that is privately owned. Alphay operates in North America, Japan, and Thailand and has plans to expand globally. Annual revenue in 2019 was $220 million which was a reduction from 2018 when the annual revenue was $225 million.
Who Is Alphay For?
Anyone who is interested in Chinese Medicine and the benefits of medicinal mushrooms could be interested in joining this company. Most MLM’s target stay at home moms, students and military spouses. Retirees looking to add to their monthly income could also be candidates. The claim by Alphay is that their medicinal mushroom products may help us to extend our lives and improve our health so this is definitely something I need to look into at my age! Whether it is a viable financial opportunity for us remains to be seen as we explore further.
Brief Details and Price
founder: Hui Chen
price to join: $35 for the basic membership which includes your replicated website and back office.
Then, you will need some products and marketing materials to get started:
You may choose from 3 Alphay Building Packs:
- Builder Pack – $249
- Leader Pack – $499
- Executive Pack – $999
Included in these packs are product samples and marketing materials which are detailed below in the ‘Building Packs’ section
guarantee: there is no income guarantee
CRIO rating (out of 10): 3.8
My Review Of Alphay
Tingzhang Chen is credited by his son, Hui Chen, the current CEO of Alphay, as being the true visionary and founder of the company. In the 1950s Tingzhang developed a passion for the science of cultivating medicinal mushrooms and their benefits and he instilled this passion in his son. Alphay was founded in China in 2002 and expanded to the North American market in 2011.
The signature products are the medicinal mushroom supplements. The featured fungus is the Lingzhi mushroom also known as the ‘reishi’ which has been known as the ‘mushroom of immortality’ for over 2000 years. Other products include:
- Advanced Cellular Support
- Natural Health Products
- Café Blends
- Lifestyle Products
- Product Combos
The Alphay products are formulated according to the 5 elements philosophy in Chinese medicine. This states that all things in life, including our bodies, are interconnected and we must treat the whole being to achieve optimal wellness.
I actually support this philosophy and I do believe there are health benefits to be had from medicinal mushroom products. My goal, however, is not to discuss the products at Alphay, but rather to reveal the business opportunity they are trying to sell us.
how to join
You must be sponsored by an Alphay Distributor. If you do not know of one, you can go to their main website and they will help you contact a distributor near you. Once you have joined and purchased your builder pack, you will have to make a list of your ‘warm market’, which is family, friends and inner circle because this is the foundation of the network marketing approach. You must not only be selling but recruiting continuously to build your team and expand your organization.
Alphay’s compensation plan is based on two structures, or ‘trees’. The term ‘tree’ refers to your organization or team and can be used interchangeably. The two trees are referred to as the ‘Sponsorship Tree’ and the ‘Placement Tree’. Every person that you or someone on your team recruits will be placed in the Sponsorship tree. The distributors that you personally recruit are referred to as PSD or Personally Sponsored Distributor. They are your ‘downline’ and you are the ‘upline’. There is no limit to the number of people you can personally sponsor. The Sponsorhip Tree utilizes a Unilevel structure which is best explained with a visual.
The second tree, the ‘Placement Tree’, utilizes a Binary structure, which has two legs. Every distributor who joins your organization is also placed in this tree. Once again, those below you are in your downline and you are the upline. New distributors will be placed in the first available position at the bottom of the organization. There is no limit to how deep your placement tree can grow. This is a visual of what the Binary structure looks like. Because one of these trees is multi-legged and the other two-legged, they will never match up. I find it quite complex the way they have set this up with different structures. We shall see what else is in the plan.
remaining eligible to receive commissions at Alphay
In order to receive commissions, bonuses or incentives, you must remain an Active Distributor in good standing. This means you must maintain 50 PV or Personal Volume per month (this equates to about $77), to remain active.
ways to earn
- one to one customer sales – when you purchase products from Alphay at the Distributor price and sell them at retail price to customers, you keep the difference.
- retail profits – this is when a customer orders product at a suggested retail price through your Alphay replicated website, you are paid the difference between the SRP and the Distributor price.
- direct first order bonus – you get paid a 15% on the bonus volume of all first and upgrade orders by your personally sponsored Distributors.
- preferred customer sales – when a retail customer registers for the auto-delivery program via your website, they become a preferred customer and can purchase products directly from your site at wholesale prices.
- monthly, or unilevel commissions – for every distributor you personally recruit into your organization, you earn 15% of their entire sales volume. For every distributor that your personal recruits bring into your team, you will receive 5% of their sales volume up to 10 levels deep.
- monthly leadership bonuses – when your first level distributors start earning an income, 10% of whatever their check is that month. You also get 5% from levels 2-5.
- annual bonuses – as you climb up the ladder and go up in rank, you will receive rewards based on your level of success. This is paid out as a one-time cash award. These bonuses begin when you hit the rank of ‘Emerald’, and which by the way you need 243 distributors in your downline to achieve. If you make it this far, you will receive a $5000 cash bonus. At the next level up, Diamond, which requires 729 distributors in your downline, you will receive $10,000 and so on it goes till you reach Key Master***** level which requires 59,049 people below you to achieve. You will have certainly earned your $1,000,000 cash bonus if you achieved this rank. But trust me, less than 0.1% of people get this far. They show you these figures to get you excited which is how MLM’s seduce you.
- incentive travel trips – when you reach Emerald (remember 243 people in your downline), you get an all-expenses-paid trip to Las Vegas where you will attend trainings and learn techniques to boost your business as well as network with other top leaders at Alphay. There is also the annual event in China where million-dollar checks, cars, and other rewards, will be distributed to top Alphay Distributors.
- weekly commissions – these are paid using the binary system we looked at earlier. With Unilevel, you get paid on the business you build. The binary plan relates to income earned by the business that your sponsor (who originally introduced you to the Alphay opportunity) and your upline, those above your sponsor, are building. You will recall that when you join Alphay, you are also put in the Placement Tree. When others join after you, they are placed below you in the tree. You will receive commissions on all first time orders from those that were placed below you. How much that is depends on the ‘Alphay Building Pack you purchased when you joined, which determines what percentage you will receive. This ranges from 5% to 15%.
This is a very simplified explanation of the Alphay Compensation Plan which is really quite complicated. If you would like to view the whole plan you can see it here.
the building packs
The Builder Packs are as follows:
$249 for the Builder Pack which entitles you to receive 5% commissions
- 30 sample packs
- 1 bottle of balance medicinal mushroom capsules
- 1 bottle of calm medicinal mushroom capsules
- 1 rich black coffee
- 1 cafe latte
- 1 rich tea
- 1 marketing pack
$499 for the Leader Pack which entitles you to receive 10% commissions
- 60 samples
- 2 bottles of Balance
- 2 bottles of Calm
- 2 rich black tea
- 2 cafe latte
- 2 Royal Blend tea
- 2 marketing packs
$999 for the Executive Pack which entitles you to receive a 15% commission
- 90 samples
- 3 balance
- 3 calm
- 3 rich black
- 3 cafe latte
- 3 royal blend tea
- 1 cleanse
- 1 nourish
- 1 soothe
- 1 revitalize (men)
- 1 revitalize (women)
- 4 marketing packs
income disclosure statement
There is no income disclosure statement which is always a red flag. I did find the annual estimated commission payout for 2019 which was $77 million, but we have no idea how these commissions were paid out to the Distributors.
Pros and Cons
- the longevity of the company
- authentic products
- products are not FDA approved
- the flawed nature of the MLM business model
- difficult products to sell
- need to recruit family and friends
Final Thoughts About Alphay
When discussing the compensation plan, they give you a best-case scenario scene which is unrealistic and makes you think you may earn that much. There is such a high drop out rate in the MLM business model that you will need to be constantly recruiting, training, and motivating everyone in your team and this is not an easy thing to do. You had better have a huge network to call upon and be prepared for your family and friends to turn around and walk the other way when they see you coming! This is the nature of the beast.
It is a sad fact that more than 97% of people who join an MLM make little to no income. You can read about the dismal statistics here in this document from the Consumer Awareness Institute.
I have not reviewed their products but I do see value in medicinal mushroom products and this company has been in business a long time. They also grow their product so you know where the source is. However, none of their products are FDA approved. I also think this would be a challenging product to sell because you would have to educate people on their benefits. It’s the same with this company, DXN who has mushroom-based products. A tough sell. Finally, you are working for commission only so you will have to cover all your own business expenses including going to trade shows, travel, and additional marketing materials.
Is Alphay a scam? No, it is not because they have an authentic product line, albeit to generate any decent income you are going to have to recruit and train many people in what is a very complex compensation plan. It just sounds like a huge hassle to me and a lot of expense.
Can this mushroom MLM make moolah for you? I say no and I would not recommend you join Alphay or any network marketing company for that matter unless you have a great deal of prior experience and plenty of capital behind you to sustain you while you build your organization. In fact, I have created a checklist that details the things you should consider before joining a multi-level marketing company.
Our Recommended Online Income Method
If you are interested in generating some online income from home, I suggest you take a look at the business model that Philip and I recommend. There is no need to recruit family and friends or sell one product line dictated to you by a corporate office. Forget complicated compensation plans that give you a headache. We are Affiliate Marketers and we recommend this method to retirees like us who may be needing to supplement that monthly check. You can read Philip’s article here to learn what we do and which platform we recommend to learn it.
I thank you for taking the time to read my review of Alphay and whatever you decide to do, please just be cautious and come back for more reviews. Let me know if there is any other company you would like me to take a look at for you. We are all in this together.
I wish you health and happiness,