Beware of HLBS Network: Review

The website of HLBS Network has no information regarding who owns or operates the firm.

The website’s bottom has an address for HLBS s.r.o. in Slovakia, exposing the company’s European roots.

HLBS Network’s US subsidiary is based in Texas under the name HLBS Global Marketing US LLC.

Corporate documents reveal The HLBS Network was established in 2016.

Further investigation finds Peter Gabriel referring to himself as the CEO of the HLBS Network:

Gabriel is based in Hungary, according to his LinkedIn page.

Gabriel (right) has a lengthy business background, but HLBS Network looks to be his first MLM enterprise.

Gabriel has previously worked in the hotel, banking, and real estate industries.

It’s unclear why HLBS Network’s executive information isn’t available on its website.

Because Gabriel is located in Hungary, the HLBS Network should also situated there. The Slovakian incorporation appears to be a sham entity.

This is reflected in the Terms and Conditions of the HLBS Network.

Given that HLBS s.r.o. is represented by the HLBS s.r.o. Hungarian Branch, Hungarian Law applies to this publication.

Stay tuned for a thorough examination of HLBS Network’s MLM potential.

Products from the HLBS Network

The HLBS Network website provides information on three product categories: cosmetics, functional foods, and dietary supplements.

Cosmetics from the HLBS Network

In his cosmetics line, HLBS Network sells four products:

  • Citrus+ – “thoroughly cleanses and supports the skin’s quick regeneration”;
  • LH+ Body – “preserves all skin types with precious ingredients”;
  • LH+ Face – “helps preserve skin youth, and protects against harmful sun radiation.”

Functional Foods from the HLBS Network

In its functional foods line, HLBS Network sells two products:

  • Instant Coffee– “specialty coffee with taurine, guarana, and inulin”;
  • Chocodream Premium Chocolate – “silhouette sugar-free chocolate with psyllium seed husk”.

Dietary Supplements from the HLBS Network

In its dietary supplement line, HLBS Network sells nine products:

  • CGS12+ is a general health supplement in a “vegan capsule”;
  • CBR7 is a vitamin C supplement, including bioflavonoids and rutin;
  • DPS12 is an abbreviation for daily vegan protein shake;
  • IS8 is described as “a natural raspberry and vitamin combination;
  • DK5 – a double vegan pill including olive oil”;
  • HMAX8 – HMAX8’s natural components make the body stronger and more resistant, and they can even increase athletic performance;
  • Berry SLM – “aids with detoxifying, weight reduction, and nutrient absorption”;
  • AAG1 – “vegan capsule dietary supplement including astragalus, ginseng, and phosphatidyl”;
  • HC80 – “humic acid and cordyceps dietary supplement capsules”.

Third-party manufacturers appear to be producing all of HLBS Network’s products in Hungary.

It should be noted that the HLBS Network does not give the retail price for any of its goods.

The Compensation Plan of HLBS Network

Retail sales commissions are paid to HLBS Network affiliates.

The majority of the pay scheme, on the other hand, is targeted on affiliate recruiting.

Qualification for the Commission

HLBS affiliates must produce at least EUR 100 every month to be eligible for commissions.

This is given as a monthly personal expenditure need. It is uncertain whether retail sales volume qualifies for the EUR 100 per month criterion.

Affiliate Ranks on the HLBS Network

Within the HLBS Network’s pay model, there are three established ranks.

They are as follows, along with their respective qualification criteria:

Sign up as an HLBS affiliate and complete the commission qualification conditions (see above);

  • Team Leader – find and keep seven affiliates;
  • Manager – no disclosure of qualifying criteria.

Direct Commissions in Retail and Recruitment

A direct commission is paid to an HLBS Network affiliate who sets up a new retail client or recruits an affiliate.

Direct commissions in retail and recruitment are paid using a one-level pay system.

In a uni-level compensation system, an affiliate is put at the head of a uni-level team, with every individually recruited affiliate placed right under them (level 1):

If any level 1 affiliates acquire new affiliates, they are assigned to the original affiliate’s uni-level team at level 2.

Direct commissions in retail and recruiting are paid as a proportion of sales volume earned by the recommendation of a retail customer or affiliate recruitment.

Retail and recruiting direct commissions are given depending on rank on up to four uni-level team levels.

HLBS Pool

HLBS Pool is a binary bonus pool presented in a very convoluted manner.

Volume paid out on can be up to 25% of affiliate and 10% of retail customer order volume.

These proportions look to represent tiers. The sole qualification given is “beginning package,” implying that how much an HLBS Network affiliate spends when signing up determines their HLBS Pool pricing.

What I can confirm is that the “100, 500, or an endless number of members” on which the HLBS Pool is based is connected to how much an affiliate spends when they sign up:

The HLBS Pool is earned by basic tier affiliates on up to 100 recruited affiliates.

Affiliates at the beginner tier receive the HLBS Pool on up to 500 recruited affiliates.

Affiliates in the Professional and Business tiers earn the HLBS Pool on an infinite number of recruited affiliates.

Start Pool HLBS Network allocates 10% of newly recruited affiliate volume to the Start Pool.

An HLBS Network affiliate must recruit four affiliates in a month to be eligible for a portion of the Start Pool.

The more significant the qualified affiliate’s Start Pool stake, the more these affiliates spend when recruited.

The more members you sign up with, the most expensive starting package, the bigger your commission.

The Start Pool is handed out every month.

Commission of Top Leaders 

The remuneration plan for HLBS Network mentions a “Top Leader Commission.”

This commission is not explained, however, we do know that the more an affiliate spends when signing up, the higher their Top Leader Commission rate:

  • Affiliates in the first tier get a 50% Top Leader Commission rate;
  • Affiliates in the first tier get 60% of the commission. 

Rate of Top Leader Commission

  • Professional tier affiliates get a Top Leader Commission rate of 80%;
  • Affiliates in the business tier get a 100% Top Leader Commission rate.

Participation in the HLBS Network

Affiliate membership in the HLBS Network ranges from €150 to EUR 2500.

  • EUR 150 as a starting point;
  • EUR 300 for a beginner;
  • EUR 750 for a professional;
  • EUR 2500 for business.

In addition to getting HLBS Network items, the more money a newly recruited affiliate spends, the more money they can earn.

Conclusion 

The company’s poorly titled items are your first hint that retail isn’t a priority for HLBS Network.

IS8? LH+, CBR7, DPS12? The names of the items appear to be acronyms of their constituents, with little thought put into them.

This lack of retail emphasis pervades HLBS Network’s compensation model, which is essentially a pay-to-play recruiting system at its core.

This begins with assessing how much a freshly recruited associate spends in order to determine their revenue potential.

The core of an MLM pyramid scam is “spend more, make more.”

While retail commissions are possible, the majority of HLBS Network’s incentive plan is focused on recruiting.

The key aim and the proper technique to succeed as a member is to have seven members as soon as possible.

Recruiting seven affiliates earns you the title of Team Leader. Managers and higher-level positions, presumably, will necessitate additional hiring.

A monthly spend of EUR 100 is required to qualify for commissions. This means that most commissions are paid out on auto-ship associates who earn EUR 100 or more each month.

In other words, your normal MLM pyramid scam centered on a product.

One point that perplexes me is the description of HLBS Network’s binary-based pay scheme.

According to the firm:

“The system’s linear solution is unique and groundbreaking.

It is the first and only system that is free of conflicts of interest.”

Binary-based compensation plans aren’t really novel or groundbreaking. They’ve been around for a while.

What is “special and innovative” is presented in a very perplexing manner. A binary is not a linear compensation plan.

All HLBS Network did was disregard one side of the binary team while restricting commissionable volume on the other.

Granted, you aren’t confined to matching or ratios – but why not just payout through a uni-level team?

That’s precisely what HLBS Network is doing, but they’re removing a lot more volume and stating it’s beneficial to affiliates. It isn’t.

I’m not sure why HLBS Network doesn’t disclose remuneration information on their website.

Given that the HLBS Network operates in the United States, concealing flagrant breaches of the FTC Act might be one of the reasons.

HLBS Network’s website does not include executive information in terms of openness.

This might be another violation of the FTC Act.

With HLBS Network’s oddly titled goods and a payment scheme based on recruiting, this is one MLM firm to avoid.

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