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LGN Prosperity – A Five Essentials Review and Due Diligence For LGN

LGN Prosperity – A Five Essentials Review and Due Diligence For LGN

This is the third of the “Five Essentials Reviews” forthcoming and ongoing.

Five Essentials, 5 Stars per Essential. Perfect score is 25 Stars or an average of 5.

Reviews have previously been completed on Club Sea Breeze (preliminary) and TVI-Express. Soon there will be more Five Essentials Reviews on Diamond Holiday Travel, LGN-Prosperity, Pxyism, Dream Style Vacations, Royal Cruise Matrix, Traverus, Life Path Unlimited, Global Resorts Network, Wealth Masters International/Carbon Copy Pro, and more, stay tuned.

Again, in the spirit of telling you where I sit before I tell you where I stand, I have a position in LGN Prosperity and a small team.

These reviews are researched and written from the perspective of someone looking at, analyzing and performing their due diligence relative to making a decision on whether or not to become an associate of a particular opportunity and begin representing that company and its products.

US based associates, please note that every network marketing company in existence can, has and/or will be compared against criteria established by the FTC and can be categorized as a legitimate network marketing company or an illegal product based pyramid, recruitment pyramid, and/or ponzi scheme. There is a discernible difference between all four and potential associates evaluating any opportunity are encouraged to include as part of their due diligence, research on the Federal Trade Commission’s Official Website.

In the end, it’s a personal decision each associate has to make, either those already in or those thinking of joining. You have to decide for yourself, if, based upon what you discover in this process, you want to promote a company and opportunity.

ESSENTIAL ONE–The Company 5 Stars

Where are they located?

LGN-Prosperity began marketing December 1st, 2009 and by mid-January 2010 had amassed 3000 associates. The membership has since grown to over 7,000 worldwide as of the 2nd week in February 2010 and as of the writing of this review, the 2nd week of March 2010, LGN continues to explode, hitting the 10,000 associate milestone.

Corporate Headquarters are listed on the company website. There is only one location.

903 SE 28th Street, Suite 13
Bentonville, AR 72712

Customer Service has several components:

There is a Toll Free option for US associates, 1-877-784-1087

From the website there is online chat-based help available 12 hours per day, 7 days a week.

There is email support as well, and LGN-Prosperity promises, with the exception of Holidays, to respond to your support request within 24 hours.

You can email to customer support or to the owner and CEO, James Ward. The email addresses are located on the corporate site and also the FAQ.

I have had a few occasions to contact customer support and have found them helpful and courteous. I have also contacted James Ward through his email which he does attend and respond to. LGN is US-based and in each instance the 24 hour response criteria was met.

There is also an FAQ section on each associate replicated website where answers to the most common questions can be found.

Company ownership and/or management team, who are they, are they accessible?

The Founder/Owner/CEO of LGN-Prosperity is James Ward whose email address is clearly indicated on the site. And I have emailed James Ward and received a personal response.

James continues a very “Hands-on” role in the company, performing many of the online training webinars, hosting calls, and keeping the membership abreast of current developments and coming enhancements.

Does the company and/or principals/management team have a track record and/or experience in the industry?

On the website, James goes through his background and the genesis of LGN-Prosperity out of and from the original company he started over 2 and a half years ago, The Little Guy Network, LGN, which is still active in the market under LGN-Revolution.

The benefit to LGN-Prosperity and its associates is that the pitfalls of a start up company, the trials and tribulations encountered, endured and overcome in 2.5 previous years are addressed in LGN-Prosperity, so the company is ahead of the curve on many fronts, including compliance issues.

This isn’t saying there have not and will not be any issues. Whenever you’re dealing with people, expanding technologies, the internet, etc. there are going to be things that pop up from time to time and LGN has had a few.

Just recently (March 2010) for example, there was an issue with the payment vendor creating some confusion and delay when people signed up, paid and were placed into their matrix. LGN and James Ward acted quickly and decisively finding a different vendor solution and stretching out the weekly qualification deadline (so that associates were not penalized by an issue in the system).

Now that could have happened to a new company or an older one and it is the leadership and business sense at LGN that helped them address what could have been a serious issue.

This is exactly the kind of leadership, direction and experience associates want to see in a company they represent.

What measures has the company taken, are they continuing to take to insure legal compliance?

Compliance is at the forefront of company operations, R&D for future products and membership enhancements. The CEO and Founder has engaged a top MLM Attorney to review company structure, offerings, website, operations, compensation plan, product suite, and more.

Because this is a US-Based company, compliance is critical to the long term stability, sustainability and viability of the company and CEO/Founder, James Ward, is continually taking steps with compliance firmly in mind.

ESSENTIAL TWO–The Product 4.5 Stars

What market sector and specific niche is the company competing within?

LGN offers products in three market sectors, Internet Marketing, Personal Development and the Travel Industry, arguably the hottest product sectors for internet opportunities.

What specifically is the product?

The LGN product suite offers internet delivered products in three major market sectors via each associates online storefront. Not only do associates have unlimited access and downloads of the products, they also receive a url, unique to them with the a storefront and store to which they can send people to purchase those same products. 100{d4f7c08805e41e9b9974dfba619ed7230ec2da6e442055d48085a7994e8adaef} of the sales generated from your store flows back to you, as an LGN associate.

All of the products are downloadable and consist of e-Books, CD’s, Software and Travel Vouchers.

Internet Marketing:

There are e-Books, CD’s and Software downloads covering a comprehensive range of internet marketing topics, including, but not limited to: Article writing, Blogging, Email Marketing, PPC, SEO, Web 2.0, Video Marketing, Affiliate Marketing, Site Building, Social Media, PodCasting, Squeeze Page Generator; Google AdWords and AdSense along with training by renown internet marketers like Mike Filsaime and Armond Morin.

Personal Development:

There are e-Books and CD’s like: “The Science of Getting Rich” and “Think and Grow Rich” and CD’s by well known speakers, trainers, consultants and motivational experts like: Mark Victor Hansen, Alex Mendossian, Dani Johnson, and Ellie Drake.


There are 10 travel related vouchers with unlimited downloads provided by a 3rd party vender. These vouchers have unlimited downloads and although each has a redemption fee, they remain solid values. Some of the vouchers are:

  • 3N/4D all-inclusive Jamaican Getaway $208.99 (includes the processing fee)
  • 3N/4D Bahamas Cruise and Island Stay $287.99 (includes processing fee)
  • 4 or 5 Night Cruise, Carnival $162.94 to $213.42 per person (includes fee)

Is it in demand? Can the product hold interest on its own?

Short answer is YES. Success and demand in all three niches for opportunities and products is well documented and represent some of the hottest segments of the industry at present.

There two Top Tier opportunities, Life Path Unlimited and Polaris (fka-Liberty League) that have been very popular and they promote Personal Development as their sole product niche.

And the third hot segment in the industry is internet marketing.

The primary reason this Essential pulls less than a 5-Star Rating is the slight limitation of the product suite in that it is entirely digitally based and delivered.

This is a great positive for those of us in markets with significant or substantial computer literacy and internet penetration, but that isn’t the case worldwide. And this is a dual and synergized shortcoming of both product suite use-ability and delivery.

In reality and in practice the product suite has a slight marketability issue relative to its global appeal, marketability, and delivery.

THREE–The Compensation Plan 4.5 Stars

Investment? Are there any additional charges? Monthlies, autoship, etc.

$299.00 investment, one time, no recurring fees

Payable with major credit/debit cards. Get paid by physical check, direct deposit to bank account, bank wire, STP, Global Cash Card.

$99 additional for LGN Platinum which is a complete marketing system that provides auto-responder, capture pages, banner ads, copy, all for a one time fee, which is a great value in and of itself.

How many positions are you allowed to have?

You can have only one position in LGN per social security number or Tax ID, so you are essentially limited to one position.

It is important to note that here LGN addresses two major compliance issues with the FTC.

First, LGN separates the product from the income opportunity and it is possible, through each associates individual storefront to purchase the Internet Marketing and Personal Development products without participating in the opportunity.

Secondly, you can only buy one position. And here it is also important to make a distinction between buying a position and earning a position. One reason why this is a red flag for the FTC is that when an associate can buy more than one position it gives an unfair advantage to those capable of buying more positions. Essentially creating an environment wherein you can buy your way to some level of success and therefore it isn’t an equal opportunity for all. This is in contrast to earning additional positions, which is based upon your efforts and that is a fair reward (earned) and not an unfair advantage.

The Math, can the compensation plan sustain itself on it’s own?

LGN operates within a simple, 2 x 2 cycling, follow me, top down traditional matrix. Each matrix starts with you at the top, then below you a row of two and under each of those two, two or a row of four, so a row of 1 (you), then a row of 2 and then a row of 4.

Each matrix pays for re-entry into the next matrix when the current one is filled, in addition to administration costs, profit and overhead to the company. In this way LGN is completely funded from within its own compensation plan and if everyone were to succeed, the money is there to pay everyone.

And again another major compliance issue is avoided because “breakage” is not relied upon to insure payouts.

Breakage is human nature, manifested and is the result of the fact that people are involved and some will do absolutely nothing after getting in. If a compensation plan is not fully funded from within the plan itself and relies upon even a minimal percentage of breakage that is a “red flag” for the FTC.

What is needed to create the first $100,000

This question goes directly to how exactly do you make money in LGN?

LGN is a traditional, 2 x 2, follow-me matrix with a couple important upgrades. First is the follow me feature, which in practice creates what is known as “spill-up”. What happens here is any associate that you personally sponsor, when they cycle their matrix, they immediately follow to fill the next available spot on your current matrix. This is one way spots on your matrix can be filled “passively”, meaning you didn’t personally sponsor a new person to have them fill a spot on your matrix.

Another upgrade and way to “passively” fill spots on your matrix is “spill-over”, which occurs when you are on your sponsors current matrix and they fill spots on their matrix, these also “spill-over” onto your matrix and the people they sponsor also spill-over onto your matrix.

This only lasts until your sponsor cycles that matrix in which case they cycle and move on to a new matrix following their sponsor and their efforts on that new matrix go towards helping them and the people on that matrix.

And of course, when you personally sponsor people they come in to fill the first available spot on your current matrix.

So, it takes 6 people to cycle the LGN Matrix, best case they are all passive, worst, you have to sponsor all 6.

When all 6 positions on your matrix are filled by these activities, either passive or active, you will cycle and earn $777 and immediately follow and fill the next available spot on your sponsors current matrix and your matrix starts all over again, with 6 open positions.

So how do you make $100,000 in LGN?

Take the example of LGN’s top producer in December 2009, the very 1st month in LGN. This associate indicated in his first month in LGN, December 2009 he personally sponsored 26 people which resulted in 16 cycles and $12,432 in his first month-best he’s ever done in a “first month” of an opportunity. And that also resulted in >$50K in commissions being earned by his downline. This also earned him the top spot in December in the company, and as the person cycling the most in that month; he received a $2K bonus. On average, each of his 26 people cycled 3 times. Very impressive and something to get excited about I agree. Especially since that translates into a six-figure income inside of 12 months.

There are very few companies and opportunities out in the market whose compensation plans have the potential to generate this kind of income, consistently with such small numbers of associates.

The only reason LGN’s compensation plan does not pull a full 5 stars is its traditional, top/down structure. This is really evident when you start your new matrix. On your new matrix there will be you at the top and then 6 empty spaces below you on a row of 2 and a row of 4. To many beginning network marketers and experienced marketers as well, this is more than a little intimidating. Daunting even, given the average network marketer sponsors just 2 people. 6 is a 300{d4f7c08805e41e9b9974dfba619ed7230ec2da6e442055d48085a7994e8adaef} increase in that task.

Yes, you can have spots passively filled, but the norm is that filling those 6 spots to make your $777 is up to you. There are no other competing businesses helping you to fill those spots as there are in some of the other popular matrix based compensation plans out there, like TVI and Club Sea Breeze where the “Kumbaya” factor is high because unrelated businesses are actually working together to fill positions on the matrix.

However, that said, this is network marketing and you have to talk to people, you have to expose your business in order to be successful.

FOUR–The Marketing/Support System 5-Stars

Does the company provide marketing support, training, tools, etc?

Associates for their $299 one time fee get a replicated website to send prospects to, support website, online chat for prospects questions, FAQ, their own replicated storefront from which they can sell their products, and some general marketing tools.

Associates are also treated to a wealth of information via an archive of recorded webinars on different aspects of marketing, on and off-line. In addition there are several different live webinars hosted by top producers, guests and CEO and LGN Founder, James Ward.

There is also a paid option available that was mentioned earlier, LGN-Platinum is a turnkey marketing system with auto-responder (complete with pre-written emails), capture pages, both static and video enabled, banner ads, leads generation, leads, hosting, and more. For the one time fee of $99, this is an exceptional value.

The company also sponsors corporate events and in February 2010, held the first ever annual convention, after less than 2&1/2 months in business. James Ward also holds regional meetings to support and help associates recruit, the two most recent in Texas and an upcoming event in March 2010 in San Francisco.

Are there established teams which provide these same services, tools and mentorship?

Yes, absolutely. In addition to the very strong and robust training and support offered by the company, there are several major teams within LGN that have created strong training and support to associates, even functioning across the different teams.

These teams provide tool sets, marketing services, mentorship, some at cost, others free. It varies and I would highly recommend doing research into the various teams to determine which might be the best fit for you if you’re going to become an LGN Associate.

And here a note about one of the latest fads in the network marketing industry, “Feeder” systems. Typically they are set up around a low entry cost, <$50, 2 x 2 cycling matrix and once you cycle the matrix a couple times you then have enough money to buy into the higher priced (usually $300-500) opportunity.

The allure of the low entry cost and how easy it is to sell to others to eventually earn the big money is tempting for many, but it isn’t going to build the foundation for a long term, profitable, stable income and business. And when someone isn’t willing to “beg, borrow, wheel and deal” for the $300-$500 initial investment into their own business, a real bona-fide business, that has the very real potential to create a six-figure income within the first 12 months, I question their sincerity. Well, to be perfectly frank, I question a whole lot more than that, but I digress.

There are several “Feeder Systems” using LGN-Prosperity at this time. The major pitfall of these “feeders” is that the LGN compensation model isn’t really amenable and/or compatible with these systems. For a detailed discussion of these and more issues with these systems, check back soon for an upcoming article, “The Truth About Feeder Systems”.

There is no substitute to building the solid foundation of your own team of associates. Your organization will be invested, have greater retention, duplicate more efficiently and more.

FIVE–The Model 5 Stars

Is this general model something I can work with? Can I see myself doing this? Is this something I can put my dreams and future behind?

Ultimately this is the “WHY” every marketer must answer for themselves. The company and model can do everything possible to make it easier to succeed, faster, but in the end analysis, it is still network marketing and as a marketer you do have to get out in front of people and share the opportunity with them. In Real Estate the mantra is “Location, Location, Location” in Network Marketing it’s “Exposure, Exposure, Exposure”!

This is traditional network marketing and your efforts are yours, you will succeed, largely, on your own efforts, but there is some help afforded to your downline based upon how active you are, they receive some benefit sometimes, in the form of “spillover”, however it lasts for the life of your current matrix only, it is not long term. This is also true for you and your sponsor, the more active they are, there is more benefit to you.

The simplest strategy being promulgated is finding at least 6 people who will build and place them all directly under you, in fact place everyone directly under you. Generally, it’s not a good idea to give up sponsorship, most times you are better off to place people into your own business.

Finding at least 6 creates the possibility of cycling and not sponsoring anyone directly because if all 6 cycle their own matrix, because of the “follow me” component, they would attach to your current matrix and when all do, you would cycle yourself. Obviously having more than 6 does create the possibility of cycling more frequently.

This is an unprecedented time in the Network Marketing Industry, technology, changes around every corner, happening at a breakneck clip. This kind of matrix has never been attached to a solid company, until now. The stability, sustainability this provides to the income generating capability of the model is exciting.

James Ward and LGN-Prosperity have assembled a compliant, solid opportunity, behind a good quality product suite, historically efficient and profitable 2×2 cycling, follow-me matrix and excellent associate support that competes with the best top tier opportunities in the marketplace.

Based upon the Five Essentials criteria outlined in the original article on these Reviews,Due Diligence 101 – Five Essential Elements Key to Analyzing Network Marketing Opportunities“, LGN-Prosperity earns a total score of 24 out of a possible 25 and a Five Essentials Rating of 4.8 Stars