Team National Review – Team National Pyramid Scheme

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Everyone loves discounts or savings on their purchases. With the internet booming, coupons become the thing of the past.

There are many websites and programs online that offer different options to receive discounts and cashback on your purchases for free.

Team National is different. As a member of this saving club, you enjoy discounts on millions of products with an opportunity to make money promoting the Team National Business.

Most people join Team National for an opportunity to make money, not for the discounts and cashback.

This Team National Review discusses the Team National MLM business opportunity to determine if Team Nationa a pyramid scheme or a legit business.

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Team National Review

I am writing this Team National Pyramid Scheme to share with you my independent research and opinion on this mlm business opportunity.

I am not affiliated with Team National and do not get paid to write this Team National Review.

As an mlm business opportunity, people automatically consider Team National a Pyramid Scheme.

According to the article MLM vs Affiliate Marketing, not all mlms are a pyramid scheme.

So, is Team National a pyramid scheme or a great mlm business opportunity for you to get rich?

What Is Team National Review?

Team National is a membership discount and saving company that started in 1996 by Dick Loehr with headquarters in Davie, Florida.

The following year in 1997 Dick hired a small direct sell marketing company to design and create a marketing program, an mlm business opportunity, to sell memberships to his saving company.

In 1999, Dick acquired the direct sell company to form a new entity which he called ‘Team Companies’. Then in 2000 dick renamed the company to ‘Team National.’

Dick’s Loehr passed away in 2008. His daughter Angela Loehr with her husband Phil Chrysler took over Team National and continue his legacy until today.

Members of Team National pay fees to access exclusive savings and discounts on products and services in more than 20 industries, including:

  • Furniture, Flooring and Home Improvements
  • Jewelry and Cellphone Plan
  • Travel and Automotive Services
  • Family and Business Services
  • Commercial, Auto, and Home Insurance
  • Discount Health Benefits
  • Business Services such as Payroll and Business Exchange Program
  • Rebates Program
  • Real Estate Needs

Let talk about

Team National Savings

Team National claims to offer members access to savings in four different categories but provides very little information about the actual discounts on the products that they promote.

Members have access to over 1000’s of stores, both online and offline, to use their Team National saving membership.

Below are the 4 Team National saving categories:

1. Team National Factory Direct

The idea of saving under this group is by purchasing furniture and home improvement products directly from manufacturers bypassing the middlemen.

Team National claims members can save up to 65% of the retail price. However, there is no information as to the product lines promote by the saving company.

So, if you are accustomed to buying certain brands of furniture, this Team National saving is useless.

2. Team National Group Buying Power

Utilizing group power, Team National claims to negotiate below wholesale price with distributors and manufacturers for members to enjoy saving on big-ticket items.

I am unable to find any information on big ticket item discounts, except for a single example of receiving 5% to 30% savings through the Sears’ Commercial Online Program.

To be honest, most big-ticket items like cars, trucks, and ATV do not sell at the sticker price anyway. You always have to negotiate for the final price before purchasing.

If you have to negotiate the final price, then this group power saving is a waste.

3. Team National Business Exchange

This business exchange savings sounds exciting, but the truth is that Team National Business Exchange is for small local businesses.

This small local business exchange includes construction, home maintenance, real estate, automotive, insurance, travel, and more.

What if your small local businesses are not in this exchange, then go your big savings.

If you plan to buy Team National membership for these savings, you better do some research to find out if local businesses participate in this exchange.

4. Team National Rebate Program

This is Team National own private label of Consumable Products.

Team National claims to offer over hundreds of popular consumables such as nutritional, kids and automotive care products at a 50% lower than industry prices.

Against, I cannot find any Team National products to compare.

Anyway, if you want big discounts on private label consumer products, just visit your local Walmart stores and you can find everything.

Living in the age of Walmart, this saving option doesn’t sound like a smart investment.

I believe you get the picture of the Team National saving programs.

I personally believe that most Team National members do not join because of the discounts and savings.

They join Team National for the business opportunity known as Independent Marketing Director (IMD).

IMDs are taught to recruit and sell membership into the Team National saving program to earn commissions. This is how IMDs make money.

Team National is recognized for their mlm business opportunity which many consider Team National a pyramid scheme.

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How Does Team National Work?

Team National is by invitation only. This means you need an invitation from a Team National Independent Marketing Director (IMD) to join the program.

If you don’t have an IMD, you can request one by visiting the Team National website.

Here’s how Team National business works:

  • Initial contact to set up a meeting with an active Team National IMD.
  • The sponsored IMD is responsible to explain the process, requirements, and benefits of joining Team National mlm business.
  • If you decide to join, the sponsored IMD will submit your application to become a new Team National IMD under his/her team.
  • The sponsored IDM is responsible to train and assist you in setting up your Team National business.

Team National offers limited training and education program to first-time Independent Marketing Director.

Mentors and training materials are available if the new IMDs purchase their own website for $12 per month or $99 annually.

That is how Team National works. You get very little training and support as an IMD.

Team National Membership Cost

According to Team National IDM, joining Team National is free, but to get the savings and IDM status you have to pay.

Basically, Team National is not a free program. Below is the breakdown of the Team National costs to become a member and Independent Marketing Director.

Let first discuss Team National Membership options:

Team National Standard Membership cost is $795

This is 2 years saving membership account which allows you, your household members, and up to 5 employees full access to Team National saving programs.

As stated above, these programs include:

  • Team National Factory Direct
  • Team National Group Buying Power
  • Team National Business Exchange
  • Team National Rebate Program

Team National Premium Membership cost $2195

Premium membership is a lifetime membership that offers you virtually the same benefits as the Standard Membership.

However, this is a onetime fee for life.

If you want to become a Team National IMD, you are required to purchase one of the two membership levels above.

There is an additional costs to become an IMD.

  • The startup cost is $55 which the new IMD receives Team National gets started marketing materials, DVDs, and CDs.
  • Every year the IMD is required to pay a membership renewal cost of $25.00.

The IMD has the option to purchase is own Big N Website for $12 per month or $99 per year. This cost covers 2 Personal Big N Websites, hosting and domain name, and access to mentors with additional training materials.

Here are the costs to join the Team National and become an IMD:

  • Cheapest Option $862 ($795+55+12)
  • Premium Option $2349 ($2195+55+99)

Both Team National cost above does not include the annual renewal fee of $25.

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The Team National Membership cost is not cheap. But a more important business question is ‘Can you recover the initial investment?’

Team National Compensation Plan

The way to recover your initial investment is through Team National Compensation Plan.

Team National is an mlm business opportunity. You have two options to earn incomes:

  • Your own direct sale of Team National Membership, and
  • Your downline sales volume.

Team Nations uses a binary compensation plan. The binary compensation plan requires you to build 2 legs (right and left) directly underneath you to earn commissions.

Binary downline is much harder to build and generate income because you have to build two teams under you to earn commissions, not one.

Here is a quick overview of the Team National Compensation Plan:

Team National pays commission as well as points on each sale.

  • You earn between $25 to $100 commission based on the membership level sold and the payment options selected. Cash commission is payout on your personal sales, not team sales.
  • You earn bonus points: 3 points for premium and 1 point for standard membership. Points are payout on both your sales and team sales. When both legs accumulated a total of 10 points each, 10×10, you earn $1,500 Progression Bonus.

Since Team National use the binary compensation plan,

  • NO CASH COMMISSION is earned until the third sale. Because you must build out both legs with the first sale go to the right and the second sale goes to the left.
  • Progression Bonus is earned only when both legs, right and left, meet the minimum 10 points. This bonus is paid weekly.

Besides cash commission and progression bonus, there are other compensation bonuses:

Hosting Bonus

$1,000 hosting bonus is earned when anyone in your downline achieves the 10×10 progression bonus.

There are 6 levels of Leadership Bonuses:

1. Presidential Director

  • This bonus is achieved when you have earned 3 progression bonuses.
  • You receive $10 for each Standard Membership and $20 for each Premium Membership.

2. Bronze

  • This bonus is achieved when you have 2 Presidentials in your downline.
  • You receive $20 for each Standard and $40 for each Premium Membership.

3. Silver

  • This bonus level is achieved when you have personally hosted 4 Presidentials.
  • You receive $30 for each Standard and $60 for each Premium Membership.

4. Gold

  • This bonus level is achieved when you have personally hosted 6 Presidentials.
  • You receive $40 for each Standard and $80 for each Premium Membership.

5. Platinum

  • This bonus level is achieved when you have personally hosted 10 Presidentials.
  • You receive $50 for each Standard and $100 for each Premium Membership.
  • There’s also an annual cruise and a bonus program at this level.

6. Double Platinum

  • This bonus level is achieved when you have personally hosted 18 Presidentials.
  • You receive $50 for each Standard and $100 for each Premium Membership.
  • There’s also an annual cruise and a bonus program at this level.

Above is the basic compensation plan for Team National IMD. You can also view the Team National Compensation Plan by following the link.

Mlm compensation plans are always looking impressive in theory.

You have to look at Team National actual 2018 annual income report
statements to see the real earnings potential.

According to Team National 2018 earnings disclosure, over 87% of IMDs received no income, and the average IMDs earning is about $600.

Team National earnings disclosure looks similar to a pyramid scheme where the bulk income is paid out to a small group at the top, while the majority low downline level earns nothing.

It looks like lower level members are paying fees to support the upper levels. One might say Team National a pyramid scheme.

As I have stated above, earning income in a binary mlm compensation plan is very difficult. You have a small chance of recovering your initial investments.

Is Team National A Scam?

Team National is not a scam under the law. The company is operating within the strict guidelines of the Direct Selling Association.

However, this does not mean all Team National IMDs follow and obey these legal guidelines.

When you become a Team National IMD, you are selling discount memberships, not a physical product. It is natural for people to think that Team National is a scam, and you are trying to scam them.

Selling discount membership is a very competitive business considering other alternative option available on the Internets.

Team National might be a good mlm business opportunity in 1999, but I don’t have much faith in this discount membership program when you are competing against free online discount and rebate sites, such as Ebates and Swagbucks.

Even though Team National is not a scam, but it is not a good investment.

Let face it, how many people would pay $795 for a discount and saving membership when you have Sam Club, Costco, and BJ?

Is Team National Pyramid Scheme?

Team National is not a pyramid scheme under the law.

But, are you investing in a business opportunity just because it’s legal?

Not, me!

When comparing Team National with other mlm opportunities, Team National doesn’t look good.

Team National earnings disclosure speaks for itself. The majority of Team National earnings in 2018 went to the top 0.1% group.

I am not going to invest my money in any business opportunity that only offers me 0.1% in return. I earn more in my bank saving account.

You tell me if Team National a pyramid scheme or not?

Team National Success Rate

The success rate with Team National is low. In 2018, only 12.4% of Team National IMDs earn income, and the average income is only $636.99.

The 2018 earnings disclosure indicated that most IMDs could not even recover their membership cost, $795.

Team National success rate is near zero.

The low success rate in mlm business opportunity is normal. This is because of the high initial investment costs, expensive or high price products, strict requirements, and high annual fees.

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