Ramin Mesgarlou – CEO Global Wealth Trade Interview
Ramin Mesgarlou is the founder and CEO of Direct Selling company Global Wealth Trade. (GWT)
As CEO of Global Wealth Trade, Ramin teaches the concept of establishing Like & Trust with his luxury consultants and educates them on the company’s purpose.
Global Wealth Trade is a top level designer in luxury jewelery and apparel. What separates GWT from other competing luxury brands is that GWT clients have the ability to become members and receive significant discounts on their purchases.
GWT members also are able to become Luxury Consultants and earn retail profits by marketing GWT designer products through their own GWT provided websites. GWT Corporation manufactures and designs two of the world’s top designer brands in FERI an FERI MOSH.
FERI designer lines are the fastest growing luxury brand since 2007 with average growth ratio of 297% per annum. FERI competes directly with ultra luxury brands such as Gucci, LV, Chanel, Fendi, Tiffany, etc.
The company has a free floating binary compensation plan and operates worldwide with a storng presence in Canada, USA, Asia, The Caribbean, and European markets.
Ted Nuyten had the honor to interview Ramin Mesgarlou also knows as The Forensic Networker.
Ramin, how did you get involved in the Direct Selling industry. I understand you have hands-on experience as a succesfull leader?
Back in 1990 at the age of twenty, I was in a traditional restaurant business. One afternoon I remember thinking, “If it feels this hard at twenty, it must be much harder at thirty, forty and fifty! I don’t want to do this for the next ten years, let alone the rest of my life.
There is an ancient adage: “When the student is ready, the teacher will appear, and at that exact moment one of my customers walked into my restaurant and handed me a flyer he had just received from a friend. The flyer’s headline read, “How can a man make $73,000 per month selling cookies from his home?” I was inspired. I travelled 900 km to meet the man, and that was it.
My life changed forever, and everything I thought I knew about making money before that meeting went out the window.
Ramin, why did you switch from a successful distributor of over a decade to launching your own business?
I started my MLM career part-time in 1990, and after fourteen months of part-time work, I sold the restaurant business and went full-time. I spent the first fourteen years of my MLM career as a soldier on the field, building four multi-million dollar businesses with four different MLM companies.
Unfortunately, every time I built my empire, something went wrong with the company. They either changed compensation plans, sold the company or closed their doors. You see Ted, what got me into MLM was the mantra, “Work hard for five, and be able to take the next fifty off. I believed that then and I still believe that now, but I didn’t like what I was seeing in MLM.
Feri Celebrities – among many others
What didn't you like Ramin?
After building teams of over 100,000 distributors, creating twelve millionaires and dozens of six- figure income earners, I realized that the industry had TWO major problems that were hampering its work force success, resulting in 98% not becoming successful.
The industry has some serious problems that require addressing, starting with the training, which is why I wrote my book, The Forensic Networker.
Ramin one would think that creating that many millionaires and six figure income earners in your career would be considered a success.
It would be, until you consider the other 99,000 people who did not make it in my teams. You see Ted, I realize that most people do not apply themselves in their direct sales business, hence I wrote the ever-popular chapter “THE EIGHT CATEGORIES OF DISTRIBUTORSHIP” in my book; however, the industry has its own problems that it must address. The two main areas that the industry must address are:
- Low profit product lines that would require an army of users to be able to earn a full-time income. As you and I both know, most people will never build a large team. As such in a traditional MLM, they will never reach their financial targets.
- Highly restricted distributor compensation plans that look good on a fancy chart but are full of pitfalls and not conducive to distributor success.
“Global Wealth Trade is improving the Direct Sales unenthusiastic image in the world media”
Ramin, can you tell my readers about the industry first “Variable FREE FLOWING Binary compensation plan that you created for GWT, how it works and why it is so different than other Binaries in the industry?
Simply put, Ted, I came from the field, and even a decade of wearing a corporate hat has not changed my distributor mindset. FREE- FLOWING VARIABLE simply means that if you create the volume I will pay you for life – simple. You will not lose commissions because you didn’t qualify or re-qualify for certain ranks every month.
There are no traditional 50-50 or 1/3 -2/3 restrictions, and under no circumstances do we flush volume if the minimum monthly IA requirement is met.
Now Ramin lets talk about the media blitz on your company and your designer product lines. It’s amazing how much mainstream media coverage your company and designer lines are receiving from business and trade media from around the globe. Your company has been featured on the cover of American Business Journal, Canadian Business Journal, Canadian Jewelers magazine where they called your luxury jewelry collection “the best of the best” etc. GWT has constantly being referred to as the most decorated MLM company in the industry in just 8 years and even improving the 70 year old industry’s image in the world media. Please tell us why do you think your company gets so much great attention from all over the world?
Ted, we are proud to have revolutionized two industries:
- The MLM industry: by introducing the first FREE-FLOWING Variable Binary system to give the average person a real chance to hit a financial home run.
- The luxury fashion industry: with our unique gold, silver and Plangsten metal compositions, the latest plating technology and our glamorous leather goods and unmatched designs.
What we have done in the luxury jewellery world has never been done in the 5000 years of the jewellery industry hence we are rated #1 in the world in Gold and Silver jewellery. Furthermore, we are the first luxury fashion house using the Direct Sales platform. The elite media is very much interested in those types of innovations that revolutionize an industry. Our designer line FERI won “Luxury Designer of the Year” in 2011, and Preferred Magazine voted our FERI President timepiece amongst The world’s top ten best luxury timepieces”, next to Rolex, Patek Phillippe and Hamilton, etc.
We are invited to every major Hollywood event like TIFF, Cannes, Sundance film festivals, and our designer lines are on every red carpet from Grammys, Oscars, Golden Globe etc. We are considered “The celebrity’s designer line” in Hollywood, with over 125 celebrity clients. These are just a few reasons why we get approached weekly by global media that want to hear our story. I will tell you this; our Luxury Consultants around the globe absolutely love all the attention and on going accolades because third party credibility is vital to any MLM distributor’s success.
Luxury Consultants – among many others
|Sean Haynes||Lior Skaler||Maria Ghaderi||Rene Liaw|
|Sherry Zao||Shaan Singh||Reza Mesgarlou|
Ramin some would question if Luxury fashion is the right fit for the direct sales business model, how would you respond to that?
Ted, I will let the facts respond to that myth. After eight years of operation, our company performance stats completely and decisively prove that the Direct Sales industry was made for prestige product lines, which we carry. When you compare our eight-year performance stat to the DSA’s 2000-plus companies' report, which are predominantly health and wellness and telecom companies, you will be shocked by the results.
- Earning/dist ratio (E/D):DSA health and wellness: up to $1/distributor Telecom: up to 35 cents/distributor GWT: $5 – $8 per distributor. This means the average consultant with GWT will reach his or her income goals up to 800% faster than health and wellness distributors and up to 2400% faster than telecom MLM distributors.
- Retention ratio: DSA: 10% (Industry average) GWT: 60% + This means that our consultants value our product lines, even if they are not active. They renew to maintain their discount levels, much like Costco memberships.
- Distributor activity ratio (autoship): DSA: 6% GWT: 40% +
This means that our LCs and clients love and actually WANT our designer products where other companies lose as much as 94% of their autoship accounts annually. That said, Ted, I understand where the myth comes from. What GWT is to Direct Sales is what Apple is to the computer world. It took a while for people to understand Apple because of its uniqueness, so it was not the fastest off the block.
Winning may not be everything but a winning attitude is.” – Ramin Mesgarlou
That was the best thing for Apple because it gave them time to perfect their arsenal of genius products. When the word got out, Apple soon became the most valuable company on the planet. GWT is similar, as we did not take the traditional status quo route in MLM with another me too product.
We are the first and only luxury designer in MLM, and in the first seven years of operation, we focused on our development phase we call Phase One. 2012 is the beginning of Phase Two where now focus on marketing and expansion towards building the billion.
Ramin, I can understand the first two categories because of the profitability and desirability of your product lines but on the third point how can GWT’s “MIA programs” (auto ship) be so much higher than industry averages of “consumable products” ordering high-end and presumably expensive fashion products every month?
Two reasons, Ted:
- Yes, our designer line FERI is a luxury brand like Gucci, LV, and our prestige line, FERI MOSH, competes with icons such as Tiffany and Cartier. However, we have over 1400 designs in our luxury lineup, starting from just $34. In fact, we have over 300 designs under $150, hence we call it, Feri for All.
- Our auto revenue mechanism is not the industry standard and highly dreaded “autoship”. We have revolutionized the auto revenue mechanism by creating what we call the MIA program, (Monthly Inventory Account). Imagine if every distributor and client on your team buys/sells/saves $35, $75 or $150 of products every month, like the autoship.
The savings will go towards the dream items which LCs want personally, or for resale. Of course, when you are the celebrity’s designer line with celebrity clients like Carmen Electra and Gene Simmons, there are many dream items that every LC would want, and as a result, we have a monumental retention ratio and monthly activity ratio (MIA).
So our consultants are not overloaded with the same products monthly that they don’t need or even want. Our LCs do not go off their monthly IA program of $35, $75 or $150/month because they are working towards that dream timepiece, handbag, Shields (sunglasses) or jewellery they have always wanted or they are simply buying the next dream item they want on their wish list.
In essence if GWT LCs aren’t buying or selling products with their IA account monthly, they are treating it like a layaway plan towards that next dream item or saving their points for that next big Branding party. Our Luxury Consultants love that no automatic monthly shipment takes place unless they place an order, which saves them shipping fees and basement space.
What triggered you in Direct Selling as business model?
- Unlike health and telecom products that require government approval in every country, our product lines are pre-approved in every country in the world. Direct sales allowed us to go international in a short time; we are now serving clients in sixty-seven countries in just eight years, providing a TRUE international opportunity for our LCs around the globe.
- I believed that the industry needed something completely different for its work force outside of the low-profit health and wellness and telecom products. I had access to two of the most protected industries in the world-the luxury designer and jewellery industries-and wanted to bring that access and opportunity to the average person.
- Direct sales industry is what I know best.
GWT operates in the High End Jewelry Market, can Direct Selling be prestigious?
Yes it can, Ted, Let’s face it: we all love our multi-level marketing companies and are very proud to be in this great profession. Another reality is that our beloved industry is suffering from a less-than-perfect image in the eyes of non-industry media. How can the industry that has created more millionaires than any other method of business over the past seventy years be frowned upon by almost all major media, and receive little to no positive coverage?
I believe there are three reasons for that:
1. Imposters: When a product or concept becomes so popular, the imposters will move in for short-term profits. After almost seventy years of successful growth in 144 countries and with almost 80-million participants, direct sales/MLM companies are prime targets for imposters who will only last a few months. Almost weekly, a new short-term scheme is launched and closed, which negatively affects the image of our industry.
2. Even with legitimate MLM companies, the normal growing pains of startups are the cause of the demise in eight out of ten companies within the first five years, so it is important to look at companies which have a track record and have passed the safe five- year mark.
3. From the few that become profitable and go on to become giant corporations, there then becomes a question of viability for the “average” person to be able to have success in that business.
That said, I think the appeal of our luxury lines is what is mainly attracting the major media, and I am often told that our designer lines are too good to be marketed in the Direct Sales industry. My response is always the same – YOU ARE WRONG. I believe MLM companies sell the best products, regardless of whether it is health and wellness, or otherwise.
However, I did get asked the same question by the editor of the American Business Journal when he contacted us for the cover of their prestigious business magazine. I asked why GWT when in the same issue they featured Canada’s Prime Minister Steven Harper, three U.S. congressmen including Presidential candidate Newt Gingrich, as well as the CEO of Wikipedia. The editor responded, “Anytime you have a luxury designer out of North America competing and thriving against the European benchmarks, it is an interest to our readers.
I noticed you have a lot of celebrities wearing FERI designer Jewelry and goods, how did this come?
The FERI buzz started when we were first invited to be featured at TIFF (Toronto International Film Festival) in 2009, and virtually all celebrities called each other to our FERI suite because they were mesmerized by the beauty and quality of FERI. Almost instantly, we had thirty-plus celebrity clients, and it grew from there.
Ramin, we will be talking in debt in PART 3 of our interview about this but as a preview let’s touch on it. You are not only CEO of Global Wealth Trade but also – The Forensic Networker –, tell us about your book and the advance MLM University you have been teaching for over a decade.
The Forensic Networker ® is the most advanced part-time serious and full-time MLM business plan and training in the industry. In fact, I don’t even recommend it to MLM participants who are interested in making a few thousand dollars a month on a sometime basis.
All companies offer sufficient basic training that can get you there. Forensic is a detailed blueprint and business plan that will guarantee your five-figure income in eighteen months with any good company, if you are disciplined. Watch the video for last year's Forensic seminar in Toronto, and you will feel the energy, fun and intensity of this university. Outside The Eight Categories Of Distributorship Chapter which is now been translated in multiple languages by different MLM companies and businessforhome.org who got an exclusive webinar in 2010, I have never made The Forensic Networker courses available to the MLM industry until now.
However the demand is high and plans are to make it available to all serious part-time and full-time MLMers in 2013. Ted, this course is specifically a MUST for full-time MLMers, because there are about 9 million of them in the industry who are confused and looking for answers in order to gain momentum. I explain the reasons for their confusion and demise in The Eight Categories Of Distributorship chapter that people can get for FREE on www.forensicnetworker.com When you bring a PART-TIME business plan you started with that got you success to a FULL-TIME platform you will struggle, as being a full-time MLMer is completely different than part-time.
Ramin, GWT’s plan pays out up to 70% which is monumental, and in a FREE FLOWING VARIABLE Binary system that pays to infinity with no defense mechanism of ranks how are you able to keep up with high payments?
Ted, this brings us to our profitable and unique product lines. Perhaps this explains why the owner of Louis Vuitton became the richest man in Europe in 2011, and LV's net worth became higher than Mercedes Benz on the FORBES list. The exclusive designer business is big-real big-and one of the very few industries that has been recession-proof for the past hundred years.
Just take a look around; everyone around you is carrying a designer bag and goods, or wearing some type of jewelry or watch. At GWT, we don’t sell products which require selling, we offer a better lifestyle with which everyone is already familiar, and which they desire and seek all their lives. The designer fashion world is thriving because of its irresistible desirability and exclusivity, which leads to massive profitability. When you put it all together, what you get is the undisputed best distributor compensation plan the industry has ever seen.
To make my desirability point Ted, you are the portal for MLM, and what do most compensation plans call their ranks? Diamond, Blue diamond, Gold, Sapphire , etc. What does every MLM Company promote? Luxury lifestyle, whether that is luxury cars, clothing, jewellery, housing or travel. I think the point is made 🙂
Ramin, your company motto is “building the billion” by 2015. This is a tall order for any company as only a hand full have ever done it and those are 50 + years old, How are you doing with that goal?
How are we doing? Considering we are just getting serious in Phase Two, we just announced our second million-dollar earner in our company, and many more are on their way, so we are revved up. Whether 2015 is the year, or later, we know one thing for sure: we will be there, because the world and the media have embraced our designer brands FERI and FERI MOSH like no other luxury designer. Our lineup simply mesmerizes its audience, so it is just a matter of time as more and more MLM leaders find out about GWT, and we will be there.
Ramin on PART TWO of our interview, I will be asking you to remove the CEO hat and place the world’s top three comp plan expert hat and enlighten our readers about the foundation of the four main compensation plan systems which are The Break Away, Matrix, Unilevel and of course Binary. Until than however a quick question, Binary or Unilevel?
The right Binary by a long shot!
Thank you Ramin, We will discuss that on the PART 2 of our exclusive interview with Ramin Mesgarlou.