The 7 Minute Workout program, which launched in 2011, has recently shifted its compensation structure from a binary model to a pass-up system. This change appears to have eliminated the retail component of the business, according to the company's own explanation of the new plan. Under the updated system, when a new person registers, 50% of their fee goes to the recruiter, and the new member is placed into the recruiter's organization.
The company's terms indicate an "optional" affiliate signup. However, the 7 Minute Workout Affiliate Program is only open to service users, making affiliate membership contingent solely on signing up for the program itself. This suggests no practical distinction between a retail customer and an affiliate.
Beyond the 50% direct commission to the recruiter, the company also offers a 50% match on earnings from personally recruited affiliates, effectively a Level 1 bonus. Anyone joining 7 Minute Workout becomes eligible for the compensation plan simply by signing up. This setup raises questions about a true retail customer base.
The service costs $47 annually. A significant portion of this fee, 75%, is paid out in commissions. This includes the 50% direct commission and an additional 25% as a matching bonus to the upline. Such a high commission payout percentage casts doubt on the product's inherent retail value.
The company's FAQ addresses this issue directly, stating, "The product needs to be viable and have stand alone value, as in you can prove people would pay for it even if there was no opportunity involved." The FAQ claims over 1,000 members use the product without promoting the business. Yet, elsewhere, the FAQ notes a total membership of "10,000 or so."
If only 1,000 out of approximately 10,000 members do not recruit, this means 90% of the membership participates as affiliates. This statistic suggests a lack of retail viability, where the product's appeal is heavily tied to the attached income opportunity. The previous compensation plan required affiliates to bring in at least one retail customer monthly, a requirement that appears to have been ineffective given the current affiliate-to-customer ratio.
Changing the compensation plan to align with affiliate behavior, rather than addressing the product's retail appeal, does not support a sustainable business model. The issue is not the product's effectiveness, but its pricing, the low number of genuine retail customers, and the large percentage of the price paid out in commissions. The company's "opportunity" page itself cautions against products that are "not much more than an excuse to churn money online until the F.T.C. shuts them down." With $35.25 of every $47 fee allocated to commissions, the true standalone value of the 7 Minute Workout product remains unclear.