Magnar Kongestol, a Norwegian resident, registered the domain "preleaf.com" on September 7, 2012. This domain is associated with Leaf International, a company that does not publicly disclose its ownership or operational leadership on its website. Kongestol is listed as an employee on Leaf International's "Get Satisfaction" support page, though his specific role remains unstated.
Kongestol previously served as "Chairman of the Board" for Goodle Adz. That company launched in mid-2010. Goodle Adz operated by selling advertising to affiliates, then paying them returns on investment (ROIs) using funds from new affiliate investments. The company also paid recruitment commissions for new affiliates who invested.
Goodle Adz claimed it was "only one concept... in a big puzzle counting a total of approx 10 media and advertising concepts." These concepts, it stated, would "form a complete picture, unlike anything else you have seen online or offline!" within 12 to 18 months. The scheme collapsed just months after launch when new investments ceased.
Leaf International offers two primary products: advertising and a "website builder." The advertising is sold through the "Leaf Advertising Network," which includes text and banner ads. It also features websites in its "Website Optimizer" and "Leaf Search" platforms.
The Website Optimizer "rotates the websites from Associates, Affiliates and Customers through a viewing platform called a website Rotator." Leaf International associates must "view 20 sites a day in this system in order to qualify for the Daily Rebate payout." Leaf Search is described as "an internal search engine that offers an additional traffic source for websites in Leaf." No further details are provided on the website builder, but its name suggests a design tool.
The website builder costs between $68 for the premium version and $138 for the e-commerce version per month. Advertising is priced from a minimum of $50 up to $10,000 per day.
The Leaf International compensation plan centers on advertising and website builder sales. It also includes monthly fees for participation in an affiliate-funded matrix commission pool.
Leaf International has four membership ranks. A Starter pays $48 to Leaf International. A Manager requires five personally recruited affiliates who each recruited two new affiliates, a total of at least 15 downline affiliates, $20,000 sales volume from each recruitment leg, and $100,000 total sales generated by the downline.
An Executive needs ten personally recruited affiliates who each recruited two new affiliates, a total of at least 30 downline affiliates, $50,000 sales volume from each recruitment leg, and $500,000 total downline sales. A Senior Executive requires fifteen personally recruited affiliates who each recruited two new affiliates, a total of at least 45 downline affiliates, $100,000 sales volume from each recruitment leg, and $1,500,000 total downline sales. Each new recruit creates a "recruitment leg." Leaf International does not specify if sales volume qualifications are monthly or annual.
Retail commissions are paid on sales of the website builder or advertising to retail customers. Commissions are 25% for website builder sales and 10% for advertising. Referral commissions on retail sales from an affiliate's downline are paid on two levels of recruitment: affiliates directly recruited (level 2) and those they recruit (level 3).
Level 2 referral retail commissions are 10% for website builder sales and 5% for advertising. Level 3 website builder sales earn 5%. Level 3 advertising commissions vary by rank: Starter earns no commission, Manager earns 2%, Executive earns 3.5%, and Senior Executive earns 5%.
An incentive exists for affiliates selling the website builder to retail customers, increasing the base commission up to 150%. If 5% of an affiliate's total website builder sales are to retail customers, the commission payout increases to 17% on level 1, 7% on level 2, and 3% on level 3. If 10% of total website builder sales are to retail customers, the commission payout increases to 25% on level 1, 10% on level 2, and 5% on level 3.
Daily Rebate Commissions are tied to advertising purchases. "For each dollar of Advertising purchased an Associate is rewarded one Ad Credit. Associates are paid daily based on their total amount of Active Ad Credits." The Daily Rebate percentage "is calculated from the total amount of Advertising sales by Leaf for each particular day. The Rebate can be anywhere from 0% to 4%."
To qualify for the Daily Rebate, affiliates must surf at least 20 sites a day through the "website optimizer." They must also rate all visited sites, with at least three requiring "advanced feedback." Finally, they must place at least one recruitment ad daily "via an approved Leaf source."