Brad Cook launched NexxStars from Texas in April 2014. Cook's corporate bio states his first exposure to network marketing came at age 11 when his parents joined Pre-Paid Legal.
He claims to have signed his first contract with Amway at 16. Cook's bio also lists affiliations with National Safety Associates (NSA), Smart Travel, and Enliven. He states he was a "Vice President" for an "MLM Internet technology company," but no name is provided for this company.
NexxStars' product line lacks clarity. The company website lists "mobile phone and service and advertising," "IPTV," "4K TV," "security systems," and "web advertising." No specific costs or details are available for these items.
The NexxStars compensation plan focuses on affiliates investing at either the Personal ($349) or Business ($1499.50) level. Affiliates earn "direct commissions" for recruiting new investors. A Personal investor recruitment pays $20, while a Business investor pays $100.
Three percent of all affiliate investment money goes into a pool. This pool is shared with President-ranked affiliates. To reach President rank, a Business affiliate must recruit at least five new Business affiliate investors.
NexxStars affiliates receive a guaranteed maximum annual return on investment (ROI). This requires clicking company-supplied links daily. Personal investors can earn up to $2500 annually, and Business investors up to $10,000, paid weekly. No minimum ROI is stated.
Affiliates who place a NexxStars banner advertisement on their website receive a share of a 3% pool. This pool comes from "monthly and activation fees" and is split across the three affiliate account types.
Cashback commissions are tied to a supplied credit card for Personal and Business affiliate investors. The company states that withdrawing money or making payments with the card earns "special bonuses." These amounts are credited monthly into a bonus pool.
Ten percent of this cashback pool goes to Personal affiliates. Business affiliates receive 40%, and President affiliates get 50%. President qualification requires a Business affiliate to recruit at least five new NexxStars Business-level investors.
Every affiliate investment places into a binary compensation structure. An affiliate sits at the top of two binary sides, left and right. Positions fill as recruited affiliates invest in packages, either directly or through upline and downline efforts.
Commissions are calculated daily by pairing Personal and Business investments in a 1:1 ratio on either side. A Personal 1:1 pairing pays $20. A Business pairing pays $150.
Daily caps apply to binary commission payouts. Personal affiliates are capped at $1000 for Personal pairs and $5000 for Business pairs. Business and President affiliates have caps of $20,000 for Personal pairs and $50,000 for Business pairs.
E-commerce commissions offer 15% on any purported product sales. A 1% residual commission is also available on sales made down five levels of recruitment, despite the lack of product information.
Three affiliate options exist for joining NexxStars. The Partner level costs $49.90, but is not MLM-eligible. Personal membership is $349, and Business is $1499.50. The main difference between Personal and Business options is the annual ROI. A $49.90 monthly fee applies after the first month for all affiliates.
The NexxStars compensation plan relies heavily on affiliate investment fees. The $349 or $1499.50 paid by affiliates appears to be recycled to fund commission and ROI payouts. The Partner affiliate level functions as an entry point, with NexxStars stating that a "$350 in bonus monies" from advertising the NexxStars app leads to an upgrade to a Personal account.