The online coupon market has expanded dramatically in recent years. What began as simple aggregators of receipt and flyer coupons has become a significant industry. Groupon alone is valued in the billions, with giants like Facebook and Google also offering various coupon services. This growth has now combined with a multi-level marketing (MLM) structure in a new business opportunity called Qnanza.
Qnanza's business model differs from free coupon providers such as Groupon, Facebook Deals, and Google Offers. Qnanza members must buy the offers they wish to use. For example, if a member sees a deal they like, they purchase it. A copy is then made available, which can be sent via email or SMS.
Each Qnanza deal includes a unique verifier number. Once used, the deal becomes void and cannot be reused. Qnanza states this limitation lessens the impact on participating businesses. However, this restriction may also stem from Qnanza's early stage and smaller membership base. The exact financial relationship between Qnanza and the businesses promoting deals remains unclear, given that Qnanza collects payment directly from consumers.
If a member cannot redeem a deal, Qnanza offers a refund. This indicates some liability on the company's part for the validity of the promotions.
Qnanza's core product is advertising. Unlike established coupon platforms that employ sales teams to secure business deals, Qnanza relies on its members to recruit local businesses. A Qnanza sales representative, or Campaign Director, markets the coupon platform to businesses directly. This role earns both an upfront sales commission and a residual commission for as long as the business runs an advertising campaign with Qnanza.
The Qnanza compensation plan incorporates "Business Volume" (BV). These are fixed point amounts awarded to members for activities like signing up new advertisers and recruiting new members. For instance, a Campaign Director Package generates 200 BV. A new advertiser client enrollment provides 120 BV, as does a monthly advertiser client campaign renewal. Coupon purchases yield 0.12 BV per dollar of the voucher amount.
Qnanza features five membership ranks. These ranks depend on the amount of money a member brings into the company over a rolling 12-week period, except for Campaign Director, which has no time limit. Because of this rolling period, members can be downgraded if they do not maintain their sales volume.
The BV requirements for Qnanza's membership ranks are: Associate Campaign Director (no minimum BV), Campaign Director ($1800 in sales from a directly enrolled team), Area Director ($6000 from a directly enrolled team or $3000 in personal sales), Regional Director ($30,000 from a directly enrolled team or $15,000 in personal sales), Senior Director ($60,000 from a directly enrolled team or $30,000 in personal sales), National Director ($120,000 from a directly enrolled team), and International Marketing Director ($240,000 from a directly enrolled team). The Area Director rank does not appear to be tied to any specific commissions in the compensation plan.
The Qnanza compensation plan offers five types of commissions. The Personal Sales Bonus pays a one-time $100 commission for each new business signed up to advertise on the Qnanza network. A Renewal Sales Bonus provides a monthly $50 commission for each business a member brings in, as long as that business continues to advertise.
Binary Team Commissions use a binary compensation structure. A member's organization branches into two "legs," with each leg further branching. Qnanza pays $25 for every 200 BV pair accumulated on either side of this binary organization. These pairs are called cycles. BV is earned as outlined in the Business Volume section. Cycles are tallied weekly, and commissions are paid accordingly. An additional Binary Team Override offers matching residual 120 BV each month for each directly sponsored person, provided that business continues to use the Qnanza advertising network.