ScamTelegraph examines the LiveSmart 360 ‘Smartline’ system, a heavily promoted passive income stream that promised earnings from product purchases by every new company member, regardless of referral. While initially marketed as a major revenue source, the company updated its compensation plan by May 2010, prompting further scrutiny of its profitability and structure.

During its pre-launch phase, the Smartline system was heavily touted as a truly passive income opportunity for LiveSmart 360 participants. Promotional materials from 2010 explicitly stated, "From now until May 15th, you can join an exclusive, limited opportunity to profit from every person that joins our company after you, whether you referred them OR NOT! That’s right. Earn money from product purchases of everyone who joins after you… FOREVER!" This marketing positioned the Smartline as a significant, ongoing revenue stream derived from the collective efforts of later recruits.

However, the notion of a system where members primarily generate income from the work of others raises questions about its sustainability. If all participants were to rely solely on the Smartline for the bulk of their earnings, the underlying economic activity required to generate shared income would be minimal. Despite this, the Smartline system's prominence in LiveSmart 360's marketing led many to believe it would be a substantial income generator.

The fundamental premise of the Smartline system is straightforward. When an individual joins LiveSmart 360, they are assigned a unique tracking position within the Smartline. Subsequent individuals who join the company are placed in tracking positions below them. Members become eligible to receive a monthly commission from these individuals who joined after them.

Commissions within the Smartline system are calculated based on Business Volume (BV), which represents 2% of the total monthly company BV. BV is a value assigned to products specifically for the purpose of calculating commissions and bonuses related to sales volume, rather than using the product's wholesale or retail price. For instance, if a product retails for $10 but has a BV of $1, a 10% commission on sales by a downline member would yield 10 cents, calculated as 10% of the $1 BV, not the $10 retail price.

The precise conversion of BV to a dollar value for LiveSmart 360 has not been definitively stated in all compensation plan documents. However, certain sections of the plan suggest a direct correlation where $1 equals 1 BV. For example, the Retail Customer Bonus section outlined that for all volume after the first 100 BV (Personal/Retail/Customer) generated in a calendar month, a 50% bonus would be paid on the volume from each order, with 50% of the BV rolling into Dual-Team Commissions. This was inclusive of the retail profit. An illustration provided noted that if a Preferred Customer enrolled with a product order containing 100 BV, the enroller would earn a $50 Retail Bonus.

What is the LiveSmart 360 Smartline system?

The Smartline system was a compensation structure within LiveSmart 360, heavily promoted during its 2010 pre-launch, designed to offer passive income. It promised members earnings from product purchases made by individuals who joined the company after them, irrespective of who made the direct referral.

How was the Smartline system promoted to potential members?

Promotional materials for the Smartline system claimed members could profit from every person who joined LiveSmart 360 after them, stating they could "Earn money from product purchases of everyone who joins after you… FOREVER!" It was marketed as an exclusive, limited-time opportunity to generate income passively.

How does Business Volume (BV) factor into Smartline commissions?

Business Volume (BV) is a value assigned to LiveSmart 360 products specifically for calculating commissions and bonuses, comprising 2% of the total monthly company BV. Commissions are determined as a percentage of this BV value rather than the product's retail or wholesale price, meaning a $10 retail item with $1 BV would yield a 10-cent commission at a 10% rate.

What kind of bonuses were associated with the Smartline system?

The compensation plan included bonuses such as a 50% bonus on volume generated after the first 100 BV from personal, retail, or customer orders within a month. Half of this BV would also contribute to Dual-Team Commissions. For instance, an enrollment with a 100 BV product order could result in a $50 Retail Bonus.