Longrich Business Opportunity Review | Compensation Plan Explained

You are probably researching the Longrich business opportunity because you were approached by a friend or family member who invited you to check it out.

Or maybe even a complete stranger.

You were told that this could be a way for you to earn an incredible amount of money working from your home in your pajamas.

And you might be intrigued at the idea of being able to make some extra money so that you can finally get ahead in this expensive world…

But you’re also a bit sceptical.

Good for you!

You should always take extraordinary claims with a grain of salt.

The truth is, you really can make a lot of money with the Longrich Global business, but it will probably not be as fast or easy as you were told.

Starting a business, even a home based business, is a big life altering decision and it certainly is not for the faint of heart.

So today, we are going to get to the bottom of it.

After today, you’ll have all the information about the Longrich business that you need. What is it and how does it work?

Here’s what we’re going to be covering:

• How the company got started
• What they sell
• How the business works
• The Longrich compensation plan 
• How you can make it work for you

One of the questions you might be asking yourself is this:

Is this network marketing?

Is Longrich an MLM?

The answer is yes.

Unfortunately, there is a lot of confusion about what MLM (also called network marketing or multi level marketing) is.

Many people confuse MLM with illegal pyramid schemes, but there are fundamental differences between the two that you need to understand.

But we’ll get to that.

Unlike other Longrich reviews, we are gonna do a deep dive today.

After going through this Longrich review, my hope is that you will be fully informed so that you can move forward with confidence and conviction no matter what you decide to do with this opportunity.

First, let’s talk about how this company got started.

Longrich Company History

So let’s talk about the Longrich business.

Longrich is a multinational network marketing company founded in China in 1986. They research, develop, and manufacture a wide range of products for some of the most well established brands in the world such as:

• Uniliver
• Procter and Gamble
• Glaxo Smith Kline
• Phils

Their main manufacturing plant is in the Jiansgu province in China, though they have R&D (research and development) centres in the United States, Japan, France, and Nigeria.

Who Owns Longrich?

The Longrich business is owned by its holding company, Jowell Global.

Who Is The CEO Of Longrich?

Sean Xu

Who Is The Founder Of Longrich?

Xu Zhiwei

How Many Countries Does Longrich Operate In?

Longrich has affiliated companies and distributors in over 50 countries and territories worldwide.

Longrich Products

Finding detailed information about Longrich has proven to be a bit difficult due to the Chinese affiliations and difficulty of gathering information from within Chinese borders. 

The language barrier didn’t help, either.

But here’s what we know.

Longrich sells over 2000 products in six different categories, including:

• Cosmetics
• Health care products
• Household equipment
• Furniture
• Real Estate
• Logistics

What Is Longrich All About?

Longrich appears to be putting a heavy focus on recruiting distributors in developing markets in Asia and Africa.

They make the same claims that typical network marketing companies make:

• Build a business from home
• Get started for cheap
• Leave a legacy
• Pass your downline on to your children

I see no reason to doubt these claims as network marketing in general is a legitimate enterprise.

Where To Buy Longrich Products?

As with many other network marketing companies, Longrich products are generally purchased directly from distributors.

Distributors can make sales personally or online.

Longrich product reviews are few and far in between.

Their website features almost no reviews at all, and they lack any detailed descriptions of their products.

This is consistent with the lack of information in general I guess.

Longrich Business Opportunity | How It Works

You are here reading this Longrich review because you’re trying to figure out how this business works, right?

What is the Longrich business all about?

So as we’ve alluded to already, Longrich is an MLM company, also commonly called multi level marketing or network marketing.

In a network marketing business like Longrich, you are able to earn commissions by selling the company’s products. You can also recruit people to sell products for you so you can earn from their efforts as well.

The real power of network marketing comes in when your team members start building their own teams, because you will be able to earn commissions from their sales as well.

In fact, you will be able to earn commissions down to an infinite level of depth in your organisation.

So why would the Longrich MLM business choose to operate this way?

The truth is, they actually are able to save a lot of money in retail fees and advertising campaigns by recruiting independent distributors like you and me to do the selling and marketing for them.

It’s a win-win situation.

The Longrich company can increase profit margins while regular working class folks are able to leverage the efforts of other people and potentially build a wildly profitable business from their home office.

It’s not all good though.

I do have some concerns about Longrich. But we’ll talk about that later.

First, let’s have a look at the Longrich compensation plan.

Longrich Compensation Plan

There are four main types of compensation plans often used by network marketing companies. They include the following:

• Stairstep Breakaway
• Forced Matrix
• Unilevel
• Binary

You can learn about the differences between the four plans in this deep-dive MLM analysis article here.

There are definitive pros and cons to each of the four pay plans, which is why many network marketing companies use Hybrid models.

This means that they will not use one of the 4 pay structures exactly. Instead, they will combine 2 or more of them to create a unique compensation plan that will minimise the downsides.

The Longrich business structure is a variation of the Binary Plan.

How The Binary Plan Works

With the Binary plan, you can personally recruit as many people as you want. But you can only place a maximum of two people directly underneath you.

The two people who are placed underneath you will become the two “legs” of your organisation.

When you recruit more members, they will be added to one of the legs of your organisation. When payday arrives, you will get paid out the commissions on whichever of your 2 legs earned less money.

This is done in order to incentivise you to build out your teams evenly. You don’t want to add everyone you recruit to just one leg. That would create a very lopsided organisation and would make one of your legs very unhappy.

The most powerful part of the Binary structure is that it creates a lot of excitement and enthusiasm in your organisation.

Think about it…

You’re adding more people to your team, but you’re placing them below other people in the organisation.

This means that not only would your team members be earning from the efforts that you put in, but you would also be earning from the efforts of those who are above you in the organisation.

Everyone gets excited and motivated from the quick wins, driving them to work harder and build their own organisations.

How The Longrich Business Model Pays

The Longrich compensation plan is very similar, with one major difference:

Instead of having you build only two legs, you will be building three.

When payday arrives, you will be getting paid out on the two legs that brought in less money. Again, this incentivises you to build out your organisation evenly.

The Longrich business presentation below does a pretty good job of explaining how the company pays you.

Now you know exactly how you earn money with the Longrich MLM business.

But how profitable is the Longrich business to you as an individual?

Unfortunately, Longrich does not have any income disclosure online. 

To me, that’s a big red flag. 

The reality is, most network marketers do not make any meaningful amount of money. This is often due to starting their business with false expectations.

They were told that it would be quick and easy.

Here’s what you need to understand:

It will not be quick.

And it will not be easy.

Network marketing takes a lot of work. Unless you make a commitment to stick with it no matter how tough it gets, you will not make it.

I wanna be very clear… it really is possible to do very well in this business.

But frankly, the lack of public information about the Longrich business makes me a bit nervous.

Is Longrich Illegal?

Before we talk specifically about the Longrich network marketing company, let’s talk about pyramid schemes and the legality of them.

Here’s how the Oxford dictionary defines a pyramid scheme:

A form of investment (illegal in the US and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.

Pyramid schemes are illegal in nearly every country in the world. 

OK, so what exactly is a pyramid scheme?

A pyramid scheme is a “business” in which you pay for a spot in a pyramid shaped organisation. You can make money by recruiting more people into the pyramid.

The problem is, there are no real products being sold, making the “business” unsustainable. 

It’s similar to a business attempting to sell a product into the economy for which there is no demand.

If nobody wants that product, the business is unsustainable.

Pyramid schemes are even worse because there is no product or service being sold at all. So there is nothing for the market to sustain. It makes the eventual collapse of the pyramid inevitable.

It’s also predatory.

The people at the top of the pyramid scheme get rich, while the people at the bottom lose all their money when the pyramid collapses.

Is Longrich A Pyramid Scheme?

No.

Longrich actually sells products into the economy that people want and are willing to pay for, regardless of the potential business opportunity.

Longrich is a network marketing company, which is fundamentally different from a pyramid scheme.

Here’s what the FTC (Federal Trade Commission) has to say about network marketing:

Businesses that involve selling products to family and friends and recruiting other people to do the same are called multi-level marketing (MLM), network marketing, or direct marketing businesses.

The truth is, network marketing is not actually that different from any other traditional business model.

There are real products and services being sold into the broad economy that people actually want to buy and consume.

The main difference is the method by which the products are marketed and distributed into the economy.

If the Longrich business is a legit company, then how does one explain the pyramid shape of a network marketing business?

That’s a very fair question. 

I would answer it by challenging you to have a look at the structure of a traditional corporate business.

Looks suspiciously like a pyramid scheme, doesn’t it?

Listen, we humans will always organise ourselves into hierarchies. It’s fundamental to human cooperation.

This behaviour is what is partially responsible for us evolving into the beings we are today. It’s what allowed us to work together and innovate to climb our way to the very top of the food chain.

And hierarchies will always take on the shape of a pyramid.

You see it all over:

• Friend circles
• Family
• Small and large business
• Churches
• Government

It simply can not be avoided.

The difference between the hierarchical nature of network marketing and that of the corporate business model is that network marketing is inherently more fair.

Think about it…

If you are working in the mailroom of a large corporation, you will never earn more income than the CEO.

Unless you are able to climb your way up the corporate ladder, displacing people all along the way, and eventually taking the CEO’s job for yourself.

It’s a zero sum game.

In network marketing on the other hand, you can certainly earn more money than anyone above you in the hierarchical organisation.

If you recruit more reps, make more sales, and generate more revenue, you will earn more money.

Income in network marketing is completely tied to performance rather than status, making it the most fair hierarchy I’ve ever seen.

To summarise what we’ve talked about so far, the Longrich pyramid scheme allegations are false. Network marketing (and by extension Longrich) is legal and 100% ethical.

Unfortunately, there is a fundamental misunderstanding in the general public between network marketing and illegal pyramids.

Why The Confusion Between MLM And Pyramids?

The reputation of network marketing has been in steady decline for years now, due to a few bad actors.

Over the last few decades, there have been several illegal Ponzi and pyramid schemes that have operated under the disguise of legitimate network marketing.

When the illegal pyramids inevitably collapsed, they received a lot of bad and very noisy press from the media.

And for good reason!

Many innocent and unsuspecting people were very badly hurt. The scammers needed to be called out so that people would be able to avoid them in the future.

The problem is, the media never did a good job of educating the public on the difference between legitimate MLM businesses and dangerous pyramid schemes.

Instead, they painted everything with a broad brush, causing a lot of scepticism in the public.

This has caused many people to miss out on opportunities that could very well have changed the trajectory of their lives.

Another Reason For Longrich Scam Allegations

We can’t blame everything on the media though.

Some of the blame lies with distributors misrepresenting network marketing.

You see, there are many people who become extremely excited and often overzealous as they’re building their business.

As they’re talking to friends and family about their new opportunity and the products they sell, they make unrealistic claims.

They may try to convince folks to join the business by claiming that they could become rich in a very short period of time.

And unrealistic claims always breed scepticism. 

As the new distributor starts to realise that their strategy isn’t working, he will probably double down.

He may even become pushy and annoying.

Frankly, many new network marketers are downright obnoxious.

If you decide to get involved in this business model, I highly encourage you to avoid this behavior at all costs.

It will damage your personal reputation as well as the reputation of the network marketing profession. 

In fact, I believe that many of the Longrich scheme or scam beliefs are directly caused by inexperienced MLM reps misrepresenting the business in this way.

But worst of all, it can cause severe strain on your personal relationships.

And no business or income stream is worth that.

Longrich Pros and Cons

Many articles written about the Longrich business opportunity tend to give you only one side…

Either they tell you it’s all sunshine and roses.

Or they call it a pyramid scheme that will cost you dearly.

Well, like most things, there are both advantages and disadvantages to the Longrich business. I want to cover both in this review.

What Are The Benefits Of Longrich Business?

There are four key benefits to the Longrich business model that I think are important to highlight.

I. Low Barrier To Entry

While it’s not necessarily easy to succeed in network marketing, it’s quite easy to get started.

Starting any other business will require a massive up-front investment. If you wanted to open a McDonalds franchise for example, it would take well over a million dollars to get up and running. Not to mention ongoing payroll costs.

Network marketing allows you to get started for a few hundred dollars. You don’t need to carry inventory or pay employees.

II. Can Be Done Part Time

If we go back to the McDonalds example, you would need to quit your day job and go “all in” on your business venture. 

This can add a lot of pressure and if the business fails, you could lose everything.

Network marketing allows you to build the business part time, while keeping your main income. You can go full time into your home business when you are good and ready, on your own terms.

III. Online Marketing

Network marketing does not require you to have a brick and mortar location. Plus, with modern technology, you don’t even need to talk to people in person if you don’t want to.

It is possible to build a profitable network marketing business using only the internet and some basic technology such as a computer and a cell phone.

IV. Get Paid What You’re Worth

This can be a double edged sword. But network marketing is completely and 100% fair.

Your pay will not be dependent on whether or not a boss deems your performance adequate. 

You will be paid for results… Nothing more and nothing less.

There is effectively no cap to the amount of money that you could make in this business.

Disadvantages Of Longrich

I want to be very clear… not everything about the Longrich business is good. In fact, I have some very real concerns.

I. Negative Stigma

This really applies to network marketing in general. Most people have a negative and misguided view of the profession, which could make recruiting more difficult.

It could also result in you feeling as though you’re being judged for getting involved in this business. 

You will need a thick skin to survive in network marketing.

II. Strained Relationships

Many new network marketers have a hard time understanding why their loved ones don’t see the power of their new business.

You may find yourself getting frustrated with the people in your circles, causing your relationships to become strained.

You must avoid this.

Understand that most people will not be interested in starting a business. If someone tells you so, then you need to take “no” for an answer and move on.

Do not let your business get in the way of your relationships flourishing.

III. Cult-like Attitudes

Many network marketing companies have a very vibrant and often overly enthusiastic culture. Sometimes, it truly is over the top.

It can feel like a cult at times.

And cult-like attitudes result in cognitive dissonance and a refusal to see the world in a nuanced way.

This can be off-putting for people in your life, adding to the strain that this business can put on personal relationships.

IV. Lack Of Transparency

This is not something that applies to network marketing in general.

But it certainly applies to Longrich.

Perhaps if I spoke and read Chinese I would be able to find more information about the business and their products…

But the fact is, I couldn’t find much.

At least not enough for me to be comfortable recommending this business to you or any of my readers.

Additionally, the widespread collaboration of Chinese companies and the CCP government is not something I can condone as somebody who takes free market capitalism very seriously.

Is Longrich A Good Business?

Longrich might be a good business, but there is simply not enough publicly available information for me to be certain.

In general, I am a big fan of the network marketing business model.

But I can not in good conscience recommend a business to you that makes it difficult to find information.

How Do I Get Started With Longrich?

Perhaps you want to move forward with this business despite my trepidation. Maybe you found information that I missed or was unable to find.

If that’s the case and you want to move forward with Longrich, you will need to sign up through an existing distributor.

You will then be added to their downline and become eligible to participate in the compensation plan.

Longrich Business Training | How To Succeed

I was unable to find any specific methods that the Longrich business platform teaches their distributors. 

But there is a fundamental concept that every network marketer needs to understand in order to build a sustainable MLM business…

Duplication.

This is counter to what many people think of when talking about network marketing success.

Most people think that they need to become a master recruiter. 

You might be tempted to go out and learn complex recruiting tactics in order to get as many people into your business as possible.

But that’s actually wrong.

If you’re recruiting people into your group using advanced closing techniques and a complicated Longrich networking plan, how do you expect to grow a team of fifty to a hundred thousand people with the skills to duplicate you?

We all know that the real power and leverage to network marketing is that you can grow a group that will eventually keep growing your group (and income) larger and larger regardless of whether you put in any more work.

But we don’t act that way.

If you convince somebody to join your business using one of these advanced closing strategies, your new team member will probably be asking herself the next day…

“How did he convince me to sign up for this? I wasn’t even looking for a business opportunity! I could never convince somebody to sign up for this thing.”

Your new team member will quickly experience buyers remorse and drop out.

This is way more common than you might think.

But if you brought a team member into your organisation using a simple system that duplicates, she will likely have a completely different experience.

She might think to herself the next day…

”Wow, I really wasn’t looking for a business opportunity, but how lucky am I that this came across my path! It seems really easy to build this business, I could easily do what my sponsor does!”

There is a much higher chance that your new team member will stick around.

And if she uses the same simple, duplicable system that you used to bring her into the team, her people will likely feel the same way when they join the business.

This is what leads to massive duplication and a team so big it would make your head spin.

I. This Is A Teaching Business

It truly doesn’t matter what works to recruit or sell products.

There are a lot of strategies and complex systems that work to recruit or make sales.

What really matters in this business is what duplicates.

Would you rather have a sleazy car salesman in your group who’s stubborn and unwilling to change his ways…

Or would you want the Kindergarten teacher from North Dakota who’s teachable and willing to learn a simple system that works?

I’ve got nothing against car salesmen, by the way.

In fact I used to sell cars…

That’s why I can tell you that you want the Kindergarten teacher on your team, not the sleazy car salesman.

At the end of the day, this is a teaching business much more than it is sales or recruiting.

If you keep that in mind and teach your team members the same principle, you will experience much more long term success than the closing master that recruits 20 people a week but can’t get anyone to stay in the business.

II. Always Use The Tools

If your lips are moving, you should be directing someone towards a tool – Randy Gage

If you’re talking to a potential prospect about the business and she asks you a question, you should always defer to one of your third party tools. 

What do I mean by that?

The Longrich company will have tools available to you that you can use to help explain the opportunity or products to your prospects.

This could come in the form of a product catalogue, brochure, CD, thumb drive, or website.

So when you get a question…

You don’t need to know the answer.

You just need to know where to find the answer.

After you’ve been in the business for a while, you’ll start to know the answers to all the questions that you get.

I would still argue that you should continue to use your third party tools.

Don’t act like an expert (even if you are one) because that’s not very duplicable.

Your prospect will think…

“I could never do the business because I don’t have the extensive knowledge that I would need to be successful.”

But if you always defer to a third party tool, your prospect will realise that there’s no need to be an expert and that she could totally do this business, too.

III. Stick To The System

You will likely get to a point in your business where you start to think…

“There must be a better way!”

You’ll be tempted to go online and find ways to recruit and sell products on the internet rather than following the proven system laid out before you by your sponsor.

Now I’m not saying there’s anything wrong with using the internet to build your business.

I’m actually a fan of it…

Eventually.

Just don’t start there.

Initially, it’s very important to follow the system that has been duplicated by others in your company so that you can create duplication in your own team.

If you bring someone into your group and they see you floundering around trying to add people by spamming your social media, your people are going to notice this.

And they’ll try it too, rather than following a proven plan.

Just stick to the system and teach your recruits to do the same, until you’ve built a sizeable organisation.

At that point you could consider altering the system or adding to it.

But don’t think you know better when you’re first getting started.

For a detailed Longrich network marketing plan that will teach you exactly how to succeed, read this deep-dive MLM success guide here. It will provide you with a solid understanding of how the mechanics of network marketing works.

Online Longrich Business Plan

Your Longrich business leaders will likely teach you to make a list of 100 or more people to talk to about your business and products. This list should include family, friends, and acquaintances.

As we discussed already, you should absolutely follow the training that you’re given. The system that you’ll be taught has been intentionally designed for simplicity, effectiveness, and duplication.

But eventually, you will run out of people to talk to.

By the time this happens, you should have already have built a sizeable team that is starting to experience a good amount of duplication.

When you reach this point, you might consider using the internet to expand your business. We live in the digital age after all, so why not take full advantage of all the tools available to you?

The most powerful thing about using the internet to recruit folks for network marketing is that you can attract people to you.

Not just that, but you can attract targeted people.

This means that you can attract interested people who already meet the qualifications for your business, reaching out to you… often ready to get started on the spot.

This practice is called attraction marketing.

Let’s talk about the 3 main steps it takes to achieve this.

I. Build An Audience

There are many platforms which you can use to build an audience online. Some of the most common ones include:

• Social media
• YouTube
• Blogging

Before you just arbitrarily start creating content online, you will need to do some brainstorming.

• What kind of person am I looking for?
• What do they do for a living? Sales? Teaching?
• What are they looking to learn?
• What kind of things do they search for online?

Once you have these things figured out, you can start creating content that is specifically targeted to the exact type of person you’re looking for.

In your content, you should never come across as trying to sell something or recruit anybody.

You simply need to provide value.

Create educational and entertaining content that your targeted audience will seek out.

If done correctly, you will start to build an audience over time. 

An audience that is interested in the exact type of thing you are offering.

The goal of your content creation efforts is to become a thought leader and an authority in your niche.

When your potential prospect is asking himself a question about how to earn money from home, you need to be the person that comes to their mind as someone who could provide an answer.

II. Build An Email List

In order to entice people to join your list, you will need to create some type of digital freebie that they can only get access to by entering their email address into your website.

The freebie could be:

• eBook
• Weekly newsletter
• Video course
• Webinar replay
• Audiobook

Whatever type of gift you decide to offer, it should be so incredibly valuable that your new lead won’t be able to believe they got it for free.

This will build so much more trust that your leads will be hard pressed to resist any recommendation you make.

III. Email Your List Regularly

After your reader joins your email list, you should continue providing a ton of value.

If the first thing you do after they join your list is to spam them with a business opportunity or product, they will immediately unsubscribe and you’ll never hear from them again.

But you have to make money, right?

So it’s OK to send out offers here and there, but do it sparingly.

I would say about 80% value and 20% offers is a healthy ratio.

This is a very simplified explanation of internet marketing, especially as it relates to the Longrich online business.

You can read my full guide on how to succeed with digital network marketing here.

Longrich Business Opportunity – Conclusion

My hope is that after reading this article, you will be armed with all the information you need to make a decision on this business. 

Whether or not you decide to move forward with this opportunity, I want you to be able to do it with confidence and conviction.

As I mentioned earlier, I am generally a big fan of the network marketing business model. 

It allows the regular Joe or Jane like me and you the opportunity to build a very large passive income so that we can finally get ahead and save for the future in this expensive world.

But I do not recommend the Longrich business opportunity.

There are just too many red flags and the lack of transparency makes me very uncomfortable.

The truth is, there are hundreds of other network marketing companies that are well established and make all of their stats and information publicly available online.

I firmly believe that everyone should use network marketing as a part of their long term financial plan…

Just be careful when choosing a company.

I want this website to be a resource that can help you make wise decisions when navigating the network marketing space…

So if there are any questions or concerns that I failed to address in this article, feel free to leave them in the comments section below and I’ll get back to you as soon as I can.