As with most multi-level marketing companies, Numis Network purports to offer a business opportunity that can generate high earnings for an individual. The “product” being sold by Numis is collectible coins. As an investment, gold and silver coins have values that are fairly easy to determine with a few minutes and an internet connection. The value of a “collection,” however, is not so easy to assess. The value of a “collection” varies from owner to owner, so it is hard to put a price tag on it.
Numis Network is careful not to call its coins investments, as that creates regulatory problems in addition to the ease of objectively valuing the investment (and coming to the conclusion that Numis is not the place for a serious coin buyer).
Indeed, the coins being sold by Numis appear to have values lower than the price for which they’re being sold. A quick examination of websites like eBay, Gainsville Coins, American Historic Society and American Precious Metals Exchange all sell the MS70 Silver Eagle coin, the most common Numis product retailing at $120 and wholesaling at $100, at or below the wholesale price at which Numis representatives pay.
There is little focus on the actual selling of coins. In fact, it’s difficult to find a Numis Network representative site from which to actually buy coins unless you already know the web address for the site. Searching Google for a site from which to buy the coins is almost futile. Almost all the search results point to sites which are selling the “business opportunity” instead.
The Numis compensation plan is incredibly complicated, boasting payments for binary downline cycle bonuses, enroller organization matching bonuses, coded organization matching bonuses, and Fast Track Collector Bonuses. There is a dizzying list of qualifying activities and bonus percentages, all tied to configurations of downlines.
A basic membership package for a Numis representative costs $75 plus $10 per month. This entitles the representative to wholesale pricing on coins, potentially offering an opportunity to earn money by buying coins at wholesale and selling them at retail. However, based on the fact that the retail price of the MS70 Silver Eagle is at least 20% higher than the most expensive alternatives we found and more than 100% higher than the least expensive alternatives we found, it seems unlikely that anyone will be able to generate a significant or sustainable income from selling coins.
The company promotes bypassing the Basic membership, and instead purchasing the “Training Qualified” package, which costs $495 up front, plus a $99 per month “autoship” of one MS70 Silver Eagle Coin. This package will cost the representative almost $1,700 in his first year.
Representatives can initially qualify for “bonuses” (payments from the company for things other than selling coins) by recruiting or by purchasing the “Executive Success System.” To actually receive the bonuses, a representative must personally purchase 1 to 3 Silver Eagle Coins (or the equivalent value of other coins) at the preferred price of $99 each, and these purchases must be made each month.
A hallmark of an endless chain recruitment scheme is the ability to buy one’s way to higher levels of commissions. However, Numis is quick to point out that no purchase is necessary to qualify for compensation. A representative with qualifying volume achieved through customer sales can receive some bonuses. However, to receive all potential bonuses, personal purchases are required. One might suggest that those personal purchases could easily be re-sold to customers for a profit, but as discussed above, the likelihood of making consistent sales is low.
How much activity will it take to recover (through bonuses) the $1,700 a “training qualified” representative will spend in the first year? The cost averages to $142 a month, not including any other costs a representative will incur in running his “business.”
The company bases bonus payouts on a BV (bonus value) for each coin sold. The MS70 Silver Eagle coin has a BV of 60, and the company says that an estimated 10% of that could be paid as bonus, for $6 bonus paid on each of these coins sold. However, the bonus money is only paid on part of the representative’s total BV. The representative has two legs to his downline, and the bonus will only be paid on the BV total of the leg with the lower number of points each month.
At least 24 coins per month must be sold in the representative’s weakest leg to generate enough to cover the minimum costs of $142. This means in total, the representative’s downline must sell (or purchase themselves) at least 48 coins total (24 in each leg) to give the representative a chance of even breaking even. Additional bonus money could be earned in a variety of ways that only an algorithm can compute, but these require substantial recruiting of representatives who make monthly coin purchases.
The compensation plan is not nearly as simple as this, however, and many variables can prevent the representative from recovering his monthly costs. Numis Network brags that representatives can earn money from an unlimited number of levels below them, however, the company has a broad policy that limits bonus payouts to no more than 50% of the total company BV.
Since the coins sold by Numis Network appear to have little retail appeal to true customers, the only way a representative can hope to make money is by constant recruiting. The representatives cannot rely on retail sales of coins, so they must rely on the complicated methods of calculating various bonuses for the recruits in their downlines. The only hope for a representative lies in recruiting an endless chain of representatives.