Wakaya is ‘a 2,200-acre island in the Fiji archipelago’. It was purchased by David Gilmour (of Fiji Water fame) in 1973.
So the story goes,
David realized that keeping Wakaya pure in perpetuity would require a self sustaining economy that could support the local Fijian residents and curtail any pressure to “urbanize” the island.
Wakaya Perfection was founded to bring the islands unique healing treasures to the world and to provide Wakaya with the ongoing resources to preserve its pristine environment.
That lead to the formation of Wakaya Perfection late last year, co-founded by Gilmour and Todd Smith.
Smith is credited as a ‘successful entrepreneur and 20-year veteran of direct selling‘. From the looks of it, Gilmour is providing financial backing and Smith the MLM side of the business.
Smith’s MLM career began in 1996 when he joined Youngevity under the “Total Nutrition Team” moniker.
Public promotion of Total Nutrition Team appears to have been abandoned on or around November, 2015, which brings us to the launch of Wakaya Perfection.
Unfortunately for Smith, Wakaya Perfection’s launch has been dogged by controversy.
Wakaya Perfection, Todd Smith and Total Nutrition Team are all named defendants in a lawsuit filed by Youngevity.
For at least the past year, the Defendants have conspired and acted in concert to interfere with Youngevity business operations, Youngevity contractual relations, and Youngevity distributor relations in order to convert business opportunities meant for Youngevity to their own competing multi-level marketing startup.
Filed on March 23rd, Youngevity’s lawsuit accuses Smith and Wakaya Perfection of
intentional interference with business relations, inducement of breach of contract, civil conspiracy, breach of contract, misappropriation of trade secrets, unfair competition, breach of fiduciary duty, and misrepresentation.
According to Youngevity, Todd Smith
served as a trusted, top-level distributor in Youngevity, and had ownership interests in entities that distributed Youngevity products.
While a top-level distributor for Youngevity, yet acting as an undisclosed agent for Wakaya, and serving the interests of Wakaya, Smith intentionally converted Youngevity business opportunities through misrepresentation, subterfuge, and deceit.
Youngevity claim ‘all of (Wakaya Perfection’s) promoters … were affiliated with Youngevity as officers, employees or distributors‘.
The company alleges Smith
facilitated, aided, or abetted the violation of Youngevity contractual agreements in an effort to induce Youngevity distributors to breach their contracts with Youngevity and to cause business opportunities meant for Youngevity to be diverted to Wakaya.
Smith who, once loyal to the company, came to resent Youngevity as the growth of the company brought in more distributors with status equal to his own and income exceeding his.
Smith grew dissatisfied with Youngevity management, his dissatisfaction reaching a pinnacle when he received corporate reprimands for unlawfully entering the international market of Mexico without Youngevity authorization or Mexican legal approvals, and engaging in unlawful sales of product in Mexico, exposing the company to potential liability for foreign advertising claims and sales.
Smith translated his dissatisfaction with those reprimands and his increasing immersion in a sea of up and coming new Youngevity leaders into a design to induce Youngevity distributors to defect from the company, to divert business opportunities intended for the company, and to redirect resources of the company to facilitate the creation of a competing direct sales company: Wakaya.
Youngevity are seeking damages and a permanent injunction which, if granted, would effectively shut down Wakaya Perfection.
As per the case docket, on April 15th Youngevity were ordered to show cause as to why the lawsuit should not be dismissed.
The problem appears to be Youngevity’s invocation of diversity jurisdiction.
Diversity jurisdiction does not exist in the absence of complete diversity between all plaintiffs and all defendants—no plaintiff may be a citizen of the same state as any defendant.
Plaintiff (Youngevity) alleges that it is a corporation existing under the law of Delaware with its principal place of business in California.
Thus, Plaintiff is allegedly a citizen of Delaware and California
In their filing, Youngevity failed to mention the citizenship status of Wakaya Perfection, Smith and the other named defendants.
Accordingly, Plaintiff (Youngevity) does not allege the requisite complete diversity of citizenship.
Youngevity filed a response on April 21st, alleging
here, no plaintiff is a citizen of the same state as any defendant.
Youngevity is a corporation existing under the laws of Delaware with its principal place of business in California.
Wakaya Perfection is a Limited Liability Corporation existing under the laws of Utah with its principal place of business in Utah.
Wakaya was founded by defendant Todd Smith, a citizen of Utah.
According to public documents filed by Wakaya Perfection with the Utah Secretary of State, Mr. Smith is Wakaya’s sole owner/member
This is interesting, as it throws the legal status of David Gilmour as a co-founder of Wakaya Perfection into question.
In any event, Smith and Wakaya Perfection have yet to file a response. Subject to the outcome of the case, the future of Wakaya Perfection remains in question.
Read on for a full review of the Wakaya Perfection MLM opportunity.
The Wakaya Perfection Product Line
Wakaya Perfection claim to offer ‘organic, pure and proprietary products that help you get well, stay well, and be well, inside and out‘.
Product categories featured on the Wakaya Perfection website include bula caps (watter bottle system with insertable caps), culinary, essential oils, general, personal care, programs and wellness.
- Bula Water Bottles – “use the Bula Cap System for daily detox, weight loss, enhanced energy, and more”, retails at $3.80 a bottle
- NiteCaps – “supports better relaxation and promotes more restful sleep”, retails at $32.10 for a box of 32 caps
- ProCaps – a “unique strain of probiotic bacteria” that ” is important for overall digestive health and immune”, retails at $38.55 for a box of 32 caps
- Detox Cap – “contain(s) a unique source of 100% Pure Calcium Bentonite Clay … to assist in natural detoxification”, retails at $45 for a box of 64 caps
- LuvCaps – a “secret blend of powerful herbal extracts that are known to naturally support and enhance a couple’s libido”, retails at $57.85 for a box of 16 caps
- Slim Cap – “contains a clinically proven weight loss ingredient that helps reduce body fat, helps boost metabolism and aids in curbing hunger by helping you feel fuller longer”, retails at $77.15 for a box of 64 caps
- Ginger Gems – “gluten-free, allergy friendly whole grain cookies”, retails at $8.95 a box
- Wakaya Pop! Ginger, Sea Salt & Carmel Popcorn – “enjoy the light, savory flavor of caramel artfully blended with our Organic Pink Fijian Ginger and Fijian Kosher Sea Salt”, retails at $10.25 a pouch
- Everyday with Ginger cookbook – “offers more than 60 delicious recipes from The Wakaya Club & Spa”, retails at $14.80
- Everyday with Turmeric – “Executive Chef William Jr., of the International Polo Club in Palm Beach, teaches simple and scrumptious ways to add Wakaya’s organic treasures to recipes for sweet breads, spicy, tangy chicken, salad dressings and many more”, retails at $14.80
- Organic Pink Fijian Ginger Powder – “a healthier alternative to salt and pepper”, retails at $24.40 for a 0.6 oz (17 g) jar (6.7 oz refill is $74.60)
- Organic Fijian Turmeric – “the most effective, powerful turmeric available”, retails at $24.40 for a 0.6 oz (17 g) jar (7.5 oz refill is $74.60)
- Fijian Kosher Sea Salt – “drawn from the sparkling apple-jade reefs of Wakaya”, retails at $25.70 for a 1.4 oz (39.6 g) jar
- Organic Pink Fijian Ginger Tea (also Ginger & Turmeric) – “Organic Pink Fijian Ginger Tea made with Wakaya Perfection’s rare and proprietary 100% organic pink Fijian ginger”, retails at $32.10 for a tin of 20 servings
- essential oils – a collection of twenty-four essential oils, cheapest is Grapeseed Carrier 8oz bottle for $25.70 up to $75.85 for a 15 ml bottle of Frankincense (also available as an “Essential Oils Basic Starter Kit” for $173.70
- Start Up (book authored by David Gilmour in 2011) – “read the story about the man behind Wakaya Perfection, FIJI Water and many other successful businesses”, retails at $25.70
- Sava Pink Fijian Ginger & Dilo Shampoo – “a moisture-balancing duo of rare Organic Pink Fijian Ginger and precious Organic Dilo Oil from the island of Wakaya”, retails at $20.55 for a 8 oz tube
- Dilo SPF 35 Sun Creme – “Dilo oil contains a natural SPF that provides built-in protection from the sun”, retails at $37.25 for a 4 oz tube
- Sava Daily Detox Moisturizer – “around-the-clock moisturizing and detoxication while leaving your skin nourished and cleansed”, retails at $51.40 for a 4 oz tube
- Perfect Dilo Cream – “contains antioxidant vitamins that will restore and regenerate your skin”, retails at $69.45 for 1.75 oz tub
- Pink Fijian Ginger Body Soak – “a blend of our Pink Fijian Ginger with sea salt, this ginger soak will soothe your sore muscles and help you unwind from your busy day”, retails at $96.45 for a 16.9 oz jar
- Calcium Bentonite Clay Powder – “is said to awaken stagnant energy and propel the immune system to find a new healthy balance”, retails at $25.70 for a 10 oz jar
- Organic Pink Fijian Ginger Capsules – “enjoy all the benefits of our Organic Pink Fijian Ginger Powder in an easy, daily health supplement”, retails at $32.10 for a bottle of 60 capsules
- Organic Fijian Turmeric Capsules – the “purest and most potent form” of Wakaya’s “Organic Fijian Turmeric”, retails at $32.10 for a bottle of 60 capsules
- Bath Spa Collection – contains Pink Fijian Body Soak and Ginger Scrubs and Wakaya Calcium Bentonite Mineral Clay Powder, retails at $180.10
- Daily Detox Program (1 month) – “contains some of nature’s most powerful detoxifying agents”, retails at $193
- Weight Loss Program (1 month) – “focuses on the four pillars of optimal health—hydration, nutrition, exercise, and sleep”, retails at $195.55
The Wakaya Perfection Compensation Plan
The Wakaya Perfection compensation plan pays affiliates to sell Wakaya Perfection products to retail customers.
Affiliates are also paid to recruit new Wakaya Perfection affiliates, with residual commissions paid out via a 2×4 matrix and unilevel team.
In order to qualify for commissions, all Wakaya Perfection affiliates are required to generate at least 80 PV a month.
PV stands for “Personal Volume” and is sales volume generated by an affiliate’s sales to retail customers and their personal product purchases.
Wakaya Perfection Affiliate Ranks
There are nine affiliate ranks in the Wakaya Perfection compensation plan.
Along with their respective qualification criteria, they are as follows:
- Independent Business Ambassador – sign up as a Wakaya Perfection affiliate
- Coral Ambassador – generate and maintain 80 PV a month and recruit and maintain at least two commission qualified affiliates
- Jade Ambassador – generate and maintain 150 PV a month, recruit and maintain at least two Coral Ambassador ranked affiliates, have a total monthly downline volume of at least 1500 GV and receive at least one levels 1 and 2 matrix commision
- Sapphire Ambassador – maintain 150 PV a month, recruit and maintain at least three Jade Ambassador ranked affiliates, have a total monthly downline volume of at least 5000 GV and receive at least one levels 3 and 4 matrix commission
- Ruby Ambassador – maintain 150 PV a month, recruit and maintain at least two Sapphire Ambassador ranked affiliates and have a total monthly downline volume of at least 15,000 GV
- Emerald Ambassador – maintain 150 PV a month, recruit and maintain at least four Sapphire Ambassador ranked affiliates and have a total monthly downline volume of at least 50,000 GV
- Diamond Ambassador – maintain 150 PV a month, recruit and maintain at least seven Sapphire Ambassador ranked affiliates and have a total monthly downline volume of at least 150,000 GV
- Blue Diamond Ambassador – maintain 150 PV a month, maintain at least five Sapphire Ambassador and two Diamond Ambassador ranked affiliates and have a total monthly downline volume of at least 500,000 GV
- Black Diamond Ambassador – maintain 150 PV a month, maintain at least three Sapphire Ambassador and four Diamond Ambassador ranked affiliates and have a total monthly downline volume of at least 1,500,000 GV
GV stands for “Group Volume” and is PV generated by an affiliate’s recruited downline.
Wakaya Perfection affiliates are paid a retail commission on sales to retail customers.
Commissions paid out on retail orders are ‘90% of the difference between Retail/Preferred pricing and wholesale pricing‘.
If a Wakaya Perfection affiliate signs up with a $499.95 Paradise Pack, the recruiting affiliate is paid a $100 Fast Start Bonus.
Blue and Black Diamond ranked affiliates receive $10 and $20 respectively for each Paradise Pack affiliate recruited anywhere in their downline.
Black Diamond affiliates can also collect the remaining $10 if they are the first Black Diamond ranked affiliate in the upline of a Blue Diamond affiliate who is paid $10.
An additional $80 is also paid out to Coral Ambassador and higher ranked affiliates.
- Coral Ambassadors – $10
- Jade Ambassadors – $20
- Sapphire Ambassadors – $40
- Ruby Ambassadors – $60
- Emerald Ambassadors – $70
- Diamond Ambassadors or higher – $80
Up to $80 is paid out on each Paradise Pack recruitment, with the difference between ranks paid out via a coded bonus structure.
Eg. If a Ruby Ambassador recruits a new affiliate who signs up with a Paradise Pack, they are paid $60.
If an Emerald Ambassador is found in that affiliate’s upline, they are paid $70 with the remaining $10 paid out to the first found Diamond Ambassador or higher ranked affiliate.
If a Diamond Ambassador or higher affiliate is found in the upline first, they are paid the full $20 remaining.
A $20 commission is also paid out if a Wakaya Perfection affiliate recruits a new affiliate who purchases at least 150 PV worth of product and signs up for 150 PV a month or more in monthly autoship.
Residual Recruitment Commissions
Residual recruitment commissions in Wakaya Perfection are paid out via a 2×4 matrix.
A 2×4 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix, with the second level generated by splitting the two positions into another two positions each (four positions).
The third and fourth level of the matrix are generated in the same manner, with a complete 2×4 matrix housing thirty positions.
Commissions are paid out as a Wakaya Perfection affiliate fills their matrix, with positions filled by recruited affiliates who sign up with a $499.95 Paradise Pack.
- fill levels 1 and 2 of the matrix (6 positions) and receive a $100 commission
- fill levels 3 and 4 of the matrix (24 positions) and receive a $500 commission
Upon filling an entire 2×4 matrix, a Wakaya Perfection affiliate receives a new matrix position and the filling process repeats itself.
A 50% matching bonus is paid each time personally recruited affiliates receive a matrix commission.
Note that in order to earn matrix commissions, Wakaya Perfection affiliates must be both “Paradise Qualified” and “Paradise Commission Qualified”.
To become Paradise Qualified, an affiliate must either have signed up with a $499.95 Paradise Pack or generated $1000 in retail sales volume over a rolling 6 month period.
To then become Paradise Commission Qualified, an affiliate must maintain at least two Paradise Qualified affiliate’s in their personally recruited downline.
Residual commissions in Wakaya Perfection are paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 2 and so on and so forth down a theoretical infinite number of levels.
Wakaya Perfection cap payable unilevel levels at five, with commissions paid out as a percentage of sales volume generated by a unilevel team.
- Independent Business Ambassador – earn 5% on levels 1 and 2
- Coral Ambassador – earn 5% on levels 1 to 3
- Jade Ambassador – earn 5% on levels 1 to 4
- Sapphire Ambassador or higher – earn 5% on levels 1 to 5
Leadership Infinity Commission
The Leadership Infinity Commission extends payable unilevel levels beyond the initial five levels offered.
Available to Sapphire Ambassador or higher ranked affiliates, a bonus of up to 6% is paid out until an equal ranked affiliate is found in a unilevel leg.
- Sapphire Ambassadors are paid 2%
- Ruby Ambassadors are paid 3%
- Emerald Ambassadors are paid 4%
- Diamond Ambassadors and higher are paid 6%
Eg. A Ruby Ambassador will be paid a 2% bonus on each unilevel leg until a Ruby Ambassador or higher ranked affiliate is found.
For Ruby Ambassador and higher ranked affiliates, if a Sapphire ranked affiliates who is of lesser rank is found, the difference between the percentage is paid out.
Eg. If a Blue Diamond Ambassador has a Sapphire Ambassador in one of their unilevel legs, they will be paid 4% on that leg (6% minus 2%).
After the lesser-ranked affiliate is found, the regular commission rate is paid out until eventually an equal or higher ranked affiliate cuts off the Leadership Infinity Commission bonus for that leg.
The Generational Commission is a true generation-based bonus that pays out on generations within a unilevel team.
A generation in Wakaya Perfection is defined when a Sapphire Ambassador or higher ranked affiliate is found in a unilevel leg.
This affiliate cuts off the first generation, after which the second generation in that unilevel leg begins.
The second generation is cut off when a second Sapphire Ambassador or higher ranked affiliate is found in that leg.
Sapphire to Emerald Ambassadors earn a 2% generational commission bonus on up to two generations in a unilevel leg (a generation is defined when a Sapphire Ambassador or higher-ranked affiliate is found).
Diamond Ambassadors can earn an additional commission on up to three generations. A generation for a Diamond Ambassador affiliate is defined when a Diamond Ambassador or higher-ranked affiliate is found.
- Diamond Ambassador – receive 2% on the first generation
- Blue Diamond Ambassador – receive 2% on the first generation and 1% on the second
- Black Diamond Ambassador – receive 2% on the first generation and 1% on the second and third
Note that for the purpose of defining generations, each unilevel leg is considered separate from the others.
Wakaya Perfection affiliates are able to earn up a Car Bonus of up to $1000 a month:
- Ruby Ambassador – $300 a month
- Emerald Ambassador – $400 a month
- Diamond Ambassador – $600 a month
- Blue Diamond Ambassador – $800 a month
- Black and Double Black Diamond Ambassadors – $1000 a month
The Bonus Pool is made up of 1% of Wakaya Perfection’s company-wide sales volume.
Blue and Black Diamond affiliates who are Paradise Pack qualified receive a share in the pool.
Half of the Bonus Pool is paid out to each qualifying affiliate based on shares. Blue Diamond affiliates receive one share, Black Diamonds receive two shares.
The other half is paid out pro-rata based on each qualifying affiliate’s monthly GV.
Note that Bonus Pool qualified affiliate GV counts at a rate of 50% for their upline.
Also note that Bonus Pool payouts are capped at a maximum of 33% of the total pool paid out to any one affiliate.
Joining Wakaya Perfection
Basic affiliate membership with Wakaya Perfection is $49.95.
An affiliate can optionally sign up with a $499.95 Paradise Pack, which improves their income earning potential through the Wakaya Perfection compensation plan.
Although limited in range by local produce, the notion of Wakaya Perfection’s products containing produce grown organically on the isolated island of Wakaya is appealing.
I have no doubt there’s a market for Wakaya Perfection’s products, and due to the locale they’ve pretty much got a monopoly on the source material. As such there is no competition.
That said, Wakaya Perfection themselves are selling their products on both Amazon and the Home Shopping Network. Wakaya Perfection products appear to have been marketed by the company for a number of years prior to the MLM launch, but why now the company is still competing directly against its affiliate-base I have no idea.
Wakaya Perfection affiliates aren’t going to able to compete effectively against the company itself, so that’s something to consider.
As to the Wakaya Perfection compensation plan, distinct undertones of chain-recruitment and affiliate autoship recruitment are present.
Right off the bat, perusal of Wakaya Perfection’s affiliate ranks reveals no retail volume qualifiers. Infact the only qualifiers are PV (which can be met via autoship), recruitment of new affiliates and GV (which can be met by recruited affiliate autoship).
The recruitment commissions paid out on Paradise Pack affiliate recruitment is straight up chain-recruitment.
And things get worse with the matrix cycler, which is pretty much an incentive to get new affiliates to sign up with a Paradise Pack.
Alternative qualification requires 1000 PV worth of retail product sales (the only optional retail volume qualifier anywhere in Wakaya Perfection’s compensation plan), however it’s much easier for an affiliate to just pony up $499.95 when they sign up.
Why Wakaya Perfection penalize affiliates who wish to qualify via retail sales volume with a 2:1 ratio is unclear.
In any event, if the majority of Wakaya Perfection affiliates achieve Paradise Qualified and Paradise Commission Qualified qualification by signing up with a Paradise Pack, as opposed to qualifying via retail sales, effectively you’re looking at a chain-recruitment scheme.
That Paradise Pack affiliates have greater income potential also adds an additional “pay to play” element to the opportunity.
In MLM income potential should always be determined by an affiliate’s (retail) sales performance. Not how much they paid in affiliate fees when they signed up.
And after convincing someone to sign up with a Paradise Pack to earn more money, it follows that monthly PV requirements will be met via autoship.
Given this is how your typical Wakaya Perfection affiliate is likely to be signed up, what do you think they’re going to then focus on to earn commissions?
The only counter-balance to the massive focus on affiliate recruitment is “3 and Free”.
For every three new retail customers an affiliate signs up in a month with a minimum 80 PV order each, they receive 2 Bula Bottles with a Bula sampler box (can be qualified up to three times in a single month).
That’s not good enough.
The recruitment commissions and pay to play has to go, and retail volume qualifiers (or some other form of retail sale incentive and verification) needs to be added.
Given Wakaya Perfection appears to have been launched amid mass-raiding of Youngevity though, all those who defected now have cushy positions at the top of Wakaya Perfection’s pay-plan.
Retail is not likely ever going to be a prime focus in an MLM company founded by affiliates of another company wanting higher positions than they had.
To summarize, Wakaya Perfection as a legitimate MLM offering with strong retail focus is possible but unlikely.
Prospective affiliates are encouraged to ask their potential upline what their monthly retail sales volume is, and then compare it to their recruited Paradise Pack commissions (recruitment).
If the Paradise Pack signup option is pitched to you, also pay close attention to whether the affiliate leads with the products or the income opportunity (may be masked as “convenience”).
It also might be an idea to hold off signing up until the Youngevity lawsuit is resolved. If they get their way, Wakaya Perfection is dead in the water.