Multisure is a South Africa-based insurance provider that provides legal cover and funeral expense cover. However, Multisure also provides networking marketing opportunities for its customers by promoting the business to others in exchange for commission-based income.
What Is Multisure?
Multisure was founded in 2000 by Denton Goodford, a practicing attorney that, prior to starting the company, was both an independent advocate and a state prosecutor for the South African Department of Justice.
Goodford claims to have begun Multisure to not just provide cost-effective insurance for less fortunate South Africans but also to provide income opportunities for them as well.
There are two core products available from Multisure – legal assistance and funeral cover.
Legal assistance cover provides telephone and face-to-face consultation and legal advice, legal document reviews, letters and phone calls made on behalf of the insured, Small Claims Court assistance, access to legal document templates, and assistance on maintenance matters.
Enrollment costs are 120 South African Rand, with monthly fees of R68 per month. Monthly fees increase by 10% annually.
Funeral cover provides life insurance benefits designed to help provide assistance with funeral costs. There are several tiers, divided both by age and by single or family cover, with different monthly premium prices; however, there are only three different levels of cover that provide R3000, R10,000, or R20,000 upon death.
Again, there’s a R120 enrollment cost. Monthly fees range from R30 for an individual under the age of 59 to R295 for family cover with a principal aged 60 to 74.
Becoming a Multisure affiliate requires a buy-in of R110. Additionally, affiliates must personally maintain at least one insurance plan from the company.
Multisure’s affiliate program is a unilevel recruitment scheme that provides R50 for each direct recruit and R20 for second-level and third-level recruits.
Meanwhile, residual payments are capped at four levels deep, with affiliates earn 18% commissions from each level.
There’s also a one-time “top performer” bonus for recruiting new members:
- Recruit 5+ new members, receive R200
- Recruit 10+ new members, receive R500
- Recruit 20+ new members, receive R1250
- Recruit 50+ new members, receive R3000
- Recruit 100+ new members, receive R10000
There are a couple of problems we have with Multisure. While we can’t speak to the insurance products – we’re sure they’re decent – the affiliate compensation scheme does have a few problems that we’d like to see addressed.
First and foremost, the biggest problem is that you can’t simply sign up to be an affiliate – you have to also be a customer. This sort of “pay to play” requirement doesn’t sit well with us, as it pushes Multisure into chain recruitment scheme territory. We’d much rather see the company reduce or eliminate this requirement completely.
Secondly, with the South African Rand worth only a fraction of a US dollar, you’d have to push some massive volume to make a decent living marketing these insurance products. Additionally, it’s only useful if you live and work in South Africa. This obviously limits this business opportunity by a very wide margin, leaving the rest of the world out in the cold when it comes to this one.
All in all, Multisure might be a good insurance product, but we’re not too keen on the dependence its affiliate program has on requiring affiliates to maintain at least one product themselves.