8

Is Amway a Ponzi Scheme? – No, But Their Products Are Very Expensive!

Amway is one of the oldest multi-level marketing programs in the Universe. It’s a proof that they have done something right. If Amway would be a scam, it wouldn’t exist anymore.

This MLM-system has been around already for almost 60 years but still you can sometimes hear a question, “Is Amway a Ponzi Scheme?” In the next 3 minutes you will get answers to all of your questions regarding Amway. Our team member has made a comprehensive review about Amway and she’ll share her findings today.

I will also give a quick look at a technique how I earn income online.

Amway Review

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Name: Amway
Website: www.amway.com
Founded in: November 9, 1959
Field: Multi-level Marketing

Overall Rank: 30 Out of 100 (Check Out My #1 Recommendation, 98 Out of 100)

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What Is Amway? – Freedom, Family, Hope and Reward 

Amway (“American Way”) is a multi-level marketing/direct selling company that sells a variety of products that ranges from health, beauty, home care and personal care products. People interested in Amway’s products can choose to become an Amway independent business owner (IBO) or be an Amway customer.

Amway was launched in 1959 by Jay Van Andel and Richard DeVos, with its headquarters located in Ada, Michigan. Over several decades, Amway has been able to conduct its business through numerous companies and presently operating in over 100 countries worldwide. Towards the end of 2012, Amway and family of companies under Alticor reported sales of USD$11.3 billion, making it the seventh consecutive year of growth for the company.

In 2015, Amway way was ranked No. 29th among the largest private companies in the United States by FORBES and No.1 in Multi-level Marketing by Direct Selling News. It still remains one of the highest revenue generating and successful network marketing company in the world right now.

As written on their website, Amway continues to build on the original values and principles of its founders, to ensure the passion of business stays alive.

These fundamentals include:

• FREEDOM
• FAMILY
• HOPE
• REWARD

Amway hopes to help people start their own business with the promise of access to exclusive products, a low startup cost, and a 100 percent satisfaction guarantee. However, when I look at their products and ultimately high prices, I am not so convinced…

Amway Products – Everything You Could Imagine!

Amway is not in shortage when it comes to products, which ranges from health supplements to beauty, and all the way to laundry detergents. They offer numerous products, including popular brands like Nutrilite, Artistry, XS, and Legacy of Clean.

Amway has one of the largest product lines when compared to other multi-level marketing companies. Some of their product categories include personal care products, water & air purifiers, home care products, electronics, Jewelry, Nutrilite dietary supplements, insurance and cosmetics amongst many others. “BodyKey” products that you see above remind me of Herbalife products which are another MLM-system. At least prices are very high as well.

I decided to check for the prices of these products and found out that they seem to be on the expensive side but Amway claims it’s because of the quality and in-depth research that goes into the manufacturing and development of these products. Well, I think their market target is towards people who waste money the middle class and higher group of people.

Some of their makeup products are pretty similar to Mary Kay MLM-system. Do you know how you could create a “successful” MLM-program as well?

1.Go to a supermarket.
2.Buy lots of products
3.Sell those products to other people for the 2-3x price and say that they are special and there was lots of research.

I prefer affiliate marketing because then you can sell products with a great price/quality ratio. Sometimes you can even give discounts on some products like I am giving. It’s very different than MLMs where you need to sell super expensive products to your friends.

Amway Commission Structure – Typical MLM-Stuff

Amway like all other network marketing companies, you get paid when you or those whom you had sponsored are able to sell its products. As a sponsor, you will be responsible for your downline and also have to ensure that they duplicate your efforts to become successful. That is the only way to make more money, and they can also make a decent income. MLMs are interesting in a sense that you can earn passive income.

This video explains how Amway compensation plan works. WARNING: The video is created by an Amway salesperson who is promoting their program. I attached it here just for educational purposes because I want to show how their system works.

But honestly, I’m not a fan of the stair-step breakaway model they use because it promotes an attitude where sponsors don’t necessarily want people to pass them (since they are able to make more money if their downline don’t “break away” in other words).

However, Amway pitches that people can be financially free and can determine how much effort and time you want to put in but I have to tell you the truth- the number of distributors who are able to generate a sufficient income on a regular basis is lower than you expect. Even though you are rewarded for the work you do, but it would not be such a good idea to solely go with this method of earning as your source of livelihood.

If you are interested in joining Amway, you will have to register as an Amway IBO to gain access to the compensation plan. The startup fee is $62, which includes a Welcome Kit with a step-by-step guide. However, there is also an available option to purchase the Welcome Product Kit for $83.99 and this includes full-size products and samples. In addition, product brochures are also made available to help you in promoting the products to your customers.

However, as easy as they make it sound, it is not for everybody… the truth be told, “not all that glitters is gold”.  Let me remind you again that a major problem all representatives face in Amway and in the network marketing industry as a whole, is the inability to generate target leads for their business.

The cold fact is that 99% of people don’t make decent income in MLM-programs.

=> Tired of Complicated Commission Systems? Learn to Make Money with Affiliate Marketing!

Training and support – Events and Mentoring

Amway ensures guidance and several pieces of training that will assist Amway IBO to establish their business. You can choose to have online or personal courses or partake in the Business and leadership training courses. In addition, you can also have training and support from your sponsor and other Amway IBO members. The customer service is always available to answer all questions.

Amway Training includes:

• Product- specific training
• Business education
• Mentoring programs
• Self-improvement

Pros & Cons

Pros:

• Amway has been around 50+ years
• Cheaper than most MLMs to get started
• You can build your business locally and internationally.
• Amway has a good working environment with friendly coworkers, usually available and willing to help with anything
• You are provided with the opportunity to assist others in building a successful business while you reap the benefits as well.
• They developed an App for online business management and placing orders.
• You will be able to attend business and educational meetings in world-class destinations. (Typical MLM “revival meetings”)

Cons:

• This business model can be intimidating when you are new and have no prior experience in direct sales.
• The compensation plan design requires a lot of time and effort.
• Qualifying for commissions requires more volume than most other companies, this keeps new distributors in the red for a longer period of time.
• Amway has been around for decades and hence there is a great possibility that someone else in your area is already selling Amway products.
• The negative perception of MLM or direct sales from most people.
• OVERPRICED PRODUCTS

Conclusion – Is Amway a Ponzi Scheme?

Amway has indeed proven to be a highly successful multi-level marketing business with a proven track record of sales. It is also generous of them with the 100% money-back guarantee policy (first 90 days) for people who feel disappointed after signing up with the health and beauty company. However, the question of integrity is not to be ignored, especially with the numerous lawsuits over the years.

In addition, many MLMs promise full money back guarantees but then there is a little print which tells that it’s almost impossible to get your money back. I don’t know if that’s the case with Amway but I’m just suspicious.

Amway can be a good money making opportunity for a few people but is it even so ethical after all. Prices are +2x higher than in supermarkets even though the value wouldn’t be higher at all. MLMs always need to have overpriced products in order to give money to all members. That’s how those systems are created.

If you are looking for a legit way to make money and to become your own boss, have a look at Wealthy Affiliate. It is a step-by-step training and a community that has taught me and hundreds of thousands of other people to make money online. I have friends who are making $10,000 per month after finishing their training and putting it into action. And they didn’t have any prior knowledge about having an online business.

Wealthy Affiliate is not a “get-rich-quick” scheme. Those guys who are making $10,000 per month online worked very hard. I am on my way there and I know that I need to work hard to achieve it. But now I have all tools to make it and I am very convinced to reach that goal. You don’t need a single penny to get started so you can put your credit card away.

Get 20 interactive video lessons and 2 websites for free.

=> Become Your “Own Boss” in Wealthy Affiliate!

 

Do you have experience of Amway or another similar program? What did you like?

Let me know in the comments below! 🙂

6

Is Jeunesse a Pyramid Scheme Or an Awesome Business Opportunity? – Read This Before Joining!

6

Is Four Corners Alliance Group a Scam Or a Great Way to Quit Your 9 to 5 Job?

Have you heard of Four Corners Alliance Group? It is a company that is a part of Cornerstone Alliance Group and claims to use multi-level marketing to enrich anyone who joins it. It deals with financial aid books that are supposed to empower you with financial wisdom.

A prospective participant is required to buy the book and read it. Then try and sell it before getting paid. This person should also get other readers to join the company and become members by buying a book. Does it sound like a pyramid scheme to you? Is Four Corners Alliance Group a Scam?

Our Your Online Revenue team member made a research and this is what he found out!

Four Corners Group Alliance Review

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Name: Four Corners Alliance Group
Website: www.fourcornersalliancegroup.com
Founders: David Harrison
Price: $18-555 + $77/month
Field: Financial Education (Multi-level marketing)

Overall Rank: 20 Out of 100 (Check Out My #1 Recommendation, 98 Out of 100)

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What Is Four Corners Group Alliance? – A Pyramid Scheme?

The reason it is not a multi-level marketing company is simple. These types of companies, first of all, do not require its sales representatives to buy their products before selling them. They make money through direct sales and encourage their distributors to get other distributors by paying them a portion of the recruit’s sales.

Pyramid schemes, on the other hand, get members of that scheme to pay for whatever product they’re selling in the market, who are then required to get more members who also pay to join. That money is subsequently used to pay older members.

However, a difference between an MLM and a pyramid scheme is sometimes very small.

Why Is Four Corners So Popular?

Obviously, they don’t come up to you and tell you that it is a pyramid scheme. They come off as a company that sells financial books, which are supposed to give their readers long term financial security. They make you believe that they care about you and that they can help make you some money. Attractive right?

After you get all comfortable, you buy their books and are promised $500,000 from the $18 that you spend to buy the first book. This is only possible if you get other people to buy their books too.

They claim that their books will give readers something close to an unfair advantage against others who haven’t read them. Apparently, their writers are professionals in the financial service industry. Who wouldn’t want to be associated with something that sounds that fancy?

Huge promises are often a sign that the product is a scam. Not always because some products really teach you well how you can make a full-time income online and much more. But you should be careful if somebody is promising you +$100,000/year without almost any work or something similar.

It’s completely possible for anyone to earn +$10,000/month online but it requires hard work and persistence. It doesn’t happen overnight like some scam artists make us believe.

=> Want to Learn How to Make Honest Money Online? Get a Step-By-Step Training for FREE!

How Does Four Corners Group Alliance Work?

First of all, you would have to buy a book that costs $18. They convince you to buy it by telling you that the book will not only help to improve your financial status but your buyers’ finances as well. So you have to go looking for people to buy this book too (not the one you already have but their own) and convince other people in the meantime to join the company.

Once you do this successfully you are now known as a sponsor. Selling products get you money, yes, but whatever you get is divided between you, your sponsor and the company. I won’t even tell you who gets the most amount of money. This leaves you with mere pocket change.

The only way to get up the ladder is by getting more recruits. It is one thing selling a product, and it is another thing recruiting a person. Keep in mind it’s not just one person that you have to recruit. There are levels in this thing. It’s just like a game.

When you decide to join, you are given three options. The first is to deal with an educational series of books; the second is the monthly subscription and financial newsletter and lastly, the retail store. Within this are 5 income streams that you have to get by, which are squeezed into the affiliate commission, monthly and sponsor Commission and the retail commission.

It sounds easy until you hear how much you actually get paid. When you pay the first $18, ten is for the book then four is for your sponsor and four goes to the company. Sign up four people and get $16. Sign up the next sixteen people and your total commission is $64. It goes on and on and on. I mean come on, there has to be an easier way to make money, right?

Can I Make Money with Four Corners Group Alliance?

Did I mention that you have to pay $25 to get to the third level? All this while, your recruits are supposed to help you, but it seems to me like you only get half of your total commission and it does not seem fair. Did anyone hear a part about actually reading these books? No? Because it is not there.

They don’t want to share knowledge, they want people to get psyched up about getting knowledge and getting money at the same time like it comes as a package. They pay attention to recruitment rather than actually helping people like they say they want to, and that to me is a scam in itself.

It’s possible to make money. Oh yes. The process you have to go through to get there though is a whole other story. To get far you would have to be around for a really long time. Plus with every level comes a new expense that you will have to incur in order to buy the books you don’t already have

To get the book on the last level will cost you $300. Makes me wonder if it comes with a full-time job, a car, and insurance because that is way too much money to spend on ’motivational’ books. I am sure that I can get cheaper books in the market. So they’re downloadable. I would rather take my chances with YouTube because at this point, when will I have the chance to sell, read and get recruits?

Is Four Corners Group Alliance Worth It?

Think about it. For the first few days or months or whatever time it will get you to get any money from four corners alliance group, you get very little. Hardly even the minimum wage. Then, you have to spend more time selling these books you know nothing about. (Convinced they have to be good or you wouldn’t buy them.) Is anybody else’s head spinning?

And selling is not enough. No, you can’t leave it at that. (Unless you want to eat candy for the rest of your life because that is all you will afford if you stagnate). You MUST get recruits because they pay. That is where the money comes from, not the books. So is it really worth it?

Is There a Better Alternative to Quit 9 to 5 Job?

Our common conclusion was that Four Corners Alliance Group is not worth it. So, do we need to say in our 9-5 jobs for the rest of our lives until we get retired when we are very old? No, there is something better.

I have learned the process of making money online and it’s highly interesting! You can earn money wherever you are. Sometimes you wake up and check your commissions during the night, $20, $50, $100 or even more.

The boss is not telling you what to do because you run your own business. You can set your own hours. Of course, the freedom also brings responsibility but it’s definitely worth it. You learn to manage your time yourself.

I can boldly say that I CAN TEACH YOU TO MAKE MONEY ONLINE. You will get my 1-on-1 mentoring and 20 interactive video lessons for completely free. I know, it sounds almost too good to be true but you can try it out yourself without any risk.

The platform where I want to mentor you is Wealthy Affiliate. It’s an online business university where you can sign up for free. When I started out there, I didn’t have almost any experience of making money online. Things have dramatically changed.

Nathaniell Brenes, Kyle Loudon, and other highly successful online entrepreneurs have taught my hand by hand to earn income online. Now I want to pass out my knowledge for you. Of course, there will be many other helpful entrepreneurs supporting you as well.

=> Want to Learn to Make Money Online? Get Your Free Lessons and 1-on-1 Mentoring for Free!

 

I hope you have enjoyed our Four Corners Alliance Group Review. What do you think about that system? Would you try it yourself? 

If you have any questions or comments, don’t hesitate to leave them below and I will be more than happy to give you a personal reply.

12

Is Power Life Pro a Scam? – It Costs $2,380 to Get Started!

Is Power Life Pro a Scam? You have probably asked this question from yourself after seeing their website and huge promises. The owner says that it’s one of the best core marketing systems he has ever seen. He promises to help you to grow your business with done-for-you tools. Is this a great opportunity to earn money or something else? Let’s find out!

Power Life Pro Review

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Name: Power Life Pro (PLP)
Website: www.powerlifeproteam.com
Founded: 2016 by Adam Whiting
Price: You Need Minimum $2,380 to Get Started
Field: Make Money Online -Programs

Overall Rank: 30 Out of 100 (Check Out My #1 Recommendation, 98 Out of 100)

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What Is Power Life Pro?

Power Life Pro is a company created in 2016 by Adam Whiting. His purpose is to help you to make money by selling Enagic water ionizers.

Enagic is a +40-year-old Japanese multi-level-marketing company that has become quite famous over the years. They advertise that even some of the most famous people in the world are using their water ionizers including Bill Gates, Oprah Winfrey, Tiger Woods and so on. I haven’t found any proofs that these famous people would really be using them so you can believe it or not.

Power Life Pro itself doesn’t sell these products but they are just promoting Enagic. Then they are earning big commissions for each sale. Once you join their system, you will also become a part of their pyramid MLM-system.

Power Life Pro Training

There are  5 modules in their training.

Module 1: Welcome to the team.
Module 2: Launch Your Business
Module 3: Learn About The Products
Module 4: Learn About The Business
Module 5: Learn About The System

In the other words, their training is an introduction to their MLM-system. You are becoming a downline of Adam Whiting and a part of his team. He will earn commissions on your sales and for all sales that you invite to become part of the system. That’s how pyramid MLM-systems works.

Power Life Pro reminds me of another product called Wifi Millionaire. There the owner sold you a cheap $3 eBook but is was not the real product that he was selling. His intention was to get you inside MOBE MLM-system where products cost up to $20,000.

Now Power Life Pro is offering you their membership for free so you can join Enagic where products cost at least $2,380. It’s typical for MLMs that they offer you a cheap front-end product. It’s free or costs a few dollars. Then there are upsells, upsells, upsells and eventually members realize that they have spent thousands of dollars even though they didn’t initially plan to do so. In my opinion, it’s a crooked sales strategy.

Power Life Pro Products

It’s quite relevant to know what kind of products they want you to sell when you join Power Life Pro. This section could be called also Enagic products because you are selling actually their products.

As I mentioned above, their products are water machines. They change the pH of the water and are supposed to make it better. Have you probably heard before about water ionizers?

In the picture below, you can see an example of their product. This one is called LeveLuk K8 or Kangen® 8. The machine can produce 5 different kinds of Kangen waters with pH ranging from 2,5 until 11.

What Is Kangen Water?

Kangen water is a product that you can produce with Enagic Ionizers. The company has huge promises what the water will do for you. “Change your water, change your life”, is their motto. To be honest, I am a bit suspicious.

There are tons of similar MLM-water who have so-called special products that are supposed to change your health and your life in a moment. Think about Herbalife, for example. It’s an old MLM and they are selling all kind of nutrition products. I have tried them and I don’t notice any difference compared to normal protein powders.

Ah, there is one difference between these high ticket MLM-products and supermarket products. MLM products cost like 2-10 times more so you will spend much more money for the same value.

Another example is Party Lite. They are selling those candles with a very strong smell. My mother got those candles sometimes as a gift. I didn’t notice any difference between them and normal candles. You just need to pay 5 times more in MLMs just for the feeling to be inside of the system. I am quite sure that Kangen water falls into the same category.

You have probably seen testimonials from MLM-members telling how the products changed their life. If you believe enough, there is a strong placebo effect. The truth is that 90-99% of MLM-marketers spend much more money than they earn and the only difference in their life is a thinner wallet.

Pros & Cons

Pros:

• They offer you pre-made templates to promote Enagic products
• Kangen water sounds interesting (Still I don’t think that it differs very much from the water by other water ionizers)

Cons:

• In order to get started, you need to buy expensive products yourself
• If you are not interested in water ionizers, this program is not for you
• Products that you would need to sell are extremely expensive
• Their promises sound exaggerating

Conclusion – Is Power Life Pro a Scam?

Power Life Pro is not a scam. They are willing to help you to succeed because then they earn money as well. However, I think that their program is suitable only for a few people who are interested in these Enagic water products.

In addition, I am not a big fan of complicated MLM-programs with tens of different rules and downlines. You may disagree but I like the simplicity of affiliate marketing. You don’t need to invite anyone, you can sell any products you want and the income potential is not limited.

My #1 recommended program to learn how to become a successful affiliate marketer is Wealthy Affiliate.

Their training teaches literally everything you need to know in order to succeed and create a full-time online business. I have quit my day job because I see much more potential in building a business through Wealthy Affiliate rather than working from 9 to 5. Sometimes I wake with a notification that I earned $50 during the night in commissions.

I have friends who are making +$10,000/month with affiliate marketing and even much more. It requires hard work and persistence but the potential is much bigger than in a regular day job.

What do you think?

Power Life Pro at a Glance…

Name: Power Life Pro (PLP)
Website: www.powerlifeproteam.com
Founded: 2016 by Adam Whiting
Price: You Need Minimum $2,380 to Get Started
Field: Make Money Online -Programs

Overall Rank: 30 Out of 100

 

What do you think about Power Life Pro and Eganic water machines?

Let me know in the comments below! 🙂

12

Is Vasayo a Scam Or Will It Dramatically Change Your Life?

Is Vasayo a scam? That question may come to your mind when you see somebody is promising that your health will dramatically change by eating some capsules and using some spray. In this honest review we will walk you through what is Vasayo all about, what kind of products they have, do they really work and could you make money with Vasayo.

Spend the next 2 minutes with me and I will answer to all these questions.

Vasayo Review

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Name: Vasayo
Website: www.Vasayo.com
Founders: Dallin and Karree Larsen
Field: MLM-Programs

Overall Rank: 20 Out of 100 (Check Out My #1 Recommendation, 98 Out of 100)

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What Is Vasayo?

Vasayo is a Multi-Level Marketing company that provides sprays and pills that will make your health better. They will give you more energy, better sleep and literally make you a superman (or superwoman).  Well, that’s more or less what they promise to you but to be honest I’m quite skeptical about this system.

The company is founded by a couple called Dallin and Karree Larsen. They have run also another MLM-system in the past called Monavie. When you search information about Monavie in Google, it already suggests you “Monavie Scam”. That’s not a good background for a new MLM. But of course, people can change and that’s why we are going to take an open-minded look at Vasayo.

In the end of 2016, there was a big peak in the popularity of Vasayo. More and more people became interested in Vasayo. After that, the popularity has fallen a little bit but still many people are asking questions about Vasayo and thinking if it would be worth joining.

Let’s take a look what kind of products do they provide.

Vasayo Products

At the moment Vasayo has 5 different kinds of products. They are called with the following names (I have also included what kind of effect they are supposed to have.)

• Microlife Neuro. Boost your brain power.
• Microlife Energy. Gives more energy for your daily performance.
• Microlife Microlife Sleep. Helps you to have that restful sleep that you’ve always dreamed of.
• Microlife Core Essentials. Gives you optimal health.
• Microlife Renew. Several benefits that will improve your overall well-being.

Are there any proofs that these products would really work?

Well, I didn’t found. Of course, they claim that there was some real doctor making very high-quality research in his laboratory but it’s hard to find real proofs. I can also call to my friends who are doctors and ask them to make a few magical products.

Then I create an MLM-program and say that these products will transform your life. Why don’t I do that? Because I think it’s not very honest and profitable for the other people around.

Vasayo Prices 

As you may already know, products are almost always overpriced in MLM-systems. You need to pay for many hands between you and the seller. But if these products would really transform your health so easily, wouldn’t it be worth it? Let’s take a quick example.

 

This product costs $63.95 for 30 servings. It means that each MicroCaps costs around $2,13. I don’t what you think about that price but my opinion is that +$2 for little capsules is quite a lot.

If you start eating these capsules, you will spend $63,95/month and $768/year on these things. Would it change your life? I highly doubt. The only thing it would change is that after one year your wallet would be much lighter.

When you buy this kind of products, you are blindly trusting some “authorities”. I eat myself sometimes D-vitamin and magnesium capsules but the price per capsule is at least 20 times cheaper than these. In addition, there are thousands of studies about the benefits of D-vitamin and magnesium. Unlike with these magical Microlife products.

Making Money with Vasayo

If you sell products with high prices, it means that you can potentially make a large profit. But wait a second… Would you really like to sell something that isn’t proved to help people’s lives. My #1 recommended system on my website is Wealthy Affiliate because it has helped probably thousands of people to make a full-time income online.

Here are 5 examples of people who are making +$10,000/month because of Wealthy Affiliate. But if you are trying to find similar real-life examples of Vasayo, it’s much more challenging.

Of course, people have the ability to say whatever they want. But how do you know that it’s not only a placebo-effect? If you believe enough in something, you think that it really works even though there are no scientific proofs.

I never would like to sell something that doesn’t really help people. I’m strict with this principle so I am not promoting any products that I don’t find valuable. That’s the reason why I couldn’t honestly promote Vasayo products.

By the way, if you are going to eat everything that they recommend, you will spend $263.75 every single month on their products yourself. It equals to +$3,100/year. That’s why most of the people who join Vasayo, end up losing money instead of earning money.

Pros & Cons

Pros:

• Vasayo products may potentially improve the quality of your life.

Cons:

• It’s hard to find real proofs that their products would work
• Vasayo products are very expensive
• Vasayo has a bad reputation (=several negative reviews on the Internet)
• Dallin and Karree Larsen has a background with Monavie which was claimed as a scam

Conclusion – Is Vasayo a Scam?

It’s hard to say if it’s 100% scam. But I will at least stay far away from these expensive products. I don’t want to sell them to anyone either because I don’t want to sell something too expensive for my friends.

If you are interested in improving the quality of your life and making money online, I recommend taking a closer look at Wealthy Affiliate.

I know many people who have joined WA without any prior knowledge. Then they learned to make money online and nowadays they are living wherever they want and working whenever they want. I know it may sound too good to be true but it’s 100% true.

You can try WA for completely free and you will get 20 interactive video lessons as a gift for signing up. Those lessons will walk you through the first steps to making money online. You will learn, for example following things:

• How to create a high-quality website
• How to get traffic to your website
• How to monetize your website
• How to provide high-quality content
• And much more

=> Take Your First Step to Making Money Online!

Vasayo at a Glance…

Name: Vasayo
Website: www.Vasayo.com
Founders: Dallin and Karree Larsen
Field: MLM-Programs

Overall Rank: 20 Out of 100

 

What do you think about Vasayo and this kind of health improvement products? Have you ever tried them yourself?

What do you think about MLMs as a money-making opportunity?

Let me know in the comments below! 🙂

I would love to hear from you. All kinds of comments are welcome and I promise to come back to you with a personal reply.

12

Is Thirty-One Gifts a Pyramid Scheme? See The Truth In My Review

34

Is Isagenix a Pyramid Scheme? Why Do Only 3% of Members Succeed?

10

What Is the Difference Between a Pyramid Scheme and MLM? – Or Is There Any Difference?

Have you ever wondered What Is the Difference Between a Pyramid Scheme and MLM? I have been thinking that question recently and I have come to a conclusion that in many cases there is not such a big difference at all. Or is there? That is our topic today. Fasten your seat belts, keep your hat and let’s go!

Note: I want to keep as simple as possible so everyone will understand. However, if you have any questions, on what I share and teach, don’t hesitate to leave them below in the comments.

What Is the Definition of a Pyramid Scheme?

A pyramid scheme is a business model that concentrates more on recruiting new people rather than selling products or services.  New members bring more money into the system while recruiters and those who have already joined, get some benefit.

A pyramid scheme is slightly different than a Ponzi scheme because if the system is Ponzi, you don’t need to do anything else than hand the money to the founder. Then he gives you (or at least promises to give you) high return on your investment. A typical example of a Ponzi scheme is MMM Global and MMM Returns by Sergey Mavrodi.

In a pyramid scheme, you need to do something which is usually recruiting new people and selling products? The system is called a pyramid because those who joined earlier are in a better position. They are earning from their downlines while those who have just joined, earn from their own sales.

What Is the Difference Between a Pyramid Scheme and Multi Level Marketing?

Pyramid schemes are officially illegal while Multi Level Marketing is legal. Why is it so and what are their differences?

Basically in pyramid schemes the main focus in on recruiting and not selling the products. Those who joined the system first benefit the most because they make money from each member they have recruited and from their downlines. But isn’t it exactly the same with MLMs?

The CEO of Herbalife talked in a recent event that their focus has been and will always be on recruiting new people. That’s how it goes with every MLM if you really want to make good money, you must recruit other people. Of course, you can earn good money if you are a magnificent salesperson. But that raises a question, why are you selling an MLM-product if you are not recruiting new people?

In my eyes, pyramid schemes and MLMs are working in the same way.

Sometimes pyramid schemes are defined in a way which says that they are not selling any products. Well, you don’t need to sell a single product either in MLM in order to make money. If you just recruit enough people, you will earn lots of money.

Complicated Commission Structures. What Is the Purpose?

Have you ever wondered what is the purpose of complicated commission structures? There can be many reasons to have it but one is to keep workers motivated. Many people like to calculate numbers and see how much they could possibly earn. It may also help them to reach them to reach a certain goal.

However, one reason to have complicated commission systems can be to bluff people. When you see how it’s possible to earn $200,000/month by rising in the system, it makes your blood flowing faster. But when you realize that more than 99% of people are earning much less than an average income from MLMs, you realize that the reality is much different. Founders and a few “early-joiners” are making the big money while others are being scammed.

Have you ever compare network marketing/MLM to affiliate marketing? If you are an affiliate marketer, you earn the commission for the each product that you have sold. The commission varies usually between 4-80%. In Amazon, the smallest commission level is 4% while some digital products are offering up to 80% commissions. I have even once seen a product that offers 100% commission.

Why Are Pyramid Schemes (=MLMs) Being Made?

In my opinion, those systems are many times designed to make the founders rich. If they really would care about the good price/quality ratio, why wouldn’t they just create a real business? Yes, you know the reason. Because it wouldn’t be so profitable for them.

One legitimate reason is that MLM can spread faster than a “real business”. If you have an MLM-company, members are willing to recruit new people because it gives them some rewards. In a normal business recruiting new people doesn’t pay off. If I would recruit new people to a company where I am working right now, for example, it wouldn’t bring me any monetary benefits.

If I would earn, for example, 100-1,000 for recruiting a new person, I would be much willing to persuade my friends to join us. At least, in theory. That’s how it goes with MLMs. People are driven by rewards.

One great benefit of an MLM for the founder is that he doesn’t need to pay the salary. In most 9-5 jobs boss needs to pay the salary for all employees whether they make good results or not. In an MLM-company you get paid only if you bring results and sales. You don’t get paid for going to the toilet or while being sick at your home. In most jobs you get paid even when you are sitting at the toilet or staying at home in fever. What do you think about it?

Why Are MLM-Products Overpriced?

I use to say that all MLM-products are overpriced. Why is it so? Because a customer doesn’t need only pay for the seller and producer but also every downline, upline and all the other guys in the system.

Have you ever seen MLM-candles that cost $20 while you can get exactly same candles in a retail store for $1. Only differences about those candles is their price and a brand. I have never seen a situation where an MLM-product would be cheaper than its counterpart in the supermarket. Have you?

One reason that MLM-products are so expensive is that they look more valuable with a high price tag. Let’s say that I have two candles at my home. The other one cost $1 and the other one $20. Which one do you think has a higher quality?

If something costs 10-20 times more, it gives a feeling that you are owning something very valuable. It tells that you belong to the inner circle that has these specific products. And it also brings more money to the company. That’s why they are overpriced. Do you have also other explanations?

A Better Way to Make Money Online

I will stay away from pyramid schemes because of the reasons that I have told in this post. However, I will concentrate my time and energy on building an honest online business. I explain you the process in 3 simple steps.

1.I create a website. (Nowadays it’s possible in 30 seconds without former knowledge)

2.I write helpful content on my website to help visitors to have a better life.

3.I promote some beneficial products on my website

4.When visitors buy something, I earn a commission.

5.I repeat the process.

I can create a website regarding to almost any subject that makes people’s life better. 5-6 months ago I created, for example, a website that helps people to learn languages faster. The process is very simple but it, of course, requires work to create content. That’s why I am outsourcing some of my content writing for freelance writers.

If you would like to learn how you can make money online by using the same simple process, I recommend heading to Wealthy Affiliate. You will get 20 interactive video lessons and 2 websites for free that will help you to get started. I will also give you my 1-on-1 support to help you over every obstacle that you can face.

=> Learn to Make Honest Money Online with the Same Method That I Use!

 

Have you ever joined MLM-systems / pyramid schemes? Have you tried the process that I explained in the end?

Let me know in the comments below! 🙂

8

Is Life Leadership a Pyramid Scheme? – Check This Out and Decide Yourself!

Are you interested in life?

This program promises to teach how you could have the best life ever. They also have potentially ultimately profitable money-making opportunity. However, I found many complaints about this program on the Internet. Is Life Leadership a Pyramid Scheme? Let’s find out.

Life Leadership Review

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Name: Life Leadership
Website: www.lifeleadership.com
Founded in: November 2011
Field: Personal Development – MLM

Overall Ranking: 35 Out of 100 (Check Out My #1 Recommendation, 98 Out of 100)

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What Is Life Leadership?

Founded in 2011, Life Leadership is a coaching company that teaches professional of development. The top leaders and founding members of the company, Orrin Woodward, and Chris Brady are well-renowned speakers who, combined, have 110 years of industry related experience. Both of the founders are also New York Times best-selling authors, publishing books on the topic of leadership and personal development.

While the annual global revenue of the organization is unknown at the present moment, the headquarters of the company is located in Cary, North Carolina. Life Leadership specializes in the production of materials covering personal development that is distributed by the fellow company, Independent Distributors, in the form of monthly subscriptions.

Life Leadership Products

Participants are offered three separate monthly subscription packages for purchase. The first course, The Life Series, gives instruction on life skills development. With the monthly subscription, consumers receive one hardcover book and four audio recordings each month.

The AGO (Faith) Series is on developing spiritual skills, and its monthly subscription for rides one audio recording and one book each month. The Edge Series was designed for use and focuses on the development of their leadership skills, and the subscription provides one audio recording per month. Recurring membership is a good way to make money. That’s why it’s so popular nowadays and makes possible to make even $1,400 with one sale.

The business starter kit allows for those who purchase the Life Leadership products to create their own business, allowing them to offer all of Life Leadership’s products for sale to make a profit.

Life Leadership Cost

Each of the Life Leadership monthly subscriptions is offered at its own price. The Life Series subscription costs $50 per month. The AGO (Faith) Series cost $25 for each month of the subscription. The Edge Series, being the least expensive of them all, cost $10 per month. Any individuals who wish to become a distributor must purchase one of these subscriptions as well as a business starter kit which cost $99.

While the low monthly costs are attractive, it is also a monthly subscription that is billed to your credit card on a recurring basis. The good thing about having this for this description plan is that you do not have to pay the total cost for annual access upfront, but it does become a continuous cost that is ongoing for however long you remain a client or distributor, which can add up, especially over the course of a few years.

Life Leadership products are overpriced like in any other MLM-program. I explain more about that in the video below:

Life Leadership Commission Structure

The first step to earning Life Leadership commission is to purchase the starter kit. The business starter kit allows the new business owner to become a distributor, in which case they are able to earn a 50% commission on all of their sales, as well as up to 15% commission on the sales of their team members whom they recruit to become distributors as well. Even more, Life Leadership’s Thee For Free Program allows for a member to earn a free product subscription for themselves by signing up three other subscribers who select an equal or greater monthly subscription than them.

You will earn sales commissions as well as commissions earned from your downline. In fact, there is a total of 15 different ways to earn money with the Life Leadership program. Life Leadership offers many financial incentives and perks in order to motivate distributors. These include cash awards, and incentive trips and community advancement bonuses. All of these income streams may sound interesting but to be honest, they sound better than they really are. Life Leadership is just a typical MLM-program with complicated commission structures. You can earn passive income but first, you need to recruit tons of new distributors

I took here a picture that shows how much people earn on average with this system.

As you can see, most of the members are losing instead of earning money (because they are paying expensive membership fees). Only about 0,4% of all members are making significant income from this program.

Life Leadership Training and Support

In order to prepare distributors and other members with the maximum effect, Life Leadership offers training in the form of their 90-day Mental Fitness Challenge. This challenge acts as a form of training, teaching members how to mentally prepare for the establishment and operation of their business. The good thing about this training package is that it includes books written by the organization’s founders, self-assessment tests, and videos as well as time tracking worksheets and goal setting worksheets. The bad thing about the training is that it costs an additional $220, even though it comes with a money back guarantee.

This cost is in addition to the business starter pack costs of $99, so in order to get started with the business, you will spend money for the subscription, the starter kit, and the training. So before you even make any money with the company, Life Leadership is going to charge you for their product, to learn how to run the business, and to be trained to operate the business. If you really want to create a successful (online) business, I recommend taking a look at this program.

While it is not unusual for business representatives to pay an entry cost in order to get into a business, and it is also not unusual for the cost of the broken down into monthly discussion fees, it is unusual however for MLM businesses to charge an additional fee for training. And to make matters worse, even after you have paid for the business starter pack as well as the training, and have enrolled in the discussion fees, retailers are not entitled to a commission until they have proven themselves.

A quota of 50 personal volume standard monthly sales is established against retailers, and they are required to perform at or above that level before they are entitled to earning commissions. All in all, there is a lot of hurdles in your way in order for you to begin earning money, even though there are a lot of ways to earn money once the money starts flowing in if it ever does.

Pros & Cons

Pros

• There are 15 different ways to earn money with this business.
• The founders and leaders of the Corporation have more than a century of leadership experience
• They provide some helpful tips about life (but all of them are not good)

Cons

• You have to buy the product in order to become a distributive for the business.
• Life Leadership charges you for training as a separate cost from getting started as a distributor which is in addition to the required subscription fees.
• Customers have to meet a high standard monthly sales volume in order to start earning commissions distributors must meet a high personal sales quota on a monthly basis in order to start receiving commissions, even after having paid such high fees.
• Most of the members lose money instead or earning it
• The system has a bad reputation = Lots of negative reviews

Conclusion – Is Life Leadership a Pyramid Scheme?

I am always interested in developing myself and making a better life. I believe that life is a precious gift from God and I want to live full. That’s why I find Life Leadership somehow interesting. However, I don’t like that it is an MLM-system.

If we are honest, the idea of the most MLMs is to make their founders rich. Why would they need to pay money for so many downlines if the idea would be to provide just the best value for the client?

All MLMs are some kind of pyramids were founders earn the most and those who join last, earn the least. That’s how it goes.

I prefer affiliate marketing over MLMs for several reasons but one reason is that I don’t need to build a pyramid but I can provide the best value/price for my clients. I have been making affiliate marketing since 2015 and nowadays I am making money every month online. I have friends who earn $10,000/month online with affiliate marketing and I will reach that goal too one day.

I know guys who make such income without prior experience after going through this training. Anybody can become a successful affiliate marketer and now we have better opportunities than ever before. I can offer you +12 hours of interactive video lessons and 2 websites for free if you are interested in learning.

=> Become a Successful Affiliate Marketer Today!

 

Do you have experience of Life Leadership? What about other MLMs?

Leave a comment below and I am sure to follow up with you. 🙂