Is there any difference between direct selling and MLM (multi-level marketing), or are they one of the same? In a sense, they are similar in the outcome, but there is a very different selling approach. MLM, for instance, sells a dream wrapped around financial wealth, independence and flexible work hours. Companies like LifeVantage, for example. In this LifeVantage MLM Review, I’ll look at the products and how this company works. However, after reading this review, your thoughts about LifeVantage may not be as clear cut as first thought.
Who Is LifeVantage?
LifeVantage is an MLM business that started in 2003, with headquarters in Utah.
The company sells a diverse list of products that include dietary and anti-aging supplement products and other health and wellness lines.
The current interim CEO and CFO, Steve Fife, has over three decades in financial leadership.
Products are available in the USA, Canada, Australia, Hong Kong, Japan, Mexico, Netherlands, Thailand, United Kingdom.
LifeVantage began in 2003 and sold products through retail stores. That quickly proved not to be the most profitable way of selling their line of products.
In 2009, they merged the business into the MLM model. And by all accounts, merging was very successful as revenue began an upward trend soon after the move.
By 2019 there was a turnover of around $226 million.
The company is currently listed as a public company on the Nasdaq stock exchange. However, when the listing happened is unclear.
And according to the share market, LifeVanrage currently trades steady, with shares hovering around the $13 US mark.
What Is The Company’s Philosophy?
LifeVantage attests they are at the cutting edge in discovering nutrient compounds enabling them to address the leading scientific theories on aging and change the discussion on health. Also claimed, they are a science-based company dedicated to helping people achieve healthy living.
Are LifeVantage Supplements Value For Money?
The range of products includes nutrition, digestive health, beauty products, and other supplements. With such a product diversity, as a distributor, it’s a significant benefit.
Why Is Protandim The Company Flagship?
The Protandim line, from all accounts, seems to be the flagship product and re-enforced by the scientific promotion by LifeVantage.
Protandim is a dietary supplement containing green tea, turmeric, milk thistle, Bacopa, Ashwagandha, plus other components.
The company attests that it’s a daily supplement that combats free radicals and works on the cellular level to enhance energy levels. And all achieved by the all-natural antioxidant properties.
Protandim Nrf2 Synergizer formula activates the Nrf2 protein that unleashes antioxidant enzymes to protect cells. These enzymes act as a potent antioxidant capable of counteracting more than 1,000,000 (one million) free radicals or reactive oxygen strains.
According to LifeVantage, the Protandim ingredients propels the Nrf2 pathway and allegedly reduces stress and fights the outcome of aging, among many other things.
Protandim NRF2 Sales
In the opinion of LifeVantage, Protandim NRF2 relates to somewhere around 60+% of all sales. And, can be purchased singularly, or a bulk pack of 3 bottles, with 30 capsules per bottle.
Is Protandim NRF2 Organic
No matter what they claim about the beneficial aspects of NRF2, and being all-natural, it has no bearing whatsoever about it being organic.
So, Is It Organic Or Not?
They claim all-natural ingredients don’t hold any weight if they can’t categorically claim they are all free of chemicals or any pesticides during plant development.
There is no information on their website to suggest ingredients are contaminated free. In that case, most likely, they are not organic.
Reduce Oxidative Stress
Also, they lay claim to it reducing oxidation stress by 40% in 30 days and “produce enzymes capable of neutralizing more than 1,000,000 free radicals.” Ownership of this nature is made without any anecdotal evidence supporting such claims.
Complaints Better Business Bureau
A list of complaints has been registered with the Complaints Better Business Bureau, varying from delivery standards below expectation to customer service way below the benchmark. And where customers found it challenging to obtain a refund because of an adverse reaction to the capsules.
The LifeVantage Opportunity Does It Work?
Ideally, having background knowledge relating to the products or intimate knowledge of the company would be helpful. Otherwise, success will be a testing experience.
Like I said earlier, you need to be entirely satisfied in your own mind that you fully believe in and stand behind the products for success to happen. Otherwise, you’re a lame duck in water.
A quick search uncovered the ease with which the availability of these products can be sourced independently to LifeVantage.
For instance, a quick survey of Amazon and eBay exposed how easy it is to buy LifeVantage products. And all for around the same selling price.
It doesn’t make any sense of fairness to their distributor.?
Look at it this way, if they are so easily obtained through other avenues, where is the exclusivity? So, why would you want to be one of their distributors?
How Much Does It Cost To Join LifeVantrage?
If you’ve settled on the idea of becoming a LifeVantage distributor, then carefully scrutinize all the options way before making a decision. It would also be in your own best interest in starting with the $50 business builder starter kit. Of course, you’ll need to buy some products, but a small quantity, about $100’s worth, for personal sampling or sharing with family and friends.
As you can encourage them to buy through your free LifeVantage website, and at the same time, it will help to start a customer.
Sponsor Recommended Starter Pack
Most likely, you’re introducing sponsor will suggest buying the platinum pack for $1,000, even though there are two cheaper packs, such as the gold pack for $650 and the silver box for $350.
Although there will be some reasonable discounted prices, it doesn’t take away the possibility that you will be left with products you can’t sell and are useless to you. So, in my opinion, that is an enormous risk in itself.
Upsell On Starter Packs
Without any doubt at all, you be expected to buy the platinum pack as being the best way to quick start your business simply because your sponsor gets a $400 smart start bonus.
Silly as it may sound, that’s the quirky thing about MLM businesses. Everyone above you gets a small slice of commission out of your monthly order.
The impression will seem like they are trying to help you, but all they are doing is feathering their own nest.
Retaining Active Member Status
As a distributor, it’s essential in maintaining active member status to qualify for all eligible monthly bonuses. So, you’ll need to place a monthly order to the equivalent of 100 PV (Personal Volume).
With LifeVantage Can You Earn Any Money?
LifeVantage is a Typical MLM Model where you earn your money through a commission-based structure selling products and recruiting others to join your downline.
As stated on their official web page, this is ‘The Opportunity of a Lifetime’.
Trumpeting that all the tools and training is wrapped up in a ‘proven plan’ aimed at helping you get a quick return on your investment and earn long term residual income.
If you’re to take notice of all that sort of hype with little to no detail, then the so-called
‘proven plan’ advertising has worked.
Time and time again, when MLM businesses stipulate there are many ways to earn money, it usually results in the Distributor making nothing at all, or worse, lose money.
As indicated on the LifeVantage compensation plan, there are 8 ways how you can earn a commission, and to me, it immediately raises a RED flag.
Time and time again, when an MLM business pledges, there are many ways to earn money. History reveals the opposite. In fact, it shows you’ll earn no income at all and quite possibly lose money.
Customers who purchase either directly from you or through your website means you’ll earn a commission on the sale. The commission is the difference between retail and wholesale, with the margin usually around 20%.
Smart Start Bonus
It’s a reward-based bonus where you’ll earn a commission from preferred customers and newly enrolled distributors calculated on a month by monthly basis. Provided you retain the required 100 PV status to qualify.
Also, you can earn a smart start bonus if your newly enrolled distributors join with either a silver, gold or platinum pack.
You can potentially earn a commission on many other levels, but they are almost at the top level, and only around 1% ever reach these dizzy heights anyway.
The core of MLM network marketing focus is based around sales as being one of the keys, and if you’re not selling a product, then you’re not making money. So, building a strong customer base is vital to your marketing success.
What Is The launch Bonus?
Not dissimilar to the smart start bonus, barring you’re rewarded for those recruited into the business by your downline.
Oddly enough, it was nicknamed by LifeVantrage as the ‘trickle-up bonus. And, I guess there’s a good reason for that.
It consists of 6 levels and is paid to the next in line in your upline.
Auto Shipment What’s That?
Auto shipment is part of the enrollment plan and is essential for the approval process. What it means, you are giving LifeVantage the authority to automatically process an order to a minimum of 100PV and forward it to you every month.
How Important Is Recruitment?
Recruitment plays a pivotal role in your success. As the more people, you’re able to recruit you up the rankings ladder.
Naturally, you’ll start as a distributor, then to Pro 1, climbing all the way up to Pro 10. So, recruiting is an overriding factor for your success.
Building A Downline
Building a downline will be part and parcel of moving up in the rankings. But that’s easier said than done. Not everyone sees the potential as you may see it, so recruiting is damn hard work.
If you can paint the big picture and get them to believe, then the rest is easy.
Purchasing A Starter Kit Isn’t Required.
Not having to buy a starter kit to begin is noteworthy, as it’s not the case with most other MLM businesses. Just the same, you’ll have to buy some stock, usually around $100 or so, and you are on your way.
Exceptional Commissions – Bonuses
Your monthly (PV) dictates the amount of commission earned. And that’s in the range of 30 – 40% on monthly sales. If someone buys a starter kit from you, you’ll earn an additional bonus for that sale, and that’s separate from your other monthly sales.
Whilst climbing the ladder and moving through the ranks; another commission is called “Royalty Commission”. And that pays a further bonus based on a percentage of your overall PV, ranging from 2% to 9%.
Optional Starter Kits Costly
With starter kits starting at $250 up to $1,000 and given there is no compulsion to buy one, you’d be right in thinking they are costly. Why then would you want to buy one?
Your upline sees it differently, and they’ll put heaps of pressure on you to buy the most expensive one, $1,000. Why? Because your sponsor earns a bonus when you buy a kit.
Adverse Side Effects
Some customers lodged a complaint indicating they became ill after taking the Protandim NFR2. Now, that’s a bit scary. Nevertheless, the Distributor passed it off by suggesting it’s only a “Detox Effect”, so keep taking the NRF2, and everything will be OK.
In all fairness, the Distributor most likely hasn’t any medical degree to be offering advice relating to any medical condition.
Lack Of Customer Service
As reported to the BBB website, many customers are very dissatisfied with customer service; actually, it lacks customer service.
Complaints range from unauthorized debits, the reluctance in paying refunds, including the late shipment of orders.
Some even complained about how difficult it is in being able to talk with a customer service representative. And the frustration when not given a satisfactory response or wrong information.
Shady Business Practice
A class-action lawsuit was filed at the beginning of 2018, claiming LifeVantage operates as a pyramid scheme. The claim also stated that they falsely advertised remedies for various diseases, and in fact, it’s no more than snake oil with no real medicinal or nutritional value.
The writ also claims LifeVantage is selling false dreams of wealth and financial independence.
LifeVantage Is It A Scam?
Is LifeVantage a scam? According to the class action listed against them, you’d have to think their operation is a bit on the shady side.
Again, the majority of MLMs are high-pressure operations, mainly because recruiting is the central point of their business, followed by sales.
Selling products on a commission-only basis is no easy feat if anything, it’s an enormous challenge.
In fact, history supports that theory, with many thousands if not millions of people worldwide have fallen into the trap, with the majority losing money in the process.
Believing LifeVantage is different is nothing more than a false belief. As a matter of fact, considering the legal challenges they face, it suggests this business will be even harder to earn a few dollars than many others.
The research I’ve been able to uncover indicates that your chances of making any money with the LifeAdvantage MLM system are less than 1%, more likely you’ll lose money.
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