Is Juice Plus a pyramid scheme? What’s the true definition of an illegal pyramid scheme anyway, and does health and wellness MLM company Juice Plus fit the definition?
Let’s take a closer look and find out…
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Company Name: Juice Plus
Owned By: National Safety Associates
Price To Join: $50 to get started
My Rating: 4/10
~ Juice Plus Reviews ~
What Is Juice Plus?
Juice Plus is a range of nutritional supplements and drinks manufactured by Natural Alternatives International. The products are distributed primarily by its members via a multi level marketing structure. The Juice Plus supplements have actually been around since 1993, so they’re not some fly by night product or company.
The products are all made from fruit and plant extracts and contain essential vitamins and minerals, and while this is all good for general health and wellbeing, Juice Plus has been marketed as having some amazing health benefits which are largely unproven and not backed by independent research.
Consumer watchdogs have disputed these facts and claim some of the marketing is misleading. It’s not the possibility that Juice Plus supplements may have some positive health benefits that anyone has a problem with, it’s the “specific” benefits they claim that are largely unfounded and unproven.
The Products
The Juice Plus product range is essentially made up of 4 different product lines:
- Nutrition bars
- Health and dietary shakes
- Chewable vitamins
- Vitamin capsules
The shakes are milk-based drinks, whereas the chewables and capsules are made from a variety of fruit and vegetable extracts, as well as other plants purported to have positive health benefits. Some of the health benefits Juice Plus lay claims to include:
-
High levels of antioxidant activity
- Improved cardiovascular health
- Increased levels of immunity
- Clearer skin
- Prevention of colds and flu
- Weight loss
- More energy
- Improved moods
- Better sleep
- Helps with arthritis
Tests and studies have been carried out on the actual benefits of taking Juice Plus products, but the research hasn’t been unbiased.
The testing has all been conducted by companies paid by Juice Plus.
The Compensation Plan
As this website is all about making money and business, what we’re even more interested in is the business opportunity side of Juice Plus, how it works and whether there is any decent money to be made.
Juice Plus don’t just simply call their members “distributors” or “IBOs” (independent business operators). They get you started in your very own “Virtual Franchise”. It’s really just the same deal as any other MLM company. They’ve just given it a fancier title to differentiate their opportunity from the competition. You’re not actually buying a Juice Plus franchise like you’re buying a MacDonald’s store.
The problem with all MLMs, in my opinion, is that your monetary success relies so heavily on recruitment. Yes, you can make money with direct retail sales, but the real money is always found within your downline – earning commissions off the sales of your recruits as well as group bonuses – and unless you can build and maintain a very active downline, the amount of income potential will be extremely limited at best.
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Another thing to consider about Juice Plus is they’ve been around since 1993, so competition out there will be fierce as many people have already jumped on board with it, or heard about it. Plus, the health and wellness MLM niche is the most common one there is. There are so many competitors out there that this will be a really hard sell.
There are 7 different levels in the Juice Plus MLM set up and to really make money you need to advance up those levels.
- Distributor
- Direct Distributor
- Virtual Franchisee
- Sales Coordinator
- Senior Sales Coordinator
- Qualifying National Marketing Director
- National Marketing Director
Watch the video below for a full explanation of how the Juice Plus compensation plan works.
Definition of a Pyramid Scheme
A “naked” pyramid scheme is one where there are no products or services and people simply receive monetary incentive for recruiting other members. The investment of new members is then used to pay the profits of older investors. This is also commonly referred to as a Ponzi scheme (named after the notorious Charles Ponzi).
All MLM business structures work on the pyramid format. One recruiter starts it off and lures in other recruits, who then pay money to the person who brought them in. Those new recruits are then encouraged to recruit at least 2 or 3 recruits of their own. And so it goes on down the line.
Now while MLMs do use a pyramid system, so long as they sell tangible products with an inherent value, they cannot be labelled as pure (or naked) pyramid schemes. If it’s possible to sell the product WITHOUT the need to recruit others to make money, then the MLM is not classified as an illegal pyramid scheme.
Some systems are obvious pyramid schemes, like the ever popular on social media – the money matrix. These schemes pretend to have some sort of product or service, such as buying ad packs, to attempt to get around the legalities. But really they are nothing more than Ponzi schemes.
Anything that relies heavily or solely on recruitment to sustain itself is not only doomed to failure eventually, it is also an illegal pyramid scheme.
What I Like
- Juice Plus has been around for almost 25 years and is run by a company that has been in existence since 1970
- Health and wellness products are super popular
- The products are good quality and well received
What I Don’t Like
- As with all MLM systems, the products are super expensive
- This is a highly competitive niche to try and make money in
- You are also dealing with a company that has been actively recruiting since 1993
- The average yearly income for any MLM distributor is only about $400
- Most people make zero dollars from the business side of MLM companies
- The health claims of Juice Plus products have been heavily disputed
How Much Does Juice Plus Really Cost?
To get involved in the business side of Juice Plus, you’ll need to submit an application and pay a $50 joining fee. From there, it depends on what starter kit you purchase as to how much it will cost you. There will be a minimum monthly spend required to remain eligible for commissions and bonuses earned from your downline. However, you can just sell the products directly and not worry about recruiting. The real dollars are earned from recruiting a strong downline and moving up the ranks, though.
Is Juice Plus a Scam?
I don’t think Juice Plus is scamming anyone, either with their products or their business setup. Albeit rather expensive, their products are pretty good quality and a lot of people swear by their many health benefits.
Is Juice Plus a pyramid scheme? No, not exactly. The MLM structure by its design is a pyramid, but because they have tangible products that can be sold for retail value and recruitment isn’t “essential” to sustain the business, then it cannot be classified as an illegal pyramid scheme.
I believe the setup of MLMs is always a little bit on the shady side. I’m not a fan of the business model and it's a really tough way to make some money.
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Darren Burton
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