Is LifeVantage a scam or the real deal? Can this MLM company live up to both its health claims, as well as being a lucrative way to make money? I was asked to write a review on this one.
So let’s take a closer look and uncover the truth…
Over MLM schemes and other platforms that really don’t pay?
Company Name: LifeVantage
Owner: LifeVantage Corporation
Price To Join: $100
My Rating: 3/10
~ LifeVantage Reviews ~
What Is LifeVantage?
Based in Utah, as so many MLM companies are, LifeVantage are yet another in a long and ever-growing list of health and wellness companies. They mix things up a little by adding beauty products to their line, as well as a health supplement for dogs. It was founded in 2003 and is currently run by President and CEO, Darren Jensen, who has more than two decades of global network marketing experience.
This company is listed publicly on the stock exchange, so a little different to many other MLM operations out there. Until 2005 the company sold via retail outlets, but then switched to the more lucrative (for the company anyway) multi level marketing model.
Oxidative stress reduction is the selling point for much of the LifeVantage product line. What does that mean exactly?
Oxidative stress is a condition when our bodies become overrun by free radicals and our bodies struggle to detoxify and return to a balanced state. When someone claims they have a product that reduces oxidative stress, all that means is a fancier way of saying they produce supplements high in antioxidants.
Like all MLM businesses operating in the health and wellness niche, the prices of the products are sky high. It’s the very nature of the MLM compensation plan that forces such a price hike. As an example, one of their most popular products is called Protandim and it retails for $50 for 30 capsules. So not cheap by any means.
I won’t list all the available products here, as this review is primarily about the business opportunity side of things, but I’ll make mention of the categories.
The MLM Business Opportunity
The opportunity offered by LifeVantage is your typical MLM business deal. By its very nature, the MLM compensation plan and structure is designed to heavily favour the company while taking away many of the benefits for distributors.
I make no secret that I’m not a fan of the MLM is set up, as I believe it’s grossly unfair. In this case LifeVantage get themselves an army of distributors. These distributors don’t get paid any wages whatsoever and even have to pay LifeVantage for the privilege of being a distributor.
MLM companies claim you are getting your own business, but you are not. LifeVantage own and control everything. As a distributor for them, you’re just a sales rep. And you have to pay a fee, buy a certain amount of product every month and sell a certain amount of product every month to remain eligible to be a distributor.
LifeVantage essentially get themselves a free workforce that does all the promoting, buying, selling and recruiting for the company, with the only compensation being the promise of commissions and possible bonuses.
This is an awesome deal for LifeVantage as it saves them loads of cash and work, but an atrocious deal for the masses who get sucked into these MLM schemes.
The LifeVantage Compensation Plan
As a LifeVantage distributor you can make money at a retail level, but the real money is in recruiting. That’s how these schemes work. And why is that? Because the more people who get recruited into the scheme, the more ready-made customers LifeVantage has to force its products onto.
For every single person you recruit, to be a distributor they have to pay the entry fee and agree to having products auto-shipped to them every single month. This is how MLM companies make their sales – To their distributors!
Some of the ways you can earn at LifeVantage include:
- Direct sales (Retail)
- Fast Start Bonus
- Platinum Pool
- Elite Pool
- Matching Bonuses
- Residual Commissions (Downlines)
There are also various ranks you can achieve. For more information, click here to read the LifeVantage compensation plan PDF.
You can also watch the video below.
Is LifeVantage An Illegal Pyramid Scheme?
I wouldn’t classify them as an illegal pyramid scheme, although the MLM compensation structure is almost always based on a pyramid system.
An illegal pyramid scheme relies solely on recruitment to survive and has no real or genuine products. The very fact that LifeVantage has real products allows them to operate as a legitimate business.
The health and wellness craze doesn’t show any signs of abating anytime soon, hence the reason why so many MLM businesses target this niche. People are attracted to MLM as a business venture because everything is already established and ready to go. Less risk.
What I Like
- I like the fact that this company has a health supplement for dogs. It’s something a little different and also important
- They have been around since 2003, so well established
What I Don’t Like
- The prices are expensive, which is to be expected with a MLM company in this niche
- The health and wellness niche has been seriously done to death
- LifeVantage are not offering anything new or innovative here with their products or business opportunity
- All the advantages go to the company with the MLM structure
- Most people fail at network marketing
- The average yearly earnings for distributors is only about $500 before expenses
- You will likely spend more on auto-ship than you will earn
- MLM is an incredibly hard way to make decent money
- You will have to recruit like a maniac to earn decent income with this opportunity. It’s the only way
How Much Does LifeVantage Cost?
It costs $100 for a Starter Kit which gives you some samples and business materials to get going with. You also need to sign up for the monthly auto-ship of products to remain eligible for bonuses and commissions. LifeVantage highly recommend you purchase the $600 kit to get you started.
Is LifeVantage a Scam?
It’s not a scam. The products are real and don’t seem too bad, just very expensive. The compensation plan is typical MLM and favours LifeVantage much more than it does the distributors.
MLM is a very hard way to even make some cash on the side, let alone turning it into a fulltime gig. Plus, you never really own your own business. You are just a sales rep. LifeVantage make all the rules, set the prices, call the shots and can boot you out anytime they please.
Add in the fact that LifeVantage is operating in the most competitive and saturated niche there is and you really are looking at a huge mountain to climb to get anywhere in this business. Plus they’ve been around since 2003, so recruitment will be that much tougher.
Forget MLM – Affiliate Marketing Is Far More Lucrative
I much prefer affiliate marketing over multi level marketing. I’ve done both, and the advantages to being an affiliate over MLM are just so many. I’ll list just a few here:
- You own your own business with affiliate marketing
- There is no joining fee, purchasing or selling of products
- No monthly mandatory auto-ship
- You work your own hours and set your own rules
- Much of your income becomes passive over time
- You still earn money from your business even when you travel
- It costs virtually nothing to start up and run an affiliate marketing business
- You won’t annoy the hell out of everyone you know
- There is no recruiting necessary
Those are just some of the advantages affiliate marketing has over the MLM model. There are many more.
The reason I’m able to make a healthy fulltime income from my business is because of the training I did that showed me how. If you would like more information and learn how to get started, just click the banner below.
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