Is Isagenix A Scam Or Pyramid Scheme? (Read Before Joining)
Wondering if Isagenix is a scam or pyramid scheme and whether or not you should sell their products?
In this post you'll see all the information and facts you need to make a decision and you'll see how I feel about this businesses opportunity as well.
Price to join: $29 + products ($700 minimum)
Do I recommend? No!
Summary: Isagenix is a pretty typical MLM company - they sell various health products including dieting and beauty products as well as essential oils.
I personally DON'T think you should join this company. There's many reasons why I say this but the main reason is the success rate is extremely low (about 1%) and you're more than likely just going to lose money.
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What Is Isagenix?
Isagenix is a health and wellness company that was started in 2002 and they sell dietary, well being and beauty products as well as essential oils.
The company founders are John Anderson, Jim Coover, and Kathy Coover.
There's nothing too bad in Isagenix's past. There's a few lawsuits that have to do with the business side of things and has nothing to really do with the products or MLM process.
However, John Anderson and Jim Coover have been associated with some dubious diet schemes in the past.
That's a bit of a red flag but there doesn't seem to be any red flags with Isagenix products.
Is Isagenix A Pyramid Scheme?
Some people make the mistake of calling all MLM's a pyramid scheme which isn't exactly true (Although in some cases it is true).
Isagenix isn't an outright pyramid scheme HOWEVER has elements of a pyramid scheme.
Take a look at the picture below:
What does that commission structure look like? A pyramid.
The reason for this is with MLM's (and this is true with Isagenix) you make most of your money from recruitment which is the textbook definition of a pyramid scheme.
Recruitment is profitable because you make money off the sales your recruits make and you make money from your recruit's recruits and so on.
The only reason Isagenix isn't an outright pyramid scheme is because you can make money by selling the product yourself to other people (recruitment isn't technically necessary).
Look at anyone who's successful with a MLM, though, and you'll see it's because they've recruited people to sell under them.
Success Is Rare With Isagenix
MLM's in general have about a 1% success rate which means 99% end up losing money. Isagenix's success rate numbers aren't much better.
If you want to read Isagenix's full earnings disclosure, click here.
I'll sum up the numbers now.
In total 78,000 US based Isagenix associates made some money (more than a $1). This comes out to around 20% of US associates (80% lost money).
That's pretty bad and it gets MUCH worst.
Of that small group that did make money 50% of them made less than $337. If you're wondering that comes out to less than $1 a day.
Factory workers in third world countries make more than that.
If you're a little confused let me clear something up: so far you've seen 90% of people who join Isagenix either lose money or work for a whole year and make less than $1 a day.
There's even more to look at.
Only 2% of people that join Isagenix make more than $3094 and only 1/5th of a single percent made more than $40,323 which is an average American salary.
Why waste your time if it's nearly impossible to just make an average salary?
There HAS to be other options in your life to make money.
How Much To Join Isagenix?
If there's one good thing about MLM's it's that it's cheaper to join one than it is to start a brick and mortar business - brick mortars cost on average $100,000 to start and their success rate isn't that good either.
There's two prices you'll come across when trying to join Isagenix and they are:
The annual fee is $39 and you'll need to pay this when you first sign up. This is mainly meant to weed out people just looking to get the distributor discount for personal use,
Here's where the main cost is. In order to sell for Isagenix you'll need to purchase a product pack and there's different packs available at different prices.
Here's your options:
- Weight Loss Pack: $743
- Energy Pack: $740
- Performance Pack: $743
- Healthy Aging Pack: $737
- Rejuvity Pack: $712
- Business Pack: $1454
As far as start up costs go this is pretty high for a MLM. Most come with a few options that are cheaper and around $100 but that's not the case Isagenix.
Just another reason you shouldn't join Isagenix.
Isagenix Compensation Plan
Even though odds are you'll just end up losing money with Isagenix, it's still worth noting how you could potentially make money from Isagenix.
MLM compensation plans are always so confusing and complicated to decipher, however. For some reason these companies insist on using complicated language and hard to understand graphs to explain everything.
Maybe they just don't want people to understand it.
Anyway, if you want to read the whole thing for yourself, click here.
You can watch this video to see a brief description as well:
There's really only a few things you need to know about making money with Isagenix.
Here's the main ways to make money:
One of the ways you can make money is by selling products directly to customers. When you buy products from Isagenix you get them at a discount and can mark up the products when you sell them.
For some reason, though, there's a $4.95 "administration fee" on each sale and you'll have to factor that in when selling.
When you sign up people to sell for Isagenix you get a commission as well. How much you make depends on how much your recruit buys when signing up and if they recruit other people.
This is the aspect of Isagenix that makes it a partial pyramid schemes - it's also where the money is.
When you recruit people you get a piece of their sales and a piece of your recruit's recruit's sales and so on.
Isagenix uses a binary commission structure that looks like this:
In this type of system you have what's known as a right leg and left leg. Your goal is to build each leg out as far as possible.
Isagenix Product Line
I have no clue if the products Isagenix offers are legit or not - I'm not a scientist and I'm not exactly obsessed with health.
If I had to guess I'm sure Isagenix products are decent but their benefits are overstated. After going through some reviews some people seemed to like these products while others didn't.
There's a few different product categories too and they are:
Weight loss products is what Isagenix is most known for and they have plenty of products to choose from.
They are separated into individual products and what are known as "Paks." These paks contain multiple products and there's usually enough for a 30 day supply.
This section is smaller than the weight loss section. There's many individual products but a lot less paks.
Vitality + Wellbeing
This section is as big as the weight loss section and there's a lot of different products and paks to choose from. These products supposedly help with many different issues.
Essential oils have exploded in popularity over the last few years. This section isn't very large, though, and other MLM's like doTerra offer many more options.
Personal Care + Beauty
The last category is personal care and beauty. This is the smallest of all categories and there's only a few lotions and creams offered here
What I Like About Isagenix
Even though I don't recommend Isagenix there's a few things that I do like including:
1) Decent products: I don't think the products that Isagenix offers are anything too special but they seem to get decent reviews,
2) No serious lawsuits: There's a few lawsuits against this company that have to do with business but nothing too serious. There's nothing like withholding money from associates or anything like that.
3) Been in business for a while: MLM's come and go and most don't make it for more than a few years. It sucks when you invest years into a company and it folds. Isagenix has been around for almost 20 years which is an eternity in MLM.
What I Don't Like About Isagenix
I definitely don't recommend Isagenix and the main reasons are:
1) Low success rate: It's really hard to make money with Isagenix. In fact, 80% lose their money and only 1/5th of a single percent make more than $40,000 a year with the company.
2) Crowded market: How many weight loss products are on the market? A million? You'll have a hard time sticking out in the crowd and Isagenix products aren't unique enough to help you succeed.
3) Selling to friends and family: Do you really want to pester friends and family to buy your products or join your downline? That's what usually happens in MLM's and it ruins relationships.
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Hopefully by now I've talked you out of joining Isagenix. I just don't think it's a good business opportunity and you should avoid it.
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