Is Rain International A Scam? Another Health Pyramid Scheme?
Hey, how are you?
If you've recently been approached to join Rain International you're probably wondering if it's a scam or pyramid scheme.
Congrats on doing your research and after you're done reading this post you'll know everything you have to about Rain Intentional and whether to join or not.
Rain International Summary
Company: Rain International
Price to join: $249 to $1259
Do I recommend? No
Summary: Rain International is a pretty typical MLM company and they are in the health market (they have various products for different ailments.
I would definitely avoid this opportunity because the success rate is very low and the health field is very crowded - it'll be almost impossible to make money with them.
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What Is Rain International?
Rain International is a MLM company that sells various health products. A MLM is a company that doesn't spend money on advertising and instead relies on distributors to market the products for them.
In exchange for selling products you receive a commission and you get money when you recruit people to sell as well.
Rain International is a pretty established MLM and has been around since 2009. Many MLM's come and go in a span of a few years and 10 years+ for a MLM is pretty rare.
The fact Rain International as survived for so long is a pretty good sign.
The US headquarters for Rain is located in Utah where you'll find many other MLM companies. Apparently it's easy to start a business in Utah because there's limited regulation and government interference, so many MLM's decide to set up shop there.
The President of Rain is a man named Byron Belka who has a lot of experience on the affiliate side of MLM and was involved in other MLM's such as NU Skin and eXfuze.
As of right now I don't see any lawsuits against this company, however, someone at Utah Voice is accusing them of fraud and racketeering. Obviously an accusation doesn't mean guilty but it's something to consider.
Is Rain International A Pyramid Scheme?
Some people make the mistake of thinking all MLM's are pyramid schemes. This likely comes from a place of hatred of the business model (there is a lot to hate).
Most MLM's aren't outright pyramid schemes and instead have elements of a pyramid scheme.
That's how I would describe Rain Intentional.
Look at the picture below to understand what I mean:
As you can see that looks like a pyramid scheme and this is what part of the commissions structure looks like at Rain (the part that involves recruitment).
When this happens all that really matters for your success is where you are on the pyramid and not how hard you work.
The reason Rain isn't an illegal pyramid scheme is because you can also make money by selling products directly to customers without recruiting.
Can you make a lot of money by just selling directly to customers? Not really.
If you look at the top earners of this MLM you'll see they're all there because of their ability to recruit new people into the system.
Plus, there's a large emphasis on auto-shipment which means when you recruit someone into the system they automatically have to order products each month.
This means a lot of the revenue for Rain comes from affiliates purchasing the products. This is an indicator of a pyramid scheme.
Rain International toes the line between legitimate company and pyramid scheme closer than most MLM's.
Success Is Rare With Rain International
Often times more established MLM's will have what's known as an income disclosure statement for people to look at.
What this disclosure does is shows people how many people are making money vs. losing money, how long it took to make money and the different percentages of people making money.
I have yet to see an income disclosure that was positive for a MLM. It doesn't matter how big or successful the MLM either - way more people end up losing money than making money and the people that do make money only usually make a couple hundred a month.
Despite being around for over 10 years Rain Intentional doesn't have an income disclosure which should be a major red flag.
If I had to guess their numbers are even worst than the industry standard.
Here's some basic MLM facts for you to chew on instead:
- Between 75% to 99% of people lose money when joining a MLM.
- The overwhelming majority of people that do make money with a MLM only make less than $400 a month.
- 70% of people that join a MLM say they will never join another.
- 50% of people leave a MLM because they thought selling to friends and family was awkward.
MLM is just a bad business model and only works for a handful of people. There's definitely better ways to earn money.
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How Much To Join Rain International?
If there is one benefit to joining a MLM it's this: it's cheaper to sell products from a MLM than it is to start a brick and mortar store.
The former will cost a couple hundred to a couple thousand and the later on average costs around $100,000.
You're more than likely going to lose your money with a MLM but losing a few hundred is better than losing $100,000.
There's various packages you can choose from when joining Rain and they are:
- Business Builder ($249)
- Professional Builder ($599)
- Rain Elite ($919)
- Super Elite ($1259)
Obviously the more you spend, the more you get with the last two coming with 6 months of auto-ship.
What Is Rain's Compensation Plan?
MLM compensation plans can be so complicated and if you're unfamiliar with the industry you might feel lost trying to decode it.
The compensation plan for Rain is over 20 pages long and if you want to read the entire thing, click here.
You can also watch the video below to learn about it:
I don't think it's necessarily important to know every last detail of the compensation plan and I'm going to summarize the most important parts below:
A lot of times a MLM company will give you a commission on every sale you direct to their website.
But it doesn't work that way at Rain and instead you have to buy in bulk from Rain and sell the products at whatever price you would like.
I personally don't like this method of retail commissions because it requires you invest money towards stock and you can lose you money this way.
A preferred customer is when a customer decides to autoship Rain products every month. For every $40 autoship customer you get you will receive a $10 commissions.
As you sell more products and recruit more people into the system, you start going up in rank. You get many perks as you progress through the ranks.
At Rain there's 11 different ranks ranging from a Rain associate to Black Rain Diamond.
The first rank requires you buy/sell 50 PV (personal volume) every month.
To get to the 11th rank you'd have to maintain 200 PV a month, 5000 GV (group volume) on your lesser binary leg, 75,000 GV from your whole downline for 4 straight weeks, and have 7 personally recruited members that get to the 2nd affiliate rank.
If you're unfamiliar with MLM lingo that probably makes no sense but just know it's incredibly difficult to reach the 11th level.
First Order Bonus
When you recruit someone into the system you get a commission depending on the pack they purchase when joining.
You can make between $30 to $90 per recruit this way.
This is how you're going to be making the majority of your money and is the part of the commissions structure that most closely resembles a pyramid scheme.
The commission structure at Rain is binary and looks like the following:
How much you get is dependent on your legs group volume and your rank. The more each leg sells and the higher the rank you achieve, the more you make.
There's various other ways to make money like with the leadership bonus, residual commissions generation match, lifestyle bonus and more.
These bonuses are less important and you shouldn't worry about them until you're already making money with Rain.
What Products Does Rain Offer?
The main product at Rain International is called Soul and is a drink that's made up of black cumin seed, raspberry seed, grape seed, and some other nutrients.
The product is pretty expensive and costs $85 for 30 packs of the 2 ounce drink.
According to Rain this product helps with:
- General health
- Cardiovascular support
- Immune health
- Mental clarity
Do I think this product works as promised? Probably not.
It can definitely have some benefits but I doubt it's the life changing product it's marketed as.
If you want to be healthy you need to lead a healthy lifestyle. There's no magic potion that'll have any real benefits more than eating healthy, exercising and other healthy activities like that.
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What Do I Like About Rain
The only thing I really like about Rain is the company has been around for a while.
If you do decide to join and invest time/money you won't have to worry about the company folding overnight and losing everything.
What Don't I Like About Rain
There's way more that I don't like here than do like and the main things that I don't like are:
- Main focus on recruitment: Retail commissions are basically not existent and if you want to make real money you'll have to recruit like crazy (this is is usually what needs to be done in a pyramid scheme).
- Autoship Requirements: Another reason this opportunity is a lot like a pyramid scheme is a large portion of Rain's revenue comes from affiliates buying products.
- Small chance at success: MLM's are extremely hard to succeed with and you're probably just going to lose your money. Nothing about Rain suggests it's better than the average MLM.
- Bothering friends and family: It's inevitable you'll have to try and recruit close friends and family. This can lead to problems and ruin important relationships.
Is Rain International A Scam?
This one is a hard call.
A lot of MLM's aren't scams and are instead just bad business opportunities. Rain International borders being a scam and is a bad business opportunity.
The only reason I won't call it an outright scam is it's been around for so long - typically real scams don't last 10 years.
Either way you should skip Rain International.
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