Isagenix Scam: Pyramid Scheme or MLM? [Review]

If you’re looking for nutritional supplements and personal care products, you might have heard of Isagenix. It’s one of those MLM companies that many people talk about these days. 

Maybe you found out about Isagenix through a friend or family member, who tried to persuade you to become an independent distributor and work from home. But here’s the thing: success with Isagenix is unlikely, and I’ll explain why in this review. 

As an online entrepreneur, I have reviewed many similar online opportunities over the years. So I can tell you what you need to know.

I want to be clear that I’m not affiliated with Isagenix. That means I’m not getting paid to write this review, so you can count on me to be honest and unbiased. And at the end of this review, I’ll even tell you about the best alternative to Isagenix that has helped me make a full-time passive income online.

What is Isagenix?

Founded in 2002 by John Anderson, Jim Coover, and Kathy Coover, Isagenix has become a household name in the health and wellness industry.

With its headquarters in Gilbert, Arizona, Isagenix also has a presence in 14 other countries. It’s no surprise that this multi-million dollar company is run by a small group of extremely wealthy and influential individuals. In fact, they’re one of the few direct selling companies that have generated over $1 billion in sales!

As of 2017, reports show that they’ve made a total of $958 million in sales, and they may have already reached the billion-dollar mark. Impressive, right? Isagenix has over 200,000 active distributors and an estimated 850 full-time employees, making it a major player in the health and wellness industry.

Isagenix offers a wide range of products to cater to your needs. Their lineup includes approximately 140 products in the following categories, both separately and as part of sets: Weight Loss, Performance, Vitality and Well-Being, Personal Care and Beauty, Kids supplements, and Essential oils (including CBD oil).

So, whether you’re looking to shed some pounds, boost your energy levels, or simply take care of your skin, Isagenix has got you covered.

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What Products Does Isagenix Offer?

Isagenix has a wide range of products available for purchase. While there’s nothing particularly groundbreaking on offer, they do provide meal replacements, shakes, snacks, and a wealth of information in the form of booklets, blogs, and videos.

Some people have criticized Isagenix for their MLM-style pyramid scheme, but we won’t get into that right now. The most common complaint seems to be about the price of their products.

If you’re looking to lose weight, following a diet that restricts your calorie intake to 1,200 calories per day will help you shed those pounds. However, don’t expect to be blown away by the “amazing” Isagenix products and suddenly spring out of bed full of energy. While they may be helpful, they’re not miracle workers.

Is Isagenix An MLM?

Yes, Isagenix is a legit multi-level marketing (MLM) company, which is sometimes referred to as network or direct sales businesses. As an independent distributor of Isagenix products, you won’t receive a regular salary but you’ll have the chance to run your own business.

However, it’s important to note that making a good income by selling their products alone is unlikely. Like most MLM programs, your success relies on recruiting new members to work under you. You’ll earn a commission from the sales and new recruits generated by the people you hire once they start producing results.

So, imagine a triangle. In an MLM, the people beneath you are called your “downline,” and you are their “upline.” If the person at the top recruits ten people, and each of these ten recruits ten more, everyone in the triangle is in your direct downline, and you’ll earn commissions from everyone. By bringing in just ten people, you could make $1100.

Most people in MLMs prefer earning a lifetime passive income from recruiting others rather than a one-time commission from selling products, even if your MLM offers a wide range of products. However, it’s important to keep in mind that those at the top of the triangle have the most financial success, while those at the base have the least.

To succeed in a multi-level marketing company like Isagenix, having a large number of people in your “downline” is essential.

You may also want to read our article on the top MLM companies.

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Is Isagenix A Pyramid Scheme?

No, Isagenix is not a pyramid scheme. It is a legit MLM (multi-level marketing) company that offers its members the opportunity to earn money by selling its products. Unlike a pyramid scheme, Isagenix doesn’t require its members to earn solely through recruitment.

In contrast, pyramid schemes lure people with promises of money or services in return for recruiting others. These schemes are unsustainable and often scams, with members at the bottom losing money.

Pyramid schemes require members to pay a fee to the company that runs the scheme, with the company sharing a portion of the funds raised from each additional member recruited as a reward. The scheme is profitable only for those at the top of the pyramid, as they receive a portion of payments from every newly recruited member.

The only source of revenue for pyramid schemes is from recruiting new members and soliciting more money from current members. A pyramid scheme would need to grow infinitely to make money for everyone involved, which is impossible due to the finite population of the planet.

Pyramid schemes fail if there are no new recruits or other sources of income. Since most members are at the bottom level of the pyramid, the majority of them end up losing their money.

A well-known example of a pyramid scheme is Vemma, a producer of energy and weight loss drinks. The FTC accused Vemma of operating a pyramid scheme in August 2015 that paid more to recruit new members than to sell products. Unfortunately, the majority of participants lost money, including college students and young people who were promised high compensation.

You may read our article on the difference between MLM and pyramid schemes here.

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Is Isagenix a Scam?

No, Isagenix is not a scam. It’s a legit multi-level marketing (MLM) company. The Oxford Living Dictionary defines a scam as “a dishonest scheme; a fraud,” but that’s not the case with Isagenix.

But can you really make money by selling Isagenix products? While it’s true that most Isagenix reps didn’t earn any money, a few dedicated individuals have succeeded in making a living from it. However, this requires a lot of effort, and the top earners usually achieve their success by aggressively recruiting others to join the company.

It’s worth noting that Isagenix has been known to make exaggerated marketing claims to attract new members, which some people find disingenuous and irresponsible. This has led some to view Isagenix MLM as a potential scam.

Isagenix Compensation Plan

If you’re an Isagenix member, you can earn money in two ways. First, you can sell their products and get a commission. Second, you can recruit people to join the company and earn bonuses from their sales. But remember, you don’t make money just by convincing others to join your team. You’ll only get bonuses if they actually sell something.

It’s worth noting that the people you recruit will need to spend money on a monthly basis to stay active, which is when it starts to resemble “residual income.” However, the compensation plan for most multi-level marketing companies can be difficult to understand, and Isagenix is no exception.

As an Isagenix member, you can be compensated in six ways. First is retail profits, which give you a 25% commission. You can also earn retail direct profits through your duplicate website. Product introduction bonuses come from sales of your customers’ starter packs orders, while team bonuses, also known as cycles, come from residual income from your downline’s sales. You can also earn executive matching team bonuses, which are 10% matching bonuses on your downline’s sales when you achieve Executive rank. Finally, there are special incentives and promotions such as ranks, bonus pools, and more.

It’s important to keep in mind that if you want to make a lot of money with Isagenix, you’ll need to recruit others to work with you. Sales alone will not provide you with a passive income, and a 25% commission on sales to your friends and family may not be enough to support you full-time.

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How Much Does It Cost To Join Isagenix MLM Program?

Joining Isagenix MLM program is an opportunity that requires some financial commitment. Here’s what you need to know about the cost.

Signing up for “autoship” costs $29 for the entire year, and you’ll need to spend around $150 per month. If you choose not to sign up for “autoship,” you’ll pay $39 for the year.

If you only want to buy Isagenix products without signing up for the program, you can get a “10% off” discount without any payment.

If you plan to sell Isagenix products to people you know, you’ll need to purchase one of the starter packs, which cost between $89 to $1,098.

While the cost of signing up may seem minimal, to receive commissions, you must generate at least 100PV per month and sell approximately $150 in products every month. If you can’t sell the products, you’ll have no choice but to purchase them yourself to remain active.

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Pros and Cons of Joining Isagenix MLM Program

Pros:

• They offer a money-back guarantee which makes it less risky to try out.
• Some members seem to be earning a lot of money through the program.

Cons:

• The products can be quite expensive.
• Some users feel that the perceived benefits of the products may be due to the placebo effect.
• There seems to be a downward trend in the number of people who are interested in joining the MLM program.

Why I Don’t Recommend Joining Isagenix MLM Program

Customer Complaints

Isagenix has a 2.3 rating on Trustpilot, with many customer reviews stating that the products did not provide the promised benefits. 

Although Isagenix claims to offer a 30-day money-back guarantee, customers have had difficulties canceling their auto-ship and getting a refund. These complaints may make it challenging for you to sell Isagenix products, as customers may be hesitant to purchase from a company with a history of dissatisfied customers.

MLM Struggles

It’s not easy to make money with an MLM company like Isagenix. Statistics show that 72.5% to 99.9% of MLM members lose money. One reason for this is that MLMs have sales quotas that members must meet to remain active and eligible for commissions. If a member does not meet the quota, they will not be paid. As a result, many MLM members lose money before even recruiting one person into the company.

Reframing Losses as Investments

Isagenix MLM uplines often reframe their financial losses as ‘investments’ in their business to keep their reps in the MLM scheme. However, the reality is that these losses are not investments. It is unlikely that you will get the money back, and the return on “investment” is usually negative. Calling it an investment is dishonest.

Isagenix Cult-like Company Culture

One of the biggest drawbacks of working for Isagenix is its cult-like company culture. MLM representatives are discouraged from practicing critical thinking, and are even reprimanded or isolated for asking questions that deviate from the company’s message. MLMs also encourage representatives to isolate themselves from anyone who questions their involvement, much like an abusive partner. Those who leave the MLM are often labeled as failures or bad people/influences, and representatives are not allowed to contact them. The loss of relationships and community can be devastating for former MLM representatives.

Isagenix Products Purchase Requirement

If you don’t have a large network of friends, family, neighbors, and so on, you may have to purchase Isagenix products yourself each month. This can be quite expensive and may not be a sustainable option in the long run. It can be frustrating to have to buy products that you are trying to sell.

Overpriced Isagenix Products

Isagenix products are overpriced, which can make it difficult to sell them. Many other brands offer similar products at lower prices, making it challenging to convince prospects to buy Isagenix products. This is why many people who join MLMs like Isagenix focus on recruitment rather than selling actual products.

The Distribution of Commissions is Skewed

Isagenix’s MLM model has a fundamental flaw that many people have criticized. The distribution of commissions is skewed towards those at the top, which means that the majority of people at the bottom will not make much money or even break even after a few months. This has led many to believe that Isagenix is not a legitimate business opportunity.

Exaggerated Claims of Income

Like many other MLM companies, Isagenix makes exaggerated claims about the amount of money that its distributors can make. However, the reality is that very few people actually make a good living by promoting Isagenix. The low retention rate of distributors also makes it difficult for people to make a profit, as less than 41% of distributors are active. According to Isagenix’s payouts to distributors, over 99% of them never make a profit.

Recruiting is Required to Succeed

If you don’t recruit, you are likely to lose money at the end of the day. Isagenix puts a lot of emphasis on recruiting, as eight out of ten ways to earn money with the company require recruiting. This means that if you want to make a decent living with Isagenix, you will need to put in a lot of effort into recruiting others.

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Final Verdict

To be honest, I wouldn’t recommend joining Isagenix MLM.

Sure, the idea of being your own boss and earning a commission on the products you sell may sound appealing, but the reality is a bit different. At first, it can be tough to find people to join your team and make sales. You might feel like you’re constantly pestering your friends and family to buy products or sign up for the business opportunity, which isn’t exactly a fun way to spend your time.

On top of that, your upline might be pressuring you to buy more Business Support Material, even if you’re struggling to make sales. And unfortunately, the odds are not in your favor. According to a case study on the FTC’s website, 99% of people who join MLMs break even or lose money.

That’s a pretty sobering statistic. And it’s not just about the financial aspect – many people who join MLM-type businesses feel a lot of pressure to succeed, which can be stressful and demoralizing.

So, what should you do if you’re looking for a flexible way to earn money without the downsides of MLMs? My advice would be to consider starting your own online business. This way, you have complete control over what you promote, and you’re not beholden to anyone else’s agenda.

In the next section, I’ll share some tips on how to build an online business in a legitimate way that can provide you with sustainable, passive income. I’ve been able to make a full-time income in just a year using these strategies, and I’m confident that you can too.

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You may read our article about the difference between MLM and affiliate marketing.

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