Is Plexus a Pyramid Scheme or MLM? [Review]

Plexus is a multi-level marketing (MLM) company that sells nutritional supplements and personal care products. Don’t worry, it’s not a pyramid scheme and it’s considered to be one of the legit MLM companies out there.

Chances are, you’ve heard about Plexus from someone you know – a friend or family member who’s trying to sell you some products. With many people looking for extra income these days, it’s no surprise that Plexus is offering an opportunity to work from home by becoming one of their independent distributors.

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

Just so you know, I’m not affiliated with Plexus in any way. That means you can trust me to give you an honest and unbiased review of the company. 

And, if you stick around until the end of this review, I’ll even give you a suggestion for an alternative program that’s helped me make a full-time passive income online.

What is Plexus?

Plexus is a company that sells supplements that supposedly burn fat. If you’re like a lot of people, you might have come across Plexus ambassadors who promote these products on social media. Some folks swear by them, claiming that they improve gut health and overall wellness. But it’s worth noting that there isn’t any scientific proof to back up these claims.

In fact, Plexus is upfront about the fact that the FDA hasn’t tested any of their products. You’ll find this disclaimer at the bottom of their website. So, while some folks might sing the praises of Plexus supplements, it’s important to take those claims with a grain of salt.

Plexus got its start back in 2006 when some network marketing veterans decided to launch a company. At first, they focused on a skin cream and a kit for self-examining breast cancer cells. But the company has since shifted its focus to weight loss and health supplements. Their signature products are powders that you mix with water.

While some folks might find their supplements helpful, it’s important to remember that the scientific evidence isn’t there yet. As with any supplement or product, it’s always a good idea to do your research and talk to your doctor before trying something new.

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Is Plexus An MLM?

Yes, Plexus is a multi-level marketing (MLM) company. But what does that mean? Well, it means that Plexus products are mainly marketed and sold by brand ambassadors.

When you become a member of Plexus’ MLM program, you’re basically running your own business as an independent distributor of their products. The catch is that there’s no regular salary involved. Instead, you’ll earn a commission on the sales and new members generated by the people you recruit once they start seeing results.

Now, let’s talk about the recruiting part. In most MLM programs, your business depends on recruiting new members to work under you. This is where things can get a bit complex (hence the “multi-level” part).

Picture a triangle where everyone in it is part of your direct downline. If the person at the top recruits ten people and each of those ten people recruits ten more, you’ll receive a commission from everyone in the triangle. Pretty cool, right?

But here’s the thing: most people in your MLM would rather earn a lifetime of passive income by recruiting others than a one-time commission by selling products, even if your MLM offers a wide range of products. This means that those at the top of the triangle have the most financial success, while those at the bottom have the least.

So, if you want to be successful in a multi-level marketing company like Plexus, it’s important to have a large number of people in your downline. But just remember that success doesn’t come easy and it takes hard work and dedication.

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

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Is Plexus A Pyramid Scheme?

No, Plexus is not a pyramid scheme. Unlike pyramid schemes, Plexus allows its members to earn money by selling its products rather than solely through recruitment.

Pyramid schemes work by luring people in with promises of high rewards or services for recruiting others. However, they are unsustainable and often scams because the members at the bottom end up losing their money. This is because the scheme is only profitable for those at the top of the pyramid who receive a portion of the payments from each newly recruited member.

To participate in a pyramid scheme, people must pay a membership fee to the company running it, and the company then shares a portion of the money collected from each additional member recruited. 

However, the only source of revenue for a pyramid scheme is recruiting new members and asking for more money from existing members. This makes it impossible for everyone to make money as the scheme would have to grow infinitely, which is impossible due to the finite population of the planet.

A pyramid scheme will ultimately fail if there are no new recruits or other sources of revenue. Since most members are at the bottom level of the pyramid, they will lose their money. 

A good example of a pyramid scheme is Vemma, a company that offered energy and weight loss drinks. The FTC accused Vemma of operating a pyramid scheme in August 2015, where new members were promised high compensation but had to pay $600 for starter packages and hundreds more for monthly products. According to the FTC, the majority of participants lost money.

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

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Is Plexus a Scam?

No, it’s not a scam. Plexus is a popular MLM company that sells nutritional supplements. They’ve been in business for a while and made revenues of $4.7 million in 2019, making them one of the top 25 direct selling companies.

Some customers have reported positive results from their products, including relief from physical ailments and better weight loss results. However, not everyone has the same experience, and some people may be sensitive or allergic to the ingredients.

To put your mind at ease, Plexus offers a simple 60-day guarantee. If you’re not happy with your purchase, you can return the unused products and get your money back. It’s a pretty good deal that most people would appreciate.

The membership fee for U.S. sellers starts at $40 per month, which is reasonable compared to other MLM companies that charge hundreds or thousands of dollars.

As a Plexus brand ambassador, you don’t need to set up a website to sell products. When you sign up, you get a free website and back office to help you get started. There have been a few successful ambassadors, and each of the company’s 100 Diamond Ambassadors receives over $400,000 in compensation.

So, it’s a legitimate MLM company. However, like many other MLM companies, they’ve made extravagant claims about how much money their ambassadors can earn. The average ambassador only earned $544 per year in 2020, according to the Plexus website.

Another issue is that brand ambassadors are not qualified medical professionals. They often recommend products to new customers despite having no knowledge of nutrition or supplements, which is risky.

Plexus has also made bold claims about the effectiveness of their products without providing clinical evidence or third-party testing. They received a warning letter from the Federal Trade Commission (FTC) in 2020 due to posts on social media claiming that Plexus products could help treat or prevent COVID-19.

It’s important to note that the majority of Plexus representatives have not made any money, but some do make money if they put in a lot of effort. Usually, they make a lot of money from Plexus by aggressively recruiting members.

Some people consider Plexus to be a scam due to the company’s marketing claims and the number of complaints they’ve received. 

Overall, Plexus is not a scam, but there are some concerns to keep in mind. If you’re considering becoming a Plexus brand ambassador, do your research and make an informed decision.

What Products Does Plexus Offer?

First off, the products are split up into different categories. You’ve got Gut Health, Weight Management, Nutrition, Joyōme Skin Care, Personal Care, and Combos.

But let’s talk about their most popular product: the “Pink Drink”. This drink is actually an appetite suppressant and is why Plexus is sometimes referred to as the “Pink Drink” company.

The key ingredients in the Pink Drink are chromium and the Plexus Slim Blend. The blend consists of green coffee bean extract, Garcinia Cambogia, and alpha lipoic acid. These ingredients work together to suppress your hunger for a short period of time. However, they haven’t been proven to cause long-term weight loss in humans.

If you’re interested in joining the MLM business, it’s important to understand the products first. There are a lot of other multilevel marketing companies that focus on health and wellness too, such as Ariix, Isagenix, and Purium.

So what sets Plexus apart from these other companies? Well, as we mentioned earlier, their flagship product is the Pink Drink. It contains 200mcg of chromium, which reduces blood sugar, and 530mg of the Plexus Slim Blend.

Now, it’s important to note that while the Pink Drink is considered safe by Healthline, there are some possible side effects you should be aware of. These include bloating, gas, nausea, stomach ache, and constipation.

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How to Make Money With Plexus?

There are several ways to make money with Plexus, and it all starts with selling their products. As a bonus, preferred customers also receive rewards for their purchases.

If you’re up for a bit of recruiting, there are other ways to earn commissions. For instance, if a recruited customer buys the Plexus welcome package, both you and the customer can get commissions. Plus, if they end up selling Plexus products, you’ll earn commissions from their sales too.

Plexus points are another way to make money with the company. You can accumulate points each month as an ambassador, which can then be converted into cash based on how many points you earn. And if you manage to sell enough personal volume, you can earn even more money.

While being a Plexus ambassador can be profitable, it’s worth noting that the average earnings for ambassadors in 2019 were $677.99. Only about 5% of ambassadors earned at least $1,360 over the course of the year. So, if you’re looking to make a living wage, you’ll need to sell a lot of products or recruit a lot of people.

But don’t let that discourage you! If you’re passionate about Plexus products and are willing to put in the work, there’s potential to earn some extra income as a Plexus ambassador.

Plexus Compensation Plan

So, you’re thinking about becoming a part of Plexus? Great! Let’s take a look at their compensation plan and see what you can expect.

First things first, you’ll need to pay a $34.95 registration fee to become an Associate. As an Associate, you’ll be able to buy Plexus products at wholesale prices. However, you won’t qualify for any commissions or bonuses just yet. To do that, you’ll need to purchase the welcome package, which costs either $99 or $199.

Once you’ve paid your membership fee and purchased your welcome package, you’ll be upgraded to an “Ambassador.” As an Ambassador, you’ll be able to recruit new distributors, sell products to customers, and start earning money from Plexus.

There are 11 different ways that Ambassadors can make money through the Plexus Compensation Plan:

1. Personal Volume and Retail Profit
2. Fast Start Achievement Bonus
3. Preferred Customer Program
4. Business Building Bonus
5. Emerald Pool Bonus
6. Sapphire Bonus
7. Plexus Points
8. Personal Volume Override Commission
9. Achievement Bonus
10. Diamond Pool Bonus
11. Diamond Re-Entry Position

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How To Join Plexus?

If you’re interested in joining Plexus, becoming an Ambassador is easy. First, head over to their website and sign up or get in touch with someone who is already a part of the company. Since Plexus is a network marketing company, you’ll need a sponsor to join.

When you sponsor new Ambassadors, your downline grows, and so does your earning potential. To become an Ambassador, you’ll need to pay an annual membership fee of $39.95 and buy a welcome packet. You can also choose to pay $99 or $199 for a larger welcome pack. Remember that you’ll need to pay this fee every year to maintain your status.

Once you’re a member, you can sell Plexus products through the website. Although the fee isn’t as high as other MLMs, it’s still an annual expense you’ll need to account for.

To earn commissions as an Ambassador, you’ll need to reach a monthly PV (personal volume) of 100. But joining Plexus comes with some benefits, too. As an Ambassador, you’ll get an average discount of 25% on all products, ongoing training, and free access to tools and support to help you succeed.

How is the Reputation of Plexus?

Plexus has been getting attention lately, with news stories highlighting both the good and the bad sides of the company. Here’s a quick rundown:

The Good Stuff

Back in November 2019, Plexus Worldwide received a big thumbs up when it was named the top award winner in the Big Business category at the Scottsdale Chamber of Commerce Sterling Awards. 

The award is given to companies and individuals who are making a significant contribution to the business community and have a strong commitment to the local area. Kim Drabik, Senior Director Corporate Affairs at Plexus, also made it onto the World Federation of Direct Selling Associations (WFDSA) Ethics Committee, where she’s working to create better consumer protection standards.

The Not-So-Good Stuff

Unfortunately, Plexus has come under fire for some of its claims. In June 2020, the FTC (Federal Trade Commission) let Plexus know that it was looking into the company’s statements about how its products could help prevent or treat COVID-19. Truth in Advertising.org reported that Plexus was given 48 hours to respond with specific examples of how they were addressing the FTC’s concerns.

Plexus Faces Formal Complaints, Fda Issues And Legal Battles

A company has been facing several issues lately, including formal complaints, FDA notices and legal battles. More than 600 complaints have been filed against the company, with a majority of them being negative. Customers have reported problems with both products and services, especially when trying to cancel subscriptions or receive refunds.

The company’s troubles started in 2014, when one of its co-founders accused the other of tax fraud and filed a lawsuit against them and the company. That same year, the company was caught using the endangered African herb hoodia in their products to suppress hunger.

In addition to these issues, the FDA notified the company that some of their products, including “Quick Relief,” “Biocleanse” and “Probio5,” did not meet FDA standards. The drugs were marketed as cures for diseases that cannot be diagnosed or treated without professional medical assistance, which is a violation of FDA regulations.

The company is still facing challenges with customers not receiving refunds or cancellations. It’s important to be aware of these issues before considering doing business with this company.

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The Drawbacks of Joining Plexus

Plexus is a popular multi-level marketing (MLM) company that sells dietary supplements and weight loss products. However, there are several drawbacks to consider before becoming a brand ambassador or customer.

Safety Concerns Surrounding Plexus Products

While Plexus claims that their products are safe, there is no evidence to support this statement. Moreover, their products are not tested by a third party for purity and accuracy. Several customers have reported adverse effects after taking Plexus supplements, ranging from bloating and gas to stomach pain and constipation.

Even more concerning, there have been reports of serious side effects such as immune thrombocytopenic purpura (ITP) linked to the use of Plexus Slim. As a brand ambassador, you may put your customers’ health at risk by selling these products.

Limited Earnings Potential in the MLM Structure

It’s worth noting that most MLM members, including those with Plexus, struggle to make a profit. The statistics show that between 72.5% to 99.9% of MLM members lose money. This is partly because MLMs have sales quotas that members need to meet to qualify for commissions. 

In other words, if they fail to meet the quota, they do not get paid. As a result, many MLM members lose money before even recruiting anyone else to the company. So, if you are thinking of joining Plexus to make a lot of money quickly, you might want to reconsider.

Misleading Claims of Financial “Investments”

Plexus uplines may use the term “investment” to describe the losses that members may incur while operating their MLM business. 

Unfortunately, this claim is misleading. In most cases, members are unlikely to recoup their losses, and the return on their “investment” is negative. Therefore, the idea that MLM losses are investments is a scam.

The Cult-like Culture of MLMs

It’s no secret that MLMs have a corporate culture that can be likened to a cult. This includes discouraging critical thinking, isolating members from anyone who questions the company’s practices, and labeling those who leave as failures or bad people. 

For some, the loss of friends and the pressure to prioritize the business over personal life can be devastating.

Purchasing Products Yourself

To succeed in an MLM like Plexus, you may need to purchase products yourself every month. Unless you have a large network of potential customers, this can be a difficult and costly task. It’s important to consider whether this is financially feasible before joining.

Overpriced Products

Plexus, like other MLMs, offers products at a higher price point than many other brands. This can make it difficult to sell to potential customers who can find similar products at a lower price elsewhere. As a result, many people who join an MLM focus on recruiting others rather than selling the actual products.

The Bad Reputation

Plexus, like many MLMs, has a bad reputation because the distribution of commissions is skewed towards the top. The majority of the top members make the most money, while the bottom members often don’t break even. This makes many people doubt whether Plexus is a serious business opportunity.

Exaggerated Claims of Income

Plexus, like other MLMs, tends to overstate the income potential. However, the reality is that very few people make a good living promoting Plexus. Moreover, Plexus’ low retention rate is discouraging, with less than 41% of distributors being active. According to Plexus’ payouts, over 99% of distributors never make a profit.

Like a Pyramid Scheme

Although Plexus is not a traditional pyramid scheme, it can appear like one because the company encourages you to recruit people to make money. While you can make money by selling products, to earn a living, you actually have to recruit others.

Recruiting is Required to Succeed

If you’re thinking about joining Plexus, be aware that recruiting is required to succeed. Eight out of ten ways to make money with Plexus require recruiting. If you don’t recruit, you’ll lose money.

Plexus has received warnings from regulators

The Federal Trade Commission (FTC) issued Plexus a warning letter in 2020 for false claims made by Ambassadors online. The company also received a warning from the FDA for marketing some of its products as drugs. 

In Australia, consumers are also advised not to use products like Plexus Slim Accelerator. As a weight management company, Plexus must adhere to strict labeling and claim guidelines.

You have no control over your business

While you may have control over your schedule and revenue, you have no control over the business itself. Plexus could decide or be forced to close the business, leaving you with nothing. If you start your own business, you will have more control over everything because you will be responsible for everything.

Plexus is saturated

When an MLM company has been around for a long time, there are usually fewer potential recruits. If you want to be successful with Plexus, you have to grow your personal network and work hard to bring those people into your Plexus business.

Plexus requires monthly expenses

MLM representatives lose money this way. It does not say up front that you need to spend $100 per month to stay active. The goal of a “business” is usually to make money, which will be difficult with Plexus if you’re losing money every month.

Plexus products are on a downward trend

Each month, the number of people searching for Plexus on Google has decreased. When looking for MLM companies, it’s recommended to look for companies that are still in the “early momentum” phase. A brand new company usually gets more attention and has fewer members.

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Online Reviews of Plexus: The Good and The Bad

If you’re considering becoming an ambassador for Plexus, there are a few things you should know. Here are some of the good and bad of the company, according to online reviews.

Let’s start with the positives. Plexus offers a generous compensation plan for its ambassadors, who can earn a 50% commission on all sales. 

They also provide a dedicated website to help ambassadors run their businesses and offer discounts and bonuses for those who sponsor new ambassadors. 

Plus, Plexus products are non-GMO, vegetarian, and gluten-free, making them a good option for health-conscious consumers. The fact that they’ve expanded their product line while staying focused on health and diet is a testament to their commitment to quality.

However, there are also some negative reviews to consider. The company has been investigated by the FDA and the Environmental Research Center, and some of their products have been accused of containing lead. 

While they appear to have been clinically tested, it’s important to be aware of these concerns. Additionally, there are over 600 complaints against Plexus, with many involving the company’s products or services. The BBB has alleged that the company has failed to address the root cause of most of these complaints, which raises questions about their integrity.

Finally, becoming an ambassador for Plexus requires meeting certain requirements and signing up for an auto-ship program, which may not be ideal for those who are only marginally interested in the business. And while the cost of qualifying as an ambassador is not astronomical, it may still be a deterrent for some potential distributors.

Overall, it’s important to do your own research before deciding whether Plexus is right for you. While there are some positives, there are also concerns that should not be overlooked.

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Why Is Plexus Banned In Canada?

You might be wondering why you can’t get your hands on Plexus Slim Accelerator capsules or the 3-day trial pack in Canada. Well, it’s because Health Canada didn’t approve them for sale back in 2014.

Why, you ask? The capsules contain a chemical called DMAA, which is actually banned in the United States for similar reasons. Health Canada just wasn’t convinced that this chemical was safe for consumption, so they put their foot down and said no.

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How Does Plexus Stack Up in the World of MLMs?

According to a list published by Direct Selling News (DSN) on May 21, 2021, Plexus Worldwide ranked at number 28 out of the 100 largest MLM companies. Not too shabby, right?

Of course, rankings are just one way to measure success, and there are many other factors that can come into play when evaluating a company. But hey, it’s still good to know where Plexus stands in the MLM world.

How Many Ambassadors Does Plexus Have?

Plexus Worldwide has an impressive team of over 550,000 ambassadors. These ambassadors represent Plexus in 180 countries worldwide, making them one of the largest direct selling companies in the world. 

It’s incredible to think that these members are responsible for promoting and sharing the benefits of Plexus products to people all over the globe! 

Is Plexus FDA Approved?

Well, the thing is, the Food and Drug Administration (FDA) doesn’t regulate the weight-loss supplement industry. So, companies like Plexus aren’t required to prove that their products are safe or effective before they’re sold to the public.

This lack of regulation can leave consumers feeling uncertain about the quality and safety of these supplements. It’s important to do your research and talk to your healthcare provider before trying any new weight-loss products. They can help you understand the potential risks and benefits and make an informed decision about whether or not to use Plexus or any other weight-loss supplement.

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Final Verdict

Long story short, I wouldn’t recommend it as a way to make money.

The thing is, it’s really tough to get started with Plexus. You have to constantly hunt for new clients and try to find more recruiters to boost your commission. And let’s be real, it’s not the most enjoyable thing to have to constantly ask your friends and family to join your business opportunity.

To make matters worse, your upline will be hounding you to buy more and more business support materials while you’re still struggling to build your downline. The reality is that most people end up losing more money than they make, and the statistics back this up – according to a case study on the FTC’s website, 99% of people who join an MLM end up broke or losing money.

One of the main reasons people drop out of MLM-like companies is because they feel pressured to succeed. But there are other ways to make money and have the flexibility you’re looking for. Have you ever considered starting your own online business? This way, you can decide for yourself what you want to market instead of being told what to sell.

In the next section, I’ll explain how you can legally build an online business to earn passive income. This is actually how I was able to make a full-time income within a year. Plus, unlike MLM models, it’s 100% legal and sustainable. So keep reading if you’re curious!

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Is There a Better Way to Make Money Online?

If you’re beginning your online business journey, you deserve a program much better than Plexus MLM.

My #1 recommended platform is called Wealthy Affiliate.

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

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

You can read our full review of Wealthy Affiliate here.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

You can enjoy all these values without paying a penny.

So I strongly recommend you to register a free account and see it yourself.

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