Since you are asking.. Is Purium a pyramid scheme then I am guessing there is a good chance you have been asked to join the business opportunity that they offer.
This is why I decided to take the time to write this review. This business does resemble a pyramid scheme in many ways due to it being an mlm. But just because recruitment of new members is a part of the business doesn’t necessarily mean that it is one. In this short review this is what I’ll be taking a look at an going over.
Purium Overview
Purium is a mlm company that sells health products. They sell a range products that fall into this category. You can find anything from anti-aging products to sports nutrition products and much more. But of course the products aren’t what I want to look at here. I can save my review of them for another day. The business opportunity is my focus.
Recruitment is a big part of the business because this company is a mlm, or muli-level marketing opportunity. This means that there are multiple levels within the company and affiliates can recruit in new members beneath them, which will earn them money. This is the “pyramid scheme” part of it which I will go over how it all works.
The MLM Compensation Plan – How You Make Money
Affiliates will be able to make money with personal retail sales and by recruitment. Retails sales are important because you need to make a certain number of these personal sales to customers in order to stay active and have access to the compensation plan. However, recruitment absolutely needs to be a focus if you want to make good money, you will see why.
On your retail sales you will earn anywhere from 15 – 45% commissions. If you purchase 50PV of products per month then you will increase your earnings to 30% commissions. And if you are a licensed health professional and have purchases 500PV or more then you get bumped up to 45% commissions.
As I said, if you want to earn good money, then recruitment needs to be a focus. Why? Well because this is what is really going to get you to move up the ranks which will unlock more and more of the compensation plan. They have a uni-level compensation plan in place where you will earn money from those that you recruit in beneath you, and those that they recruit in, and the people that they recruit in, etc. This keeps going down and down to infinity. But of course you won’t have access to all of that from the start.
In order to move up the ranks you will need to recruit. You will also need to increase your personal sales volume slightly, but the main difference is the amount of “group sales” that need to be made. You will need to drastically increase the overall sales of your “group”, which is another name for your downline, aka the people recruited in beneath you. Of course the easiest way to increase this number is by recruitment.
There are 18 ranks total so there is a lot of room to move up.
Pyramid Scheme?
Because they do require affiliates to make personal sales I don’t know if you could call this a pyramid scheme. What would make this a pyramid scheme would be if it were too reliant on recruitment over product sales to the general public. And are they? I really don’t know because I can’t see the revenue they bring in from both sides.
It is obvious that the compensation plan puts a heck of a lot of focus on recruitment but this doesn’t mean anything. I have looked into mlm’s in the past that were like this yet most of their sales came from the general public and not people working for them.
The Problem
When it comes to mlm’s like this it is very difficult to make money. They have a pyramid-like compensation structure where money made from those on the bottom trickles up into the pockets of those above them. This is great for those on top but means less money made for those on the bottom.
There is a lot of potential to move up and make tons of money with mlm’s like this but unfortunately only a very small percentage will be able to do this. In order for those at the top to make good money there needs to be more people at the bottom.
Mlm’s like this always have a very uneven income distribution. As you can see from an official income disclosure (2015) I found that over 94% of affiliates made much less than $1,000 for the entire year…
This is common for all mlm’s. I just reviewed Rain International & Jamberry (2 other mlm’s) recently and its the same with them.
Conclusion on Purium – Scam?
There really isn’t enough information to tell if its a pyramid scheme. And I wouldn’t call it a scam because you can make good money. I just do not care for mlm’s at all. All they do is make it harder for people to make money and they lead to those on top preying on new recruits.
I stay away from mlm’s because of their difficulty. The fact is that their structure pretty much ensures that most people are going to fail. But if you like the products that Purium sells and you think you have what it takes then go for it, I’m not stopping you.
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Questions, comments, concerns? Leave them below in the comment section and I’ll get back to you soon ?
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