If you are wondering is Youngevity a pyramid scheme or not then you are in the right place. I’ve been seeing this question a lot online so I decided to write a review on it all. Maybe someone tried to recruit you into the business or maybe you are looking into it for someone you know… it doesn’t matter the case.
In this review I’ll be going over what you need to know about this business. And by the way… I am not affiliated with Youngevity in any way so this is an unbiased 3rd party review.
The Youngevity Opportunity Review
Youngevity is a mlm company that sells everything from health & wellness products, to essential oils, and even jewelry. But enough about their products already. They are good and all but my focus here is on the business opportunity.
Because they are a mlm company, recruitment of other distributors is a big part of the business. When you join as a distributor you can basically make money in 2 ways: by selling products yourself and by recruiting in other distributors. This recruitment side of the business is why so many people are calling it a pyramid scheme… but is it really? The compensation plan says a lot when it comes to this…
The Compensation Plan
If you are going to sell Youngevity products yourself at retail prices you will be able to make 30%. What you will be doing is purchasing the products at wholesale price (which is 30% off) and then reselling them at the retail price. This is something that you can do but you actually aren’t required to sell Youngevity products to participate in the compensation plan. You can participate by just buying the products and keeping them for yourself. Whether you sell them or not is your own business.
They have pretty big comp plan overall…. 13 ranks total. I don’t know if you can see the screenshot below, but you can actually move up to the 4th rank of “Senior Associate” without recruiting in any other distributor…
All you have to do is achieve a certain PQV (personal qualifying volume) to move up there and this can be done by buying products yourself. After that you will be required to recruit in other distributors in order to move up the ranks.
And if you want any good chance at making good money here then you are going to have to move up the ranks, which means you are going to have to recruit.
If you move up enough you will be able to earn commissions on down to 8 levels. This means you will earn money from the distributors you recruit in (level 1), from the distributors that they recruit in (level 2), from the distributors that level 2 recruits in (level 3), and so on..
There are several other ways to earn from recruitment but its not important to discuss them. The takeaway here is that you are required to recruit to move up the ranks and you will earn from people up to 8 levels beneath you.
What separates a product-based pyramid scheme from a legit mlm is the amount of revenue the generate from retail sales to the general public. And because Youngevity does not require distributors to sell any products to the general public I don’t imagine they get all that many retail sales that are not to distributors. Or course you can sell products and earn commissions but this isn’t required.
They allow people to satisfy the Personal Qualifying Volume requirement by buying products for themselves. What this will often lead to is distributors buying a bunch of products that they don’t need just to stay active and more up in the ranks. I see this happen all the time with mlm’s like this.
Honestly I think Youngevity might have to change up their compensation plan in the near future to avoid getting shut down by the FTC. They focus too much on recruitment and not enough on product sales to the general public. If this is not a pyramid scheme it sure as heck leans close to being one.
Conclusion on Youngevity – Good Opportunity or Not?
I’ll let the government decide whether or not this is a pyramid scheme. But regardless of this… what you need to know about this mlm type of business is that it is very difficult to make it in… which most people probably won’t tell you. Many times people are just trying to recruit you in so they make it sound amazing when it isn’t as great as it sounds.
Because of the mlm pyramid-like structure, the people at the bottom (the majority) will have a harder time making money while those at the top will make lots off it from the efforts of those at the bottom. Mlm’s like this always have a very uneven wealth distribution which is why so many people fail and they have insanely high turnover rates. I review mlm’s like this all the time, most recently Plexus & Ariix, and they are always the same story when it comes to this.
If you think you have what it takes to recruit new people in continuously then you might have what it takes to make good money here but if not then this probably isn’t for you.
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Questions, comments, concerns? Leave them below in the comment section and I’ll get back to you soon ?