The business opportunity that Xocai offers has the potential to be lucrative… but is it legit? There has been a lot of controversy surrounding this business over the years and it has even been involved in lawsuits accusing it of being a pyramid scheme? But the past is the past right? So is Xocai a scam or not?
I decided to take a bit of time to write this short review because I know there are a lot of people out there that can benefit from it. The truth is that you can make a lot of money in this business but the truth also is that it is not nearly as easy or as great as many lead you to believe. I’ll be going over how it really works and the reality of it so you can make a more informed decision.
Xocai is a mlm company that sells healthy chocolates, energy drinks, and a few other health supplements. Their chocolates are their claim to fame, and from what I see and have read the quality of these products is very good. But the products that are being sold aren’t what I am looking at here. I am interested in the business opportunity.
Xocai has got a lot of heat over the years. They were involved in a class action lawsuit in 2015 and ended up coughing up $6 million to settle it. This lawsuit accused them of being a pyramid scheme. This is because of the mlm recruitment type structure that they have where distributors can go out and make money by recruiting in other distributors with the hopes of making it rich.
There are legitimate mlm’s out there and just because you see a business that involves recruitment doesn’t mean its a scam, but in this review I’ll be going over whether or not I think it is still a scam as it proved to be in 2015… because as you can imagine things have changed since then.
The Cost of Joining
In order to join in on this business opportunity you will first have to pay a yearly membership fee of $25. Then you will have to order at least 1 of their products. And lastly you will have to select a product to auto-shop every 1-2 months.
How You Make Money
First I’d like to say that it was difficult finding their compensation plan. I had to do a bit of digging around because for some reason they removed the business opportunity info from their main site..probably due to the lawsuits.
But anyways… I found the comp plan and in it there are 8 ways that you can make money, but these all can be thrown into two main categories, as expected: personal sales and recruitment.
As a distributor you have the ability to buy Xocai products at wholesale costs which you can then turn around and sell at retail prices, thus earning the difference. You will be provided with a website that you can sell on.
Your own personal sales are definitely a big part of the comp plan, but there is no doubt that recruitment is an even bigger part. If you want to make good money then recruitment is what you really need to focus on.
There are several ways you can earn from recruitment but I’ll just go over a few to give you the gist of it.
The first way that you can earn is with what they call an X Bonus, which is a bonus you earn off of recruiting someone in and them purchasing products + paying for the membership fee.
The way that you can earn the most from recruitment is from the Infinity Bonus. This comes from a binary recruitment structure that looks like this…
There are 2 positions beneath each person. This infinity bonus goes to infinity, which as far as I know means that this binary structure keeps going down further and further.
Scam or Not?
The problem here is that the compensation plan favors recruitment too much. From what I see you pretty much need to recruit to make good money because that is the lucrative part of this business. I mean sure… you can sell to normal customers but that doesn’t make you much. When you recruit you earn commissions off of their orders that they are forced to place in order to join and then you also make money off of the sales that they make and the people that they recruit in.
When you see a compensation plan like this that favors recruitment this much you can be sure of one thing: not many people are making money. There are always going to be many more people at the bottom of this pyramid-like mlm structure than at the top, which is where all the money is made.
But there really isn’t enough information for me to say whether this is a scam. I couldn’t find any official income disclosure or anything like that.
Conclusion on Xocai – Should You Join?
Honestly I wouldn’t recommend joining. If you are looking to join a mlm there are a lot of others out there in the health industry like Neways & Limu that don’t have such bad histories and that are overall more legit.
But you need to realize that with just about any mlm most people fail. They have a lot of potential to make good money but the reality is that only the top few reap the rewards while those at the bottom struggle.
So just know what you are getting yourself into before joining any.
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Questions, comments, concerns? Leave them below in the comment section and I’ll get back to you soon ?