Organo Gold offers a business opportunity that anyone can join in on. However, many people are hesitant to join due to the recruitment style nature of this business model. This business does share many resemblances to a pyramid scheme but that does not necessarily mean they are one.
If you are wondering is Organo Gold a pyramid scheme then I am writing this for you. In this short post I’ll be going over how this business operates, how it could be a pyramid scheme, the compensation plan, and more.
Organo Gold Overview
Organo Gold is a mlm company that sells coffee, tea, and products with an ingredient called Ganoderma, which is an Asian mushroom that supposedly has a lot of health benefits.
Like many mlm’s, much of their products are based on hype and don’t have much scientific evidence to back up some of the claims that are made. But I’m not really here to talk about the products. I’m here to discuss the business opportunity.
Organo Gold markets its products exclusively from the work of independent distributors. They don’t sell in stores and this is what you call a direct sales business model. The pyramid scheme side of things comes in when you look at the mlm structure they have. With this multi-level structure distributors can actually recruit in other distributors and earn money from what they do.
How You Make Money
Ok, so pretty much there are two main ways to make money as a distributor. You can go out and sell products yourself and on your website and earn money from that , or you can go out and recruit new distributors into the business and earn money from what they do.
While selling products yourself is very important, and you actually have to maintain a certain level of direct sales in order to move up the ranks, recruitment is also a key component for making money in this business. And recruitment is where you will make the “real” money.
If you were to look at any big-time earner in this business I can guaranteed you that they are recruiting like crazy.
The Pyramid Scheme Side of It
Ok, so in the compensation plan that Organo Gold has in place there is both a binary and a uni-level structure in place. Below you can see the difference between the two.
They both are formed from recruitment of new members and with both you will earn money from those beneath you. But with the binary structure there are only 2 open positions below each person and with the uni-level structure there are infinite positions.
I don’t really want to get too into both of these. The important thing to know is that you can make money by recruiting people in beneath you in 2 ways here.
But you don’t have full access to the entire compensation plan here until you move up the ranks, unlocking more and more features as you go up. For example, the uni-level structure has 9 levels. The people you recruit are your level 1, the people that your level 1 recruits are your level 2… and so on down to 9 levels. So you can potentially earn money from those people 9 levels beneath you but in order to get to that point you need to move up all the ranks.
There are 12 ranks total. The thing that I don’t care for with the rank structure is that you are forced to recruit new distributors into the business if you want to move up the ranks. And since moving up the ranks is how you get the chance of earning more money… you are more than likely going to go out and recruit.
So Is It a Pyramid Scheme?
What separates a legit mlm from a pyramid scheme is the amount of revenue they make from product sales to the general public vs recruitment. When a mlm relies too much on recruitment for revenue this is when it crosses the line.
So does Organo Gold rely too much on recruitment? That is the real question. They obviously push distributors to recruit because it is a requirement if you want to move up the ranks. However…. it is also a requirement to make direct sales yourself. So there is still emphasis put on direct sales.
Honestly, I still think that Organo Gold is a legit mlm and not a pyramid scheme. They do lean a little close to the line between the two but there is just not enough to call them a pyramid scheme.
Conclusion On The Organo Gold Business Opportunity
While Organo Gold is not a pyramid scheme as far as I see it, it still is not the great business opportunity that some people may lead you to believe. The fact of the matter is that with mlm structures like this that favor recruitment so much very few people make good money. Only the top few % make the good money while those at the bottom do not.
Organo Gold’s official income disclosure proves exactly this… 86.34% of distributors make less than $600 per year…
Some people go on to make good money but most people do not. Just know what you are getting yourself into and if you still want to become a distributor than go for it.
Questions, comments, concerns? Leave them below in the comment section and I’ll get back to you ?