Making money selling products on the side is big business. There are tons of companies ready to sign you up to sell for them. Selling It Works products might be a great way to earn extra cash. But is there anything special about these products? In this It Works! MLM review, we’ll see if this opportunity is worth getting wrapped up in.
What is It Works! MLM
Mark and Cindy Pentekost started their business in 2001 when they sold the Ultimate Body Applicator, which was later renamed “CrazyWrap”.
In 2005, they began selling their own brand of nutritional supplements. They expanded their business into new markets by opening offices in Australia and Europe in 2010. In 2020, the company reported $620 million in sales. There are over 100,000 distributors nationwide.
The company has been featured in a number of publications including the New York Times, Wall Street Journal, Entrepreneur Magazine, Forbes and others.
Are It Works! Products Worth Their Price?
One of the most popular products from the It Works! Catalog is the Skinny Wrap. The Skinny Wrap claims to give you a spa-like experience. It is made of seaweed, green tea, and Guarana.
You can use it on your legs, arms, back and abdomen. Wrap a part of your body and leave it for 45 minutes.
The Skinny Wrap package contains three wraps and has a retail price of $84. The Loyal Customer price is $50.
However, the Skinny Wrap has not been clinically proven to reduce or eliminate fat in your body. And none of these products are FDA approved.
You can also buy these wraps at Walmart and Amazon. So what’s so special about buying them through a distributor?
According to the BBB (Better Business Bureau), there have been many customer complaints from Loyal Customers who did not know they were signed up for automatic shipping, had trouble canceling automatic shipping, and complained about the products.
The It Works! Opportunity
To become a distributor, you must purchase the Business Builder Kit. You also need to buy products for yourself.
You can sell the products to your friends, family and others in person or through social media. One of the most lucrative ways to make money is to have customers sign up as Loyal Customers. The Loyal Customer plan means they are automatically signed up for three months of automatic shipping and receive discounts on products. Once the three months are up, the clock starts over for another three months. These shipments generate monthly commissions for you.
The other way to make money is through recruitment. When you recruit others to your team, you get additional monthly commissions.
How Much Does It Cost To Join It Works?
To become a distributor, you will need an initial investment of $99 for the Business Builder Kit. The Business Builder Kit includes a pack of wraps as well as samples of the gel and catalogs.
Additional costs include:
$20 monthly website fee
$35 annual renewal fee
Monthly commission requirements:
Set up automatic shipping of 80 BV (bonus volume)
Or sell 150 BV worth of products in one month
Distributors must sell at least $80 worth of products per month (including any additional items they wish for themselves). Other costs apply, such as hosting wrap party events or creating a website.
Can You Make Money With It Works
Distributors earn money through commissions and through recruitment. Commissions on products sold are 10%. Recruit customers to the Loyal Customer plan, which is valid for at least three months.
You also earn money every time you recruit someone to your team. If your new recruit completes the Fast Track program AND and recruits two new members, you will receive a $100 bonus.
As you can see, joining involves a large investment. If you spend $80/month on products alone, it costs $960. If you add the $20/month for the website and the $35 annual renewal fee, the cost for one year is $1,235. Who knows how long it will take you to break even?
The average distributor earned just $48 per month in 2019. And that’s before you subtract startup costs and monthly expenses. That’s not really going to change your lifestyle.
- No Experience Necessary: All training is provided.
- Work from Anywhere: A lot of customer interaction is done through social media.
- Variety of Products: the product line includes weight loss, personal care products, nutrition, energy and endurance, and even vegan products.
- No Scientific Evidence: Body wraps aren’t supported by any scientific evidence of being the best way to lose weight.
- Poor Commission Rates: New distributors will only receive 10% commissions on qualified sales.
- Minimum Sales Requirements: In order to qualify for commissions, distributors need to sell a minimum of 80 BV as part of an auto shipment.
Is It Works a Scam?
It Works! is not a scam, but it will be difficult to make money with this company. You will have to invest a lot of money just to get started and long before you break even. The 10% commission is not very high, and the only way to make decent money is to recruit.
Selling products to your family, friends and colleagues may work in the short term, but it is not a sustainable way to make money in the long run. To be successful here, you must also be a customer.
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