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When it comes to directly selling products, multi-level marketing companies may feel like a good fit for you. And most people sell a product they already use which makes selling those products easier, too. LifeVantage is a company that sells dietary supplements and a few other related products through direct selling. But can you get behind these products to earn a decent income? In this LifeVantage MLM review, I’ll take a look at the products and how this company works. You may be discouraged after you read this.
What is LifeVantage MLM?
LifeVantage is a multi-level marketing (MLM) company that was started in 2003 and is headquartered in Utah. The current CEO is Darren Jensen who previously worked for Jeunesse Global and other MLM companies. The products consist of dietary supplements, anti-aging products, and other health and wellness products. These products are available in the United States, Europe and Asia.
When the company first started back in 2003, they sold their products through traditional retailers but didn’t make much money. In 2008, they reported $3.2 million in revenue. That same year, the company decided to change its business model to a direct selling MLM model. Since this change, the company’s revenue has drastically increased. They reported $226 million in revenue in 2019. TheLifeVantage stock is currently trading on Nasdaq at $13 per share (at the time of this review).
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Are LifeVantage Products Worth Their Price?
There are a number of products that you can sell as a distributor. Nutrition, digestive health, beauty products, and supplements.
Protandim is one of the most popular products in the LifeVantage catalog. This is a dietary supplement that contains green tea, turmeric, milk thistle, Bacopa, Ashwagandha and other ingredients. It is claimed to be all natural and have antioxidant properties. The following is a quote from Doug Robinson, the previous CEO:
This product contains Protandim NRF1 and NRF2 Synergizers that allegedly reduce oxidative stress and fights the effects of aging. This product is highly promoted and accounts for about 60% of product sales.
These bottles of Protandim NRF2 were found on Amazon at a price of $113.75 for the three bottles. That makes these $37.92 a bottle. There are 30 caplets in each bottle so each bottle is a one-month supply.
But, here’s the problem with this product. First off, all natural doesn’t mean organic. So even though the ingredients may be natural, it doesn’t mean that they weren’t treated with pesticides beforehand.
The other problem with this product is that it claims to reduce oxidative stress by 40% in 30 days. Another claim is that it “produces enzymes capable of neutralizing more than 1,000,000 free radicals.” But, according to the BBB (Better Business Bureau) there have been complaints that this product has adverse side effects for some people.
The LifeVantage MLM Opportunity
You now have an understanding about the products on offer through LifeVantage. In order for you to be successful with this opportunity, you’ll need to be able to stand behind the products you are selling.
You can see that the Protandim product above is one of the most popular products in the LifeVantage catalog. Unfortunately, this is also a very controversial product due to the anecdotal side effects.
These products are not hard to find online either. Customers can be find them on Amazon and Ebay for about the same price so they are not exclusive to distributors. This could make your job more difficult.
How Much Does It Cost to Join LifeVantage?
To enroll in the LifeVantage program as a distributor you’ll pay $50. You don’t necessarily have to buy a starter pack but you will have to buy at least $100 worth of products.
Another requirement is that you have to enroll in their autoship program. At a bare minimum, you’ll need to order 100 PV (Personal Volume) each month in order to qualify for commissions.
Can You Make Money with LifeVantage?
Aside from the initial cost, you are required to enroll in the monthly auto shipment of products in order to keep your status active. You have to have an autoship order of 100 PV per month in order to qualify for commissions.
The other way to make money is by recruitment. The more people you can recruit, the higher up you go in the rankings. Starting with Distributor, you can then move up to Pro 1. The levels go all the way up to Pro 10. The idea is that the people you recruit are also recruiting people to be on their team as well.
When you move up the ladder there’s a downline sales volume requirement. For instance, when you move from Distributor to the first level, Pro 1, your team needs to have a sales volume of 1000 GV (group volume).
In order to make money you’re under to sell products, recruit people to join your team and ensure that your recruits are selling plenty of products as well.
You Don’t Have To Buy a Starter Kit
One of the unique things about joining LifeVantage as a distributor is that you don’t have to buy a starter kit. But you do have to buy at least $100 worth of products to get started.
Good Commissions and Bonuses
Your commissions are based on your monthly PV. You can earn 30% to 40% from products purchased by new preferred customers. You’ll also earn a bonus when someone buys a starter kit.
As you move up in the ranks, you can also qualify for Royalty Commissions. The commissions are a percentage of your monthly PV and range from 2% to 9%.
Pricey Starter Kits
As you can see above, the starter kits are pretty pricey. In fact, the cheapest one is $300. You don’t have to buy one but there’s a lot of pressure to because that purchase will earn your sponsor a commission.
Negative Side Effects
One thing that should concern you is that the products are not approved by the FDA. One customer complained about adverse side effects from taking Protandim NFR2. Her distributor said it was a “detox stage” and to continue taking the product. The distributor is not a physician and has no place giving medical advice. The problem persisted. She was then referred to the company’s on-call physician who told her to go see her own doctor. She then cancelled the order.
Poor Customer Service
According to the BBB, customers have tried to contact customer service and were greeted with long wait times to speak with a representative, rude and irritated personnel, being cut off on calls, and no desire to help customers.
Your customers won’t be able to cancel their orders online. They have to call the customer service number. Unfortunately, they are only available Monday to Friday during working hours. They are not available on the weekends.
Fraudulent Business Practices
According to a lawsuit filed against LifeVantage, a LifeVantage distributor recruited a new distributor (plaintiff) without disclosing certain information around being a distributor. The plaintiff was not told that he didn’t have to buy a starter kit and was duped into buying the most expensive kit. The plaintiff also never filled out an application or was shown the Terms and Conditions. He was simply asked for his credit card details and the distributor set up the rest. In the end, the plaintiff had to cancel his credit card to stop the auto shipments of products he didn’t order.
Is LifeVantage a Scam?
Working for MLMs is pretty high pressure because you only make money when you sell products and recruit people. And if your recruits leave because they’re not making money themselves, you lose any residual income and ranking. In the meantime, you are still on the hook for that monthly automatic shipment of products. It might not be a scam but it’s a difficult way to make money.
Selling products on a commission-only basis takes a lot of hard work. And it can become quite discouraging when the products you are selling can actually be purchased online for the same price. Yes, your customers will get the personal touch by buying from you, but they may not be interested in a long-term relationship. A lot of people tend to try these products and forget them. They may not be willing to sign up to a monthly shipment.
Building any new business takes hard work. In order to be successful, you have to believe in what you are doing. Your success with an MLM will depend on selling tons of products and recruiting as many people as you can.
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