Isagenix MLM Review: Is This Compensation Plan a Pyramid Scheme?

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In this Isagenix mlm review, I’m going to break down the compensation plan and look to see if this mlm company is a pyramid scheme.

We have all probably heard of Isagenix before. They’re giants in the multi-level marketing industry. But is this company legit?

I’m going to take a deep dive in this review in case you’re on the fence about joining. Hopefully, you can pick up some gold nuggets that will help you while you do your due diligence.

Let’s get started.

What is Isagenix?

Isagenix International LLC is a privately held multi-level marketing (MLM) company that sells dietary supplements and personal care products. The company is based in Gilbert, Arizona and was founded in 2002 by John Anderson, Jim Coover, and Kathy Coover.

As of 2013, Isagenix reported having over 200,000 active MLM distributors. In 2017, the company reported record revenues of $958 million. According to Isagenix, the company employs over 850 people.

Isagenix Product Line

Isagenix sells dietary supplements and cosmetics. The company also offers what’s called “Financial Wellness” product bundles, which are sold to distributors.

The company’s core product categories are:

  • Weight loss
  • Performance
  • Vitality and Well-Being
  • Personal Care and Beauty

Isagenix strives to fulfill its commitment of no-compromise nutrition with their products. This means that their products are backed by research and eco-friendly sourcing procedures. And their products are currently available in 12 countries including:

  • The United States
  • Puerto Rico
  • Canada
  • Australia
  • New Zealand
  • Singapore
  • Hong Kong
  • Taiwan
  • Malaysia
  • Vietnam
  • Mexico
  • China

How to Join Isagenix

To join the Isagenix business opportunity, you will need to get back to the person who referred you, or you can visit the Isagenix website.

Isagenix MLM

In order to get started you will need to join as an associate and purchase one of the 3 business starter packs. This will cost you either $269, $559 and $1,099. There’s also a monthly requirement of 100 PV (personal volume) in the prior 30 days to stay active.

Isagenix Compensation Plan

Distributors are required to actively recruit new members to earn money. The company’s promotional materials highlight people earning more than $100k per month. However, most distributors earn less than $500 per year.

The Isagenix compensation plan is a binary plan, which means you only need to build two sales teams. Some mlm companies require that you build 4, 5 or 6 legs or teams.

The Isagenix comp plan is very straight forward and one of the better put together plans in the industry. With Isagenix you will want to get to Executive status to max out the compensation plan.

Here are some resources that the company will direct you to, in order to be successful with the company.

Here are a few highlights from the comp plan:

  • The company pays daily, weekly, and monthly.
  • You get paid on sales from your entire team.
  • Repeat residual income when you stay active (orders in last 30 days) as a consultant.
  • Earn repeat team bonuses on product sales from your downline as well as organizational reorders.
  • The weekly payouts are every Monday.

Business volume (BV) is the assigned value of products and packs with Isagenix. And there are 5 ranks to climb with the company. They are as follows:

  1. Associate
  2. Consultant
  3. Manager
  4. Director
  5. Executive

How to Achieve Executive Status

As I mentioned, to unlock the true potential of the comp plan you’ll want to get to Executive as fast as possible. To become an Executive you need 5 active consultants on your left and 5 active consultants on your right. Here’s an example of what that looks like.

Isagenix Compensation Plan

Here’s an Isagenix Compensation Plan PDF (12-pages) that walks you through the most recent plan at the time of this review.

Here’s an excellent video with the co-founder Kathy Coover, explaining the compensation plan.

Is Isagenix a Pyramid Scheme or Legit Company?

In 2011, a physician named Harriet Hall, published an article in the Skeptical Inquirer stating that there are a number of false claims being made about the Isagenix products.

The Australian consumer organization CHOICE, reported that Isagenix’s claims about its “nutritional cleansing” product are not scientifically backed in validity. Also, that its weight loss products are similar in content to much cheaper options available in stores and that its MLM distributors provided unauthorized medical advice.

My piece of advice for anyone looking to join any multi-level marketing company is always the same. Steer clear of making any medical claims unless you want to land yourself in hot water with the FDA. They don’t take medical claims on dietary supplements lightly.

But having said all of that, Isagenix is not a pyramid scheme and is a legitimate company. The company has solid products and has been around for many years with many happy customers who have used the product with no intention of joining the business opportunity.

Product User to Business-Builder Ratio

According to the company’s income disclosure, 83.3% of their total members are product usuers who enjoy the company’s high quality products. While only 5.2% of their members are business builders who participate in the Isagenix business opportunity.

The other 11.5% was what the company called product sharers. This would be people who shared the product with friends, but weren’t business builders per say.

This is a great ratio and speaks to the quality of the Isagenix product line. In a pyramid scheme this ratio would be the opposite with most of the revenue coming from new members and very little if any coming from product or service sales.

Revenues

In 2016, sales of Isagenix wellness and skincare products amounted to nearly $1 billion. In 2017, the company reported record revenue numbers and almost surpassed $1 billion. Isagenix also made our list of the 25 fastest growing mlm companies for this year.

Isagenix International also recently celebrated a significant milestone of $6 billion in cumulative global sales.

Here are the revenue numbers over the past 4 years according to Business for Home. With almost $1 billion in sales year-over-year, the company appears to be doing something right.

  • 2018: $890 million
  • 2017: $958 million
  • 2016: $924 million
  • 2015: $890 million

Better Business Bureau

Isagenix is A+ rated with the Better Business Bureau and has been accredited since 2011. The majority of the reviews with the BBB were positive.

Pros and Cons of Isagenix

Pros

  • Weekly, daily and monthly payouts with the company.
  • A simple and not overly complicated comp plan, which outlines the paths to earning with the company.
  • The company claims to have many 6-figure earners who have done well with the company.
  • Isagenix has a good training platform with resources and support to help distributors grow their business.
  • High percentage of happy customers who use the product only and don’t participate in the business opportunity.
  • A 30-Day Product Satisfaction Guarantee on products.

Cons

  • The health and wellness mlm market is very competitive.
  • False medical claims have gotten the company and distributors in trouble. You’ll need to avoid this at all costs.
  • There are cheaper alternatives available online or at local health food stores.
  • Most distributors don’t earn a significant income according to the company’s income disclosure.
  • Isagenix doesn’t have a good online marketing platform for growing your business.

Conclusion

The Isagenix MLM business opportunity is legit. The company has solid products and a straight forward compensation plan.

If you decide to go with this opportunity, stay away from medical claims as the FDA comes down hard on companies that tout medical claims without evidence. Aside from that, like all multi-level marketing companies, Isagenix isn’t easy. But if you have an advanced skillset, their products and comp plan offer an opportunity to earn some extra income.

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