Isagenix is a multi-level marketing company specializing in nutrition and dietary supplements, although it does sell a few other products as well. The company has achieved revenues close to $1 billion per year, but it has had many complaints about its products not living up to their advertising claims. While the company claims some reps make over $100,000 per month, the average rep makes nowhere near that. Overall, there are very mixed reviews about the company and its products.
Additionally, when it comes to MLMs, there is no shortage of companies out there. There’s Plexus Worldwide, Melaleuca, Arbonne, and the list goes on. So, how does Isagenix truly stack up in the MLM world? Let’s take a look with this review of Isagenix.
Isagenix Company Overview
History Of Isagenix
Isagenix was founded in 2002 by John Anderson and Jim and Kathy Coover. Anderson had spent his whole life creating health and wellness products that would improve people’s lives. Many companies had attempted to buy his formulas, but he had refused to sell to them. He was devoted to using quality ingredients, and the companies trying to buy his formulas wanted to use cheap ingredients and mass produce the products.
Jim and Kathy Coover were very experienced in the direct selling industry, and often had people approaching them for assistance selling their products. They, like Anderson, were devoted to their customers’ best interests and refused to cut corners. When Anderson reached out to them for help, they knew it would be a good fit. They formed Isagenix in 2002 with the goal of producing the world’s greatest health and wellness products. They wanted a product and a business opportunity that would change people’s lives both physically and financially.
The products began to sell quickly, and in 2017 the company reported revenues of $958 million and employed around 850 full-time employees. In 2013, there were over 200,000 distributors. Isagenix does business in 14 countries around the world including the United States, Canada, Hong Kong, Australia, and others.
One of the largest complaints around Isagenix revolves around the fact that they make false and misleading claims about their products. Particularly, their “nutritional cleansing” products have been the target of much skepticism. In fact, a physician named Harriet Hall is widely known as criticizing the company’s products stating that many of their claims are entirely false.
The company has also had similar issues in Australia where the consumer advocacy group CHOICE has reported that the claims the company makes about its products are scientifically unsupported. These claims also allege that the company uses the same ingredients as much cheaper store-bought products, and that Isagenix distributors offer unauthorized medical advice to customers.
Lastly, the company has also dealt with the standard pyramid scheme allegations that most all MLM companies see occasionally. Some distributors allege that their recruitment practices are misleading, and distributors must actively recruit to make money. This runs a fine line of operating a legit multi-level marketing company versus operating an illegal pyramid scheme.
Current Company Structure
Isagenix is still headquartered in Gilbert, Arizona which is where it was originally founded in 2002. The company has topped over $6 billion in cumulative sales throughout its lifetime and had around 850 full-time employees in 2017. While the company had around 200,000 active distributors in 2013, it has proved difficult to find more recent data related to the number of distributors within the company.
Jim Coover still serves as Chairman of the company today, and his wife Kathy is an Executive Vice President. Co-founder John Anderson is still heavily involved with the company creating formulas for new and innovative products. In addition, the company has brought on additional senior leadership to put together a strong team to lead Isagenix into the future.
Isagenix Product Lines
Isagenix products are intended to help customers live better and healthier lives. Most of their products center around nutrition and dietary supplements. Some of their products include weight loss and performance supplements, while others are related to vitality and general well-being.
Beyond supplements, the company also offers other products related to health and wellness. One of those products is essential oils and accessories that go with them. Isagenix also sells personal care products such as body cream, eye cream, toner, and other skincare products. Even their skincare products are intended to promote a healthier lifestyle by using quality ingredients that truly work.
Company Marketing Practices
Isagenix wants their distributors to be successful, so they have published many business tools to help them achieve their goals. One of these is a business book that walks new distributors through the process of selling and recruiting. Isagenix itself states that social media is a game changer when it comes to multi-level marketing. They encourage their distributors to take full advantage of social media and the benefits that it can have on their business.
However, they do discourage deceptive marketing tactics and pushy sales pitches. The company seems to want to do the right thing and allow their distributors to gain business the right way, not through unethical or illegal means.
Making Money With Isagenix
The dietary supplement market is a huge market around the world, and Isagenix does a lot of business with revenues of around $1 billion per year. With only around 200,000 distributors within the company, it seems like a great opportunity to get a piece of this pie. However, is that actually the case, and are people making money selling these products? Sadly, the answer is no.
A quick review of the Isagenix Earnings Statement shows that most distributors make very little, if anything, with the company. In fact, 50% of US based associates made less than $337 in all of 2017. Of the half that made more than this, the median income for those associates was still only $985 for the year. Only 1% of distributors made more than $40,323 during the year. As for the claims of distributors making over $100,000 per month, only 254 distributors worldwide have earned a cumulative total of more than $1 million. This cumulative total includes all earnings with the company, not just a specific year.
How To Enroll
Enrollment with the company is not quite as easy as some other MLM’s. First, you will need to connect with the person who shared Isagenix with you to sign up. If you want to sign up as simply a preferred customer, there is no charge. Either way, you will need to sign up as a customer first. Then, if you want to be able to earn commissions, then you will need to pay the $29 annual membership fee to become an associate.
Isagenix Compensation Plan
Associates earn a 25% commission on their sales. They basically purchase the products at 25% off the retail price, and then re-sell to their customers at full retail. Once you get signed up and your application to become an associate is approved, you will receive a website where people can go to place orders from you.
As with most MLM’s, the Isagenix Compensation Plan also lays out the criteria for earning bonuses and additional payments. The payment plan is somewhat complicated looking at sales volumes for each leg of your team over different sales cycles. It seems that the company makes it difficult to understand exactly how the compensation plan works and difficult to earn the bonuses described.
Sales And Marketing Techniques
Isagenix wants their distributors to be customers first, so they want them to use the products and share success stories with other potential customers. Social media is the perfect way to do this. Those who follow that plan and have a large social media following tend to perform the best as distributors. They also use social media to recruit new associates, although that has gotten the company in a bit of trouble before due to some of the income claims made by existing associates.
Isagenix Comparison To Other MLMs
Isagenix is in an industry with a huge market potential; however, there have been mixed reviews about its products. In addition, the true income levels of its distributors do not align with some of the income claims made. Isagenix is much like most other MLMs such that most distributors make very little while just a handful of associates earn a large income.
Conclusions For Isagenix
While Isagenix has a large sales volume, most of its distributors do not make a significant income. The company has experienced a lot of negative feedback about the effectiveness of its products, as well as misleading claims made by its distributors. Given the company’s reputation and earning potential, Isagenix does not appear to be a great opportunity for those looking for a legitimate money-making opportunity.