- About It Works
- It Works Company Overview
- It Works Products
- It Works Company Marketing Practices
- Making Money With It Works
- It Works Compared to Other MLMs
About It Works
It Works is a multi-level marketing (MLM) business in the health and beauty industry. It is a somewhat young business as compared to other MLM’s having been founded less than 20 years ago. It Works operates as a classic MLM by allowing its distributors to earn money from their own sales as well as from recruiting a productive downline. Complaints about the company are quite numerous, and some of its products are hotly debated.
It Works Company Overview
History Of It Works
It Works is a relatively new company having just been founded in 2001. The company was founded by husband and wife team Mark and Cindy Pentecost. The couple actually had their own side business a few years earlier in the telecommunications industry.
The Pentecosts were struggling to make ends meet financially. They developed a plan to earn an extra $500 per month in a telecommunications home-based business. Mark quickly moved up the ranks in this new business venture, and he soon became a top earner in the company. This new financial freedom allowed the Pentecosts to explore ways that they could help people achieve the same level of financial success.
The company’s first product, the Ultimate Body Applicator, was released in 2001, and the It Works business was born! The business grew quickly, and new product lines like dietary supplements were introduced. In addition, the business began expanding internationally into countries like Australia and parts of Europe.
In 2009, It Works became debt-free and sales began to skyrocket. As of 2018, It Works had annual revenues of approximately $600 million. They had also grown a distributor network of about 100,000 people. They have several product lines today including supplements, body wraps, and apparel.
It Works has seemingly been able to avoid any major scandals during its less than 20 years in business. There are no documented instances of formal investigations by the FTC or other regulatory bodies like many MLM’s have encountered. However, there have been a few scenarios that have caused some people to develop an extreme dislike for the company.
The main complaint against the company revolves around improper marketing practices. Since the products that It Works sells are not regulated by the FDA, they are free to make some pretty extraordinary claims about the products. Many people feel like their claims are too good to be true, and that the products do not work as advertised.
The other issue that people have with the company is that distributors are encouraged to sign people up for recurring shipping and billing without the customer fully understanding that they will be charged on a monthly basis. People have found it very difficult to cancel their subscriptions, and they continue to be charged after they thought they had cancelled. There are many previous distributors who have spoken out against the company and these seemingly dishonest practices.
Current Company Structure
The founder, Mark Pentecost, still serves as CEO of the company today. The company has moved its headquarters into a large, new office in Palmetto, FL. In addition, the company has global headquarters located in Dublin, Ireland and Seoul, South Korea. The company has even purchased its own private island near the corporate headquarters where it holds company events for its top distributors.
Today, the company has a network of around 100,000 distributors. In contrast, it only has just over 300 full-time employees. While it still has annual revenues around $600 million dollars, those revenues have been declining over the past few years. The company reached a peak social media frenzy a few years ago, and revenues, along with the number of distributors, have been declining since.
It Works Products
The original product, the Ultimate Body Applicator, is still the top seller today. This product is a body wrap that is said to shrink targeted areas of the body. It is used as an alternative to cosmetic surgery or restrictive shapewear.
In addition to the body wraps, It Works now offers dietary supplements. Some of their currently popular supplements include items that are meant to support Keto diets. Those products include Keto coffee, ketones, and Keto Go. Keto Go is a liquid supplement of amino acids and other proprietary blends that help you to maintain your keto diet throughout the day.
It Works also offers anti-aging and other beauty products. These include mostly different types of serums and creams. You can also purchase apparel and accessories like gym bags from the company.
It Works Company Marketing Practices
It is no secret that social media has played a huge role in the success of It Works. Distributors began posting before and after photos on social media, and they also started recruiting new distributors. The opportunity basically went viral, leading to peak sales and sign-ups around 2015. Social media is still a large marketing avenue for the company, and they sell almost exclusively through their website.
Making Money With It Works
As a traditional MLM, distributors make money when they make sales, and they also make money by recruiting a downline that can make sales. Top earners within the company make over $1 million per year, but how common is that? The answer is not at all.
Many people who sign up as an It Works distributor end up losing money instead of making money. Per the company’s own Income Disclosure Statement, the average monthly income across all distributors in 2018 was $173. That may sound decent, but that number does not include any expenses that the distributor may incur in marketing or running their business. Given that fact, it is easy to see how most distributors make nothing selling these products.
How to Enroll as an It Works Distributor
The enrollment process is easy and straightforward. Simply go onto the It Works website and click the link to enroll. If you want to sign up under a specific distributor, you can do so. Otherwise, one will be assigned to you as your upline. In order to sign up, you must purchase a starter kit. The cheapest option is $99.
There are also monthly fees associated with access to your own personal website where customers can place their orders. As if the fees were not enough, there are minimum order requirements each month for a distributor to remain active. The distributor must either sell or purchase approximately $80 each month to stay active and eligible for commissions.
The It Works compensation plan is somewhat complicated, using Personal Volume, Group Volume, Personal Bonus Volume, and other confusing terms in the calculation of a distributor’s overall commission. To further complicate things, a distributor can have multiple legs in their downline, but there are minimum order requirements to become eligible for commissions on those legs.
In its simplest form, a distributor will earn 10% commission on both Level 1 and Level 2 sales. The distributor can then earn commission from 5% down to 2% all the way down to 6 levels in their downline. Again, remember that the monthly minimums apply each month for a distributor to be eligible for any commissions. Lastly, signing up Loyal Customers (those customers who agree to at least a three-month auto-ship agreement) is preferred and leads to more value and commission.
It Works Sales and Marketing Techniques
Social media has definitely been the most proven method to making money through It Works. Since their most popular product, the body wrap, is said to get very quick results, people often host parties where they perform demonstrations. A distributor will invite people to the “wrap party,” and then attempt to sell the wraps after the demonstration. This method has proven to be quite successful for high earners in the company.
It Works Compared to Other MLMs
When compared to other MLMs, the opportunity with It Works is average to below average. Company sales and distributor sign-ups have been declining for the past 3 years, and average earnings are extremely low. This is not to mention the required minimum orders and monthly fees associated with keeping your business active. Many people are turned off by the company’s auto-ship agreement practices. Given these facts, this is likely not the way to go for making money.