In the dynamic world of health and wellness, countless programs claim to offer the keys to weight loss and optimal health. Among them, Optavia has emerged as a popular option, promising a transformative lifestyle rather than a simple diet plan. But what lies beneath the surface of this growing multi-level marketing (MLM) business? Is it truly the life-changing program it claims to be?
In this comprehensive review, we’ll explore Optavia’s inner workings, examining its structure, products, and business model to provide an unbiased assessment. By lifting the veil, we’ll determine whether Optavia delivers on its promises or represents another fleeting MLM opportunity.
What Is OPTAVIA?
The OPTAVIA name is relatively new in direct selling, though it’s technically a rebrand by Medifast, founded in 1980. OPTAVIA has achieved record growth since launch, consistently increasing revenue and recruiting new distributors, known as coaches. The company sells healthy coaching plans and portioned meals to customers, with business thriving. Given the low number of existing coaches, OPTAVIA may offer a solid entry point into the health coaching MLM space.
Company Overview
History Of OPTAVIA
OPTAVIA is relatively new to the MLM space, launching in 2017. However, it represents a rebranding of an established company’s product line. Medifast, operational since 1980, rebranded its subsidiary “Take Shape for Life” into OPTAVIA. Simultaneously, they launched OPTAVIA Essentials, a new product line sold directly from coaches to clients.
OPTAVIA’s parent company, Medifast, was founded in 1980 by Dr. William Vitale. Initially, the company’s products were sold exclusively to doctors, who prescribed them to patients. Medifast expanded rapidly and became publicly traded on the New York Stock Exchange.
Medifast has maintained a solid reputation for trustworthiness. It earned recognition on Forbes’ list of 100 Most Trustworthy Companies in America in 2016 and 2017. Since its launch, OPTAVIA has upheld this standard.
As of December 2017, the OPTAVIA line achieved 9 consecutive quarters of growth with 16,700 active earning coaches. In 2019, the company expanded internationally into Hong Kong and Singapore.
Company Investigations
While OPTAVIA maintains a clean record, its parent company has faced investigations and penalties. One Medifast subsidiary, Jason Pharmaceuticals, was ordered to pay $3.7 million in 2012 for false advertising. The advertising for one weight loss product lacked scientific backing.
Several websites and reviews online accuse Medifast of overstating coach income levels. Some OPTAVIA-focused sites claim the products cause illness, contain unacceptable metal levels, and damage gut health. While these claims remain unproven, some sites have gained substantial followings.
Current Company Structure
Today, OPTAVIA remains wholly owned by parent company Medifast. Headquartered in Baltimore, Maryland, the company trades publicly under ticker symbol MED, with CEO Dan Chard leading operations.
As of Q2 2019, OPTAVIA reported approximately 30,000 active earning coaches. Medifast generated over $500 million in revenue during 2018. The company also noted that OPTAVIA branded products represented 75% of consumable units sold, making OPTAVIA an essential subsidiary for Medifast.
OPTAVIA Product Lines
OPTAVIA products focus on healthy living and weight management. The company offers various plans, each incorporating a coaching component alongside actual meals and food consumed during the program.
For example, OPTAVIA’s 5&1 plan enables your body to enter gentle fat burning while preserving lean muscle mass. This plan teaches participants to consume six small meals daily for healthy weight maintenance. Five meals are provided, while you learn to prepare a nutritious dinner.
Their Purposeful Hydration line encourages adequate daily water intake through water flavorings that promote proper hydration. These products complement their other offerings.
Company Marketing Practices
OPTAVIA actively markets to doctors and healthcare professionals, encouraging them to sell products to patients for improved health outcomes and additional income. OPTAVIA has distributed publications explaining how doctors can integrate the company into their practice.
Social media serves as another avenue for coaches to connect with clients. By creating support groups on social platforms, OPTAVIA coaches can assist clients with problems and concerns. The support component represents a major selling point beyond the physical products.
Making Money With OPTAVIA
Given that active OPTAVIA coaches have doubled in recent years, people appear to be earning money through the program. The weight loss industry represents a massive market globally, particularly in the United States, where consumers invest heavily in achieving weight loss goals. But what can someone realistically expect to earn as an OPTAVIA coach?
Examining the OPTAVIA 2018 Income Disclosure Statement reveals a concerning picture of potential earnings. During 2018, fewer than 20% of active coaches earned over $5,000 for the entire year. Only about 3% earned more than $30,000, meaning approximately 97% earned less than full-time income. At the high end, just 0.18% of coaches earned over $200,000.
How To Enroll
To become an OPTAVIA coach, you must first discuss opportunities with your current coach. You can then order your OPTAVIA Business Kit to begin. The kit costs $199 but includes substantial business development resources.
The business kit contains OPTAVIA’s Coach Success System, numerous guides about company plans, physical items like planners and pens, and 12 months of your personal OPTAVIA website. Coaches must pay an annual renewal fee of $99 to remain active, providing continued website access and online community participation.
Compensation Plan
OPTAVIA’s compensation plan offers several income streams for coaches. The primary method involves commissions on direct client sales. Coaches earn 15% on these sales and can receive additional bonuses based on volume and consistency.
Additionally, coaches earn commissions through recruiting and sponsoring other coaches. They receive extra income when helping downline coaches achieve specific bonuses. For instance, sponsoring coaches earn a $100 bonus when assisting new personally sponsored coaches in earning their Client Acquisition Bonus.
Finally, OPTAVIA rewards leadership development by allowing higher-tier coaches to earn income up to six levels deep in their downline. They call the downline “generations” and this commission “generational income.” Once coaches reach Integrated Presidential Director status, they become eligible for all national bonuses.
Sales And Marketing Techniques
OPTAVIA exemplifies social media-driven marketing. Coaches create client support groups through social media and leverage their online followings to recruit new clients and coaches. Medical professionals remain primary recruitment targets, though many coaches work outside the medical field.
Comparison To Other MLMs
With numerous MLM companies like Young Living and Mary Kay competing for attention, how does OPTAVIA compare?
Unlike many MLMs, OPTAVIA extends beyond physical products, incorporating programs that promote healthy living. The company maintains relatively few enrolled coaches, possibly due to high enrollment and renewal fees compared to other direct selling opportunities. Correspondingly, the income potential appears lower than most alternatives.
Conclusions For OPTAVIA
OPTAVIA operates as a health and lifestyle company specializing in weight management programs that combine information with food products. The company has experienced growth recently and generates approximately 75% of parent company Medifast’s revenue. However, OPTAVIA coach enrollment proves expensive while earning potential remains low. Overall, this doesn’t appear to represent a viable opportunity for generating income through direct selling.
