Founded in 1956, Shaklee stands as one of the older MLM companies with a fascinating and complex history. This established company has navigated both public and private ownership while weathering various controversies, including distributors arrested for running illegal Ponzi schemes. Originally built on nutrition supplements—which remain its bestselling products today—Shaklee has expanded into multiple product categories. Despite maintaining respectable revenues, industry experts widely acknowledge that Shaklee isn’t the powerhouse it once was. Let’s explore this MLM company in detail through our comprehensive Shaklee review.
Shaklee Company Overview
History Of Shaklee
Chiropractor Forrest Shaklee established the company in 1956, bringing impressive credentials to the venture. He had already made history by creating the first vitamin in the United States back in 1915. His ongoing research into nutrition and its beneficial effects on human health ultimately inspired him to launch the Shaklee Corporation in 1956 alongside his two sons, focusing on manufacturing nutrition supplements.
Success came quickly as their supplement products gained popularity, leading the company to expand into organic cleaning products by 1960. The late 1970s marked a significant milestone when Shaklee went public, earning a spot on the New York Stock Exchange. However, the following decade would bring dramatic transformations.
The 1980s saw major strategic moves, beginning with relocating headquarters to downtown San Francisco in 1980. During this period, Shaklee diversified aggressively. The company acquired Bear Creek Corporation, an MLM famous for its fruit-of-the-month club. Later in the decade, Shaklee sold portions of its Japanese operations to a local company, which ultimately set the stage for a corporate takeover attempt.
The Jacobs Group launched an aggressive stock-buying campaign to execute a hostile takeover. Shaklee successfully thwarted this attempt by negotiating a full buyout deal with the Japanese company that had purchased their Japan operations. This transaction returned Shaklee to private ownership status.
Another ownership change occurred in 2004 when American multi-millionaire Roger Barnett acquired the company. Current annual revenue estimates for Shaklee vary dramatically—from approximately $200 million to over $800 million per year. The company’s private status makes precise revenue figures difficult to verify.
Company Investigations
The 1970s brought multiple Federal Trade Commission investigations and orders against Shaklee. The initial problem centered on their “Instant Protein” product. The company failed to include proper warnings about infant usage (under 1 year old) and misrepresented the actual protein content.
A few years later, the FTC targeted Shaklee again. This time, investigators discovered the company had coerced and threatened distributors to maintain suggested retail prices. The FTC mandated an end to these practices, requiring Shaklee to allow distributors complete freedom in their selling methods.
While pyramid scheme accusations plague virtually every MLM, Shaklee’s situation escalated to actual arrests. In a 2012 incident, distributor Jack Cranney faced arrest for defrauding 36 victims of approximately $10.4 million through an investment Ponzi scheme.
Current Company Structure
Roger Barnett, the company’s most recent buyer, currently serves as CEO. Headquarters have moved from San Francisco to Pleasanton, CA. Annual revenues fall somewhere between $200 and $800 million, though exact figures remain elusive due to the company’s private status. Evidence suggests revenues peaked around $800 million in 2014 before entering a decline.
The company maintains its direct selling model through approximately 1 million distributors globally. International operations span several countries beyond the United States, including Canada and Japan. While Shaklee has expanded far beyond its original nutrition supplement focus, the company remains strongly committed to its “green” environmental philosophy.
Shaklee Product Lines
Nutrition supplements still comprise the majority of Shaklee’s product offerings. Their extensive catalog includes vitamins, shakes, and meal replacement options designed to maintain customer health. Shaklee provides targeted solutions for weight loss, aging, blood sugar management, metabolism enhancement, and various other health concerns affecting both men and women.
Beyond vitamins and supplements, Shaklee markets beauty-focused products including natural makeup, lotions, and anti-aging creams designed to promote healthy, beautiful skin. The company rounds out its portfolio with natural home products, featuring cleaning supplies and water filtration systems.
Company Marketing Practices
Shaklee’s marketing approach has transformed significantly over the company’s lifetime. Today, like most MLMs, the organization heavily leverages Internet and social media platforms for product promotion. They’ve even developed a trademarked methodology called Social Marketing. This strategy involves sharing Shaklee products and opportunities with personal contacts, converting them into preferred customers or distributors, then building your business by teaching others to replicate this process.
Making Money With Shaklee
Despite the massive global nutrition supplement market, Shaklee sales appear to have declined over recent years. The company also lacks the brand recognition enjoyed by newer, larger supplement companies. Combined with approximately 1 million distributors competing within the same system, income opportunities appear limited. So what are Shaklee distributors actually earning?
Without a published Income Disclosure Statement from the company, determining precise payout figures proves challenging—itself a concerning red flag. In 2016, some company leaders earned only $4,155, suggesting average distributors make significantly less. Industry experts estimate that approximately 99% of Shaklee distributors fail to generate any profit whatsoever.
How To Enroll
Getting started requires completing an application and paying the enrollment fee, which varies based on your chosen starter kit. Entry-level options begin at just $50, while the comprehensive “I Want it All Success Pack” costs $1,130. You must enroll under an existing distributor’s team, as hierarchy plays a crucial role in their compensation structure.
Shaklee Compensation Plan
Shaklee calls their compensation structure the “Dream Plan” to emphasize earning potential for fulfilling personal dreams. Basic earnings come from commissions on personal retail sales. However, Shaklee’s plan differs from other MLM structures by placing extreme importance on recruitment and downline sales for overall compensation. Additionally, meeting minimum sales volumes (approximately $150 monthly at the entry level) is mandatory to remain commission-eligible. Failing to meet these requirements can result in losing all accumulated commission points.
Sales And Marketing Techniques
Social media platforms serve as the primary success driver for many distributors. Sharing Shaklee products with your audience can drive both customer purchases and new distributor sign-ups. Since potential customers often research products before buying and appreciate seeing real results from other users, sharing informative content and success stories proves highly effective for encouraging Shaklee product trials.
Shaklee Comparison To Other MLMs
With countless MLM companies like Scentsy and doTERRA competing for attention, how does Shaklee measure up? Brand recognition-wise, Shaklee doesn’t enjoy the household name status of larger direct selling companies. The company also emphasizes distributor recruitment much more heavily than most other MLMs, with their compensation plan strongly reflecting this priority. Income potential aligns with typical MLM expectations: most distributors struggle to profit while only a select few achieve substantial earnings from product sales.
Conclusions For Shaklee
With over 60 years of operation and continued strong revenues (despite recent declines), Shaklee maintains its position in the direct selling industry. The company supports approximately 1 million distributors worldwide, even without achieving household name recognition. Shaklee demonstrates genuine commitment to providing high-quality, natural products that improve customer lives. However, don’t expect substantial income from selling their products. The majority of distributors fail to generate profits, and the compensation plan heavily emphasizes recruitment over sales.
