If you’re a fan of organic foods and/or are likely to be found shopping at a local farmer’s market, then you may have heard of or even seen a Yougevity booth. This company, which started in 1997, features a number of organically-derived foods, beverages and supplements.
In 2014, Yougevity acquired Beyond Organic, LLC, which enabled it to expand its product line to encompass dairy products and “Greenfed” meats such as beef. Beyond Organic’s founder and CEO, Jordan Rubin, is the author of the widely acclaimed book “The Maker’s Diet,” and attributes his Crohn’s Disease reversal to an all-organic, probiotic-heavy diet.
What is Youngevity about?
Youngevity (in partnership with Beyond Organic) sells various high-end organic product and cleanse beverages such as the following:
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These products are certainly not cheap when purchased at retail value. However, what is heavily emphasized by Youngevity is that you join it as a “preferred customer.” As such, you can then buy the products at a 30% discount.
How do you join Youngevity? By buying one of its ‘starter paks’ and paying a one-time fee of $25. This is outlined in the company’s business overview:
The start paks range in cost from $115-$189. Youngevity emphasizes that you should select a pak that’s appropriate to your own health condition and, in so doing “avoid becoming a statistic.” What statistic, you might ask? An unhealthy and soon-to-die-from-a-first-world-disease statistic, apparently.
But more to the point, by buying a start pak and paying $25, you also achieve distributor status and can make referral income and commissions for recruiting others to Youngevity.
So, if you haven’t already guessed, Youngevity is a direct sales multilevel marketing (MLM) company. As such, it doesn’t offer its product through retailers or traditional brick-and-mortar stores. Instead, it sells its products to individual distributors, who then recruit others to purchase the company products under their own sponsorship.
And for the low price of $499, you can order the CEO Mega Pak.
This pak enables you to not only earn referral commissions and bonuses, but provides you with CEO leadership training and stock options. You also become qualified to rise in the Youngevity ranks.
How does Youngevity propose that you make back your $499.99 investment in this “financial school,” as the company calls it?
By recruiting at least four additional individuals to join the Youngevity ranks by ordering those CEO Mega Paks. In this way, your bonuses and commissions will more than equal your initial investment.
Of course, if you recruit four additional members, you have just established your own downline. How much does your downline earn for you? Here’s a breakdown of Youngevity’s monthly compensation plan based on a downline of four initial recruits, each of now whom purchase $150 worth of product from Youngevity’s website and also recruit other members to do the same:
Again, there is a strong emphasis on making money through member recruitment. Based on these successful levels upon levels of recruitment, you can expect to first earn $48/month, followed by $192, and then $672, and so on. After your downline is six levels in, you could theoretically be earning almost $50K/month.
While that may not sound so bad, there is more to qualifying for commissions than recruiting others. You must also do your part- and in Youngevity’s “don’t become a statistic” lingo, that means personally consuming its products month after month.
The following compensation breakdown showcases what a distributor is required to do in order to rise in the ranks of the company. Take note of the term PQV, which stands for “personal qualifying volume.” This volume is calculated in points, not dollars; however, each point is roughly equivalent to about 1.2x dollars. So, in order to achieve a 100 PQV, for example, you would need to spend about $120/month of your own money on Youngevity product.
As you climb the ranks, you have to make sure your downline continues to purchase required volumes of products.
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As with any business out there, there are both pros and cons to Youngevity.
Organic products– Youngevity, in partnership with Beyond Organic, offers quality nutritional supplements and foods. You can be fairly certain that these supplements and foods will help you become healthier.
Expensive products– Youngevity’s products are quite expensive and, in many cases, contain ingredients no different from other brands. The company advertises that the solubility of its supplements is much better because those supplements are plant-derived; however, no data are provided to prove this claim.
Purchase requirements– To rise in Youngevity’s ranks and remain qualified to receive commissions and bonuses, you must purchase the company’s products and either personally use them or sell them to others. That’s going to pose a challenge for you if you suddenly become cash-strapped and/or develop a reaction to the products.
Recruitment emphasis– Youngevity focuses heavily on member recruitment, which can be a challenge given that even a distributor start pak costs over $100. Not everyone is going to have hundreds of dollars to invest in nutritional supplements, nor will everyone want to purchase supplements. To make back your CEO Mega Pak investment, you will need to convince four more individuals to spend almost $500/each.
Dubious qualifications– Youngevity touts its founder and CEO, Dr. Joel Wallach, as being a prominent biochemical researcher and scientist. However, his background is in veterinary, not medical science. The man may have authored a few books on nutrition, but he’s neither a scientist nor a medical doctor by training.
What Do You Say on Youngevity?
Youngevity may have some decent products to sell, especially since its recent acquisition of Beyond Organic. However, the company charges way too much for its supplements and probiotic shakes. Furthermore, as a business opportunity, it focuses much too heavily on member recruitment and warm market targeting to be a viable opportunity several years down the line. With so many other and more affordable businesses out there, you are better off passing on Youngevity.
Have you or do you currently sell Youngevity products? Please leave a comment below.