Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to jump into the world of health and wellness with my OPTAVIA MLM Review. Health and Wellness can be an extremely lucrative online business with many making a good living selling items via online stores and affiliate marketing. Added to this obviously is the array of healthy living and weight loss based multi level marketing programs that are available. So, what is the OPTAVIA MLM all about? Let's have a look and find out…
Note: I am not a member of the OPTAVIA MLM Program (and hence make no commissions from any of the links included within this post). The reason for this is that I prefer to write these posts based on what a newbie would be seeing if they were interested in joining – that way I feel I can make a better judgement on what it is that these companies are offering within their programs.
What is MLM?
Multi-level marketing (MLM) programs are the traditional mainstay of the ‘party plan' world of products such as Tupperware, Mary Kay and Amway etc. and, of course within the beauty/cosmetics, supplements and essential oils markets. The weight loss industry has also embraced MLMs as a means of promoting and selling their products either via the sale of supplements and meals or all encompassing coaching programs such as this one. The reasons for this are mainly due to the fact that much of the sales and marketing is now being managed online leading to easier ongoing sales and recruitment management as well as a reduction in the need to run traditional network marketing parties – some do of course but online communications has severely reduced this requirement.
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The ‘multi level' aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign' into membership arrangements as well.
In short, the process works as follows:
- You join the program, either via referral from another person (known as your up line) or directly through their website.
- You promote the products of the company via parties, workshops or online.
- As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
- That new member is then placed ‘underneath' you in a hierarchical arrangement (known as your down line).
- You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
- If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.
The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.
What is OPTAVIA ?
OPTAVIA is a health and wellness company with a mission to assist people on their journey to ” Lifelong Transformation, One Healthy Habit at a Time”. Their weigh loss programs work on four components of support including:
- Guidance and support from OPTAVIA coaches.
- The habits of health.
- The OPTAVIA community.
- Scientifically proven ‘fuelings' and plans.
OPTAVIA is based in Baltimore, MD in the United States.
What do they Sell?
As part of their journey into instilling healthy habits to its members, OPTAVIA offers a range of programs and products as follows:.
Weight loss Plans:
- Optimal Weight 5&1 Plan
- Optimal Weight 4&2&1 Plan
- Optimal Health 3&3 Plan
Products
Incorporated into the health and weightloss programs above are their range of meal replacement and supplemental products including:
- ‘Fuelings' – 60 different nutritionally interchangeable, scientifically-designed meals and snacks covering:
- Bars
- Shakes & Smoothies
- Drinks
- Crunchers, Poppers & Sticks
- Hearty Choices
- Soups
- Breakfast Style
- Dessert Style
- Hydration solutions
Item costs appear to fall into the medium to high price range of around $20 to $50 per product – e.g. a box of 7 Granola Bars will cost $21.45.
MLM Program outline
The OPTAVIA MLM program calls their members ‘Coaches' who are part of what appears to be quite a modern arrangement with an interesting (if not a little complicated) mixture of retail and downline commissions and bonus options included. Their compensation plan is available on their website so here are the basics as I have found them…
Base Commission rate: 15%
Down line commission rates: 1.5 – 12% to 3 levels (level 1 down line is 4% – rank Senior Coach and above and above)
Minimum monthly spend to qualify for commissions
To qualify for downline commissions, Coaches are required to meet monthly Group Qualifying Volume (GQV) targets of at least 1,200 per month which must be made from customer sales only (i.e. personal sales do not qualify against GQV tallies). Base 15% sales commissions however can be earned without the need to meet or maintain sales targets.
Payment terms: Weekly and Monthly.
Application required?: Yes, Application form on website.
Purchase requirements to join: Yes
New Coaches are required to purchase an OPTAVIA Starter Kit at a cost of $199 which includes:
- Business Tools
- Plan information
- Business Accessories
- First 12 Month access to the personalised website and back office.
Ongoing personal monthly purchases are not mandatory.
Note: Based on the information in the website in regards to personalised website costs for the first 12 months, it can be assumed that a yearly business fee is payable. I cannot however locate any information in regards to the cost of this if it does exist.
Marketing materials provided: As per starter kit above.
Within most MLM programs, rankings and commissions are determined by the total Group Qualifying Volume (GQV)
generated by the coaches via their down line within a calendar month with Compensation Volume (CV) points assigned to each product. These point allocations can range from 0 to 100% of the retail price of each product (before tax and shipping) and vary from item to item and currency of sale.
In the case of the OPTAVIA MLM program, I have not been able to locate any information as to how CV points are calculated for each product – their compensation plan outlines anywhere from 0 – 100% – so some further research may be required here. (Please comment below if you have some further information I can add at this point).
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How can I get paid?
Ok, so from what I can garner from the compensation plan, there are 10 ways in which Coaches can make money when they promote and sell OPTAVIA products and programs. If I am being honest, this one did take a little more to work out than some others I have seen within this niche (such as the Beach Body MLM Program) however the 10 payment options are outlined as follows:
1. Client Support Commission
These are the base commissions earned on the day to day orders placed by the Coach's level 1 down line (known as Frontline Qualifying Volume (FQV)). The rate for the Client Support Commissions is a flat 15%.
For the base 15% rate, no minimum sales targets apply.
2. Client Support Bonus
Should a Coach be able to achieve higher than 1200 FQV in sales within the current calendar month, they can earn a Client Support Bonus on the CV of their customer's orders. These increase based on sales targets met as follows:
Client Support Bonus payments are made in addition to Client Support Bonus.
3. Certification Bonus
Coaches who elect to purchase, complete and pass an online Certification Exam are deemed “Certified”. Certified Coaches then qualify for a Certification Bonus of 3%. Total commissions for the first three payment options within the compensation plan are outlined as follows:
4. Coach Consistency Bonus
This next option is designed to reward Coaches who are able to reach consistently higher monthly sales targets. For those who can maintain these higher levels over a three-month period, Coach Consistency Bonuses are paid as follows:
5. Client Acquisition Bonus
The Client Acquisition Bonus is a commonly utilised MLM bonus designed to incentivise the recruitment of new members to the program. In the case of OPTAVIA, new coaches who are able to generate a total of 1,000 FQV within their first 30 days from five (5) New* Frontline Clients and/or Coaches will receive a once off $100 payment.
6. Assist Bonus
If new personally sponsored member earns a Client Acquisition Bonus (option 5 above), the sponsoring Coach will be paid a matching $100 Assist Bonus.
7. Team Growth Bonuses
Team Growth Bonuses are a unilevel bonus common to many MLM programs. In this case, commissions are paid against generations within the Coach's downline as follows:
For example, a Director earns 6% on a Senior Coach Team down to the next qualifying OPTAVIA Coach above Senior Coach etc.
Coaches must be at rank of Senior Coach and higher to qualify for Team Growth Bonuses and all further payment options outlined below.
8. Fully Integrated Business Coach Bonus
In a similar fashion to the Coach Consistency Bonus above, any Coach who reaches the rank of Certified Executive Director and then achieves 6,000 FQV, five (5) Qualified Senior Coach Teams and 15,000 in GQV in 3 consecutive monthly bonus periods will be paid a $1,000 bonus.
9. Executive Director Generation Bonuses
The Executive Director Generation Bonuses mirror the Team Growth Bonus structures outlined above for those coaches at rank Regional Director and above. These payments are earned as follows:
10. Elite Leadership Bonuses
The Elite Leadership Bonuses are paid to Coaches who reach the rank of National Director and higher to compensate for
their role in directing and overseeing OPTAVIA businesses within their down line. There are three levels to this bonus as follows:
Coaches earn a 0.5% override on their entire business down line through the first Coach at National Director, Global Director or Presidential Director to the next one at those levels or above in each Line of Sponsorship.
Ranking structure
OPTAVIA, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the OPTAVIA MLM program are as follows (note personal and team sales qualification targets as well):
Again, as is common with almost all MLM programs, rank progression is determined by both the number of members within the Coach's down line, and the total sales made by those members per month. Ranks can rise and fall based on the ability (or dis-ability) to reach the required member and sales targets.
What is good about it?
So, after a good look around the site and looking at all the options I could find, I do like the following:
- There are a good number of bonus options with the program.
- Commissions can be earned without the need to meet sales targets.
What is no so good about it?
There are also some things to be aware of including:
- There are some joining costs.
- Monthly targets do not include personal sales.
- Base level commissions are lower than many other programs.
How much can you make?
OPTAVIA provides an income disclosure statement on its website as follows:
As with most MLM programs, this document shows that the percentage of members making the upper rank levels – and hence earning a living – very low (usually less than 1%).
My final thoughts
Look, MLM is not an easy platform to make money in and if I am being honest, this one does seem to be a little more difficult than many others I have seen. This is mainly due to the fact that whilst there are not the usual financial pressures of needing to make minimum personal purchases in order to qualify for commissions, personal purchases cannot be used to prop up these figures if down line sales fall short (many other programs allow this). This can mean that there may be a few times when even though sales are made, commissions above the initial 15% will be lost if minimum targets cannot be reached.
On a positive note however, the program (whilst a little confusing at first) does contain a large array of commission and down line options so if you are passionate about the weight loss industry with an ability to coach others, then this one may appeal – although to be honest, there are some others out there in this niche that pay a little higher so you will need to love the product and program structures here as well.
I was unable to locate any negative reviews in terms of non-payment etc. although there were some negative comments about the quality of product and the MLM program itself – in fact there is a whole website dedicated solely around revealing “product safety concerns, sourcing/supply chain issues, and other concerning facts about Optavia and its parent company, Medifast” – although I will add that the site is only two pages in size and doesn't really reveal anything that is uncommon with programs of this type. I have also found others outlining studies with no major side effects of the products found so as with any program such as this, I would recommend some due diligence prior to commencement.
Conclusion
So there you have it, my honest review and appraisal of the OPTAVIA MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.
Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.
Do you want further assistance with any of the above or need help to build your own weight loss of supplement based website?
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Until next time
Have fun
Paul
Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price.