Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to look into the MLM program of a company that spans across a number of products common to the direct marketing industry in Supplements, Cosmetics/Beauty, Fashion and Essential Oils (and a few other things as well) with my Youngevity MLM Review. This gives it the potential I guess to make it a good platform on which to build an MLM empire due to the fact that there is just so much to promote. So is Youngevity a MLM worth checking into? Let's have a look and find out…
What is MLM?
Multi-level marketing (MLM) programs are the mainstay of the ‘party plan' world of products such as Tupperware, Mary Kay and Amway etc. and, of course within the supplements, beauty/cosmetics, and essential oils markets. MLM has become a little more popular lately, mainly due to the fact that much of the sales and marketing is now being managed online – alleviating the need to run parties – and, more importantly, not hassle everybody you know to join (you can of course, but you don't have to).
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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.
Who are Youngevity?
Youngevity was established in 2001 by Dr. Joel Wallach who has based company operations on the philosophies that centre on one crucial question: “How can we live younger, longer?”
The company is based in Chula Vista, California in the United States with operations in 16 countries worldwide.
What do they Sell?
As I mentioned above, Youngevity has a large array of products across a number of product lines – In fact this is one of the largest array of products I have seen in an MLM. There is a so much there that for the purposes of this post, I will list the main categories only:
Nutrition/Supplements
- Healthy Body Paks
- FX Products
- Targeted Nutrition
- Weight Management
- Proline
- Nutritional Beverage
- Energy & Performance
Household and Family
- Cleaning
- Dishware
- Garden
- Laundry Care
- Pet Care
Food and Beverage
- Beverages
- Shakes & Bars
- Nutritional Packs & Programs
- Sweet Treats
- Spices
- Vinegars
- Super Foods
Spa and Beauty
- Face
- Eyes
- Nails
- Lips
- Bath & Body
- Skin Care
- Dental Care
- Tools & Accessories
Fashion
- Apparel
- Nails
- Jewelry
- Hand Bags & Accessories
Home Essentials
- Blends
- Single Oils
- Kits & Collections
- Relaxation & Therapeutic
- Carrier Oils
- Tools & Supplies
- Diffusers & Accessories
- Roller Bottles
MLM Program outline
The Youngevity MLM program calls their members Distributors. Their compensation plan is directly available on their site (with a little searching) and contains a fairly simple program with a basic retail and downline commission structure as well as a few bonuses along the way. Here are the basics as I have found them…
Discount: 20 – 30% for Distributors
Base Commission rate: 20 – 30% (based on retail sales on discounts above)
Down line commission rates: 2 – 8% to 9 levels (Level 1 downline commissions 5%)
Minimum monthly spend to qualify for commissions
- Distributors are required to generate at least 50 PQV to qualify for commissions – this can be made of personal or customer sales.
Payment terms: Weekly and Monthly.
Application required?: Yes, Application form with first purchase
Purchase requirements to join: Yes
Membership enrollment fee – $30 – then $49.95 annually
A Business builder kit is also required at time of enrollment – prices range from $USD30 – 499.
Marketing materials provided: Welcome Pack, Replicated website, access to an experienced Business Coach
As with the most MLM programs, downline commissions and rankings are determined by the total Personal Qulaifying Volume (PQV) generated by the Distributor and their down line within a calendar month. Most MLM programs manage it this way in that commissions are paid on the points assigned to a product rather than the entire sales total. Youngevity however appears to calculate its PV allocations at 100% of the USD sales price. So for example, if a product retails for $100 which gives it a 100 PQV rating (these generally vary from product to product and are adjusted based on the currency that the purchase is made in) then the commission is calculated on the full $100. So if a commission rate for a product is 20% then it will generate a $20.00 payment to the sponsor (i.e. 20% of the $100 commissionable amount).
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How can I get paid?
The compensation plan promotes 7 ways in which Distributors can make money when they promote and sell products. These are quite standard for a MLM program are outlined as follows:
Retail Profit
Retail Profit is the base profits earned by the general day to day retail sales that distributors generate via their personalised website. There are two main ways here:
- Earn a commission of up to 30% of the purchase value if done so at retail prices (basically the difference between the distributor discount and the retail price).
- Purchase products at the discounted rate and on sell them at retail prices within a shop front, market stall or kiosk – or even the traditional party plan method.
Note: Distributors do not need to meet minimum purchase targets to earn retail profit commissions/payments.
Quick Start Bonus
Quicvk Start Bonuses (QSB) are paid on the sales BV (calculated at around 20% of the sales price) of every personally enrolled Distributor within 30 days of their enrollment date. Sponsoring Distributors must be at Brand Associate rank or higher to earn up to 30% of the total BV sold (26% actual QSB and ½ of normal residual payout, depending on placement).
Global Residual Compensation
Global Residual Compensation is Youngevity's version of the stock standard Unilevel commission arrangements common to most MLM programs. Commissions of up to 8% are paid down to 9 levels on all generated volume within the downline of the Distributor as follows:
As with most programs, the higher the rank, the more commissions are paid. Distributors must achieve a minimum 50 – 300 PQV dependent upon rank to qualify for Global Residual Payments.
Coding Bonus
The Coding Bonus is a payment generated whenever a CEO Mega Pak is purchased by a new distributor anywhere within the sponsor's downline.
The amount of bonus is determined by the Distributor's rank at the time of enrollment, which starts a new coded group. Payments are calculated as follows:
To qualify, distributors must have a lifetime rank of Sales Associate (SA-A) or above and must be at a rank of Brand Associate or higher within the qualification period.
Fast Start Bonus
A Fast Start Bonus of $70 is also paid when any personally enrolled Distributor purchases any CEO Mega Pak at time of enrollment.
Car Bonus
The car bonus is a common payment option within many MLM programs for this who reach the upper ranks in that they can qualify for payments towards a motor vehicle purchase or lease. In the case of Youngevity, Car Bonus payments are earned after 2 consecutive months of qualifying at any Star rank the first time (does not have to be the same Star rank). Once this has been accomplished the car bonus will be paid out on any month afterwards, as long as the requirements have been met for that Star Rank.
Car bonus payments are as follows (First payment starts at 1 Star Executive)
Global Revenue Share Bonus Pool
This is another common MLM bonus for higher ranks in that commissions are paid as a percentage of the total company sales. Distributors who reach the rank of 5 Star Executive or higher in 9 of the past 12 months ending January each year will qualify for the share bonus pool as follows:
- 1% is paid in proportion to each qualifier’s Team BV
- 1% is evenly divided among all qualifiers
- 100% of BV not under another pool qualifier Plus
- 50% of BV under other pool qualifiers who are in distributor’s downline
Ranking structure
As you have probably noticed, many of the commissions and bonuses paid out above are reliant upon the ‘rank' that you are assigned within the Youngevity MLM program. This ranking structure is fairly straight forward where personal commissions earned rise based on total monthly PQV and the number of underlings within the distributor's down line. As is common, the more sponsored distributors and the higher the total sales volume, the higher the rank. Rank requirements are as follows:
What else do you get?
On top of the potential earning methods outlined above, Youngevity also offers a number of bonus options for its distributors such as:
- Conferences and Seminars
- Trips and other bonuses
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:
- Commission/discount rates for entry level sales are good.
- Large array of products allows for a number of cross promotion opportunities.
- Compensation plan is simple and easy to follow.
What is no so good about it?
There are also some things to be aware of including:
- Membership fee and starter kit required to join.
- Not as many bonus options as some other programs.
How much can you make?
Youngevity does not provide projected income figures on its website (there were some legal issues around this in 2015) however based on my research, it has to be assumed that as with most MLM programs, the percentage of members making the upper rank levels – and hence earning a living – is very low.
My final thoughts
Look, MLM is not an easy platform to make money in and there is not much that I have seen here to put this program above the many others I have seen.
The main advantage here for those who are looking to get into the MLM business is the large array of products on offer with the ability to promote in five well-known and popular online niches. Even though there is a membership enrollment cost, Distributors can earn commissions and retail profits without the need to personally purchase products. This means that they can get their business off the ground without any of the initial out-of-pocket costs that can strain the finances at this time. Although if I am being honest – I think that to be successful in any MLM program, you will need to have a good understanding of the products, hence personal sales may be necessary.
There are however, as is the usual operating procedure for MLMs, qualification processes for higher ranks with monthly PQV requirements in place. This does not have to be made via personal contributions – unless shortfalls need to be made up if targets are not made via customer sales of course.
At the end of the day, if I am being honest, there is nothing here that would make me tell you to avoid it completely as long as you go in with your eyes open to the fact that success in MLM is not easy and takes a good amount of time, patience and often, financial commitments as well.
I was unable to locate any negative reviews in terms of non-payment etc. however there was some negative comments about the quality of products and the MLM program itself – although it was not really anything that is uncommon in regards to MLM programs or products within this niche.
Conclusion
So there you have it, my honest review and appraisal of the Youngevity 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 Clothing, Supplements, Cosmetics, Essential Oils or MLM 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.