So someone has probably shown you that you can "be your own boss" with LifeVantage. But you're probably wondering... is LifeVantage just a pyramid scheme scam?
First of all, I want to congratulate you on spending some time to research the company.
The reason that up to 99% of MLM distributors lose money is because they jump in blindly.
This honest LifeVantage review, with videos, will expose the true pros and cons of joining the company.
That way you can make an informed decision if it is for you or not.
The overview and rankings
Founder: Darren Jensen in 1988
Type: Health and Wellness MLM
Products (Including Pricing): 50 out of 100
Success Stories: 1 out of 100
Price To Join MLM: $50 + $350-$1,250
100 PV monthly sales quota = ~$130 a month (can be offset with sales)
- Distributors must spend at least $50 on products every month for themself (20 out of 100)
What to look for in a MLM:
Summary: LifeVantage is a health and wellness MLM that has some unique anti-aging products.
Many people seem to rate these products highly, but there's not enough evidence to suggest that they work at all and taking too many has some negative side effects.
There is a heavy emphasis on recruiting people into the MLM company, which means that LifeVantage operates like a "pyramid scheme in disguise".
This means it's impossible for everyone to earn a good income inside the MLM company, which the income disclosure's prove.
Make Time Online Rating: 20 out of 100
What is LifeVantage?
LifeVantage is a Multi-Level-Marketing company that produces a range of anti aging products to help people live longer.
David Wood established the company LifeVantage in 2003. Wood was an entrepreneur and network marketing industry veteran who had already achieved success.
LifeVantage initially sold items to assist people with their finances but moved its focus to health and wellness products.
Since then, the company's growth has been swift. In 2010, 2011, and 2012, LifeVantage was recognized as one of Utah's fastest-growing businesses. And in 2013, LifeVantage's yearly sales were estimated at $200 million.
Wellness items are sold by LifeVantage Corporation, a multi-level marketing (MLM) corporation based in Sandy, Utah. And then, Protandim, the company's flagship product, has been advertised as an antioxidant dietary supplement.
Dr. Paul N. Howard launched the company in 2001 as a research and development company, but in 2006, following an Initial Public Offering, it became a publicly traded company (IPO).
The corporation has been able to cover $225.96 million in revenue with all other profits to date. In addition, the company has a net income of $7.43 million and earnings per share of $0.59.
Moreover, LifeVantage Corporation asserts that they have more than 220 employees worldwide.
They typically use a lot of scientific words to make the products sound amazing. But I will avoid using any of his jargon in this LifeVantage review so that you can actually understand what the company does!
Just watch the 4 minute video below to see more about the company and the opportunity that exists...
So apparently these products could help you live to 1,000 years old... and make you a full time income from home! Pretty amazing, right?
Well, you're smart enough to realise this is just a sales video.
So you're probably still wondering...
Is LifeVantage a pyramid scheme?
Technically no, LifeVantage is not a pyramid scheme.
Distributors can make money by selling LifeVantage products to earn a commission.
However, there have been accusations that LifeVantage works like a "pyramid scheme in disguise" because the only way distributors make good money is by recruiting more people into the company.
What is a pyramid scheme?
A company that promises members payment for recruiting others into the organisation rather than selling products or services.
These are illegal in most countries because it's impossible for every member to make money. Just see the Wikipedia diagram below to see why...
Most MLM companies do offer legit products or services. However there are some that use their products to hide the fact that the main focus is actually on recruitment.
And LifeVantage works in a very similar way to these "pyramid in disguises" as you can see in the 5 minute video below...
Success is rare with LifeVantage
Actually, success is rare in any MLM company.
You can see in LifeVantage's income disclosure that over 83% of distributors make less than $67 a month.
Take into account that to "remain active" these distributors need to sell at least 100PV (around $130+ of products each month). If they don't sell this amount then they will need to buy the products themselves.
As you can see it's clear to see that the vast majority of LifeVantage members will be losing money!
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How does LifeVantage Work?
LifeVantage produces a range of "anti-aging" supplements and products. There is supposedly a lot of research that goes into making these products.
However, the company manages to save a lot of money on advertising and marketing because every day people help to promote these products.
In return, these distributors can earn commissions from selling the products or bonuses from the sales their "downline" make.
If you are serious about joining any MLM company then it is vital that you understand more about the products or services on offer.
LifeVantage offers a wide range of products under the following categories:
- Nutrition: supplements and probiotics etc. ($40-$127 monthly)
- Beauty: shampoo, hand cream, moisturisers, anti aging cream etc. ($13-$141 monthly)
- Fitness: whey protein, fat burning pills etc. ($41-$141 monthly)
- Pets: supplements ($26 monthly)
LifeVantage Protandim- flagship product
LifeVantage Protandim are supplements that help to reduce "oxidative stress" and therefore fights the "effect of aging".
Oxidative stress is basically an imbalance in "free radicals" and "antioxidants". Free radicals simply help your body to fight pathogens (which can cause infections in the body).
Some of the benefits of these supplements according to LifeVantage's website include:
- Reduce oxidative stress *
- Combat the effects of aging caused by oxidative stress *
- Activate Nrf2 protein to support natural antioxidant production *
- Support the cell's natural rejuvenation process *
- Protect cells from free radical damage *
- Promote cellular repair *
- Enhance daily performance and energy levels *
- Boost cellular health so that cells function at peak performance *
- Support healthy cellular aging by targeting genes to support chromosome maintenance *
However, the little star next to all of these benefits has the disclaimer that...
* These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease.
Healthline even suggests that taking antioxidant supplements in excess can cause some health problems such as:
- decreased exercise performance
- increased cancer risk
- birth defects
It can actually do the exact opposite of anti-aging if you take too much, so it is vital that every consumer does their own research and consult with a doctor!
The 3 minute video below explains more about the Protandim...
Can you make money with LifeVantage?
It's very hard to make good money from LifeVantage.
The few people that do make good money recruit a lot of people into the company and are more like a "sales manager" than anything else.
They typically are very extroverted people who do well at convincing people that they can make money from selling LifeVantage.
Here are some compensation plans to know how you can make money with LifeVantage.
The compensation plan of LifeVantage is a binary scheme. To earn commissions, you must recruit two people to join LifeVantage under you. You will earn a commission on LifeVantage product sales made by your downline distributors.
Your commission rate depends on your position within LifeVantage. In LifeVantage, there are eight ranks; the higher your level, the greater your commission rate. LifeVantage also offers its top-performing distributors bonuses and incentives such as trips and cars.
Here is how the LifeVantage ranks function:
LifeVantage Associate: To qualify as a LifeVantage Associate, you must have a LifeVantage distributor under you who has generated at least 100 PV in monthly sales. You will earn a 20% commission on the product sales of your downline distributors.
LifeVantage Consultant: To qualify as a LifeVantage Consultant, you must have two LifeVantage distributors under you who have each generated at least 100 PV in monthly sales. In this business model, your downline distributors will sell products and pay you a commission of 25%.
LifeVantage Coordinator: To be a Coordinator, you must have four LifeVantage distributors under you who each made at least 100 PV in sales in a given month. You'll get a 30% commission on your downline distributors' sales.
LifeVantage Director: To become a Director, you must have four LifeVantage consultants under you. Each consultant must have at least two LifeVantage distributors under them, and each distributor must have sold at least 100 PV in a given month. You'll get a 30% commission on your downline distributors' sales.
LifeVantage Executive Director: You must have at least eight LifeVantage directors under you. Each director must have at least four LifeVantage consultants under them, and each consultant must have at least two LifeVantage distributors under them who have each sold at least 100 PV in a given month. You'll get a 35% commission on your downline distributors' sales.
How to make money with LifeVantage
There are 2 ways that you can get paid in most MLMs:
- Selling products and earning a commission of the sale
- Recruiting people and getting bonuses from the sales that your "donline" makes
However, LifeVantage's compensation plan doesn't make it clear about how much you get paid from your own sales, which is a pretty big red flag.
Before we dig into that you're probably wondering...
How much does it cost to join LifeVantage?
It costs $50 to become a LifeVantage distributor and get the "starter kit".
- How to get your business started
- Blueprint for success
- Product samples
But if you want to actually try any products you will need a "launch kit".
There are different "Launch kits" that provide different LifeVantage products:
- Silver ($350) - 20% savings
- Gold Pack ($650) - 25% savings
- Gold Performance Pack ($650) - 25% savings
- Platinum ($1,250) - 30% savings
But the costs do not stop there amigo...
LifeVantage monthly cost
There are also some monthly costs that you HAVE to make every month to "remain active".
First of all it's important to be aware that you need to hit a 100PV "sales quota" each month. So if you can sell around $130+ of products each month you will remain active.
If you can't sell that much then you will need to buy $130+ of products every month or your account will get suspended...
However, the very sneaky small print also shows that you need to PERSONALLY purchase 40PV every month. That is around $50 that you must spend on LifeVantage products every month to remain active.
Now, if you truly believe in the products you will probably spend this anyway. And you probably shouldn't even consider joining LifeVantage unless you personally use the products.
But this does mean that to remain active you will need to allow these costs for your first year:
- $130 x 12
Total expenses for year one = $1,960- $2,860
And this is not including any other expenses such as marketing costs, paying for ads on social media or Google, additional online marketing training (which you will need to successfully make money from LifeVantage), other training costs etc.
LifeVantage compensation plan
For some reason most MLM companies like to make their compensation plan harder to understand than solving a Rubik's cube blindfolded.
LifeVantage is no different so I will try to keep this simple.
There are 7 ways that distributors can get paid from LifeVantage:
- Smart start bonus (30-40% commission for people you recruit and the "starter pack" they buy: 100PV+ = 30% commission 200PV+ = 40% commission)
- Launch bonus (200PV+ needed to get bonuses of your downline recruits)
- Unilevel commissions (2-9% commission from downline sales)
- Generational matching bonus (10% match of your downline unilevel commissions)
- Elite bonus pool (4% of total sales gets spread to all "active elite distributors")
- Rank achievement bonus (one time bonuses for achieving the top 3 ranks)
- Business centers (You can become a "distributor" under yourself once you reach Premier Pro 5 rank)
If you are looking at table and all of that confusing language, take a deep breath and don't worry.
All you need to know is what you need to actually do to make money. Remember all that is:
- Sell LifeVantage products
- Recruit people into the MLM "business opportunity"
However, one big red flag for me about their compensation plan is this...
It does not even mention retail profit as one of the 7 ways to get paid.
Every single one of the ways they claim you can get paid is by recruiting people. This is a huge sign that LifeVantage really is a pyramid scheme in disguise and it's impossible for everyone to make enough money to cover their expenses.
The 16 minute video below explains more about the compensation plan if you'd like to learn more...
Or you can find the full 8 page LifeVantage compensation plan here.
Is LifeVantage a scam?
Techniall LifeVantage is not a scam.
They sell legit products and pay their distributors exactly like they claim they will.
However, the more you read this LifeVantage review, the more you will realise that the company really does act like a pyramid scheme in disguise.
The emphasis on recruitment proves that the only way to make money from the company is by recruiting.
Therefore, even if you do make money you will be doing it by making other people lose money in your downline.
That's not my idea of an ethically run business model...
Just to be fully transparent with you, I am not a distributor myself and I do not endorse LifeVantage in any way.
I have researched the website, testimonials and information on the Internet to get to the bottom of what this program genuinely does. This is because I have been burnt from programs just like this in the past and I want to prevent others from making the same mistakes. If you’d like to learn how to “Spot an Online Marketing Scam” then click the highlighted text.
Common positive reviews
Here are some of the best common positive reviews about its job opportunity that we have found in Indeed...
- "Start by prospecting, making cold calls to set up appointment. Meet with clients. Meet with management team to come up with marketing plans."
- "LifeVantage had many growth opportunities and was a fast paced health & wellness focused company. It was constantly growing and improving. The best part of the job was the people. There was a great culture."
Common negative reviews
And here are the common negative reviews people are saying about its job opportunity in Indeed...
- "Unstable working environment. In the year I was employed, they reorganized and terminated the CFO, COO, VP of Tax, VP of finance, Director of operations, Internal Audit. Very unstable!"
- "Growing pains with a relatively new company makes promotions difficult, communication nonexistant and layoffs a constant threat."
What I like about LifeVantage
Despite some of the down sides of the company there are some things that I think makes LifeVantage better than some other MLM companies.
- Pyramid Scheme – recruits members via a promise for payment from referring others to the service rather than providing a product
- Affiliate Marketing- Connecting a customer to a product they are looking for and receiving a commission for doing so
- Red Flag - A warning sign
#1 Proven company
Did you know that 50% of MLM companies disappear after 5 years of starting?
Well, LifeVantage has been around since 1988 and is even a publicly traded company.
This is a good sign that LifeVantage is not an outright scam and probably won't disappear tomorrow.
#2 Positive product reviews
You can find some reviews about the LifeVantage products on websites such as eBay...
It's clear to see that real people do use their products and they seem to like them.
This is super important as the products are going to be what you will need to sell to convince people to join the company.
#3 Giving back to charity
Some MLMs use charity work as a way to make their company seem more "likeable"...
It's always hard to tell if the company genuinely is giving back or if they are just doing it as a publicity stunt.
Either way, donating to any charity and giving back to the community is a good sign, no matter what the reasons are for doing it!
What I don't like about LifeVantage
There are some hidden truths to the company that most people do not learn until they have joined.
This section will help to make sure you are entering a company with your eyes wide open...
#1 Expensive products
This is always the first thing I check in any MLM company.
If the products are expensive this is the first sign that the company may operate like a pyramid scheme in disguise...
LifeVantage probiotics = $1.70 per day
Highly rated Amazon probiotics = $0.54-0.88 per day
LifeVantage's probiotics are over 200% more expensive than other very highly rated alternatives.
Seriously, just think about it... who would buy products that are more than double the price elsewhere?
The answer lies in the fact that there are...
#2 Hidden monthly expenses
Here's who will buy these crazy expensive products...
LifeVantage distributors will be the companies BIGGEST consumers.
Because there is a sneaky clause in the small print which says that distributors have to buy $50 worth of products every month to "remain active" and have a shot of "being their own boss"!
When you combine this with the hidden truth number one you can see that...
#3 LifeVantage is a pyramid scheme in disguise
When a companies sole focus is on recruiting rather than selling a product or service you end up with a pyramid scheme in disguise that looks like this...
There have even been lawsuits that have accused LifeVantage of being a pyramid scheme in the past. And all 7 ways that distributors get paid according to the compensation plan require them to recruit someone!
This means that it is literally impossible for everyone to cover their expenses inside a company structured like LifeVantage.
You can see this is clearly the case because...
#4 Only 1 in 169 make over $35k/ year
The LifeVantage income disclosure shows just how much distributors get paid inside LifeVantage...
You can see from the data that 0.61% of distributors earnt more than $35k in 2018.
In English that means that only 1 in 169 distributors made over $35k for the year.
So yes, it is possible to make money from LifeVantage, but you can see this data backs up the fact that it is structured like a pyramid scheme in disguise and that most distributors will lose money after paying their expenses.
Simply put, the only way you can make money is by recruiting other people, who will not all be able to make money.
#5 Downward trend
The final nail in the coffin for LifeVantage is found on Google Trends...
It's been on a slow decline in popularity for searches on Google each month since 2015.
When you compare this to other direct sales companies like Farmasi, you can see that it will be much harder to get people interested in LifeVantage!
Ready to make passive income online?
I've created a growing passive income online with no previous marketing skills or online experience...
I've made a special video for you to explain exactly how I did this.
My opinion - LifeVantage
Does LifeVantage have some good products that can help people be healthier?
Do people NEED these products to live longer?
Nope... lifestyle choices will always be better than these types of supplements.
What do I think of the " business opportunity" to make money from LifeVantage?...
It's important to realise that you can make money from hard work within LifeVantage.
However, you can only realistically make good money by recruiting a lot of people. And most of the people you recruit will lose money.
I've never been a fan of trying to recruit friends and family into a program that will likely lose them money... but that's just me.
How I make passive income online
MLMs are not all scams or illegal. However, I'm not a fan of them because of the restrictions to the expensive products you have to promote.
Once I learnt about affiliate marketing, I realised it's a far superior business model because:
- You can promote anything you want and truly own the business
- You never need to sell to friends and family
- It's completely free to start
In 2018 I had no idea what affiliate marketing was.
But I went from a full time PE teacher to making a passive income online within one year...
If you want to discover how I did it then check out this special video I created which explains exactly how. You can also get your free 7-day bootcamp to get started.