What to Consider Before Starting an Isagenix Business!
First off let me say that Isagenix is a wonderful company with some excellent products and very strong leadership. They continue to see steady growth in both sales, product sharers and business builders.
I do want to start by saying I am not a representative of Isagenix nor have I ever tried building a Isagenix Global Team. Although I have been approached several times over the years, I didn’t feel it would be a good fit for me as you will see later.
This is not to say Isagenix wouldn’t be a perfect fit for you but, it is worth your time to understand the business model, especially how the Isagenix Compensation plan breaks down as it can be confusing. You can thank me later for doing your due diligence. 😉
Five things that should be taken into consideration before joining Isagenix or any network marketing business opportunity.
1. Company Age & Founders
2. Line of Products and/or Services Offered
3. How the Compensation Plan Compares to Other MLM Comp Plans
4. How Much Product Must be Sold in Order to Make Money
5. How Many Personally Sponsored Distributors are Required to Build a Solid Residual Income.
The Isagenix Business Model, Leadership Team and Brief History
The company was started in 2002 by Founder John Anderson and is headquartered in Chandler Arizona. John is know in the health industry as a Master Formulator of Nutritional Supplements for over 600 companies which have created over 2.300 weight loss and nutritional products.
Along with Co-Founder’s Jim & Kathy Coover, President and Vice President respectively, the company markets a line of Weight Loss Solutions, Healthy Aging & Skincare Solutions for all ages.
Currently the company operates in 12 countries and they are closing in on $2 billion in cumulative sales.
Senior Leadership: Kevin Adams – CEO, Scott Luther – COO, Darren Fujii – CFO, Travis Garza – SVP, Erik Coover – VP Global
While researching the Isagenix product line and what they call the Wealth Creation opportunity it became clear that in order to make decent money and to build a residual income, it requires A Lot of recruiting. Meaning, business builders (associates) who maintain a certain amount of Qualifying Volume each month in order to reap the rewards of the bonus plans they have in place.
Let’s dig deeper into how you can earn with the Isagenix Compensation Plan
There are 6 ways to earn with the Global Team Comp Plan starting with:
- Retail Profits
- Product Introduction Bonuses
- Team Bonuses
- Executive Matching Team Bonuses
Retail Profits – As with most MLM companies retail profits generate income two ways.
- The obvious. The difference between wholesale cost and retail price sold. Isagenix claims there is roughly a 33% markup on their products sold from your inventory. Once you take out admin fees, shipping and sales tax fees, the profit is probably closer to 25%.
- BV or business volume is created from each product that accumulates, which under the right circumstance pays a bonus and or team bonuses.
The bulk of retail profits made will come from selling complete packages. These also offer the most BV (business volume points). Common package prices are $218.00, $284.00, $373.00 and $743.00. BV points run between 100-300. This will make more sense when we look at how bonuses are earned.
Product Introduction Bonuses
If a personally sponsored associate decides to order one of the Isagenix optional product packs at the time of sign up, a bonus is paid. Oddly enough I was unable to find a bonus amount anywhere in the company literature.
Paid-As-Consultants, Managers, Directors and Executives can earn team bonuses by building 2 sales teams, a left and right time commonly know as a binary compensation plan.
Executive Matching Bonuses
As an active Paid-As-Executive you are able to earn a 10% matching bonus on the weekly team bonus income on all personally sponsored Paid-As-Consultants, Managers and Executives. For complete details and to download the Isagenix Pay Plan .pdf Click Here.
Next We Have Front End Bonuses Called Rank Advancement Bonuses!
There is some confusion on terms used between what the Comp plan .pdf states and the Kathy Coover YouTube video. For the rest of this article I will be referencing from and using the terminology Kathy uses in her video which was posted on Feb. 2015.
This is where the comp plan gets confusing and in my mind misleading. Everything looks good on paper but pay CLOSE attention to payment & enrollment requirements in order to reach some of these next bonuses.
Paid-As-Consultant – When becoming a consultant you receive a 1 time $50 bonus. To receive this bonus you must be active with 100 points and have personally sponsored 1 person on your left, and 1 on your right who are also active with 100 points at any time within the prior 30 days.
Each time you personally enroll someone and they are active, meaning they have 100 points and have personally sponsored one on each side who are also active with 100 points, you receive a $100 bonus. This bonus maxes out at 20 people for a total of $2000.00. It doesn’t appear there is any time limit set for this.
So in order for this $100 bonus to happen, at this point you will have had to sponsor 4 people. (2 people for the Paid-as-Consultant, and 2 more to generate this bonus).
Okay stick with me here as I add to the confusion…
Next up is what Isagenix calls the Crystal Bonuses. There are 3 Crystal Bonus Levels.
1. Crystal Manager – This $250 bonus can only happen in your first 30 days of enrollment. In order to receive this bonus you must join, recruit 2 people and they must recruit 2 people. It’s called You, Plus 2 and Them Plus 2 and it has to happen in your first 30 days of enrollment.
2. Crystal Director – This $750 bonus can only happen in your first 90 days from your enrollment. To qualify you must have 6 personally sponsored people on your team.
3. Crystal Executive – This $1000 bonus can only happen within your first 6 months from your enrollment. To qualify you must personally sponsor 10 active consultants, 5 on your left, 5 on your right. That’s a total of 10 people you have to recruit into your business in the first 6 months.
Now if you’re new to network marketing it is highly unlikely you will be able to sponsor 10 people in 6 months. I’m not saying it’s impossible, but very unlikely.
These kind of bonuses are a game the MLM industry likes to play. I call it the MLM Hook! Sure it looks good on paper but 93% of the people who join will not achieve the Crystal Director & Executive bonus. The proof is right on Isagenix’s Earning Disclosure Statement shown below. (click image to enlarge) Notice that 43% of all business builders made an annual income of $702.00 and 42% made less than 2,101.00 annually.
In the video Kathy goes on to say that the goal is to maintain Crystal Executive status. Which means you and your ten personally sponsored people, and their 10 personally sponsored people all must be active with 100 points purchased each month in order to maximize the holiday bonus pool. (Again highly unlikely to happen)
I know, where did the holiday bonus pool come from? It sounds like it was edited into the video as the compensation plan changed. That’s not the first edit I noticed in the video. Like most MLM’s, the comp plans change often. Some time for the better, other times, not so much.
Isagenix pays on your entire team in what’s called a Cycle.
Each time you have 600 BV on one side and 300 BV on the other side for a total of 900 BV points, you earn a $54 bonus or 6% of 900 points. As these points reach the 600 and 300 level, they are deducted from your total BV points. This is where the “Hold Over Volume” comes in.
Let’s say one leg of your team goes crazy and you’ve got 1000 points on your left, and only 350 on your right. Each time 600 points on your left and 3oo on your right hit, you cycle ($54) bonus. The 600 points are deducted from the 1000 and you’re holding over 400 points, 50 will be held over on your right.
Okay, here’s the last of the bonuses that in my mind will be difficult for most people to attain. They are called the 1,2, & 3 Star Golden Circle bonus.
1 Star Golden Circle Bonus – $1000 – To qualify you must have 10 “Cycles” in one week!
2 Star Golden Circle Bonus – $2000 – To qualify you must have 20 “Cycles” in one week!
3 Start Golden Circle Bonus – $3000 – To qualify you must have 40 “Cycles” in one week!
In order for these bonuses to be paid out, thousands of people and customers will have to be in your downline who will be generating 900 points per cycle. That’s 9000 BV points in one week to hit the 1 star. A 3 star bonus will require 36,000 points to cycle 40 times in one week. Only the Super Star network marketing business builders will be able to do this, you know, the 1%. I refer you back to the earnings disclosure statement graphic above.
In order to make a real residual income with the Isagenix Business Opportunity you will have to become a master recruiter and sponsor no less than 10 people. As attrition sets in, you will have to replace 20 to 30% of them annually.
To achieve most of the bonuses is unrealistic for the average person. The company offers some fantastic products that work, but they are expensive. Finding customers who will purchase even a moderately priced $300 starter package each month will be difficult for many.
The reality of this comp plan is most people will be able to make retail profits on the products and the $54 Cycle bonus but keep in mind, that pays only 6% of the BV volume.
The one big plus Isagenix has is it’s positioned in one of the largest money making industries around, weight loss. But it’s mostly a one trick pony. Lots of great products, but only in one industry.
So if you’re out doing your due diligence trying to decide if starting an Isagenix business is for you, I’d like to refer you to another article/review I did on a 22 year old company that is in 7-major billion dollar industries.
They pay 100% of the BV volume to the entire team, require only 2 sales teams to be built and have something to offer for everyone.
They don’t play all the silly “Bonus” games that are unattainable for 99% of the people trying to build a residual income business. A six-figure annual income is possible with minimum personal recruiting. None of this 10 to 20 personally sponsored people is required. Over the last 20 years they have created over 400 millionaires.
Make the comparison for yourself, how else can you be sure if starting a business with Isagenix will be right for you.
Thanks for taking the time to read this post. Please share this with your friends on Facebook, Twitter and be sure to leave me a comment below with any thoughts or questions.
I wish you the best in your endeavors!
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