Is Optavia a pyramid scheme? Well… Their business design is that of a MLM and is structured to position much of emphasis on recruitment, but does this add up to it being fully a pyramid scheme?
I'm guessing that you will be probably reading my post here because you are contacted by an Optavia coach and asked to participate in on the company opportunity, or even a pal or member of the family was. But anyways… It doesn't really matter your reason behind reading this. In this short review I is likely to be addressing the claims that Optavia may well be considered a pyramid scheme.
What Is Optavia?
Optavia is a weight loss MLM company that sells meal plans scientifically designed for weight reduction, similar to Avisae, It Works, and Shaklee. They take a more holistic method of weight loss, not only concentrating on the short-term, but alternatively having a far more long-term focus. The target is to adopt new healthy habits one at any given time in your life so the changes you make stick.
This really is an approach that I really like. Plenty of people slim down and then gain it right back. They put in all this work and effort losing the weight but end up regressing back to their old unhealthy habits. Optavia's goal is to greatly help change those habits to healthier ones.
At the core of the Optavia business design are coaches that are there to greatly help guide and support people on their weight loss journeys. These coaches can be anyone. You are I both could join the company as an instructor and make money doing so. Coaches are able to make money by selling weight loss products as well as by recruiting and other coaches beneath them and earning from what they sell.
This recruitment part of everything is the reason why people are calling a pyramid scheme. Yes… Coaches can make money by recruiting in other coaches and so on, but this does not mean it is really a pyramid scheme. To be able to get an improved knowledge of what is going on here we first need certainly to take a consider the compensation plan and see how these coaches are getting compensated.
Pyramid Scheme?
Okay… So a MLM type business like this is completely legitimate and count on recruitment of other distributors, in cases like this “coaches”, to an excellent deal. What separates a legitimate MLM from in illegal pyramid scheme is simply how much they really count on recruitment of distributors. When they count on recruitment like this an excessive amount of and do not focus enough on selling products to most people, that's where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is definitely not enough here for me to say that this is a pyramid scheme, BUT… I am a bit concerned when considering their compensation plan. They don't really seem to have any safeguards set up to help keep a pyramid scheme -like scenario from playing out.
As far as I know, you can become an instructor and to accomplish only recruit in other coaches to go up the ranks and make tons of money. Some MLM's that I have reviewed require you to sell a specific amount of products every month to most people (non-distributors), while Optavia does not.
But anyways… Know this does not seem such as a pyramid scheme to me. Recruitment like this is completely legal and although it mightn't be the most trustworthy business, because so many coaches are on the market merely to recruit a lot of people in and make money, it is still legal https://www.scamrisk.com/optavia/.
Comments
Post a Comment