Welcome to “Is Shaklee A Pyramid Scheme?” Review!
I was introduced to this product by a work colleague and wanted to know a bit more about the scheme which is why I have written this review. The likelihood is that you too were approached in a similar way by a friend, family or co-worker and you’re doing your due diligence.
So I’m glad you’re here as my review will reveal all you need to know about this product and more importantly if it’s a pyramid scheme as these types of businesses are a hard nut to crack which is why I prefer to do Affiliate Marketing, as I don’t have to worry about recruiting others in order to make money.
I promote products and when a sale is made, I earn a commission. Simple!
You can learn more about Affiliate Marketing here.
Anyways, I’m sure you want to know the answer to Is Shaklee A Pyramid Scheme plus more so let’s begin …
Type: Health and Wellness
Founded:1956 by Forrest C. Shaklee
Level: Beginners to Advanced
Who Is It For?: Anyone great at Sales and Marketing
Price: from $19.95 – $599
Owner: Roger Barnett
Overall GoWorkFromAnywhere Rating: 6.5/10
What Is Shaklee About?
Shaklee sells health-related, organic, environmentally friendly products from skin care cream, probiotic pills, shakes, laundry and cleaning products and so on.
However, the main product that they offer are tablets that provide essential vitamins, proteins and minerals. They have over 200 products in this range.
The health and wellness niche is saturated due to the number of illnesses and disease that have no cure and where some prescription medications are failing, often leading to further complaints or side effects which makes taking the medication in the first place not really worth your while.
Companies like Shaklee provide an alternative solution for those who want to deal with their illnesses and lifestyle using “healthy options”.
However, you won’t find their products on Amazon, Walmart or in any store as they have a membership scheme whereby as a distributor, you can promote and sell the products.
You can also join as a member purely to buy the products but most people who do join these types of company do so because they have found benefits from using the products and would love to promote it.
How Do I Sign Up To Shaklee?
You can sign up through their website here.
As Shaklee uses a direct sales model, you can sign up to become a distributor and make money selling their products or join as a customer to buy their products.
If you sign up as a distributor, you will not only be helping people with their health needs but you will be making money on the side which can be quite lucrative depending on your membership level and the number of people you recruit.
As a customer, they offer a 30-day money back guarantee on products if they don’t make you feel any better. This guarantee is quite unique in this industry as with most companies operating like this, you don’t have the luxury of being able to return products.
This tells you how confident they are about their products. And so they should be as they are one of the longest-serving companies in the Health and Wellness niche – they have been functioning for over 60 years (at the time of writing this review).
Is Shaklee A Pyramid Scheme?
You will be glad to know that Shaklee isn’t a pyramid scheme. It is a multi-level marketing (MLM) business model.
With this model, as a distributor, your income includes your own sales and a percentage of the sales of those you recruit into the business who are known as your ‘downline’.
How Does Shaklee Work?
As I mentioned above, there are 2 sign up options – as a distributor or a member – giving you a variety of ways to make money as follows:
- As a member, you can buy the products and sell them to friends, family and, co-worker to make a profit
- As a distributor, you can recruit others (known as a downline) and make money when they purchase any product
- As a distributor, earn bonuses by moving up the ranks or helping your downline to move up.
Membership is broken down into 4 different levels which are typical of an MLM business model; the amount you earn depends on the level you are in.
Level 1: FREE with a $150 product order. No membership fee is required and you can purchase products at retail price.
Level 2: One-time fee of $19.95. You will get 15% discount on your current order plus future purchases
Level 3: Distributor $49.95. You need to purchase products up to the value 100PV each month for your membership to remain valid.
Level 4: Gold Pak $299 OR Gold Plus Pak $599
The Level 4 fees do not include the $49.95 you have to pay as a distributor nor the monthly order requirement.
The ‘least expensive’ membership is Level 3. Even so, you are still paying for products which you might not be able to sell and for the benefit of doing so, you are paying a $49.95 fee.
One reason why I don’t recommend Shaklee especially if you are new to internet marketing. You will find that you will pay out more before you even start to earn.
Not a great way to start your online business.
Anyways, with a lucrative compensation plan, you may be willing to spend upfront and work hard to make sales.
If this sounds like something you would like to be involved with, check out their compensation plan …
Shaklee Compensation Plan
As with most MLM companies, there is a compensation plan.
I have included a video below so you can see what the payment plan is like if you do decide to join Shaklee as a distributor.
Is Shaklee A Scam?
No, Shaklee is NOT a scam. They have been around for over 60 years. If there was any funny business going on with this company, the FTC would have shut it down a long time ago.
This company is legitimate.
However, it is not the best way to make money online as it means a lot of Sales and Marketing and setting up meetings and attending events which can be seen as a time-waster when all you want to do is to make money without having the overhead of having to deal with people which at times can be overwhelming.
You also don’t want to be seen as being pushy or too salesy – a complaint I hear from friends who are at the wrong end of this business model who are often approached by family and work colleagues. It seems like saying ‘No, I’m not interested’ lead to fallouts and breakups.
If you have a wide circle of friends or you travel a lot then this might be a great business model for you but for many, this isn’t the case that is why there is another option you can take.
You can find out more here.
- Legitimate business model
- Money-back guarantee on products if you don’t feel better in 30 days. Great for buyers not so great for you as a Distributor
- Great product range
- Quality and high standard products
- Reputable company
- Great BBB rating. They have been given an A* which is the highest rating available
- You only make money by recruiting others. Very hard to make money
- You can be seen as pushy when you try to make a sale
- You can now get similar products in large supermarkets for a fraction of the cost. You’re really paying for the brand name
- Not transparent. You can’t see product prices until you sign up
- Need to pay more to earn more
- The health and wellness niche is saturated
- Too many product offers can be overwhelming
- A lot of time is invested which may not lead to any positive outcome – holding meetings, get-togethers etc
Shaklee is a legitimate business. However, I am not a fan of MLM’s as the compensation plans are often so convoluted and not only that, it will take great sales and marketing skills to be able to be successful in this business.
If you are an introvert, then this isn’t for you as you will need to spend time talking to people, explaining the benefits of the products you will be promoting or how they work and so on. It isn’t easy.
If you are promoting health products this can also be tricky as if a person is already on medication by their doctor and you prescribe something that affects them negatively, you could be sued. Something I wouldn’t wish on anyone.
In order to make money, they suggest holding house parties and get-togethers so you can showcase the products you have to promote. The thing is, you will need to keep on buying products in order to stay in the scheme and I know a friend of mine that was a distributor for another MLM company who ended up spending so much money and not being able to sell the products so she was left out of pocket with a lot of products taking up valuable space in her home.
As I mentioned in my intro, my preferred method of making money online is with Affiliate Marketing.
I learned everything about this business model through a training platform.
With Affiliate Marketing, you don’t need to hold any inventory, be good at sales, hold meetings, meet clients or anything like that. You can work from any location you choose so long as you have access to a computer (or mobile device) and internet access.
Check out the video below where you can see how simple this business model is.
Even though there are only 4 steps, it takes a lot of hard work to be successful.
However, once you have laid the foundation, your income will be passive and recurring. You don’t need to go looking for more customers. You just rinse and repeat everything you have done for your first website and do the same on another one or even do something completely different like start your own consultancy business, set up an Amazon store and so on. There is so much you can learn from this training platform.
Once you have learned how to be successful with one business idea, you can be successful in a dozen more.
What is key, is your learning. The training platform I use has helped me to become successful online. It taught me all I need to know including:
- how to set up an online business
- how to drive traffic to my promotions
- what products to promote
- how to turn a visitor into a paying customer plus lots more.
The platform had a 7-day FREE trial which I didn’t hesitate to make use of. Other training platforms required me to pay a fee before I could even get a peep so this one was ideal.
MLM is way to hard a nut to crack if you want to make money online. Why not give Affiliate Marketing a try?
Check out my review here of the training platform I use which has helped me to build a successful business online.
Thanks for taking time out to read my “Is Shaklee a Pyramid Scheme?” Review.
If you have any questions or comments about this product, please feel free to leave them below and I will get back to you.
Until next time, take care!