Is Youngevity a Scam? – Pyramid Scheme Exposed?!
Welcome to my Youngevity review!
Chances are, someone has just introduced to you some amazing products by Youngevity or a great business opportunity for you to make money with this company.
First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.
That's the way to avoid scams and find the legitimate way to make money online!
To be completely transparent here, I don't have any form of relationship with Youngevity. I'm not their affiliate or distributor, whatever you call it.
My purpose here is to provide you with an unbiased 3rd party Youngevity review and reveal to you the necessary truths you need to know before buying any product or joining them.
Youngevity claims to help you look younger and live longer.
Is it really true? Or is Youngevity a scam?
Youngevity Review Summary
Product Name: Youngevity
Founder: Founded by Dr. Joel D. Wallach in 1997 (Now a publicly listed company)
Product Type: Nutritional MLM Company
Price: To get started, it can cost up to $500+
Best For: People who are good at networking and most importantly - Recruiting!
Summary: The good thing about Youngevity is that it's a well-established MLM company with a wide range of products. It's also a publicly traded company and a member of the Direct Selling Association (DSA). But the problem is that the products are not backed by any research so there are a ton of inappropriate health/income claims. Not only that, this is just a typical MLM business which requires a lot of recruiting and a huge startup cost.
What is Youngevity?
"Youth" + "Longevity" = Youngevity!
As its name suggests, Youngevity is a nutrition Multi-Level Marketing (MLM) company that claims to help people become younger and love longer through their products.
Being a MLM/network marketing company, there are two parts to Youngevity:
- Their unique but overpriced products
- And their business model that focuses on recruiting members
I'll talk about how does the business model works and how to make money in a moment.
Let's take a look at what are the products they're selling...
Youngevity Product Line
To be honest, Youngevity is the MLM company I've ever seen to have such a massive amount of products.
They have a massive product line covering almost every industry/market - more than 2,000 products, 31 brands (wow, there are even different brands within a MLM company), 15 product categories.
Just to give you some idea, they have products in categories like:
- Health & Nutrition - A wide range of nutritional supplements for different purposes
- Home & Family - This include all the household equipment for cleaning, kitchen, gardening and even pet care products
- Food & Beverage - Nutritional beverages, sports drinks, shakes, spices, wholesome foods, etc.
- Spa & Beauty - All the make-ups and personal care products
- Fashion - Apparel, jewelry, handbags and accessories
- Essential Oils - Singles, blends, diffusers and other equipment (P.S. Recommended Essential Oils brand: Young Living)
But that's not the end...
They don't just sell individual products. They want more. They want to make even more money.
So they created an entire store of all the different product packages, ranges from packages for athletes, lower blood pressure, support bones, help with heart & brain, repair digestive system and even weight loss pack.
Till now, I haven't even talked about their flagship product...
Youngevity Flagship Product
Their flagship product is this thing called "90 For Life".
According to them, human body needs 90 different essential nutrients to reach optimal health, but the human body loses 90% of its essential nutrients because it can’t digest them.
That's why they created this "90 For Life" which claimed to not just contain the essential nutrients our body needs, but it also has a 90-98% absorption rate, which is almost unheard of.
They claim it’s because they’re plant-based and have a natural negative charge, which aids in digestion.
To be honest, there's no research or scientific proof to verify this!
I Created My Own 4-Figure Monthly Passive Income at just 21 Years Old!
How to Make Money with Youngevity?
Just like any other network marketing company, there are 2 main ways for you to make money with Youngevity:
- Sell their products & earn retail commission
- Recruit members and build downline teams
But before that, you need to know that you have to pay some very expensive start up costs...
How to Get Started with Youngevity?
The very first thing to join them is to purchase a $25 Welcome Kit, which has some materials & training to help you get started.
But that doesn't include any products.
So you still have to purchase products despite it's not compulsory.
Not compulsory doesn't mean you don't need it.
How are you going to promote products to other people when you don't have samples yourself, right?
So, this is a tricky part for most MLM companies. It's compulsory in an indirect way.
For new distributors, they have a few different packages for you to choose from, ranging from $115 all the way to $500, which they call it the "CEO Startup Pack".
Your sponsor will definitely push you to purchase the $500 package because they claim that this can help you move up in your rank/status quickly and have a good jump-start in your business.
Some people can succeed with it. But for most people, this is the fastest way for them to get into deeper debt.
Youngevity Compensation Plan
Like I've mentioned earlier on, the 2 main things you need to focus on is selling & recruiting!
But just like any other MLM companies, they'll have a bunch of "BONUSES", as a way to convince people that you can make even more money because there are more income opportunities.
For Youngevity, they have"
- Retail Sales
- Fast Starter Bonus
- Infinity Bonus
- Refer 3 Get Yours Free
- Residual Bonus
- Vacations Rewards
- Status Rewards
- Car Bonus
- Global Revenue Pool
This is when MLM companies' compensation plans get complicated and confusing.
They want to leverage your emotional triggers by offering those luxurious vacations, cars, etc., when only an extremely small group of people can actually make it.
For the detailed compensation plan, please refer to their compensation plan PDF.
Alternatively, there are 5 training videos created by Youngevity to teach beginners about their compensation plan:
Youngevity Ugly Truths Revealed!
1. Not Reliable Products
No matter how powerful and magical they claim about their products, there's no real studies to prove it.
Some health & wellness MLM companies like Usana has real research to verify the effectiveness of their products. But that doesn't seem to be the case for Youngevity.
In fact, I'm pretty skeptical towards nutrition-based companies because it's hard to prove their claims. FDA will never certify such supplement companies.
I've reviewed many similar MLM companies and most of them have the same problem.
Some even paid for those biased researches.
2. FALSE Health Claims
This is a huge one.
In order to sell products and make money, distributors and leaders of Youngevity has made lots of inappropriate health claims. (Proofs here!)
For example, distributors market products like some sort of magical cure-all that can treat all sorts of diseases, like diabeters, autism, ADHD, anxiety and even prevent cancer.
On top of that, they even claimed that one particular product called "Beyond Tangy Tangerine CT" is better than chemotherapy.
Tell me, how can a mere juice drink be able to cure cancer?
I don't believe such technology exists today.
No real valid testing has been done with humans, but they claim it kills cancer in test tubes.
Truth is, bleach kills cancer in test tubes, but you don’t want to drink that either.
3. Not Transparent
Apart from those inappropriate health claims, distributors also made deceptive income claims.
The worst part is that they don't even have an income disclosure statement.
This is a document necessary for all MLM companies to disclose how much money people are really making.
I'm not sure why they don't want to disclose that. But my guessing is that most people just won't make any significant money.
4. Extremely Expensive Startup Cost
Like I've explained earlier on in the compensation plan, the startup cost for Youngevity is steep.
Here's a quick summary of your cost:
- $25 Welcome Kit (compulsory)
- Product Packages - $115~$500 (Highly recommended & indirectly compulsory)
However, I forgot to mention one more thing which is the compulsory monthly order!
Every distributor need to purchase certain amount of products every month so that they can continue to be eligible for commissions. This is known as Qualifying Volume (QV)
The worst thing I've found about Youngevity is that QV will increase as you advance in ranks.
In other words, the higher rank you are, the more products you have to purchase every month.
This is not common to MLM companies that I've seen. Most companies have a fixed monthly order requirement for all levels.
5. Too Many Products!
To be honest, having too many products can have serious drawbacks for both consumers and distributors.
For consumers, it's really hard to choose the right product to purchase.
For distributors, it's hard to understand the specifications for each and every product. So, it can be really overwhelming for beginners.
6. Pyramid Scheme?
Now comes to the most controversial part...
Some people, especially Youngevity distributors will refute people calling Youngevity a pyramid scheme.
I've even seen people calling others idiots just because they said Youngevity is a pyramid scheme.
To be honest, I think Youngevity is just using nutritional products as a way to avoid being labeled as a pyramid scheme.
I understand that officially we can't call it a pyramid scheme because they do have real products and services.
But the problem is that the entire business model is focusing on recruitment.
I can conclude in one sentence about what Youngevity distributors do:
They purchase expensive & overpriced packages and recruit others to do the same!
I know there will definitely be people disagree with me.
But the fact is this...
Regardless of whether it is a pyramid scheme, if you want to succeed in this business, you need to be good at face-to-face selling and do lots of recruiting.
That's where most of the money is made!
The Good Things About Youngevity...
1. Publicly Traded Company
Youngevity is a publicly traded company with a symbol of YGYI at Nasdaq.
This at least gives this company more credibility than those similar competitors.
2. Member of DSA
Also, Youngevity is a member of the Direct Selling Association (DSA).
DSA has strict rules to make sure their members operate legitimately.
3. Huge Growth
Youngevity has reported record revenue for the second quarter of 2016, reaching a massive $42.5 million in just three months. (Source: MarketWired)
Before that, they were seeing a nice, steady increase in gross revenue. They netted about $85 million in 2013, $134 million in 2014, and $156 million in 2015. (Source: Yahoo Finance)
As you can see from the graphs below, there's really some exponential growth from 2013 to 2015.
But the problem is that their growth has slowed down over the past few years.
In fact, they even had a significant negative earnings in 2017 as shown below:
Is Youngevity a Scam?
Nope, Youngevity is not a scam. If not, it won't be a member of DSA.
Being a DSA member is the easiest way to prove a company is legit.
But like I've explained earlier on, there are a lot of problems with this company, especially for beginners.
You not just have to invest a few hundred dollars to get started, but you also need to put in lots of effort in recruiting people into your team.
Don't listen to those who tell you otherwise or even tell you that it's very easy to recruit people because you just need to share those products and your experience on social media.
By leveraging the power of technology today, recruiting is very easy.
I agree to that sentence to a certain extent.
Technology does help but building a MLM business is even more about building real life relationships.
That's why it's called "Network" marketing.
You need to do a lot of networking, meetings, face-to-face selling, things like that.
I know this kind of stuff is definitely not for me because I'm an introvert.
Here's what I recommend...
How I Make a Living Online...
My top recommended way for anyone to make money online is via Affiliate Marketing!
The reason is simple...
- You don't need to recruit anyone to make money
- You have the freedom to promote any products you like, instead of being restricted to only promote products from the same MLM company
In fact, with affiliate marketing...
I've personally created a 4-Figure Monthly Passive Income Stream and become financially independent at just 21 years old without any College degree or working experience!
Through my own hard work, I went from a broke restaurant waiter to living my dream laptop lifestyle in less than a year's time...
If you want to discover the secrets of how I did it at such a young age, click here!