Is Optavia a Pyramid Scheme ? – What You Should Know
Is Optavia a pyramid scheme? Well… Their enterprize model is that of a MLM and is structured to place a good deal of emphasis on recruitment, but does this add up to it being a pyramid scheme?
I'm guessing that you are probably reading my post here because you are contacted by an Optavia coach and asked to become listed on in on the business enterprise opportunity, or even a pal or family member was. But anyways… It doesn't really matter your basis for reading this. In this short review I is going to be addressing the claims that Optavia may perfectly be a pyramid scheme.
What Is Optavia?
Optavia is a weight loss MLM company that sells meal plans scientifically designed for weight loss, similar to Avisae, It Works, and Shaklee. They take a more holistic method of fat loss, not merely concentrating on the short-term, but alternatively having an even more long-term focus. The goal is always to adopt new healthy habits one at any given time in your life so the changes you make stick.
This is an approach that I really like. Lots of people slim down and then gain it right back. They place in all of this work and effort losing the weight however find yourself regressing back to their old unhealthy habits. Optavia's goal is to help change those habits to healthier ones.
At the core of the Optavia enterprize model are coaches which are there to help guide and support people on their fat loss journeys. These coaches can be anyone. You're I both could join the business enterprise as an instructor and generate income doing so. Coaches can generate income by selling fat loss products along with by recruiting and other coaches beneath them and earning from what they sell.
This recruitment element of all of it is the reason people are calling a pyramid scheme. Yes… Coaches can generate income by recruiting in other coaches and etc, but this doesn't mean it is just a pyramid scheme. In order to get an improved understanding of what's going on here we first need to take a go through the compensation plan and observe how these coaches are receiving compensated.
Pyramid Scheme?
Okay… So a MLM type business like this is completely legitimate and count on recruitment of other distributors, in this instance “coaches”, to a great deal. What separates the best MLM from in illegal pyramid scheme is simply how much they really count on recruitment of distributors. When they count on recruitment similar to this a lot of and don't focus enough on selling products to the general public, that is where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is certainly not enough here for me to express that this can be a pyramid scheme, BUT… I'm a little concerned when looking at their compensation plan. They do not really seem to have any safeguards set up to keep a pyramid scheme -like scenario from playing out.
So far as I am aware, you may become an instructor and to complete just recruit in other coaches to move up the ranks and make a great deal of money. Some MLM's that I have reviewed require you to sell a certain amount of products every month to the general public (non-distributors), while Optavia does not scamrisk.
But anyways… Know this doesn't seem such as a pyramid scheme to me. Recruitment like that is completely legal and though it might not be the absolute most trustworthy business, since many coaches are on the market simply to recruit a number of people in and generate income, it's still legal.
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