Is Shaklee a Pyramid Scheme

Is Shaklee a Pyramid Scheme or an Opportunity to Make $$$?

Making money from the comfort of your own home is very convenient. It is quite rewarding knowing that you can earn money from opportunities without even leaving your house.

However, there are always those opportunities pretending to be legit when they are not, like pyramid schemes. Pyramid schemes are illegal.

Today, we will be looking at a company called Shaklee. Is Shaklee a Pyramid Scheme? You will know as you read on.

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What is Shaklee?


Shaklee Corporation is a multi-level marketing company founded by Forrest C. Shaklee in 1956.

Shaklee is a company that sells nutrition and personal care products. The selection includes:

  • nutrition supplements
  • weight management products
  • beauty products
  • sports supplements
  • household products

The company is currently based in Pleasanton, California, United States.


How to become a Shaklee distributor


To join Shaklee, go to this link.

These are the steps you need to follow to ensure a smoother application process:

  1. Choose from two options. Option 1 ($159 + $49.95) includes a product starter kit, essential distributor tools, and 3 months of your online store. You can choose if you would like the Immunity Challenge Pack or the Prove It Challenge Kit. Option 2 ($49.95) includes the essential distributor tools and 3 months of your online store.
  2. Choose your starter pack (optional).
  3. Review your cart. Add more products if you want to, then check out.
  4. Fill in your personal information.
  5. Fill in your shipping details.
  6. Choose a shipping method.
  7. Fill in your sponsor's details.
  8. Review your cart again and proceed.
  9. Wait for your order to arrive at your address. Congratulations! You are on your way to becoming a Shaklee distributor.

Shaklee Enrollment Kits


Shaklee has the following enrollment kits to choose from:

  • I Want It All Success Pack - $1,000.00
  • YOUTH - Anti-Aging Success Pack - $310.00
  • Core Nutrition Success Pack - $299.00
  • Core Nutrition - Kosher Success Pack - $298.00
  • Healthy Weight & Cleanse Success Pack - $276.00
  • Family Success Pack - $305.00
  • Fitness Professional Success Pack - $404.00



What are Shaklee distributor levels?


There are 11 total ranks in Shaklee. Each rank requires the member to reach a certain sales quota on a monthly basis.

  1. Director
  2. Senior Director
  3. Coordinator
  4. Senior Coordinator
  5. Executive Coordinator
  6. Senior Executive Coordinator
  7. Key Coordinator
  8. Senior Key Coordinator
  9. Master Coordinator
  10. Senior Master Coordinator
  11. Presidential Master Coordinator
Shaklee ranks

Shaklee Compensation Plan


Shaklee's compensation plan can be accessed and viewed through this link.

There are nine ways to make money with Shaklee:

  1. GOLD Bonuses. Gives you immediate money, paid weekly each time you sponsor a Gold Ambassador with one of the GOLD PAKs.
  2. Power Bonuses. Earn immediate money weekly, available the month you join Shaklee.
  3. Price Differential. Profit you earn from the sale of products.
  4. Personal Group Bonuses. These are the monthly bonuses you earn based on the PV generated by your Personal Group.
  5. FastTRACK Bonuses. You can earn extra bonuses and rewards by reaching certain ranks.
  6. Incentives. You can earn these from climbing the ranks, and you receive additional incentives as you reach more ranks.
  7. Car Bonuses. You can get this bonus from climbing up the ranks.
  8. Leadership Bonuses. These are monthly bonuses you earn on the Personal Group Volume (PGV) of each Business Leader in your organization—up to six generations.
  9. Infinity Bonuses. These are monthly bonuses you earn on the Personal Group Volume (PGV) of each Business Leader in your organization with no limits to the number of generations you can have.

I found a video on YouTube that could explain the compensation plan better. You can watch it below.


Shaklee Pros and Cons


PROS

  • Company has been around for some time
  • Great business tools
  • Good customer support

CONS

  • Expensive startup cost
  • Expensive products compared to competitors
  • High quota required to climb ranks

Do Shaklee distributors make money?


According to Shaklee's 2014 Income Disclosure Statement, the average annual income of those in the Director rank is $10,357. The lowest 1/3 of those in the Director rank earned $4,674.

$4,674 is $389.5 per month. $389.5 is $97 per week. That means you earn $13.91 per day. The initial figure ($4,674) looks pretty decent but now that we have broken it down, it seems like it isn't. $13.91 is not even equivalent to 8 hours of minimum wage.

This is the sad reality for these MLMs. They always promise that you could earn full time wage from the opportunity they present, but the reality is you overwork yourself for an amount not even worth your time.

Let's just think about all the efforts you have to do to make your business work. You have to order products, sell them, maintain your website, host selling parties in actual and online, ship orders, and repeat. $13.91 a day does not cover all the effort you put in.

I truly believe that there are better ways to make money online than joining MLM companies such as Shaklee and Nu Skin. However, let's look at it this way. The data showed us that there are people who reached high ranks, which means it is possible.

I believe that as long as you apply the right strategies and you have the proper support from your team, you can make this opportunity work.



Shaklee lawsuits


Shaklee has its own fair share of lawsuits and controversies.

In 1974, Shaklee ceased marketing its Instant Protein product as appropriate for infants, and to stop its misrepresentation of the amount of protein in the product. This is in response to a Federal Trade Commission order.

In 2002, Tishcon Corp. filed two lawsuits against Shaklee for alleged copyright infringement. The company demanded $30 million in lost sales and damages.

In 2013, Elizabeth Dopf, a high ranking distributor, filed a lawsuit alleging that Shaklee is a pyramid scheme.


Is Shaklee legit?


Yes, Shaklee is a legit company that has been in business for many years now.

However, we know that MLMs always get bashed for the following reasons:

  • Team leaders do not train their members properly
  • Members do not make money since they lack the proper training and experience in sales and marketing

To be a part of an MLM, you need to join a team first. If your team members are supportive of each other, then it is easier to reach your individual and group goals.

It is necessary to find the proper team for you since these people would be the ones who would be with you in every step of the way.


Is Shaklee a Pyramid Scheme?


First of all, let's look at what a Pyramid Scheme is:


"A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products." Wikipedia

how-a-pyramid-scheme-works

As Shaklee distributors make money both by recruiting other team members AND by selling products to customers, it is safe to say that Shaklee is not a Pyramid Scheme!



How to succeed with Shaklee and any other online business


MLMs tend to get a bad reputation because majority of the people who join them lose money instead of earn.

This is because of leaders who think that training members is not necessary, and make them recruit new members instead. What is the point of having all these products when you do not plan to sell them anyway?

Here is the thing... You, as a member, cannot just force anyone to sign up for your MLM. The people you know are not interested with the company and its products, and have the right to say no to you.

You need to find your target market. These people are the ones willing to make purchases to sustain your business.

There are two popular ways to do this:

  1. Set up paid adverts that target a specific audience within your niche
  2. Find a way to generate free organic traffic that can be turned into sales

The first option is very expensive and if you are just starting out, then I recommend you scrap that for now.

The second one is completely doable and inexpensive, in fact, you can even get the right tools and information for FREE.

In this FREE Make Money Online Course, you can learn a number of things that can help you succeed with Shaklee and any other similar businesses.

By the end of the course, you will have the following knowledge:

  • How to choose your niche or better leverage your existing one
  • How to build a website in just a few clicks and have your own branding
  • How to write content that can attract thousands of visitors who ACTUALLY want to buy your products

and more!

Click on the red button below to get started 🙂


I hope you enjoyed reading my "Is Shaklee a Pyramid Scheme?" review!

Feel free to let me know your thoughts by leaving a comment below 🙂