Hi and Welcome to my review on Shaklee.
What is an MLM company? Who is Shaklee, and what do they sell? How do you join this company, and what does their Compensation Plan look like? Is Shaklee a scam? I’m going to answer these questions and more : ) I hope you enjoy the read!
Shaklee was founded in 1956 by Forrest C. Shaklee, the company’s founder, who is credited with manufacturing the first multi-vitamin in 1915, which was manufactured and sold in the United States. The company is currently headquartered in Pleasanton, California, USA. Shaklee is a popular wellness MLM company. For a time, it was a publicly-traded company on the New York Stock Exchange; however, currently, it’s privately owned. We know Shaklee has changed owners a couple of times since it was created, which is not surprising considering how long it has been around. In 2004 the company was sold again, to a man by the name of Roger Barnett, who is the current Chairman and Chief Executive Officer.
WHAT IS AN MLM?
Multi-level marketing (MLM) Multi-Level-Marketing is a type of business model in which individual representatives receive commissions for selling products. This can happen through a variety of methods, including direct sales, referrals, or word-of-mouth. However, representatives also receive financial compensation by having people in their downline who are also selling the company’s products. This business model is dependent on both product sales and future sign-ups.
MLM companies are notorious for overpriced marketing products. More than likely, this is because they have to pay their representatives commissions on top of what the company makes.
SHAKLEE – HOW TO JOIN?
HOW MUCH DOES IT COST?
The best way to quickly get your Shaklee business up and running is with a Starter Kit.
There are several choices available:
Meology Prove It Starter Kit – $159 + $49.95 Business Starter Kit ($365 VALUE)
Includes – Meology personalized supplement plan created just for you, your choice of 2 Life Shake canisters, a free 7-Day Healthy Cleanse, and all essential business tools.
Prove It Starter Kit – $159 + $49.95 Business Starter Kit ($340 VALUE)
Includes – Vitalize supplement strip, choice of 2 Life Shake canisters, a free 7-Day Healthy Cleanse, and all essential business tools.
Business Starter Kit – $49.95 ($82 Value)
Includes – Essential business tools, personal website (PWS), mobile apps to manage your business, samples to share with family, support and training to get you started quickly.
You may purchase products without becoming a distributor. If you join as a member, you must purchase $150 worth of products; as a member you will get 15% off future purchases. It does not look like it is necessary to become a distributor or member to purchase their products. You may purchase products as a guest only.
SHAKLEE’S COMPENSATION PLAN
Shaklee’s compensation plan varies from other MLM plans because recruitment and downline sales are essential to your overall compensation. At the basic level, you earn commissions on all of your personal retail sales; however, minimum sales volumes are required to remain commission eligible. In fact, failing to meet the required minimums you need (roughly $150 per month at the lowest level), can cause you to lose all accumulated points in the commission system.
Shaklee emphasizes recruiting distributors more than most MLMs companies, and their compensation plan definitely takes this into account. As far as income potential, it is what you might expect to earn from an MLM company. Most distributors fail to profit, while just a few make good money selling the products.
If you want more details, have a look at their compensation plan, but I’m warning you, it’s quite a confusing document! Here you can view it for yourself. SHAKLEECOMPPLAN
A lot of compensation plans are very complicated and it becomes hard for you to recognize that making money with it is as difficult as understanding the whole compensation structure!
In summary, you’ll only see the list of bonuses you can earn from, but in detail, you’ll see how hard it is to qualify for each bonus!
The company does seem committed to providing high quality, natural products to improve the lives of their customers. While they do have a good mission, do not expect to see a large income from selling their products. Most distributors fail to make a profit, and there is a heavy emphasis on additional recruitment.
SHAKLEE PRODUCTS
TYPES OF PRODUCTS
The bulk of the company’s products are still part of the nutrition supplement and wellness market. They offer various vitamins, shakes, and meal replacement options intended to keep their customers healthy. Shaklee offers solutions for weight loss, aging, blood sugar, and other potential health problems for both men and women.
In addition to their vitamins and supplements, Shaklee also sells beauty products. This lineup includes natural makeup, face lotions, and creams. They also have hair products as well as some items for babies. They have a sports product line geared to enhance the athlete’s performance. Finally, the company’s product lines include natural home products, such as home cleaning and laundry supplies. They also sell water filtration devices.
SHAKLEE CLAIMS – REGARDING THEIR PRODUCTS
Shaklee has some of the most established and trusted products in the industry. They sold to NASA (they created Astroade, a rehydration product for astronauts). NASA/SHAKLEE Shaklee indicated on their website that they have been on every NASA mission since 1995.
They’ve got a reputation for being one of the greenest, most eco-friendly nutrition companies out there. They were the first company in the world to be certified Climate Neutral. Shaklee indicated that they were the first company to officially offset their own carbon footprint, making sure the impact on the environment is a solid net zero. Additionally, they’ve won numerous awards for sustainable business practices and green design.
Shaklee is actually a very eco-friendly company. This is actually a good thing. It means they don’t just focus on recruiting people but also on producing quality products they can offer to the market.
Shaklee Supplements FDA approved or not?
If you’re wondering if Shaklee’s health products are FDA approved, the answer is NO. The truth is, the FDA never approves health supplements. I’ve been asked several times about whether or not Shaklee vitamins and supplements are FDA approved. Then asked, if they are as good as people say they are, why aren’t they. It’s actually just the opposite; if you see a vitamin supplement that’s FDA approved, there’s a possibility that the product could be fraudulent. Therefore, it’s actually a good thing they never claimed to be FDA approved. It’s actually the company’s responsibility to ensure their products are safe for public consumption.
Shaklee Lawsuits (Through the Years)
During the 1970’s, Shaklee was the target of multiple Federal Trade Commission investigations and had some orders issued against it by the FTC. The first issue was due to its “Instant Protein” product. The company was not including any warnings about using the product for infants less than 1-year-old, and it also misrepresented the amount of protein that was contained in the product.
A couple years later, 1976, the company was in trouble with the FTC again. This time they were found to have coerced or threatened their distributors to maintain suggested retail prices. The FTC ordered that the company stop these practices and allow distributors to sell the products through whatever means the distributor deemed appropriate.
In 2013, Elizabeth Dopf, sued Shaklee for being a pyramid scheme.
Then again in 2016 , Shaklee was again sued for using the Healthprint mark without permission.
Lastly, nearly every MLM has been accused of operating a pyramid scheme at one time or another. But in the case of Shaklee, it went so far as to having distributors arrested. This case occurred in 2012. Distributor Jack Cranney was arrested for defrauding 36 victims for approximately $10.4 million through an investment Ponzi scheme. USGovtbankruptcyCranney
These are just some of the charges, others we’re against distributors for manipulating and stealing their downlines’ money. Overall though, aside from the pyramid scheme accusation, I think they’re just flaws other MLMs also face, not really a complete deal-breaker.
IS SHAKLEE A SCAM?
Let me say, No, Shaklee is not a scam. First, it has been around for over 60 years. Second, they do have actual products they sell, and you do not need to be a distributor to purchase them. Considering this company has been around for over 60 years, the fact they have had some legal issues is not surprising, and I do not hold that against them in this review. They are accredited with the Better Business Bureau, and they enjoy an A+ rating with them. BBB/Shaklee Additionally, I do think a certain type of person fits this business model. Although I believe it is a difficult business model to make money with; however, it is probably not impossible.
Final Thoughts
Essentially, as always, I leave the decision in your hands. Although I don’t know about you, I don’t have the personality to convince people to join my “team”. This aspect of multi-level marketing has always been off-putting to me. I think it takes a certain personality type to push this type of agenda, and you must have people in your downline if your goal is to make money.
I believe this company, believes in itself and is committed to the environment. The products have been around along time and some people seem to really like them. My advice, if you want to try the products, then buy the products. They are a little expensive, but if you are into eco-friendly and very natural products, then by all means give them a try. However, I don’t know if this is right for you or not, but I do know this is something you need to decide for yourself. Make sure to do the proper research and always educate yourself as much as possible.
But let me tell you that network marketing or multi-level marketing business is not for everyone. If you are not comfortable with selling and recruiting then you might want to think twice. Also, getting people to sign up under you is only half the battle, as your income stream is dependent on their ability to sell and recruit. To achieve success, you must be good at selling and have a strong team under you.
One must also remember that there’s no substitute for hard work, consistency, and self-motivation when it comes to success with any business, especially an online business.
Keep reading for my #1 Online Business Recommendation! It does not REQUIRE you to SELL to FRIENDS or FAMILY!
MY #1 ONLINE BUSINESS RECOMMENDATION IS…
First, you won’t have to sell products or sign up people to be in your downline, and second, you can still set your own hours, and enjoy a community of like-minded people, but most important you can learn marketable skills that will serve you for years to come.
Now, check out my #1 recommendation for building an online business. WATCH VIDEO HERE
I hope you enjoyed my Shaklee Review and if you have any questions, feel free to ask in the comments…
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Tamara
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