Is Optavia a pyramid scheme? Well… Their enterprize model is that of a MLM and is structured to position much of increased exposure of recruitment, but does this add up to it being fully a pyramid scheme?
I'm guessing you will be probably reading my post here because you are contacted by an Optavia coach and asked to become listed on in on the company enterprise opportunity, or possibly a friend or family member was. But anyways… It doesn't really matter your cause of reading this. In this short review I is likely to be addressing the claims that Optavia may be considered a pyramid scheme.
What Is Optavia?
Optavia is a weight reduction MLM company that sells meal plans scientifically designed for weight loss, similar to Avisae, It Works, and Shaklee. They have an even more holistic means of weight reduction, not just concentrating on the short-term, but rather having an even more long-term focus. The goal is obviously to adopt new healthy habits one at any given time in your life so the changes you make stick.
This can be an approach that I must say i like. Plenty of men and women shed weight and then gain it right back. They invest all of this work and effort losing the weight however wind up regressing back with their old unhealthy habits. Optavia's goal is to simply help change those habits to healthier ones.
At the core of the Optavia enterprize model are coaches which can be there to simply help guide and support people on the weight reduction journeys. These coaches could possibly be anyone. You are I both could join the company enterprise as a coach and earn money doing so. Coaches have the ability to earn money by selling weight reduction products as well as by recruiting and other coaches beneath them and earning from what they sell go now.
This recruitment part of it all is the primary reason people are calling a pyramid scheme. Yes… Coaches can earn money by recruiting in other coaches and etc, but this doesn't mean it is a pyramid scheme. To have the ability to get a greater comprehension of what's going on here we first have to really have a feel the compensation plan and observe these coaches are receiving compensated.
Pyramid Scheme?
Okay… So a MLM type business like this is often completely legitimate and count on recruitment of other distributors, in cases like this “coaches”, to a good deal. What separates the very best MLM from in illegal pyramid scheme is merely simply how much they really count on recruitment of distributors. Once they count on recruitment similar to this plenty of and do not focus enough on selling products to many people, that's where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is not at all enough here for me to express that this can be a pyramid scheme, BUT… I am somewhat concerned when it comes to their compensation plan. They do not really appear to possess any safeguards set up to keep a pyramid scheme -like scenario from playing out.
In terms of I am aware, you might become a coach and to complete nothing but recruit in other coaches to maneuver up the ranks and make a great deal of money. Some MLM's that I've reviewed require you to sell a quantity of products monthly to many people (non-distributors), while Optavia does not.
But anyways… Know this doesn't seem just like a pyramid scheme to me. Recruitment like that's completely legal and although it mightn't function as the absolute most trustworthy business, because so many coaches are available on the market merely to recruit plenty of people in and earn money, it's still legal.
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