Is Optavia a pyramid scheme? Well… Their business design is that of a MLM and is structured to place a good deal of focus on recruitment, but does this add up to it being a pyramid scheme?
I'm guessing that you will be probably reading my post here because you're contacted by an Optavia coach and asked to join in on the business enterprise opportunity, or possibly a pal or family member was. But anyways… It doesn't really matter your reason behind reading this. In this short review I is going to be addressing the claims that Optavia may very well be a pyramid scheme.
What Is Optavia?
Optavia is a weight reduction MLM company that sells meal plans scientifically designed for weight reduction, similar to Avisae, It Works, and Shaklee. They take a more holistic method of weight loss, not merely concentrating on the short-term, but rather having an even more long-term focus. The goal is to adopt new healthy habits one at the same time in your life so your changes you make stick.
That is an approach that I truly like. Plenty of people lose weight and then gain it right back. They put in all this work and effort losing the weight but then wind up regressing back to their old unhealthy habits. Optavia's goal is to greatly help change those habits to healthier ones.
At the core of the Optavia business design are coaches which can be there to greatly help guide and support people on the weight loss journeys. These coaches can be anyone. You're I both could join the business enterprise as an instructor and make money doing so. Coaches have the ability to make money by selling weight loss products in addition to by recruiting and other coaches beneath them and earning from what they sell.
This recruitment section of it all is the reason individuals are calling a pyramid scheme. Yes… Coaches can make money by recruiting in other coaches and etc, but this doesn't mean it is a pyramid scheme. To be able to get an improved comprehension of what's going on here we first need certainly to take a consider the compensation plan and see how these coaches are becoming compensated.
Pyramid Scheme?
Okay… So a MLM type business like this is often completely legitimate and rely on recruitment of other distributors, in this case “coaches”, to an excellent deal. What separates the best MLM from in illegal pyramid scheme is how much they really rely on recruitment of distributors. If they rely on recruitment like this too much and do not focus enough on selling products to everyone, that's where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is definitely not enough here for me personally to say that this is a pyramid scheme, BUT… I am a little concerned when taking a look at their compensation plan. They don't really really seem to own any safeguards set up to keep a pyramid scheme -like scenario from playing out.
So far as I know, you could become an instructor and to complete just recruit in other coaches to go now up the ranks and make a great deal of money. Some MLM's that I have reviewed require you to sell a specific amount of products monthly to everyone (non-distributors), while Optavia does not.
But anyways… Know this doesn't seem just like a pyramid scheme to me. Recruitment like this really is completely legal and though it mightn't be probably the most trustworthy business, since many coaches are on the market simply to recruit a number of people in and make money, it is still legal.
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