Is Optavia a pyramid scheme? Well… Their enterprize model is that of a MLM and is structured to position a great deal of increased exposure of recruitment, but does this amount to it being truly 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 join in on the business opportunity, or even a friend or member of the family was. But anyways… It doesn't really matter your basis for reading this. In this short review I will soon be addressing the claims that Optavia may very well be a pyramid scheme.
What Is Optavia?
Optavia is a weight loss 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 only emphasizing the short-term, but alternatively having an even more long-term focus. The target is always to adopt new healthy habits one at the same time in your life so your changes you make stick.
This really is an approach that I must say i like. Plenty of people slim down and then gain it right back. They place in all of this work and effort losing the weight but then wind up regressing back for 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 are there to simply help guide and support people on the weight loss journeys. These coaches could be anyone. You're I both could join the business as a coach and make money doing so. Coaches have the ability to make money by selling weight loss products as well as by recruiting and other coaches beneath them and earning from what they sell.
This recruitment element of everything is the main reason people are calling a pyramid scheme. Yes… Coaches can make money by recruiting in other coaches and so on, but this doesn't mean it is really a pyramid scheme. To be able to get an improved understanding of what's going on here we first need certainly to take a go through 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 rely on recruitment of other distributors, in this case “coaches”, to a good deal. What separates a legitimate MLM from in illegal pyramid scheme is how much they actually rely on recruitment of distributors. Should they rely on recruitment such as this an excessive amount of and do not focus enough on selling products to the general public, that's where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is not really enough here for me to say that this can be a pyramid scheme, BUT… I'm a bit concerned when taking a look at their compensation plan. They do not really seem to possess any safeguards set up to keep a pyramid scheme -like scenario from playing out https://www.scamrisk.com/optavia/.
So far as I understand, you may become a coach and to accomplish only recruit in other coaches to move up the ranks and make tons of money. Some MLM's that I have reviewed need you to sell a quantity of products every month to the general public (non-distributors), while Optavia does not.
But anyways… Know this doesn't seem such as for instance a pyramid scheme to me. Recruitment like this really is completely legal and although it might not be probably the most trustworthy business, because so many coaches are on the market just to recruit a number of people in and make money, it is still legal.
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