If you are researching whether the supposed residual income in AdvoCare is real or not, or whether you can truly earn recurring income with AdvoCare month after month on a part time basis then you might want to really study their compensation plan, and what the top distributors & advisors are doing to earn money with AdvoCare and you will begin to see that you’ll never really get to a place where you can just sit by the beach, drink coconuts and expect your monthly pay check with AdvoCare to remain the same.
AdvoCare Residual Income Myth
we all dream of that business model where we can earn money while we sleep, a business that pays us while we are on vacation, a business model that truly makes us free from working for money.
Does this type of reality exist inside AdvoCare’s compensation plan?
To some degree their overrides & leadership bonus is structured so that people can begin earning residual income, income that begins to build month after month.
When you enter business for yourself, that is the goal for everybody. Residual income allows you to stair step your way to wealth. It allows you to build on your income month after month because you are not trading in time for dollars.
You hear in AdvoCare success stories all the time of people reaching to silver leadership pin in matter of couple months and you look up the average annual income of silver and its around $15K, you will hear that these individual are making few grand a month after just few months of hustling.
Yet you have to understand that in AdvoCare there’s residual income and there’s commission sales.
When you hear someone making $1000 per month, that could be from recruiting 1 advisor with all-in purchase for $800 commission plus few other product sales, or $1000 could be several families all buying monthly products from you, or you could have a team of 8 distributors all of them doing sales each month.
The residual income in AdvoCare is built by having a strong team that’s doing great PGV every month. All the top distributors in this company make most of their income from overrides & leadership bonuses.
But is it completely hands free, guarantee money?
No most likely the leaders still have to get on 3 way calls to help close different recruits as well as help new recruits on 24 day challenges or help them begin their AdvoCare business.
Also you need Personal Volume of $500 every pay period to qualify for full leadership bonus and overrides.
In advocare they say “we believe you need to work to earn money to eat”
What I didn’t understand before joining AdvoCare was that in order to make good money in this company, you really need to recruit people in the business because when someone becomes an Advisor they will either go all-in or work their way to produce at least $3000 in PGV.
It is these new recruits that keep the business going. So in order to maintain for example the rubly level leadership which is a 6 figure income, you can’t really just sit there once you reach ruby and expect your income to remain 6 figures.
You have to continue to recruit people into the business to somewhat maintain that, now overtime hopefully you are gaining strong team members that’s going to do some of their own recruiting as well, but the idea that your advocare business will continue to provide for your family while you become inactive in this business for long extended periods of time is wishful thinking.
Just because you reach a certain leadership level for one pay period does not mean you will stay there.
For example, at Ruby Leadership Level, your organization has the generate around $50,000 worth of retail every 2 weeks.
That’s quite a heck of business, meaning your whole group including yourself has to be really active at all times to maintain the 6 figure income. And because big part of that PGV is generated by recruiting new advisors, the leader does get involved all the time in 3 way calls as 3rd party credibility to help close the deal as to why that person should join the business opportunity.
Because one of the things that people want is to be coached through the complicated business model of AdvoCare, they also want to know that they can be successful and they are signing up under the right team.
If you are not very active what does that tell the rest of your team members how they should conduct their business. By becoming active means getting on the phone calls and doing your best to get new recruits at all times. If you do not your income will stagnate and most likely begin to drop off.
How to sell AdvoCare online?
The only thing that can bring automated, recurring income for you is by leveraging the internet. Especially in direct selling business such as AdvoCare, you are not going to make money every month unless you make sales, the way majority of distributors are taught is the old school method of 3 way calls and mixer parties.
It is all about building rapport with face to face contact. Many of them set up meetings at Starbucks and get personal contact information from people that they then follow up on for months.
There is a lot of work in getting recruits but it is absolutely necessary if you want to get paid well in this company or even take a shot at getting Rookie Bonus if this is your first year.
Some people always ask, what’s the fastest way to get successful in Advocare?
Its to focus entirely on recruiting.
Even every product you sell is just a way to get someone into the funnel to later follow up and recruit into the business.
That is the true nature of the game when it comes to business with AdvoCare, it is all about recruitment, sadly it makes no difference to the independent distributor if you succeed or not, or whether the success rate is high or not, because each recruit just by choosing to become an Advisor will produce $3000 PGV.
You get several recruits per month and get few team member of your get few of their recruits as well every month and you are well on your way to making silver to gold level income of earning $1000 to $3000 per month.
You see this is how people climb up the rankings in this company rapidly, it is NOT in getting people on products, although that is part of the process of recruiting someone down the line but the focus is always on recruiting!
Residual Income in AdvoCare, Illegal Pyramid Scheme?
Some people might think of residual income or recurring income to be too good to be true and they might question whether AdvoCare is an illegal pyramid scheme.
These AdvoCare complaints or concerns are for good reason, most MLM’s walk a pretty fine line between legitimate to pyramid schemes.
An illegal pyramid schemes is a business that dupes people into making purchases without a real exchange of values.
What makes a business is when you spend your hard earned dollars, you should receive something tangible in return whether that’s a physical product or some type of service.
When a MLM sells “business opportunities” and ask for initial investment and most people lose out on their investment and gets nothing in return, then the FTC can rule that business as an illegal pyramid scheme and shut the whole company down similar to what happened to VEMMA.
It is a fact that a lot of people that invest their $2100 into all-in purchase with AdvoCare lose out on their investment.
It is known to be 95% failure rate, yet real income earners in AdvoCare have built their business around recruitment because that’s what actually builds income faster than selling products or weight loss.
Yet the reason why AdvoCare is not a pyramid scheme is that with the $2100 out of pocket investment to become advisor, you actually receive $3000 worth of retail products. Therefore even the purchase for “business opportunity” there is always transaction taking place of cash for products.
Whether that person loses out on their investment if they fail, is on them.
Hey I don’t see an issue of people taking a chance on a business opportunity and losing their investment.
Name me one business opportunity offline or online, that doesn’t require some type of risk and initial investment.
Just doesn’t exist.
This is why they will say you have to treat this as a real business, and to a certain degree that is true.
What I do have a problem with is that I don’t want to be in business for myself and the majority of my revenue is coming from people losing their money.
That’s not okay with me, and I will not pass the mirror test.
I want to be in business to bring tremendous value to the world, not take from it.
yes in AdvoCare the motto is “let’s go change lives”
and that may be true for 1 out of every 10 recruits, but what about the other 9 that failed?
you see big companies like Nike, Coca Cola or Apple don’t worry about people losing money, because each of their revenue is created by exchange of their products. So to me they have brought value to the world for every penny they made.
But when you are dealing with multi-level marketing, there is always a fine line between it being a true business to people labeling it as a scam.
It would be cool if in AdvoCare business 80% of your revenue came from product sales and only 20% was from recruitment and some of them failing, but its the opposite, majority of distributors income will come from recruitment & families losing money to the sexy AdvoCare vehicle.
It is still legal because that family still received $3000 worth of retail products.
But I wonder what you would do if you got 15 orders of 24 day challenges with the thought you would be able to sell them off, and then realizing the business opportunity isn’t going to work for you, I guess you could look to start selling on eBay.
I know what most are thinking when they see an opportunity like AdvoCare, if they can get few people to purchase products from them each month then that will be residual income and eventually get enough product users to end your 9 to 5 job!?
Yes if you do get loyal customers purchasing products from you for little while, they will help you earn residual income. Most likely they will get the distributor kit so they can at least earn 20% discount every time so you will be making 20% commission on your product sales from them.
Most people will spend at most, $125 per month on supplements so you can earn like $25 for each client that gets on products.
I’ve heard top distributors at success school say that in AdvoCare you can count on residual income every month because the products you are selling is consumed and they will need to order more. And we just LOVE that sexy word: residual income… but if you thought you can get enough people on products to get anywhere fast as far as changing your life then you have a long winding road ahead that gets you no where.
You simply cannot earn enough in product commissions to support your family in AdvoCare. Yes it can be nice little bonus each month, but majority of your income if you are serious about the business opportunity has to come from the whole recruiting aspect of the business, to sell people on the dream & vision of becoming an Advisor and to solve the time & money debt problem most American families are facing today.
And you must be clear that recruitment is what brings in the PGV required for good income, not because all the recruits will succeed but knowing that most recruits will fail, yet each person that is recruited will generate at least $3000 in PGV (retail volume) for the organization.
Therefore if you want to get a general idea for distributor’s income each month, then you ask the question “How many people did you recruit last month into AdvoCare?”
And recruitment which is how you really make money in AdvoCare is an active process, and can’t really be considered residual income.
When you close one person, that $3000 PGV for your organization is a one time fee, not residual and just because you got $12,000 in PGV a pay period because you got 4 recruits, doesn’t mean you will have $12,000 PGV next pay period, if you don’t get 4 new recruits or someone in your team doesn’t help out in bringing in at least few recruits of their own.
Because this is a people you know type of business, (trying walking up to strangers at Wal-Mart for a “business opportunity” people will run away from you like you’re the boogie man), the name of the game is to get new recruits into the business and go through their warm contact list and get more potential prospects for recruitment, and then go through their warm contact list and so on and so forth.
As you can see, as the leader that wants to secure gold, ruby, emerald, platinum leadership income level each month, you have to actively work through your recruits warm contact list to bring in more recruits.
So you can see that you better love working with people because AdvoCare is a very people/relationship oriented business, unless you know how to get leads online, and you better be okay with the fact that there’s really not much residual income to be made in AdvoCare, but you have to work every month and get new recruits to keep the business going, while knowing that majority of people that get recruited will fail.
It sounds a bit harsh but it is the reality.
What is local lead generation?
So what the heck is this site?
Why am I talking about AdvoCare so much if I’m not in the company anymore?
Well you can read my story here of how I went from MLM failure to absolute online marketing killer / entrepreneur that is now making $15,000 per month at this time 12/12/2015. And I did it without ever selling to friends & family
I finally stopped MLM altogether because I realized its just super difficult, over-saturated and a bit scuzzy if you ask me when you truly understand how MLM works, how money is earned by others losing it over the “business opportunity” that is way too difficult for most people.
I am now building sites and generating leads for local businesses.
Similar to knowing how to build a house or carpentry, I learned a skillset that is very valuable for local business owners.
I get paid for my skills & knowledge of ranking simple click and drag websites to top of Google and helping local business do 300-400% more in sales.
Once you rank the site you begin generating phone calls and you work out a deal with local business owner because phone calls are life line of their business.
Here is example of what one of my client is paying me every month
Once the site is ranked it generally stays up there without anymore work, so the site is working 24/7 for you generating leads and making money for you while you sleep or take vacations.
When you leverage the internet you can make true residual income.
For example, I can stop working for a whole month and my site will continue to generate leads for my clients and my clients will continue to pay me for those leads.
My $15,000 per month income I am making now is not going away.
This the main difference when you talk about AdvoCare’s income to mine.
While advocare distributors have to constantly worry if they are meeting their minimum PGV and overrides to earn their leadership bonuses every pay period of 2 weeks, I sit back and work till the site is ranked #1, once it is, I work out a deal with a local business owner for a monthly fee and that’s money I can count on each and every month, I then just move on to the next site, next niche and next deal. And I have a true way of stair stepping up towards tremendous success.
I’m now a proud partner of this coaching program, as one of their successful star students, you can find out more about it here.