AdvoCare Multi Level Marketing, Should I join?
Here is unbiased review about AdvoCare MLM business opportunity from someone that successfully began his online business and retired from his corporate job at the age of 26. More on this later…
First of all let me just say that there is nothing wrong with Multi Level Marketing or MLM, however its become a buzz word and you are hearing opposing views such as you got some people saying “MLM company changed my life” and you got other people saying they will never join a MLM.
Some people wonder is AdvoCare a pyramid scheme?
Let me explain the difference between illegal pyramid vs. legal MLM company
Above is an example of illegal pyramid scheme which is defined as a company that is duping people into a scheme which is not providing any value for people (no real products)
Above is a distribution model, where there is a manufacturer of products like the AdvoCare distribution warehouse, and then there is the wholesalers which would be your advisors, then the regional distributors which would be your AdvoCare distributors and then you got the retailers and customers. It is still a pyramid shape but this is a completely legal model in fact this is how all the products we purchase is distributed.
In fact all the government systems and even the corporate ladder is in this pyramid shape. What makes it a Multi level marketing pyramid is that the customers have the opportunity to join the company and rise up in the pyramid and go as high as the wholesaler level without too much overhead costs.
Another indicator that separates the illegal pyramid scheme to the legal distribution pyramid is that are there actual customers that simply buy the products that have no interest in joining the business opportunity?
If real value is being transferring down the pyramid and in return money is going up the pyramid for that true exchange in value then it is legal distribution.
Some questions you want to ask yourself when studying a MLM company for the first time is What % of the sales are to customers?
The critical level of the pyramid to look at is the very bottom, the customers.
Are there actual customers being served with great value?
It does not matter if there are 100 level in between the manufacturer and the customers, if the customers still feel that they are still getting great value then the model is completely legal.
AdvoCare clearly has products that people love purchasing at retail and using them on regular basis, so the fact that you are an Advisor and you have distributors below you that help get the products out to people is not an illegal pyramid scheme but simply, completely legal distribution model but it is MLM because it allows customers to start their own distribution channel within the company.
Another common myth about MLM is that the first people that join get to make the most money!
This is not true
AdvoCare MLM Myth
When people begin seeing people draw out the AdvoCare ruby organization model they start to wonder if this is a pyramid scheme where people get duped, because it seems like that the people that joined AdvoCare before you will always be more successful than you, but this is a misunderstanding.
If you pay attention to AdvoCare compensation plan, you do not pass up any of your sales volume to your sponsor once you become Advisor, the only thing that that you pass up to them is Override of 7% of business volume which is getting paid off by AdvoCare not from your profit margins.
So yes the more sales you generate the more bonus your sponsor gets from AdvoCare which is the 7% of BV and some leadership bonus to him or her above you but that’s it. When you work harder than your sponsor, and build an empire below you, you can easily overtake your sponsor
Override which is 7% of BV (Business Volume) and BV is half of retail volume only go 3 levels or 3 generations down, also leadership bonuses include getting bonuses for having 3 different advisor below you and making your own team more powerful, if your sponsor sits there and does nothing, while you build a big team underneath you, you will eventually begin getting more Override and Leadership Bonus than your sponsor, so again this myth about MLM compensation plan not allowing people that sign up later to not make more than people that sign up before them is simply not true.
AdvoCare MLM Hype
I do not see anything inherently wrong with MLM companies like AdvoCare, the only critique I have about MLM is that it allows anybody to become sellers & promoters of the products and business opportunity and so you have the issue of certain people that are not qualified to give nutritional advises try to sell the product as if they were the expert and also you have people promoting the business opportunity and they are doing it with not very honest way but more hype based. So many people join that are simply not ready for a MLM business opportunity simply because their sponsor made it sound like it was the easiest way to make money. So people under estimate the effort required to get the business off the ground, so they do not take enough action and they miss the mark and then disappointment sets in and then they give up.
I see this with another MLM businesses as well, sometimes that low barrier of entry such as being able to become a distributor for AdvoCare at only $79 is causing people to not take the business opportunity serious enough because they are not committed enough to make it work.
Do you think, local business owners that have to invest $30,000 to get a business started would take their business more serious? You better believe it.
At the end of the day it’s those people that commit themselves 100% and work hard and put consistent effort that has any shot at succeeding online or offline business, MLM or non MLM, AdvoCare or Amway, DoTERRA, or numerous other MLM’s.
Do not let the Override compensation plan fool you either, like you can get 1 great advisor below you and piggy back off their success, you may get some nice change from their efforts but it will never be enough to replace your 9 to 5. In order to get to a level where you could do AdvoCare full time is if you really began building multiple advisors below you that have a large team, which requires work because you will have to do coach them, prospect with them, and possible do 3 way calls to help close deals for them. Its only after you begin building a real organization of independent distributors below you that you start tapping into true residual income with AdvoCare in the form of overrides and leadership bonus.
This means you can’t just sit on the couch and wait for things, you have to go out there and make it happen which involves talking to new people!
So if you have crazy phobia about talking to strangers, unless you learn how to effectively sell AdvoCare online, then this MLM is probably not for you.
So in conclusion the only problem I have with some of the MLM is that because they allow anyone to sell their product & business opportunity, there is slightly misrepresentation or hype that gets interjected in some of its marketing, and sometimes people are pushing products and their either not qualified or aren’t really using the products themselves so their pitch comes across very dis-genuine, and we mistakenly label the whole company as hypey, BS but sometimes we may be too quick to judge based on limited data.
Even if you come across an AdvoCare advisor that try to sell you their products but these individual kind of come across inauthentic, & they rub you the wrong way.. does not mean that the products do not work or that their compensation plan is not solid either.
In such a competitive market place such as nutrition supplement business, for AdvoCare they want all the help they can get to market their products hence choosing to be a MLM where they allow customers to become their distributors, the only risk is that they do not have as good of control on how their products are being represented & marketed in the market place. Where as Nike or automotive companies that only distributor their products to qualified & certified distributors like dealerships or Foot Lockers, have much better control over how their product is marketed.
this is why it is important to research any MLM company before joining them.
Make sure they have quality products that customers love and are clearly getting lots of value from.
Make sure that the MLM company’s compensation plan allows you to make more than your sponsor eventually.
AdvoCare passes both of these tests so it is definitely a legal distribution pyramid.
yes AdvoCare has legit products & compensation plan that makes it a valid opportunity for people to make money from home. It is very close to owning your own business but because it is MLM business, you are technically still building a business that is not entirely your own so there are some risks involved with that.
- As you spend several years building your AdvoCare empire, if one day something were to happen to AdvoCare, you will lose all of your efforts over night. This is not an AdvoCare specific concern but MLM businesses period.
- You have to abide by their rules within the compensation plan, for example in AdvoCare you have to generate at least $1000 in Personal Volume every pay period to qualify for their full compensation. Which means if you want to get paid the full amount you have to always sell $1000 worth of products every 2 weeks. Not very difficult once you build enough connections but if you want to take a vacation for over 2 weeks, you better make sure you put someone else in charge to at least meet the minimum amount in sales or you will miss out on your pay. So in this sense its never completely hands free residual income
I started off as a MLM guy, but later met some mentors that were doing something different where I have 100% control over my business, I loved this control factor so I transitioned to what they were teaching which was local lead generation model. Basically generating phone calls from customers for local businesses like carpet cleaners, tree service, plumbers, roofers, etc. by ranking simple websites and working with these local business owners directly as a service based business, so it was more about me getting paid for my services by business owners that desperately needed my service versus doing a MLM which requires persuading someone to join or buy products that weren’t actively searching for it.
Another problem I saw with MLM’s was that it gets over saturated quickly and the competition gets really high. If you want to rank a website for a MLM business so you can get leads online, you are now competing on a national or global level for those buyer intent key words like “AdvoCare Review” or “How to sell AdvoCare online”
Whereas in the local lead generation model, there’s literally unlimited untapped potential because there’s hundred of different niches in each city with thousands of cities all over US and other countries.
If you want to learn more about the local lead gen model that finally allowed me to quit my 9 to 5, either watch the video at the top of this post or go here.