Is “It Works” A Pyramid Scheme? Lets Take A Look And See

it works

Hey, it’s Leo, great to have you here. I don’t think it’s much of a stretch to say you’re here because you’re looking for more information about the homebased business opportunity It Works has available.

Well, hopefully I can answer all the questions you have about It Works, starting with answering the big question: Is It Works a pyramid scheme?

No, they are not a pyramid scheme or a scam of any sort. It Works is a multi-level marketing company in the health and wellness niche and has been around since 2001 and was founded by Mark Pentecost (CEO) and his wife Cindy.

The company is headquartered in Palmetto, Florida. And they also have offices in Dublin, Ireland and Seoul, South Korea.

Disclaimer: I am not a member or an affiliate of It Works. All the information researched for this review is available online within the public domain. This review is my personal opinion and any recommendations/conclusions are my own which you may or may not agree with. What you decide to do after reading my review is up to you. You can see the full disclaimer here for more info.

More About It Works

Before It Works came about Mark was a high school basketball coach and math teacher. And his wife Cindy was a stay-at-home mom with their 3 kids.

And like a lot of families, they were looking for a way to earn an extra $500 or so per month. So, to earn this extra $500 per month Mark ended up working for a few diferent direct sales companies.

And after working for those companies, he decided that he’d rather be the one calling the shots and work for himself. And It Works was born.

It works all started with a body wrap product called “That Crazy Wrap Thing”. With that success in 2005 they added supplements to their product line. And then in 2008 they expanded internationally into Canada, Australia, and several countries in Europe.

And in 2018 there global expansion continued with their first Asian market opening up in Seoul South Korea. They were also featured in Direct Selling News in 2017 and 2018 as the best place to work.

And that brings us here today.

We’re going to look at the business opportunity that It Works has for you. I’ll definitely will be answering a bunch of questions I’m sure you have on your mind.

And I’m pretty confident after you’re done reading this review you have more than enough information to determine if this is going to be the business opportunity that’s going to work best for you.

First, we’ll take a look at the products that you’ll be marketing. And then will cover how much it costs to get involved with It Works. Then we’ll look at the compensation plan. The making money part.

And then at the very end of all this, I’m going to tell you what I think of this business opportunity.

Alright let’s get to it.

The Products

it works products

Here’s It Works product line:

Beauty & Personal Care

You’ll find 20 different products to choose from including products such as a hydrating facial mask, lip and eye moisturizing cream, lash and brow serum, night cream, sleepy tea, etc. Product prices range from $8.00 $112.00.

Nutrition

Currently there are 12 nutritional products to choose from including their super greens blend, probiotics to help support your digestive system. Immunity a product designed to help support your immune system, etc. Product prices range between $55.00 and $75.00

Vegan

Here you have 22 vegan products to choose from including tea, slimming gummies, coffee, skin creams, etc. Depending on the product you choose prices range between $49.00 and $82.00.

Energy & Endurance

Here you will find keto products such as coffee and cookies. You’ll also find energy sticks, metabolism boosters, etc. Prices for these products range between $55.00 and $82.00.

Weight Control

Here you’re find all their weight control products including their slimming Gummies, carb control, fat fighters, tea, and coffee. Product prices range between $42.00 and $82.00.

Keto

Here’s all the keto products that they carry. Here you’ll find 4 different coffees. Their keto tea. Their Chocolate Mousse flavored treat. Along with their carb control and ThermoFight supplements. These products range in price from $67.00 – $82.00.

Apparel & Accessories

Here you’re find items like a tote bag, T-shirt, apron, blender bottle, and fab wrap. Depending on what you decide to buy you’re going to spend between $8.00 and $28.00.

Now, you may or may not know this. But when it comes to weight loss and nutirtional supplements and these types of products.

None of them have been evaluated by the FDA. In fact, you’ll see that disclaimer on their website.

And because products such as these haven’t been evaluated by the FDA. It Works does not have to prove that the products they’re marketing, work or even if they are even safe to use.

So, when you’re thinking of getting involved with a company such as this the best plan of attack before you jump in with both feet. Is to buy some of these products and see if they actually deliver on the promises they make.

This way you can evaluate things for yourself. And of course, if you have positive results, it means you can market these products knowing that you had those positive results. Because people are going to ask you about the products you’re selling.

But if you had no or negative results this is probably not a company you want to get involved with because personally I think it would be unethical to market products that you’re not having any success with.

Also keep in mind, when people try products such as these some are going to have positive results. Some are going have no results. And in some instances, some people may even have experienced negative results. Usually a reaction of some sort.

The Cost To Getting Started

To become a distributor for It Works is pretty straightforward you simply need buy a business builders kit. Now they do have 2 kits to choose from both cost $149.00.

The only difference between the kits is one includes an Autoship sign up. Which is $99.00 per month.

But you won’t be billed that $99.00 or be shipped the product until 30 days after you’ve completed your sign up as a distributor. And the other business builders kit doesn’t have the Autoship.

You’ll also receive a replicated It Works website where you can send your customers to. Or anyone that’s interested in the business.

You’ll get one month free use of their app, website and eSuite access. And then you will be charged a $20.00 monthly subscription fee after that to continue using their business building tools.

it works business builders kit

Show Me The Money!!

It Works compensation plan is a 22 page document that goes into great detail of exactly how the compensation plan works and what you need to do in order to make money.

Now, I’m not going to go through this entire document. So I’m just going to summarize things for you. You can read this entire document yourself by clicking here.

And of course, if you’re seriously considering getting involved with this business you need to read this entire document. You don’t want to get involved with the business not knowing what you have to do in order to make money.

In order to make money through this compensation plan you need to be commission qualified every month.

And in order to be commission qualified you need to have either a minimum of 80 BV (bonus volume) auto-shipment. Or have at least 400 personal bonus volume for the month. So, this is going to be in ongoing expensive of a minimum of $99.00 per month.

There’s 3 ways you’re going to make money through this compensation plan.

The first way is through Retail Sales. This is pretty straightforward you’re going to earn the difference between the wholesale price that you paid and the retail price that you sold a product to your customer.

The next way that you can earn money is through Loyal Customers. A loyal customer is someone that signs up with It Works with a minimum 3 month auto-shipment. And in doing so they will receive wholesale pricing on all their products.

So, you will be earning commissions from your loyal customers. And of course, the more loyal customers you have the more money you can earn.

And the 3rd way of making money through It Works is by becoming a Distributor and building your business. And as you build your business you will earn commissions on the people that you enrolled to become distributors and from their orders for the levels that you’re qualified for.

So, the bigger the team you build the more money you’re going to make. And you do that by recruiting more and more people and presenting them with the same business opportunity.

Fast Start Bonus Qualified

With this fast start bonus you can earn $100.00 by enrolling new distributors who meet the fast start bonus qualification within their first 30 days.

To earn this bonus, you need to be fast start bonus qualified yourself. Have set up and processed a minimum 80 BV through their auto-shipment program within your first 30 days. And enrolled 2 qualified active loyal customers.

Now when it comes to the rest of this compensation plan like every multilevel marketing company they have ranks, levels and bonuses all requiring you to meet certain qualifications.

Management Levels

They have 3 levels of management. Executive, Ruby and Emerald. Just a heads up the terms that I’m going to be using are terms that are within their compensation plan. And like every MLM compensation plan it’s complex and confusing.

To qualify and be paid as an Executive you need to complete the steps as a distributor as well as have a minimum of 2 qualified legs.

executive

To qualify and be paid as a Ruby you need to have 3 qualified legs with 1 of those legs being an executive leg.

Ruby

To qualify and be paid as a Emerald you need to have for qualified legs with at least 2 of those 4 legs being a Ruby.

Emerald

And of course, once you reach each one of these management levels you’re now eligible for the bonuses at whatever management level you’re at.

it works management bonuses Leadership Level

Once you reached Diamond you’re now at their leadership level. And as is explained in their compensation plan every new diamond is a new generation. And with every new generation comes a new generation bonus.

And diamonds and above can earn this generation bonus up to 5 generations based on their paid as rank.

Diamond Generation Payouts

diamond generation payouts

Double Diamond Generation Payouts

diamond generation payouts

Triple Diamond Generation Payouts

triple diamond generation payouts

Qualification For Diamond Ranks

Diamond – in order to qualify as a diamond, you must have 5 qualified legs with 1 of the 5 legs being a ruby leg and 1 of the 5 legs being a emerald leg. Both the ruby and emerald leg must be separate legs.

Double Diamond – to qualify as a double diamond you’re going to build on the requirements of being a diamond which is having 5 qualified legs with at least 1 of the 5 legs being a emerald leg and 1 of the 5 legs being a diamond leg. And both the Emerald and Diamond leg must be separate legs.

Triple Diamond – to qualify as a triple diamond you need 5 qualified legs with at least 2 of the 5 legs being a diamond legs and 1 of the 5 legs being a double diamond leg. And the 2 diamonds and one double diamond all must be in separate legs.

Presidential Diamond – To qualify as a presidential diamond, you need to have 5 qualified legs with at least 2 of the legs being diamond legs. 1 of the 5 diamond legs being a double diamond leg and 1 of the 5 legs being a triple diamond leg.. The 2 diamonds, one double diamond, and the one triple diamond must all be in separate legs.

Ambassador Diamond – to qualify as an ambassador diamond you need 5 qualified legs with at least 2 of those 5 legs being double diamond legs, 2 of the 5 legs being triple diamond legs and 1 of the 5 legs being a presidential diamond leg. The 2 double diamonds, to triple diamonds, and the one presidential diamond must all be in separate legs.

Leadership Bonuses

it works leadership bonuses

See, easy peezy. Not confusing or complicated at all. Right?


Can You Make Money With?

Sure, you can make money. But the reality is when it comes to multilevel marketing – you have better odds if you went to Vegas.

Less than 1% of people make any significant money in multilevel marketing. Just look at all the crazy hoops and qualifications you have to jump through in order to make money through this compensation plan. It’s fricking ridiculous.

Now, It Works does provide you with an income disclosure statement. And kudos for that. Because most multilevel marketing companies don’t provide this kind of information.

And the reason why they don’t is because it shows how few people are actually making real money doing this type of business.

This is it Works current income disclosure statement (see below) that they have on their website and it’s from 2019. And what it’s showing you is the average monthly income from their distributors during 2019.

The 2 numbers I want you to first look at are for the rank of Distributor. And look at the percentage of active distributors. The reason why I want you to look at the number of active distributors. Is because an active distributor is defined as a distributor that’s actually earned a commission.

You’ll notice that 83.5% of all active distributors on average earn $48.00 per month. Now you’ll also notice that the average income starts to increase as you rise in rank.

But also notice that the percentage of people reaching those ranks and making that money gets lower and lower.

it works 2019 income disclosure statement

Now when I talked to most people when they’re wanting to start making money with their own business the target number seems to be between $2000 and $2500 per month.

Which is a very reasonable target to shoot for. So, if you look at their income disclosure statement to reach $2000.00 per month you need to reach the rank of Diamond. But also notice that only 1.76% of people in this business reach that rank.

Their own income disclosure statement proves that the majority of people that get involved with this business aren’t making any money.

Oh, and let me point out one other thing as well to. Remember you have to have a minimum of 80 BV on their Autoship program to qualify for commissions or have that 400 personal bonus volume each month.

That’s going to cost you a minimum of $99.00 per month. Well, if the average distributors are only earning $48.00 a month. 83.5% of the active distributors in this business are losing money every single month.

That doesn’t really sound like a road to financial freedom does it? And that’s just taking in account that $99.00 per month that we know of. This income disclosure statement doesn’t reflect the additional money people have incurred building their business.

What Are People Saying About It Works?

Anytime you’re thinking of getting involved in any type of business it’s always a good idea to see what people think of the business.

So, I headed to the Better Business Bureau website and as soon as I got there is an alert for this business along with 684 complaints in the last 3 years with a 1.72 out of 5 stars and C+ rating. Not very encouraging to say the least.

The alert refers to a pattern of complaints from customers and business builders. People are saying that after trying to cancel their business they still continue to receive additional products.

And consumers state that they found additional charges being taken even after cancelling their account.

Better Business Bureau it works

Better Business Bureau

I also look through some of the other complaints and some of them are referring to delivery issues as well as issues with the products themselves.

Such as having a allergic reactions. And one person even complained that their lash/brow serum caused their eyes to burn.

So, if you’re seriously considering getting involved with this business you need to include this information from the Better Business Bureau in your decision-making.

What Training Can You Expect?

This is multilevel marketing business so ideally you should be getting training from the person that enrolled you into this business.

However, on their website they do say they provide you all the tools and training you need to succeed with your business. And they’re always adding new trainings every month to stay on top of industry trends.

What I Like

#1) Real Business

It Works is offering anyone who’s interested a legitimate home-based business opportunity.

#2) Product Selection

As a distributor you have a nice diverse line of products that you can market.

#3) Power Of The Internet

Unlike a lot of other MLM programs that are stuck in the past when it comes to marketing and building your business such as old-school techniques like hosting home parties.

It Works puts its focus on encouraging their distributors to use social media and the tools they offer to build your business.

#4) Gives Back Foundation

This is It Works nonprofit organization with its mission to make a difference in communities locally and globally.

What I Didn’t Like

#1) Overpriced Products

The products that It Works markets are overpriced. You can find similar products claiming the same results through online retailers such as Amazon or even at your local health food store for a lot less money.

#2) Monthly Minimum

In order to be commission qualified so you can actually earn money you must meet their minimum monthly requirements. That being either 80 BV or 400 personal bonus volume which translates into a minimum of $99.00 per month.

And if you’re not making money like the majority of people involved in this business you’re losing money every month.

#3) Recruiting

In order to build your business not only to be commission qualified every month but to be eligible for the different bonuses at the different ranks you’re going to have to constantly recruit people into your business.

#4) Low Success Rate

Their own income disclosure statement shows that over 83% of active distributors are averaging $48.00 a month. And less than 1% of people in this business are actually earning a significant income.

My Final Opinion Of It Works

Would I recommend you jump into this business opportunity? Not unless you have exceptional sales and network marketing skills and are willing to jump through the hoops they have in their compensation plan to make money.

The stark reality is multilevel marketing is a horrible business model to follow. When people are trying to get you involved in a multilevel marketing business you’ll notice they don’t talk about what you have to do to build your business.

What they focus on is selling you the dream of making all this money. What your life’s going to be like when you’re making all this money. The things you can do for your friends. The things you can do for your family. They sell the dream.

And then when people get involved with a multilevel marketing company they find very quickly that it’s not a dream and it’s a nightmare.

I’m not saying this to scare you. This is from personal experience. Been there done that. I got sucked into a multilevel marketing company and busted my ass for over a year and made no real money.

You know which day was my best day in my multilevel marketing career was? It was the day that I quit.

I was sick and tired of being on that recruiting merry-go-round to get people involved in the business and constantly hearing the word no. And then when I did get someone involved in the business. Most people didn’t stick with the business past 3 months.

That gets pretty demoralizing after a while. Now think about doing that for 365 days in a row.

Now you’re probably asking if I’m not in a MLM, how do I make money now? I’m a full time online Affiliate Marketer.

And as an affiliate marketer I don’t have to sell anything to anybody and I certainly don’t have to recruit anybody to build my business. I’m the big kahuna. I call all the shots. I’m the one in charge.

And because I’m the big kahuna, I own and control 100% of my business. With the multilevel marketing company, you don’t own your business. One of those many fun facts they forget to tell you when you’re being recruited.

Look, you may be in that 1% and possess those extraordinary sales and network marketing skills and you can knock this business out of the park. If you do that’s fantastic. If It Works, excuse the pun “works” for you. Then by our all means go for it.

But, if being forced to jump through all these hoops and meet all these goofy qualifications in order for you to earn on average $48.00 a month does not sound like fun.

Then you should check out affiliate marketing as an alternative way of building a thriving online home-based business.

Will it be the business model that you follow? Honestly I have no idea. The reality is not every business is for everybody. But the one thing I do know is if you take the time to thoroughly check out how you can build an exciting thriving online business as affiliate marketer.

You’ll be in a far better position decide if you want to pursue the “It Works” business opportunity or the affiliate marketing business model.

And the best resource that I can point you towards to learn about affiliate marketing would be Wealthy Affiliate. They have a step-by-step training system that’s done through their up-to-date state-of-the-art interactive online training platform.

Plus, they have all the tools, resources, and more importantly one-on-one support for you while you’re building a business. In essence everything you need is all under one roof.

And the cool thing it’s not going to cost you dime to see exactly what wealthy affiliate has to offer you. You can read all about Wealthy Affiliate here as well as get free access to their community.

Well, that’s it. Thanks for hanging in there to read my review. I hope you found it helpful. And if you have any questions or you want to leave a comment regarding It Works you can do that below.

I believe in you!
Leo

wealthy affiliate

 

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