A few month in the past a reader knowledgeable me that our LifeVantage evaluation was old-fashioned.
BehindMLM reviewed LifeVantage in late 2015. Main issues raised within the evaluation had been a scarcity of retail focus and obligatory affiliate autoship.
Upon studying our evaluation, the reader claimed I wanted “to replace your data as there have been a number of adjustments since Darren Jensen turned CEO.”
Right this moment we revisit LifeVantage for an up to date evaluation.
The Firm
LifeVantage continues to be primarily based out of Utah and headed up by Darren Jensen (proper).
Since publishing our preliminary evaluation, Jeunesse sued Jensen for raiding.
The lawsuit was filed in January 2016 and confidentially settled in September the identical 12 months.
In January 2018 LifeVantage was sued for allegedly being a pyramid scheme. The lawsuit additionally alleges LifeVantage sells snake oil merchandise.
As on the time of publication, the lawsuit continues to be enjoying out.
LifeVantage Merchandise
Since 2015 LifeVantage has expanded its vary of merchandise, which now embody dietary dietary supplements, private care, health and pets.
LifeVantage’s flagship product, Protandim, has been break up in NRF1 and NRF2 varieties.
To remain lively and energetic, your physique wants energy. By serving to your physique preserve mitochondrial operate as you age, Protandim NRF1 Synergizer is the spark plug your each day well being deserves—in a scientifically-engineered method designed to ship.
With Protandim Nrf2 Synergizer, you’ll be able to tackle getting older with the one complement that helps your cells produce their very own antioxidants. Really feel youthful. Stay more healthy. That’s the facility of Protandim Nrf2 Synergizer.
Protandim NFR1 retails at $59.99 for a bottle of 60 capsules. Protandim NFR2 retails at $50.99 for a bottle of 30 caplets.
Alternatively the NFR1 and NFR2 formulation might be bought collectively for $85.99 (one month provide).
Different dietary dietary supplements LifeVantage markets embody:
- Omega+ – “helps mind well being, cardiovascular well being, pores and skin well being, and the immune system”, retails at $48.99 for a bottle of 90 capsules
- ProBio – “help(s) optimum digestion and immune system operate”, retails at $50.99 for a bottle of 90 caplets
- AXIO Common – a beverage powder that accommodates “Nrf2 elements … designed to ship extra psychological readability, focus, and focus with out the jitters or caffeine crash”, retails at $60.99 for a field of thirty single-serve sachets
- AXIO Decaf – identical as AXIO common however with out added caffeine, retails at $60.99 for a field of thirty single-sever sachets
A full catalog of LifeVantage’s private care, health and pet dietary supplements is out there on their web site.
The Lifevantage Compensation Plan
LifeVantage’s compensation plan combines retail, recruitment and residual commissions.
A number of efficiency and rank primarily based bonuses are additionally obtainable.
LifeVantage Affiliate Ranks
There are twelve affiliate ranks throughout the LifeVantage compensation plan.
Together with their respective qualification standards they’re as follows:
- PRO1 – generate at the least 100 PV and 1000 GV a month and recruit and preserve at the least one fee certified affiliate
- PRO2 – preserve at the least 100 PV a month, generate at the least 2500 GV a month and recruit and preserve at the least two fee certified associates
- PRO3 – preserve at the least 100 PV a month, generate at the least 5000 GV a month and preserve at the least two personally recruited fee certified associates
- PRO4 – generate and preserve at the least 200 PV and 10,000 GV a month and preserve at the least two personally recruited fee certified associates
- PRO5 – preserve at the least 200 PV a month, generate at the least 20,000 GV a month and recruit and preserve at the least three fee certified associates
- PRO6 – preserve at the least 200 PV a month, generate at the least 50,000 GV a month and preserve at the least three personally recruited fee certified associates
- PRO7 – preserve at the least 200 PV a month, generate at the least 100,000 GV a month and preserve at the least three personally recruited fee certified associates
- PRO8 – preserve at the least 200 PV a month, generate at the least 200,000 GV a month and preserve at the least three personally recruited fee certified associates
- PRO9 – preserve at the least 200 PV a month, generate at the least 500,000 GV a month and preserve at the least three personally recruited fee certified associates
- PRO10 – preserve at the least 200 PV a month, generate at the least 1,000,000 GV a month and preserve at the least three personally recruited fee certified associates
- Government Grasp – preserve at the least 200 PV a month, generate at the least 2,000,000 GV a month and recruit and preserve at the least 4 fee certified associates
- Presidential Grasp – preserve at the least 200 PV a month, generate at the least 5,000,000 GV a month and recruit and preserve at the least 5 fee certified associates
PV stands for “Private Quantity” and is gross sales quantity generated by retail buyer orders and an affiliate’s personal buy of merchandise.
At the least 40 PV of any required quantity should be bought by an affiliate.
GV stands for “Group Quantity” and is PV generated by an affiliate and their downline.
Be aware that the next further GV qualification standards applies:
- PRO2 to PRO4 – as much as 80% of required GV might be sourced from anybody unilevel workforce leg
- PRO5 to PRO9 – as much as 60% of required GV might be sourced from the biggest leg, 30% from the second largest and 10% from the third
- PRO10 – as much as 40% of required GV might be sourced from two legs and as much as 20% from a 3rd largest
- Government Grasp – as much as 40% of required GV might be sourced from two legs and 10% from a 3rd and fourth
- Presidential Grasp – as much as 40% of required GV might be sourced from the biggest leg, as much as 35% from the second largest, as much as 10% from the third and fourth largest and as much as 5% from the fifth largest
Lastly be aware that Pro10 and better ranks should be held for 3 consecutive months earlier than qualification is achieved.
Fee Qualification
To qualify for MLM commissions, every LifeVantage affiliate should generate at the least 100 PV a month.
40 PV should be an affiliate’s personal product order(s).
Retail Commissions
LifeVantage associates are paid a fee after they promote merchandise to retail clients.
Retail commissions paid out are the distinction between the wholesale and retail value of merchandise ordered.
Residual Commissions
LifeVantage pays residual commissions through a unilevel compensation construction.
A unilevel compensation construction locations an affiliate on the high of a unilevel workforce, with each personally recruited affiliate positioned immediately underneath them (degree 1):
If any degree 1 associates recruit new associates, they’re positioned on degree 2 of the unique affiliate’s unilevel workforce.
If any degree 2 associates recruit new associates, they’re positioned on degree 3 and so forth and so forth down a theoretical infinite variety of ranges.
LifeVantage caps payable unilevel workforce ranges at 9.
What number of ranges a LifeVantage affiliate earns residual commissions on is set by rank:
- PRO1 associates earn 2% on degree 1 and 5% on degree 2
- PRO2 associates earn 2% on degree 1, 5% on degree 2, 9% on degree 3 and 5% on degree 4
- PRO3 associates earn 2% on degree 1, 5% on degree 2, 9% on degree 3 and 5% on ranges 4 and 5
- PRO4 associates earn 2% on degree 1, 5% on degree 2, 9% on degree 3 and 5% on ranges 4 to six
- PRO5 associates earn 2% on degree 1, 5% on degree 2, 9% on degree 3 and 5% on ranges 4 to 7
- PRO6 associates earn 2% on degree 1, 5% on degree 2, 9% on degree 3 and 5% on ranges 4 to eight
- PRO7 and better associates earn 2% on degree 1, 5% on degree 2, 9% on degree 3 and 5% on ranges 4 to 9
PRO5 associates are capable of apply for an extra unilevel place inside their present unilevel workforce.
PRO7 associates can apply for a 3rd place and PRO10 associates for a fourth.
Extra unilevel workforce positions successfully enable an affiliate to earn a number of occasions on gross sales quantity generated underneath further positions.
Extra unilevel positions have their very own rank, which should be certified for to be able to earn residual commissions.
Generational Matching Bonus
PRO3 and better ranked LifeVantage associates earn a Generational Matching Bonus on residual commissions earned by their downline.
The Generational Matching Bonus is tracked through the unilevel workforce and pays out as follows:
- degree 1 (personally recruited associates) – 10% matching bonus on earned residual commissions
- ranges 2 to five – 5% matching bonus on earned residual commissions
Be aware that to qualify for the Generational Matching Bonus, a PRO3 or increased ranked LifeVantage affiliate should be producing at the least 200 PV a month.
If an affiliate is producing 100 to 199 PV a month (100 of which is new quantity for that month), they are going to obtain 50% of the Generational Matching Bonus.
For PRO3 to PRO6 ranked associates, 100 PV of the required quantity every month should be quantity from new retail clients and/or recruited associates.
PRO7 and better ranked associates are exempt from having to generate new quantity every month.
Good Begin Bonus (recruitment)
The Good Begin Bonus recruitment fee is paid on the recruitment of latest associates who join with a product pack.
- Silver Pack – $300
- Gold Pack – $600
- Platinum Pack – $1200
LifeVantage associates who generate 200 PV a month earn a 40% Good Begin Bonus, paid on the above product packs.
Associates who generate 100 to 199 PV a month earn a 30% Good Begin Bonus.
Good Begin Bonus (most popular clients)
The Good Begin Bonus most popular buyer fee is paid on a most popular buyer’s first month-to-month order.
A most popular buyer is a retail buyer who has agreed to put a month-to-month autoship order, in alternate for a reduction.
Good Begin Bonuses for most popular buyer orders are the identical as recruitment:
- 40% if an affiliate is producing 200 PV or extra a month; or
- 30% if an affiliate is producing 100 to 199 PV a month.
Launch Bonus
The Launch Bonus is a coded bonus paid on product packs bought by most popular clients and newly recruited associates.
The bonus itself is paid primarily based on rank, with every rank getting a certain quantity of the bonus.
Silver Packs pay
- $12.50 to PRO3 and PRO4, PRO5 and PRO6 and PRO7 to PRO9
- $6.25 to PRO10
- $3.75 to Government Grasp and
- $2.50 to Presidential Grasp
Gold Packs pay
- $25 to PRO3 and PRO4, PRO5 and PRO6 and PRO7 to PRO9
- $12.50 to PRO10
- $7.50 to Government Grasp and
- $5 to Presidential Grasp
Platinum Packs pay
- $50 to PRO3 and PRO4, PRO5 and PRO6 and PRO7 to PRO9
- $25 to PRO10
- $15 to Government Grasp and
- $10 to Presidential Grasp
As I perceive it the referring affiliate is paid the Launch Bonus at their rank.
The system then appears to be like upline to pay the remaining rank bonuses out.
E.g. for a Silver Pack $12.50 is paid to the primary discovered PRO3 or PRO4 affiliate. One other $12.50 is paid to the primary discovered PRO5 or PRO6 affiliate and so forth and so forth.
Be aware that to be able to qualify for the Launch Bonus, a LifeVantage affiliate should be producing at the least 200 PV a month.
Elite Bonus Pool
LifeVantage take 4% of company-wide gross sales quantity and place it into the Elite Bonus Pool.
PRO7 and better ranked associates qualify for a share within the Elite Bonus Pool.
The Elite Bonus Pool is break up up into 4 smaller 1% swimming pools, corresponding with ranks PRO7 to PRO10.
- PRO7 associates earn a share within the PRO7 pool
- PRO8 associates earn a share within the PRO7 and PRO8 swimming pools
- PRO9 associates earn a share within the PRO7, PRO8 and PRO9 swimming pools
- PRO10 and better ranked associates earn a share in all 4 Elite Bonus Swimming pools
Rank Achievement Bonus
LifeVantage associates are rewarded for qualifying on the PRO10 and better ranks with the next one-time bonuses:
- PRO10 – $100,000 over twelve months
- Government Grasp – $250,000 over twenty-four months
- Presidential Grasp – $500,000 over twenty-four months
Be aware that rank should be maintained over the complete payout interval.
Becoming a member of LifeVantage
LifeVantage affiliate membership is $50 plus delivery.
An affiliate can even choose to enroll with an extra enrollment pack:
- Silver Pack – $300
- Gold Pack – $600
- Platinum Pack – $1200
The one distinction between the packs and the common affiliate membership possibility is bundled merchandise.
Conclusion
My main criticisms of LifeVantage again in 2015 had been obligatory affiliate autoship and a scarcity of retail focus, so let’s concentrate on these two factors first.
Sadly LifeVantage nonetheless requires associates to buy at the least 40 PV of product every month.
That is crafted inside a 100 PV requirement, with the remaining PV both from further purchases by the affiliate or retail orders.
An MLM firm forcing associates to buy any quantity of product every month is unacceptable.
Not solely is it pay to play, however it additionally encourages self-funded fee qualification. By that I imply a LifeVantage affiliate is way extra more likely to buy 100 to 200 PV of product every month, versus that very same quantity being retail.
What ought to be taking place is LifeVantage requiring both 60 or 140 PV to be retail, leaving the remaining 40 PV both retail or an affiliate’s personal spend, their alternative. Both that or lock countable PV from an affiliate’s purchases at 40 PV.
With all that in thoughts, I get the impression that lowering the obligatory 100 PV a month spend to 40 PV is simply pseudo-compliance.
From a sensible standpoint it’s unlikely LifeVantage affiliate behaviour has modified since 2015.
The excellent news is you’ll be able to simply confirm this your self, by asking how a lot of the 100 or 200 PV your potential upline is retail quantity.
Something lower than half (50/100 PV) and also you’ve simply confirmed that affiliate is working their LifeVantage enterprise as a pyramid scheme.
Forcing associates ties into a scarcity of retail focus, so on that particular level nothing has actually modified.
LifeVantage’s compensation as of 2019 itself focuses on retail quantity past straight retail commissions, by specializing in most popular clients.
There’s nothing inherently mistaken with that, besides LifeVantage does it in very pseudo-compliancey approach.
The LifeVantage compensation plan doc refers to affiliate enrollment packs as “product packs”. I’ve saved the verbiage in some elements of the compensation plan however it’s fairly apparent these are meant for associates solely.
When you want affirmation of this look no additional than LifeVantage’s 2019 Distributor Utility, which on web page 2 refers to them as “enrollment packs”. On the LifeVantage web site they’re known as “alternative packs”.
Retail clients, even most popular ones, aren’t enrolling as associates – so mentioning most popular clients shopping for the packs is lip-service.
I’d be keen to be the variety of most popular clients which can be buying a $300 to $1200 a month is negligible. Hell, I’ll even go as far as to say non-existent.
Full lip-serve on LifeVantage’s half and clearly an try and create the phantasm of retail gross sales when there isn’t any.
One other missed alternative to drive retail quantity is the Generational Matching Bonus.
100 PV of latest quantity a month to qualify? Nice! However why does this embody newly recruited affiliate purchases (qualifying through recruitment)?
Why not require 100 PV a month in new retail quantity? And what’s up with the quantity requirement not making use of to PRO7 and better ranked associates?
PRO7 and better ranked associates shouldn’t be targeted on producing new retail quantity every month? Why on Earth not?
On the product facet of issues it’s nice to see LifeVantage has expanded past what was provided in 2015.
They’ve saved throughout the theme of the unique choices and what’s been added compliments what was already there.
What can’t be ignored although is the beauty adjustments to the compensation plan (it’s basically the identical).
With a scarcity of retail focus it actually doesn’t matter what merchandise LifeVantage has.
I’m not saying that retail isn’t going down, it’s simply when evaluating LifeVantage as of 2015 and now, they haven’t truly modified the core focus of the enterprise in a meangingful approach.
It’s extra like “OK there’s a possible downside with regulators right here, so how can we make the truth that the vast majority of our gross sales income is affiliate purchases much less apparent?”.
And to that finish you’ve got LifeVantage’s present MLM alternative.
As I concluded in 2015, strategy with warning.