Is “It Works” a Pyramid Scheme? What You Should Know
There has been a lot of talk and people questioning is It Works a pyramid scheme… a possible scam? Is it just another scam where only the few percent at the top make all the money while those on the bottom slave away for the scraps?
I have looked into this business in its entirety and am finally getting around to writing this review. In this review I will be going over what they don’t want you to know… what other distributors won’t tell you.
By the way, I am in no way affiliated with this company so this review is going to be as unbiased as it gets.
It Works! Business Opportunity Review
- Company: It Works!
- Website: myitworks.com
- Cost to Join:
- Recommended?: Not Really, more on this
It Works! was created by Mark & Cindy Pentecost and is a business that sells health and wellness products. These products range from body wraps, essential oils, skin lotions, green supplements, and more.
They operate under a mlm business model. Basically what this means is that distributors can make money by recruiting other distributors into the business. Its also important to know that this is a direct sales business, meaning that anyone can join in and sell It Works! products and start their own home-based businesses.
As with most mlm’s the products here are severely overpriced. They have a wide range of products as stated, including lotions, essential oils, protein powders, probiotics, and even apparel.
But their most famed product is probably their body wraps, which is just a fabric wrap that you put around your body. They have different kinds of these wraps and they are supposed to help with weight loss, skin health, and other things.
There is a lot of controversy surrounding these body wraps and the effectiveness of them. But people are apparently still buying them although there is no good scientific evidence of them being beneficial.
Just like most mlm’s, much of the products here are based on hype and the hype is what causes them to sell for so much.
These overpriced products are what you are going to be selling if you become a distributor.
The Comp Plan
If you are reading this review and wondering if the company is a scam there is good chance you are looking to make some money with this business opportunity and the compensation plan is where you need to look.
Their compensation plan includes a lot of moving pieces and is somewhat complicated. Honestly I could write an an entire 10 page article on it but I’ll be telling you what you need to know. If you want to read the whole thing there is a 22 page pdf you can read here.
What you need to know is that there are 2 main ways you can earn money… from direct sales to customers and from the efforts of people you recruit, people they recruit, and so on.
This is pretty straight forward. You will buy products at wholesale prices and sell them at retail prices, keeping the difference.
They give you recommended prices to sell the products at but as an independent distributor you can sell at whatever price you want really.
Recruiting other distributors is where the real money is at. To make good money you want to take full advantage of the mlm structure at play here. You want to recruit as many people as possible and build up your downline because you will be making commissions off of the money they make.
When you start out as a Distributor you will only be able to make money off of recruits 2 levels below you. This includes your personal recruits and the people that they recruited. You will make 10% commissions from both of these levels.
Once you move up the ranks you can make it to the Emerald rank where you can earn commissions from 5 levels below you.
Moving up the ranks is all about recruiting more people on your downline, thus increasing the total volume of sales.
Another powerful part of this comp plan is the Generation Payouts.
You see when a member on your downline makes it to the level of Diamond, which is on a whole other level that isn’t shown above, you earn generation payouts. When they reach this level you can then earn money from their entire “team”.
A Diamond member on your first level would be considered a 1st generation, on the second level would be considered 2nd generation, and so on. You can earn commissions up to 5 generations deep.
Confusing??? I know it can be. But the one key point to take away here is that the way you are going to be able to climb the ranks and make a lot of money is by recruiting, recruiting, and recruiting some more.
Isn’t This a Pyramid Scheme?
So is It Works! a pyramid scheme? It sure does seem like it doesn’t it. And to be honest, this is one of the shadier mlm’s I have reviewed in a while. But there still isn’t enough evidence to say that this is a pyramid scheme.
For it to be a product-based pyramid scheme it would have to be overly reliant on recruitment for business revenue rather than on product sales to the general public. And although the comp plan is obviously focused on recruitment, there is still a good deal of focus place on product sales.
That said,… its just not a pyramid scheme. It does lean a little toward the shady side as I said. I say this because they of the focus they put on recruitment as well as with official promotional videos where they make this opportunity seem like the most amazing thing there has ever been.
You can learn more about the difference between legit mlm’s and pyramid schemes here.
This Is NOT Easy
I know many of the promotional videos out there along with the stuff other members tell you make this opportunity seem like the greatest and easiest thing ever, but the fact of the matter is that it is NOT.
In mlm businesses like this the large majority of people fail to make good money and It Works! is no different. Only the top few percent make good money, while those beneath them slave away doing all the dirty work.
It Works! released an official income disclosure from their distributors that proves this point exactly. Its from 2015 which I know is outdated but its the most recent official one I could find and it proves my point.
As you can see, 97% of all their distributors average less than less than $1,000 per month. Now I will say that this disclosure is somewhat misrepresentative because you don’t know how many hours these people work, but the fact is that they don’t make much.
Final Thoughts & My Recommendation
While this is not a full blown scam.. there is some scammy activity due to how the mlm structure is set up and the incentive there is to go out and recruit, recruit, and recruit some more.
I would only recommend It Works! to people that are passionate about the health products that they sell and that have the type of personality needed to recruit people into the business easily.
The bottom line is that you will need to be a good recruiter. You will need to continuously recruit to make good money because businesses like this have high turnover rates. So if you have that salesperson type personality you might be a good fit. If not this is going to be very hard for you.
Personally, I don’t have anything even close to a salesperson type personality and there is no way I would make it in this mlm business. If you are like me then I would recommend you take a peek at how I make money online.
I make a living working for myself online, which I think is a pretty awesome job. You can learn more about it by clicking the link below that will take you to a post I wrote.
In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂