Is Jeunesse a Scam? A Pyramid Scheme Possibly?
If you are looking to cash in on the business opportunity that Jeunesse offers you might want to read this first. This opportunity is not all its hyped up to be and although you can definitely make good money in this business…. its just not as amazing as you were probably told.
When the question of is Jeunesse a scam comes up, it is often followed by something in relation to it being a possible pyramid scheme. In this review I want to clear the air on all of this give you some helpful insight into this business opportunity so that you can make a more informed decision on whether or not you should join.
Jeunesse was founded in 2009 for the purpose of selling youth enhancement products, specifically skin products.
Their products are good and receive some pretty good reviews from what I have seen. They are very expensive however. And they try to get you to buy them all. They have their Y.E.S. System (youth enhancement system) that basically tries to get you to buy every single product that they have to use in conjunction with each-other.
Their products are definitely not a scam, but anyways I’m not here to talk about them. I’m here to go over the business opportunity that this company offers.
Jeunesse is what you call a direct sales business. This means that anyone can join in and start their own home based business selling Jeunesse products. What is also extremely important to note is that they have a MLM compensation structure, which basically means that you can make money by recruiting other members into the business beneath you (this is the pyramid scheme part of it).
The Cost to Join
In order to join in you must buy a starter kit which ranges from $29.95 to $49.95 depending on where you live. This isn’t bad at all and gives you products, business materials and other things to help kickstart your business and get you up and running.
The 6 Ways to Make Money
There are 6 ways that you can earn money with this company that I will touch upon briefly. Then I’ll get more into the mlm side of it which is where the real money is at.
1) Retail Sales
The most obvious way to earn is by simply selling the products to customers. You will purchase from Jeunesse at wholesale prices and sell at a markup, keeping the difference. As a member you will get a 40% discount on the products which means you can make 40% on each sale.
You will also get $50 as a bonus when you recruit your first 2 members into the business from the products that they buy, which would count as retail sales.
2) Retail Sales Bonuses
You will earn bonuses ranging from $25 to $200 that are based on the products that your recruits order wholesale.
This depends on the amount of product you sell.
3) Team Commissions
This is where the real money is at. You can earn commissions from the products that your team members buy.
The more products your team sells the more commissions you earn.
4) Leadership Matching Bonus
The more successful your team is the more you will earn. You can make 20% commissions on your first level team members, which are the people that you personally recruit into the business.
You will also earn these bonuses down through level 7. They are as follows..
- Level 1: 20%
- Level 2: 15%
- Level 3: 10%
- Level 4-7: 5%
5) Customer Acquisition Incentive
When you have 5 active customers in one month your Leadership Matching Bonus increases from 20% to 25% on the first level. And if you have 10 active customers that bonus increases to 30%.
6) Diamond Pool
This is a shared pool that is 3% of the global product volume of the entire company. If you are on the Diamond rank you can get this pool based on the number of shares you have.
The MLM Structure
There are 2 different types of mlm structures at play here, a uni-level structure and a binary structure.
The Team Commissions has a Binary structure with 2 legs. When you start out you will build a team on both legs (left and right). You will earn these Team Commissions based on the amount of products that each leg of this binary structure buys.
These Team Commissions won’t kick in until you have a certain number of recruits on both legs. I forget the exact number but I think its around 3 on each leg.
The Leadership Matching Bonus has a uni-level structure.
You can have an infinite number of recruits on each level, and the more you have the more money you make with these bonuses. The uni-level structure goes 7 levels deep.
As I mentioned above, the first level you get 20% commissions, the 2nd level you get 15% commissions, the 3rd level you get 10% commissions, and the 4th-7th level you get 5% commissions.
Is Jeunesse a Pyramid Scheme?
Jeunesse has a pyramid style commission structure but this doesn’t necessarily mean its a pyramid scheme. And although it does have legitimate products for sale this doesn’t necessarily mean that its not a pyramid scheme.
For Jeunesse to be considered a pyramid scheme its revenue must be too dependent upon recruiting new members into the business rather than product sales to the general public.
And everyone knows that Jeunesse really pushes you to go out and recruit, recruit, recruit. So they are definitely very reliant upon recruitment, but are they too reliant is the real question here?
I would say that no, they are not too reliant and that Jeunesse is a legit mlm business. It is hard to make this decision but they do put a lot of emphasis on selling products to the general public which makes them lean toward the legitimate side. And I guess the FTC agrees with me because they haven’t shut them down.
But just because they are legit doesn’t mean you should go out and join in.
Related Reading: Difference Between MLM’s and Pyramid Schemes
This Is a Hard Business To Succeed In
If you think this looks awesome you might want to think a little more on that. In order to make good money here you are going to have to be a beast at recruiting others. You are going to have to take full advantage of the mlm structure and recruit like a mad-man.
Everyone that makes a lot of money in this business knows darn well that it is all about recruitment. Get as much people under you as possible and make money from what they do. That is what you have to do.
But this is EXTREMELY DIFFICULT and the large majority of people fail in mlm businesses like this. And the Income Disclosure proves this. Below is a 2014 income disclosure from Jeunesse themselves. I know its old but its the newest one they released and it proves my point.
In this disclosure it says that 72.25% of all distributors didn’t even have a downline, meaning they failed to recruit even 1 member in.
Only 25.91% had downlines, and of that 25.91%, 66.05% of them made an average of $213.92 in commissions for the entire year.
Final Thoughts & What I Recommend
In order to be successful you need to be good at recruiting. If you are and you love skin products, then by all means go for this opportunity and make some money. This company is legit, although it is slightly leaning towards a pyramid scheme, it is still a legit mlm and all.
But the fact is that very few people will succeed in this business and its not a good choice for most. You have to have that salesperson type of personality to really do good. Some people have it, others don’t.
If you are like me and are just not the salesperson type and don’t think a recruitment style business like this is right for you.. and you want another option for making money with your own business, you should take a peek at how I make a living working online (link below). I work for myself online and its a pretty awesome career. 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 🙂