Is Life Leadership a Scam?..Possible Pyramid Scheme Maybe?
Life Leadership is designed to help you get out there and conquer life… to achieve your full potential. But is this really true? Is this the real reason for its existence or is Life Leadership a scam that is going to be a waste of your time and money?
There are so many scam rumors out there that I decided to investigate this company and see what they are all about. What I found is that the business opportunity that this place offers is way over-hyped and isn’t all that great. The fact of the matter is that its just not as good as people tell you.
A Brief Overview
I’m sure you already know what the company is about and everything, but I just want to give a brief overview for those who don’t.
Life Leadership is a company that provides motivation for the most part. They offer books in personal development, professional development, and financial development. The goal of the company is to help those that are struggling achieve the lives that they dream of.
Anyone can become a member and buy their development books and apply them to just about any situation. When you become a member you receive books and audio recordings monthly to keep you on track and keep you going. But one of the things that they push on you is to work for them and make money promoting Life Leadership to other people.
They operate under a direct sales business model where you can become a distributor and make commissions off of selling Life Leadership memberships to other people. And the reason that some people are questioning whether or not this is a pyramid scheme is because they have a compensation structure set up that is what you call mlm, where you can actually recruit other members in and make money off of what they sell and the people that they recruit in.
Its Just Not That Great of An Opportunity
If you want to become a members of Life Leadership and apply what they teach to your own life then by all means go for it. From what I have seen and heard the material they provide is very good and professional. It truly can help get you out of the rut you might be in and set you on the right track to achieving a higher potential.
However, I wouldn’t necessarily recommend that you take up the business opportunity that Life Leadership offers. It might sound amazing and you might think that you are going to conquer the world with this newfound motivation and this new business plan, but its just not as good as it seems.
As you can see below from Life Leadership’s official income disclosure, not many people make good money. In fact, over 99% of all members make much less than $500 per month…
I’m not saying that you can’t make good money here, but what I am saying is that the numbers don’t lie. Most people barely make anything and there is a reason for this.
The reason that the large majority of people make not much at all has to do with the mlm compensation structure that Life Leadership has in place. And this is the reason why I would NOT recommend this business opportunity to most people.
There are some people that will be able to succeed in this business but the overwhelming majority will fail.
Why Most People Fail
The reason that most people fail is because of the mlm structure at play here. This is nothing out of the ordinary. MLM businesses can be extremely lucrative for some people… but that’s just it.. for “some” people.
If you take a look at the income disclosure chart that I showed above, you will see that there are some people in the higher ranks that make good money. They actually make enough to live off of do well for themselves. But the reason they are able to is because they were able to climb the ranks.
Climbing the ranks is all about earning more “PV” or “point value”, which is a number of points that is assigned to each product sold. And the best way to increase your PV is to recruit others into the business on your “team”.
I’m not going to get into the full scope of the compensation plan here because to be honest it is pretty darn confusing and there area a lot of “moving parts”. But what you need to take away from this is that recruitment is key if you want to make a lot of money. You will earn commissions off of the sales that your downline makes, which are those that were recruited beneath you.
Everyone that actually makes good money in this business, the ones that make it to the ranks of Leader, Coordinator, and above all know that in order to make it there you need to recruit.
Is Life Leadership a Pyramid Scheme?
I would not say that it is. Although recruitment is one of the big parts of their compensation plan it is not something that is really pushed on members.
In order for it to be considered a product based pyramid scheme its revenue would have to be overly dependent on recruitment rather than product sales to the general public. And Life Leadership boasts of having around 40% of its members not even participating in the comp plan, meaning they bought into it for the products themselves.
Also, in order to climb the ranks of the comp plan its all about product sales and getting that PV up. Its true that recruiting others will help you get the PV up much faster and is a must-do in my opinion, but you aren’t forced to recruit.
So NO, this isn’t a pyramid scheme.
Related Reading: Difference Between MLM’s & Pyramid Schemes
Final Thoughts & What I Recommend
I don’t think this is a scam, I don’t think this is a pyramid scheme, but I also don’t think this is a good opportunity for everyone. If you are going to buy a membership for the developmental products alone, then go for it. But if you are looking at the business opportunity here I wouldn’t go for it.
The bottom line is that those that succeed are those that can recruit lots of people in beneath them and make money off of their efforts. This is how it is with MLM’s. You have to have that salesperson type of personality to really conquer this business. If you don’t have that then this just isn’t a good choice in my opinion.
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. I just wouldn’t be any good at recruiting. 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 🙂