Is Organo Gold a Scam? My Review
If you are looking into the business opportunity that Organo Gold offers then I am writing this for you. There are concerns floating around of Organo Gold possibly being a scam and in this review I want to clear this all up for those looking to get involved.
I’ll be going over the company as a whole, the cost of joining, the compensation plan they have in place, some income statistics, and more.
Organo Gold Business Opportunity Review
- Website: organogold.com
- Type: mlm business opportunity
- Legit?: Yes
Organo Gold sells a range of tea and coffee products as well as weight management and personal care products. They include an ingredient called Ganoderma in all their products which is a mushroom that comes from Asia that is said to have special health benefits.
The products seem good overall as far as their quality goes. However I would definitely say they are overpriced.
As for the business opportunity , this place operates under a direct sales business model. This means that anyone can join in as a distributor and make money selling these products. Additionally, this is a mlm opportunity which means that you can also make money recruiting new distributors into the business… which is what causes a lot of the controversy surrounding it all.
The Cost of Joining
To join as a distributor you must first purchase a Business Entry Kit which is priced at $49.95. This kit is designed to give you a boost to get your business going. It includes samples of products, a binder to keep track of things, brochures and applications, and access to ordering products at wholesale prices.
You will also get your own Organo Gold personal website for a year in which you will be able to sell online 24/7.
The Comp Plan
Basically there are 2 main ways in which you can make money as a distributor. You can sell Organo Gold products yourself and you can recruit others into the business and earn money from what they do.
These are the sales that you personally make. They could come from your website or be an in-person sale. You have the potential to make up to 50% on these sales but this will vary.
Dual Team Bonus
The Dual Team Bonus has a binary structure with a left and right side. Here it is all about recruitment and building up your downline. You will be paid weekly here based on the amount of products sold on the smaller team.
Below is a diagram I found that illustrates how this binary structure looks…Unilevel Bonus
Here is another bonus that you get which is focused around recruitment. But this time instead of it coming from a binary structure it is a uni-level structure. This means that there are an unlimited number of positions below you and each person in your downline. You can recruit unlimited people and they will go directly beneath you on the first level of the structure.
You can earn money up to 9 levels deep with this bonus. The people you recruit are your 1st level, the people they recruit are your 2nd level, the people your 2nd level recruit are your 3rd level, and so on.
Other Ways to Earn
They also have matching bonuses, generational bonuses, and a bonus pool but I don’t want to get too much more into this. You get the idea here… its all about direct sales and recruitment.
The Reality of This Business
As with just about any mlm, the real money comes from recruitment. If you were to talk to any of the top earners at Organo Gold you would find that they have massive downlines and recruitment is key to their income. If you want to take advantage of the compensation plan then recruiting new distributors is a must.
Because of the way it is set up and how the compensation plan rewards recruitment so much, this makes it difficult for people to make money. Because statistically speaking, the majority of people in this business are going to be at the bottom of the mlm structure. If you want to make good money you need to recruit and climb your way to the top.
The reality here is that most people will not make good money with this.
Luckily I was able to find an official income disclosure chart from Organo Gold that shows you how the overwhelming majority of distributors make very little money.
For some reason they make it very confusing, probably to make the low income amounts less noticeable. But as you can see 86.34% of distributors make less than $600 per year on average. The rest of the percentages are inflated to make it seem better than what it is.
I think the statistics speak for themselves. While some people will join and go on to make a lot of money, most people will not. There are people that make over $100,000 per year in this business but that is very few.
As you can see above, it is listed that 1.52% make more than $100,000 per year. But as I said these numbers are confusing. The actual number is much less. What this 1.52% represents is only 1.52% of the remaining 14.66% of distributors that make more than $600 per year. So really this number is much much smaller.
Final Thoughts & What I Recommend
So is Organo Gold a scam? I would not classify it as one. I am sure there are people that get recruited into this business that feel they have been scammed because often times distributors will recruit by somewhat deceptive means. However, the company itself is not a scam.
Its a legit mlm and this is just how mlm’s are. They are extremely difficult to make money with and that is why there is such a high turnover rate. The only people that are going to go on to make good money here are those that are really good salespeople and have that personality where they can just sell anyone on anything.
If you are like me and are just not the salesperson type, or you want another option for making money with your own business, you should read my post on 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 🙂