Description: My verdict of whether Shaklee is a Pyramid Scheme or a scam depends very much on how you were introduced to the company. Generally, I would say that Shaklee isn't a pyramid scheme nor a scam. But, you must know that almost 95% of its distributors fail. This review will show you the main reasons people fail and how you can avoid failure.
Is Shaklee a Scam?
Whether you are here because a friend of yours approached you to join Shaklee or you are here because you are not convinced of the business opportunity even when you are a Shaklee’s distributor.
In this Shaklee review, I’ll expose everything you need to know in order to make an informed decision, so you don’t need to do all the hard work of finding Shaklee reviews.
If you have personal experience about how you were approached by a Shaklee’s distributor or how you were being recruited, I’d like to invite you to share your experience by leaving a comment below this review.
The reason why I asked about “the approach” is because Shaklee could be considered a pyramid scheme if the distributor only cares about recruiting you, instead of focusing on the product promotion.
Here’s what you need to know about a Pyramid Scheme…
Is Shaklee a Pyramid Scheme?
Before we move any further to discuss this topic, let’s watch this video to understand what exactly a Pyramid Scheme is.
Does Pyramid Scheme sound very much like Shaklee?
Now, you must know that this video is a 300 foot view of a company that works similarly to Shaklee, but it doesn’t mean that Shaklee is a Pyramid Scheme.
Even with the checklist (provided in the video) to spot a pyramid scheme, I don’t think it is enough to justify a company like Shaklee. I’ll explain why.
Shaklee operates as a Multi-Level Marketing (MLM) company, and there are many benefits for a company to choose a structure like this for marketing.
The biggest benefit of MLM is the cost saving on advertisements. There is absolutely nothing wrong about this structure as it provides an opportunity for anyone to make money by promoting its products if they believed in it.
Instead of blindly joining the company and claiming that Shaklee is a scam at the end of the day, I would advise you to try their products for at least a month and decide if the products are suitable for you.
That way, you wouldn’t mind buying the products for personal consumption.
Tip #1: Never invest thousands of dollars to buy inventory for marketing purposes. If you want to spend thousands of dollars on the products, do it for personal consumption. In this day and age, logistics has become so efficient that you don’t need to store inventory for the sake of “a fast sale”. People get their products within a day or two, upon their online order from Shaklee directly.
So, my verdict of whether Shaklee is a Pyramid Scheme? Well, it really depends on how you were introduced to the company, but generally, I would say that Shaklee isn’t a pyramid scheme nor a scam.
In such a large organization, teams and groups across the organization operates differently, although they are under the same umbrella.
If you are thinking of joining Shaklee, you have to be cautious who you are joining. I’ll share some tips for you as you read along.
What is Shaklee?
I guess you already know what Shaklee is, but please give me the chance to explain.
Shaklee was founded by Dr. Forrest C. Shaklee back in 1956, and before Shaklee, the doctor developed vitalized minerals in 1915, which is what you see today in Shaklee’s health supplements.
The “Natural” and “Environmental Friendly” approach to all of its product developments earned Shaklee the first company to be Climate Neutral Certified by the Climate Neutral Network (Source).
Over the years, the company has developed a wide range of products spanning from Health Supplements to Weight loss Supplements to household products, and Shaklee is operating in the U.S. as well as many other countries such as Canada, China, Indonesia, Malaysia, Japan, Mexico and Taiwan.
And, because the company stands behind their products, they provide a 100% money back guarantee if you feel the products didn’t work for you.
Everybody joins Shaklee for a good reason, and it is not entirely because of the financial benefits. One very good example is its household cleaning products.
I liked how the company approach to selling its household products. It is through clever marketing that people will feel the need to be a part of Shaklee. This way, you don’t need to recruit people, and people will join the company naturally if they believed in the products.
What are the products of Shaklee?
Their products are divided into 5 groups, all of which promises healthier living (not meant to cure, prevent, diagnose, treat, or cure any disease).
Group #1: Healthy Nutrition
This is their product line which contains proteins, vitamins and minerals in order to supplement the body’s daily nutritional needs. Some of the popular items under this category are the:
- Life Strip – composed of different tablets and capsules which provide vitamins, minerals, omega-3 fatty acids, polyphenols, antioxidants and phytonutrients. This product is being sold for $200, but if you are a member, you can get this for $169.96.
- Vitalizer – Just like the Life strip, this is a supplement which contains vitamins, minerals, omega-3 fatty acids, antioxidants plus probiotics. The suggested retail price for this product is from $93.25 to $450. But for members, this is only being sold for $79.25 to $382.25.
- B-Complex (1) – This is Shaklee’s vitamin B-complex supplement which is being sold for $25.50 to $47.95 for non-members and $21.70 to $40.75 for members.
- Vita D3 (2) – This is a high potency vitamin D3 supplement of Shaklee which is being sold for $9.40 for non-members and $7.95 for members.
- Incredivites – This is a calcium and vitamin D supplement for kids. The suggested retail price is $34.95 but members can buy this for only $29.70.
Group #2: Healthy Solutions
This is the product line of Shaklee which is recommended for adults. It helps fight the different problems that arise during aging such as joint problems and poor memory. Some of the most popular products under this line are the:
- Vitalized immunity – This product can help improve immune system. It comes in tablet form to be dissolved in water for consumption. This product is sold for $26.10 for non-members and $22.20 for members.
- Nutriferon – Similar to Vitalized immunity, Netriferon is meant to improve an individual’s immune system. This product comes in capsules to be taken with meals. Nutriferon is being sold for $45.90 to $495.72 for non-members and $39 to $421.20 for members.
Group #3: Healthy Weight
This is Shaklee’s product line specializing in weight management.
It provides meal replacement programs and different tips on how to maintain your new and healthy weight.
One of their most popular products under this line is the Shaklee 180 meal-in-a bar which is being sold for $31.15 for non-members and $26.50 for members.
Group #4: Health Beauty
The secret of maintaining your beauty and youth is on this product line. Shaklee offers various beauty products to help you look younger. But then again, just like the other lines, they can be quite pricey even if you are a member.
One of their most popular products is the Youth Activating Serum which promises to help regenerate skin cells. This is being sold for $94.15 for non-members and $80.00 for members.
Group $5: Healthy Home
Under this line, you will find different house cleaning products which can help maintain the cleanliness and healthy environment in your home. One of their most popular products is the Basic H2 wipes. This is a cleaner which promises not to leave any toxic components behind plus it is effective in eliminating dirt and the germs hiding from it.
This surface cleaner is being sold for $9.10 to non-members and $7.75 for members.
Tip #2: Before you start purchasing any products, think long-term. Does your budget allow you for such luxury? To be honest, spending several hundreds dollar per month on health supplements is a little expensive, and especially if there are more than one person consuming them. Never purchase the products if you can’t afford them, even if a distributor tells you that you can make a profit from selling it.
Why almost 95% of the people fail?
Though I can’t find or verify the data of the company’s income disclosures, I’ve looked into Shaklee’s close competitors and have discovered that almost 95% of the people who join companies like Shaklee will fail.
Above is a screenshot of Shaklee’s compensation document. It details the average income of distributors in different ranks, but it failed to disclose the number of distributors in each rank.
It is true that as your rank progresses, you’ll earn quite a lot from the company, however, not many people will achieve those ranks.
Referencing to other competitors like Melaleuca and Amway, the majority of the Shaklee’s distributors will fall in the ranks of Coordinator or below. This would mean that they are earning an average of $1,738.25 per month or less, and some distributors don’t make any money at all.
If someone were to tell you that you can earn a living with Shaklee in a short period of time, run away from that person, because she/he is not telling the truth.
The truth that the majority of the distributors are struggling to make this business a success, and that many dropped out because there’s just too much work with no results.
There are many reasons for a distributor to fail, but here are the main reasons…
Reason #1: The Wrong Mindset
When you were introduced to Shaklee, did you have an epiphany that the products will sell for itself because it is just so good?
You’ll be in for a shock if you have that mindset.
Products will never sell for itself, but your sales skills will.
What I mean by sales skills is not hard selling. The art of selling is not to sell, I know its contradicting, but just like what you have seen in the Shaklee’s video above, they use stories to relate and you’ll feel the need to buy the products.
This skill is not something you can learn overnight, but it is through hard work, trial and errors, and facing a lot of rejections. If rejection affects your emotion and mood deeply, you shouldn’t be in this business. You should check this out instead.
However, if you are set to become a Shaklee’s distributor or you are already one, and you wish to learn more about the art of selling, you can check out this program, the Legendary Marketer.
Reason #2: Insufficient New Leads
Every business needs a steady flow of new prospects to be sustainable.
If you are just promoting Shaklee to your social circle, you’ll soon find that you’ll be stuck and can’t progress further. Why?
Because most of the people in your social circle are not frantic buyers, they are not looking for a solution to their problems. They will probably join you because they want to support your business.
3 in 20 people you meet will likely buy a product from you, and 1 out of the 3 (if you are lucky) may join you as a distributor.
When you’ve expanded your list of prospects (maybe 200 to 300 people), where will you find new leads?
If you want to learn how to find quality prospects online, I recommend that you check out this program.
3. Joining the Right Team
Joining the right team is super important in this business.
Just consider the way you were approached by your Shaklee’s distributor (or your sponsor), did she/he made you feel uncomfortable? Did they “trick” you into joining Shaklee?
These are valid insights you need to be mindful of when you are deciding to join Shaklee.
If your reason to join Shaklee was mainly because of the benefits you’ve gained from the products, and not because of the influence from your distributor, I guess it is a good sign that you are going to join the right team.
I’m sorry, hard selling just don’t work these days.
Also, you may want to find out if your prospective sponsor or team leader will groom you to be a great salesperson and teach you how to find prospects online. These are the two main problems people face in this business.
Shaklee’s Compensation Plan
Now, if you are serious about joining Shaklee, the first step is to understand the compensation plan.
My Sincere Advice to You
Before you decide to join Shaklee as a distributor, I’d advise you to try the products for at least a month. You may also want to consider if you have the budget to buy Shaklee’s products month after month.
If the products work for you and you feel comfortable with it, you will have good grounds to promote the product, and that’s when you can join the business opportunity.
Never join a company just because of the financial benefits, you’ll soon run out of passion for the business.
To be successful with Shaklee, you have to be a salesperson, which means that you’ll have to face a ton of rejection. If you can’t stomach the rejections, you shouldn’t be in this business.
If you are serious about becoming successful with Shaklee, and you wish to learn the art of selling and prospecting online, I recommend that you check out this program.
Now, what if this business is not for you, but you are still looking for an opportunity to make money online?
I would suggest that you check out Wealthy Affiliate because it is the program that taught me how to earn my first dollar online, and to eventually fire my boss and work full-time online.
Thank you so much for reading this Shaklee review.
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If you wish to discuss more or you have a story you’d like to share about Shaklee, please, feel free to leave a comment below.