Is Shaklee a Pyramid Scheme or Legit MLM? – Review

What Is Shaklee?

Shaklee Company is a key player in the MLM industry, manufacturing a wide range of products including nutrition supplements, weight management items, beauty items, and household products.

Shaklee products are developed internally and marketed globally through a multi-level marketing system.

They are also sold by independent representatives in the USA and six other countries.

• Canada
• Japan
• Malaysia
• Taiwan
• China
• Indonesia

Shaklee suppliers have recently started developing websites, providing consumers with an easy way to purchase Shaklee products (impressive!).

Additionally, Shaklee offers you an opportunity to earn money by selling items such as supplements.

Who Owns Shaklee?

In 1915, Forrest C. Shaklee (1894-1985), an American chiropractic doctor and nutritional expert from Iowa, developed the first US-classified vitamin, known as “Shaklee’s Vitalized Minerals.”

In 1956, Shaklee founded the Shaklee Corporation to manufacture food supplements. The company experienced remarkable growth in the 1970s, with annual sales increasing from $20 million to over $300 million by the end of the decade.

In 1972, the company adopted its current name and went public, trading on the New York Stock Exchange the following year.

In February 1989, Shaklee sold 78 percent of its stake in Shaklee Japan to Yamanouchi Pharmaceutical Firm for $350 million. However, they retained the licensing contract and accumulated royalties from the Japanese operations.

In April 2004, Yamanouchi offered Shaklee Corporation $310 million, and it was acquired by American multimillionaire Roger Barnett, who manages Triggered Holdings LLC and is a part of the Wolfson family.

Roger Barnett still holds the position of Chairman and CEO of Shaklee to this day.

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Is Shaklee a Pyramid Scheme?

Shaklee is not a pyramid scheme because its members earn money through both product marketing and recruiting new members.

However, it’s important to note that recruiting is more profitable than product marketing. This may give the impression that Shaklee operates as a pyramid system in disguise.

Before discussing further, let’s first understand what exactly a pyramid scheme is…

What Is a Pyramid Scheme?

A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales (Wikipedia).

To learn more, you can watch a short video below…

The video above highlights the significance of constantly attracting new members as an essential component of a pyramid system.

However, why do many people mistakenly perceive Shaklee as a pyramid scheme?

One reason is that representatives have the opportunity to earn commissions by selling their products.

Additionally, making money through recruiting individuals into the multi-level marketing plan adds to the misconception. Consequently, some individuals label it as a pyramid scheme in disguise.

Is Shaklee a Pyramid Scheme in Disguise?

As I mentioned in my review, Shaklee is not a scam pyramid scheme. They offer commissions based on your sales and those of the people you register.

However, there are no direct payments for recruiting others. In essence, Shaklee sells tangible products for consumer use.

While it may not be legally classified as a pyramid scheme, whether you view it as such depends on your perspective of such schemes.

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Is Shaklee a Scam or a Legit MLM?

Shaklee is not a scam because you can make money in two ways. It’s a legit MLM business with a well-known and trusted reputation in the industry.

They even have a partnership with NASA to produce rehydration products for astronauts!

Shaklee is recognized as one of the greenest and most environmentally conscious businesses in the nutrition and supplement MLM market.

They are climate-neutral certified, being the first company to offset their carbon footprint and become carbon-neutral. Additionally, they have received numerous awards for their eco-friendly practices and green design.

With Shaklee, you have the opportunity to build a rewarding and successful network marketing income. Keep on reading my Shaklee MLM review to gain more insights.

What Products Does Shaklee Sell?

When taking into consideration signing up with any business it’s so vital to recognize their products or services. Shaklee makes dozens of various products under the following categories:

• Nutrition
• Healthy Weight
• Beauty
• Sports
• Green Home

Nutrition Products

Shaklee offers the following products in this category:

• Nutrition Regimens
• Vitamins (Vitamins for Women, Vitamins for Men, Vita-Lea Vitamins, Life-strip, etc…)
• New Life Shake product line
• All Protein Shakes
• Prenatal Nutrition supplements.

Healthy Weight Products

Weight reduction Sets are available in four options under this category:

• Weight management Drinks (Plant Protein Weight Reduction Shake
• Soy Healthy Protein Weight Reduction Shake and Whey Smoothie
• Dish In-A-Bar & Snacks
• Energizing Tea, and Metabolic Increase

Beauty Products

The following are the products under this classification:

• Anti-Aging Collection
• Hydrating Collection
• Personalized Program
• Perfecting Make-up
• Add-on (BB Lotion Applicator Brush, etc).

Sports Products

Below are the products you can find in this category of Shaklee:

• Performance Packs (Endurance Pack, Fitness Pack)
• Build, Energize (Zero Calorie Energy Drink and Energy Chews)
• Hydrate (Low-Calorie Electrolyte Drink, Endurance Electrolyte Drink)
• Recovery (PM Recovery Complex)

Green Home Products

These household products include:

• Basic H2 Biodegradable Cleaner
• Moisturizing Hand Sanitizer
• Hand Wash Concentrate
• Hand Dish Wash Liquid Concentrate
• Fresh Laundry Concentrate

Are Shaklee Products Any Good?

Numerous individuals, who have personally used and tested the Shaklee products, agree that they are not only reliable but also eco-friendly.

Shaklee emphasizes that their products benefit both individuals and the environment. For instance, their home cleaning products are chemical-free, making them effective, gentle, and odourless.

Many people who have tried Shaklee items have been so impressed that they have completely switched over to using Shaklee exclusively.

Can You Buy Shaklee Products on Amazon?

As an online marketing company, you might expect to easily purchase items from Shaklee’s Partner Distributors or their own website.

However, Shaklee operates differently. Many of their products are conveniently available for purchase on Amazon.com.

The online retail store offers significantly lower rates compared to buying directly from the business or distributor, as depicted in the image above.

However, there are certain drawbacks to purchasing from Amazon. First, the products will not be covered by the Shaklee Guarantee.

Additionally, many users have reported issues such as poor packaging and inaccurate descriptions.

More details about these concerns can be found in my Shaklee MLM review.

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How Does Shaklee MLM Work?

Shaklee offers a range of health and wellness products. What sets them apart is their unique marketing approach. Instead of investing heavily in advertising, they empower individuals like you to promote their products and earn commissions in return.

Moreover, you can also earn bonuses for building a team and leveraging their sales. However, this type of marketing sometimes leads people to associate Shaklee with a pyramid scheme.

As I mentioned in my review, Shaklee is not a pyramid scheme but a genuine advertising and marketing organization.

You can generate income by reselling their products to the public, even if you don’t plan to build a sales team.

How Can You Join Shaklee MLM?

There are various ways to enjoy the benefits of Shaklee. You can simply be a consumer of their products or choose to build your own home office and become a distributor.

In this part of my Shaklee MLM review, I will focus on the multi-level marketing program.

Shaklee distributors have the chance to sell Shaklee items, earn perks, and recruit others to join the business.

To get your Shaklee business up and running quickly, a Beginner Set is the most effective way. All Shaklee starter sets are designed to teach you how to generate income, familiarize yourself with the products, and start your own business.

How Much Does It Cost To Join Shaklee?

Starting with Shaklee costs $49.95. This includes the starter kit and grants you a personal online store for 3 months.

To generate income from Shaklee, it is essential to purchase the items. More details will be provided shortly.

Additionally, there are pricier starter kits available, ranging from $276 to $1,000. These kits contain additional items for personal use or selling purposes.

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How To Make Money With Shaklee MLM?

There are two ways to make money as a Shaklee distributor:

1. Sell Shaklee products and earn a commission.
2. Recruit people and earn bonuses from the sales made by your downline.

In my opinion, the most effective method of generating a consistent and substantial income from Shaklee is by recruiting a large number of people. In the next section of my Shaklee MLM review, I will provide detailed information regarding the potential earnings.

By the way, this is precisely why some individuals express concerns about Shaklee being a pyramid scheme or a scam…

What Is Shaklee’s Compensation Plan?

Most MLM businesses tend to complicate their compensation plans, and Shaklee is no exception. However, I will do my best to keep things simple.

Here are 8 straightforward methods to make money:

1. Gold bonus
2. Power bonus
3. Price Differential
4. Personal group bonuses
5. FastTrack program
6. Incentives
7. Car bonus
8. Leadership Bonuses

The diagram above, with PV, PGV, and other peculiar names, is quite intriguing.

It’s quite impressive that anyone can comprehend how they will make money.

Can You Make Money With Shaklee MLM?

Yes, it is possible to earn money with Shaklee MLM. Distributors receive a commission of 16 to 36 percent from product sales. Additionally, the team commission ranges from 12 to 20%. This compensation plan stands out as it offers significantly higher rates compared to many other MLM schemes.

It is important to note that in order to maintain the status of an active representative, you must earn a specific portion of Personal Volumes (PVs), as indicated below…

Shaklee also offers additional rewards to its suppliers. For instance, there is a $100 benefit paid out weekly for selling a specific plan.

As mentioned in my Shaklee MLM review, the company ranks its suppliers based on a point system, and fringe benefits are available accordingly.

Shaklee MLM Reviews and Complaints

To determine if Shaklee is a scam or legit, reading testimonials online is highly recommended. Fortunately, most Shaklee reviews focus on their products and are positive.

Here are some examples…

Positive Reviews

• “This is a good multivitamin and I have taken them on and off for years. I like Shaklee’s whole line of products. This company has been around for years and they make quality products. I have more energy when I take these every day (2 a day). Their vitamin B Complex is great too for energy.”
• “I have taken a lot of vitamins over the years. I really think that this is the most complete multivitamin that you can buy for the price. I have taken the Vitalizer before but it is too expensive to continue. This is a great value and high-quality vitamin. I will continue taking this one for a long time.”

Negative Reviews

• “Absolutely love Vita-Lea…have taken it for years…but this is the second time I have been sent “with Iron” and I cannot take it…I am very unhappy that I am going to lose my money on something my body will not tolerate…..It DID NOT specify “With Iron” and I did not realize there was iron in the vitamins until I started having problems and reexamined the vitamins…SOOOOO sad…am I going to lose my money on this????”
• “The headline says it all. The price is too steep. MLM suppliers make too large a profit. I wish Shaklee would become internet and retail-based, and throw out the high commission structure for their associates.”

There is a small percentage of negative Shaklee reviews online, to be honest. The few that exist typically refer to issues with products or their stingy MLM program.

However, it is important to note that these negative reviews do not prove Shaklee is a scam. The overall satisfaction of customers indicates a genuine need for their products, which distributors can meet.

In my Shaklee MLM review, I will discuss the pros first and then address these complaints.

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Shaklee MLM Review – What I Like

Shaklee is a Tested & Proven Company

Did you know that 1 in 3 MLM businesses fail to last for a decade? However, Shaklee has been thriving for over 100 years. It’s unfair to label it as a scam or an unlawful MLM business.

If it were something like that, the FTC would certainly have banned it from America several years ago!

You Can Make Money Selling Shaklee Products

You can generate income from Shaklee in the long run. Although the revenues may be small, it is not accurate to say that there is no chance to make money.

However, earning $1000/month with this business is challenging. There are several reasons for this, with the primary one being that most of the readers of this review are new to marketing and sales.

Shaklee might be too big of a bite for you!

Shaklee’s Got Positive Product Reviews

I found several positive reviews about this multi-level marketing company. However, I advise against relying solely on these reviews to make your decision.

Regardless, it is beneficial to take them into account.

I have encountered numerous online marketing companies where individuals provide biased positive testimonials. Most of the time, these testimonials come from agents of the same MLM company.

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Shaklee MLM Review – What I Don’t Like

Most People Lose Money With Shaklee MLM

When the main focus of generating income for a company relies on recruiting people, you usually end up with a small group of individuals making significant profits, while everyone else incurs losses.

Shaklee produces an “income disclosure” that appears in a certain way. However, it fails to include the number of individuals at each level or mention the number of people who don’t earn anything.

Additionally, it seems they have forgotten to disclose how much beginner distributors make or the number of people in each “rank”.

Shaklee MLM Includes a Lot Of Hidden Monthly Expenses

Shaklee is one of those MLMs that engage in unethical advertising and marketing practices while offering opportunities to their suppliers. Firstly, they fail to disclose their income information, and now they are once again concealing the truth.

They impose numerous strict regulations that, in my opinion, seem incredibly difficult to achieve.

They require you to meet a 100PV objective to remain an active affiliate. And what happens next? You keep paying them money until you lose hope. This is how these schemes profit from you!

Shaklee is a Pyramid Scheme in Disguise?

Based on the information provided in the previous paragraph, it is important to note that Shaklee operates as a pyramid scheme disguised as a legitimate business.

Although their compensation plan may initially appear attractive, a closer examination reveals a different reality.

To learn more about this, you can watch the video below…

Shaklee Still Recommends Door To Door Marketing

Selling Shaklee door-to-door involves daily interactions with unconventional individuals to make sales. However, this traditional approach requires considerable hustle and effort.

While I appreciate the value of hard work, I don’t endorse this outdated and ineffective marketing method.

Fortunately, there’s a better way to sell products – leveraging the power of the internet. In my opinion, MLMs like Shaklee should prioritize training their sales representatives to utilize online platforms for greater success.

With this approach, you can easily sell a multitude of products from the comfort of your own home!

Shaklee Products are Seriously Overpriced

Shaklee offers pricy items, with rates that are 125% more expensive compared to Amazon. Moreover, the shakes from Shaklee contain nothing that isn’t already available in the shakes from Amazon.com.

Nevertheless, the expense doesn’t stop at the costly shakes. Take the Shaklee “Prove it” package for instance, which costs $248.15 or $159 with a special discount. That’s almost 300% more than comparable products available on Amazon.

Therefore, despite the “exclusive discount,” Shaklee’s products are 200% pricier.

The Company is in a Downward Trend in Google

According to Google patterns, there is widespread dissatisfaction with this network marketing company, and its performance seems to be declining.

As an experienced marketer, I know that I don’t want to associate myself with a dying business.

Why I Don’t Recommend MLM…

• According to the FTC, almost 99% of individuals involved in multi-level advertising and marketing companies end up losing money.
• There are now even more opportunities, a whopping 38%, for you to make money from your own work.
• The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than making money from MLM.
• According to the AARP Foundation, nearly half (47%) of all MLM distributors end up losing their money.
• Out of the remaining 26% who actually earn money, 53% of them earn less than $5000 per year.
• 39% of the 53% who are making $5000/year stopped because they were recruiting and offering lousy products to their loved ones, which threatened their relationships.
• Building a long-term organization with MLM is not reliable as 50% of all participants stop within one year.
• Out of all the individuals who joined MLM, 75% claim that they will never, ever participate in any kind of multi-level marketing.
• In 2018, a poll was conducted among 1050 online marketing distributors. The results revealed that the majority of them earned only 70 cents per hour, and 20% of them did not make any sales. Furthermore, 60% of them generated less than $500 in sales over the past 5 years, while 32% of them resorted to credit card debt to fund their network marketing activities.

Shaklee MLM Review – Conclusion

Shaklee practices multilevel marketing, where independent salespeople sell their products directly to consumers, often in their own homes.

As a Shaklee salesman, you earn commissions and various perks both from your own sales and the sales made by the salespeople you recruit.

This legitimate MLM model sets it apart from pyramid schemes, which are known scams that promise rewards solely for recruiting new members instead of focusing on selling actual products.

Therefore, Shaklee is definitely not a pyramid scheme.

Thank you for reading my Shaklee MLM review. What are your thoughts? Have you been a part of this business?

Feel free to share your reviews at the end of this page!

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