Is Optavia a pyramid scheme? Well… Their enterprize model is that of a MLM and is structured to position a good deal of increased exposure of recruitment, but does this amount to it being fully a pyramid scheme?
I'm guessing that you will be probably reading my post here because you are contacted by an Optavia coach and asked to become listed on in on the business enterprise opportunity, or even a friend or family member was. But anyways… It doesn't really matter your reason behind reading this. In this short review I will be addressing the claims that Optavia may well be a pyramid scheme.
What Is Optavia?
Optavia is a weight loss MLM company that sells meal plans scientifically designed for weight loss, similar to Avisae, It Works, and Shaklee. They have a more holistic way of weight reduction, not just concentrating on the short-term, but rather having a more long-term focus. The goal is always to adopt new healthy habits one at a time in your life so that the changes you make stick.
This really is an approach that I must say i like. Plenty of people shed weight and then gain it right back. They place in all of this work and effort losing the weight however wind up regressing back to their old unhealthy habits. Optavia's goal is to help change those habits to healthier ones.
At the core of the Optavia enterprize model are coaches which can be there to help guide and support people on the weight reduction journeys. These coaches could be anyone. You are I both could join the business enterprise as a coach and earn money doing so. Coaches are able to earn money by selling weight reduction products as well as by recruiting and other coaches beneath them and earning from what they sell.
This recruitment section of it all is the main reason people are calling a pyramid scheme. Yes… Coaches can earn money by recruiting in other coaches and so on, but this doesn't mean it is really a pyramid scheme. To be able to get an improved comprehension of what's going on here we first have to have a go through the compensation plan and observe these coaches are receiving compensated.
Pyramid Scheme?
Okay… So a MLM type business like this can be completely legitimate and rely on recruitment of other distributors, in this case “coaches”, to a good deal. What separates the best MLM from in illegal pyramid scheme is simply how much they actually rely on recruitment of distributors. When they rely on recruitment similar to this a lot of and do not focus enough on selling products to most people scam risk, that is where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is not at all enough here for me to express that this is a pyramid scheme, BUT… I am somewhat concerned when considering their compensation plan. They do not really seem to possess any safeguards in place to keep a pyramid scheme -like scenario from playing out.
As far as I am aware, you might become a coach and to complete nothing but recruit in other coaches to maneuver up the ranks and make tons of money. Some MLM's that I've reviewed require you to sell a quantity of products monthly to most people (non-distributors), while Optavia does not.
But anyways… Know this doesn't seem just like a pyramid scheme to me. Recruitment like that is completely legal and although it might not be the absolute most trustworthy business, since many coaches are on the market merely to recruit a lot of people in and earn money, it's still legal.
