Problems with XanGo Juice – Does XanGo Work as a Wellness Drink and as a Successful Home Business?

Are there problems with XanGo juice?  Does XanGo work like it claims?  What exactly is in XanGo juice?  And more importantly, can XanGo be the answer to your home-based business search?

The Company

XanGo is a privately-owned company started in 2002 by six entrepreneurs who learned of the healing properties of the mangosteen fruit – and became the first company to develop and market world-wide a drink made to share its benefits.  The company started in Utah with 14 employees and now operates in 20 international markets with over 750 employees and a million distributors in its global network.  XanGo is intent on being a leader in nutrition and wellness-based products.

The Products

The premier product of XanGo is its namesake XanGo juice, made primarily from the mangosteen fruit that grows in tropical Southeast Asia.  The small, purplish fruit has numerous beneficial properties because of the xanthones found in its pericarp, or rind.  Xanthones are natural chemical substances that demonstrate a number of pharmaceutical properties.  Some claim that xanthones may help maintain intestinal health, support the immune system, and neutralize free radicals in the body.  Xango juice contains all parts of the mangosteen fruit plus several other fruit juices (and a preservative) to enhance its taste.  XanGo now sells multi-vitamins and a line of natural, personal-care products along with the juice.

The Program and Compensation

The XanGo business opportunity is a standard multi-level marketing program that pays out 50% of all profits to the distributors.  These commissions are paid on the products you sell and on products sold by those you have recruited (down to nine levels) in addition to other bonuses for volume, etc.  For $35 you can become an independent distributor and buy the product at the wholesale price to sell at the retail price.  For this you get a Distributor Kit with sales tools and support materials, plus access to a basic back office for reports, etc.

Analysis

So have there been problems with XanGo juice?  The answer is yes and no.  In 2006 the US Food and Drug Administration warned the makers of XanGo juice to stop making health claims because of “serious concerns” about those statements.  XanGo responded that the brochures in question that made the misleading claims were produced and promoted by a third party, and not by the company itself.  XanGo now states on its website that the beneficial properties of the juice have not been evaluated by the FDA.  Whether Xango juice has healing properties or not — like the FDA — I have serious concerns about the business opportunity involved with the product.  While the health and wellness industry is still booming and XanGo has a very impressive website, the chance for a distributor to make a solid six-figure income from these products is not promising.

One reason for this is the cost involved with the juice itself.  To make any money you are going to have to sell a heavy volume of this expensive juice.  XanGo retails for $39.99 for a 25-ounce bottle, while other companies sell similar products with higher mangosteen content and no preservatives for less than half that price.  And while the initial investment is low, to get the Premium Back Office, which gives you a replicated website, you will pay a monthly fee.  And to get their recommended training system you will pay another $30 per month for CDs and videos.  And, of course, you will need to buy cases and cases of juice to sell.  But the biggest drawback to this opportunity is the ultra-traditional marketing system from such a seemingly cutting-edge company.  To promote your business you are asked to give away samples, have home meetings, go to conventions, sell to family and friends, and drink lots of juice so others will ask you about it.  So if these methods appeal to you and you are natural salesperson, then XanGo may be the right fit for you.  If you are more interested in a business that will not require selling to family and friends, will mentor you to create success, and will rely on the Internet to drive global demand, then continue your home business search.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

Who is Selling Melaleuca? – And Can Marketing Wellness Heal Your Finances?

Who is selling Melaleuca?  What is it?  And can I really make money from it?  These are all good questions that I will answer in the following paragraphs.  So if you are looking for a home-based business that can help secure your financial future, then let’s investigate Melaleuca.

The Company and Products

This company began as Melaleuca Oil, selling one wellness product made from the oil of the melaleuca tree, commonly known as tea tree oil.  After running into trouble with exaggerated claims of effectiveness, the business was taken over in 1985 by Frank L. Vandersloot – and everything changed.  Under his leadership the company experienced major growth, a re-focused marketing plan, and created quality products that have the respect of the industry.  Melaleuca Inc., as it is now known, develops, manufactures, and sells over 350 health and wellness products that claim to be more effective, safer, and greener than similar products available in stores.  Company sales reached $859 million in 2007.

The Program and Compensation

Melaleuca is set up as a traditional multi-level marketing program where members are paid commissions on the products they sell and commissions on products sold by their down-line.  For less than $100 you can become not just a customer but a partner (or Marketing Executive as Vandersloot calls them) in the business and begin earning 7% commissions on all of the Melaleuca products you sell.  Distributors also earn 7% on the sales of their down-line – or other distributors that they have recruited – down to seven levels.

Analysis

The answer to who is selling Melaleuca would be stay-at-home moms, people wanting a supplemental income, and customers that want to pass along a product to others that they are passionate about.  There is no doubt that the Melaleuca line is made up of high quality products, and loyal customers rave about the effectiveness of these products as well.  But as a business opportunity the case for Melaleuca is weaker.  One reason for this is the standard MLM practice of requiring the distributors to purchase a monthly amount of product to remain active in the business.  To earn the necessary 35 points, you need to purchase around $80 worth of products each and every month.  This does allow you to receive the 30-40% discount on those products, but the line is generally more costly than similar products you would buy in stores.  Another reason to doubt the program is that the marketing methods are very traditional with a focus on selling to and recruiting family and friends, handing out samples and brochures, and posting flyers to attract customers.  There are approximately 150,000 active Melaleuca distributors – with the vast majority making less than $200 per month.  In order to make any significant income you will need to have hundreds and hundreds of distributors in your down-line who remain active month after month.  So if you love the products and want to make a little extra money each month, and do not mind talking to friends and family about your business opportunity, then Melaleuca might be a good choice.  If you are more interested in making significant income, want to avoid selling to family and friends, and want to find a business that utilizes the global reach of the Internet, I recommend that you look elsewhere.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

Herbalife Diet Success Stories: Can Losing Weight Fatten Your Wallet?

There are numerous Herbalife diet success stories that can be found on the company’s web site or across the internet.  “I lost weight and, at 65 years old, biked 200 miles in two days,” or “I set out to lose 25 pounds, and I lost 40.”  But can Herbalife’s health and wellness products fatten your bank account?

The Company and Products

Herbalife was created in 1980 by entrepreneur Mark Hughes, who started selling the products out of the trunk of his car.  He was inspired by the passing of his mother, who had struggled with health and weight issues all of her life, to create a healthy way to lose weight.  Herbalife now offers a wide range of nutrition, weight-management, and personal care products that focus on a balanced diet and total health.

The Program and Compensation

Herbalife sells its products through a traditional multi-level marketing system that uses 1.9 million independent distributors to market their products in 70 countries.  The distributors receive retail and wholesale profits on the products, plus royalties and bonuses depending on the level they have achieved in the company.  There are basically two ways to make money: by selling the products and by recruiting more distributors to your down-line to earn commissions off of their sales.  To enter as a distributor the cost of entry is low (buying around $240 of products to sell), while starting as a Supervisor is more costly (approximately $2000 worth of merchandise).  The company offers training and motivation online, conventions, and partnerships with their up-line to learn the business and market effectively.

Analysis

Despite a down economy, the wellness industry is still a viable opportunity with $44 billion in nutrition and weight loss sales in 2008.  People can and do make money with the Herbalife system and it has an almost-30-year track record that shows that the company is stable and will continue to make effective products for years to come.  But as a business opportunity the program is aged and ineffective in today’s global internet-driven economy.  Their traditional MLM system that uses buttons, posters, bumper stickers, and flyers is not a useful way to reach those needing nutritional products.  And the fact that this industry is saturated with numerous competitors with huge advertising budgets and more prevalent distribution channels also hurts the distributor’s ability to succeed.  The average annual gross compensation paid by Herbalife to Active Leaders in 2008 was $5,200 (not including profits earned on resale of products).  To make more than this in a year you will need to sell the products and the business opportunity to your warm market first (your friends, family, and acquaintances); and this is something many people are uncomfortable doing.  Secondly you will need to find a way to market to the masses of people you do not know, and this is an even bigger challenge with the tools provided.  So if you believe that you can sell enough weight management and health care products to your warm market, and can beat the odds in reaching others to join the business, then the Herbalife diet success stories might propel you to a winning home business.  If you are looking for a company that pays out higher commissions, offers better training and support, and a mentoring program that will show you how to market on the internet for success, then I recommend that you keep searching for another home-based business opportunity.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.

How Can You Make Money with Univera?

The Company and Products

Univera is the central piece of a larger global organization called ECONET, started in 1976 to integrate the research and development, manufacturing, and sales of health and wellness products for consumers.  It was created by YunHo Lee, a successful Korean businessman who had suffered from poor health and had found no relief from traditional medicine.  When he was given the juice of an aloe vera plant he had a “miraculous” recovery, and decided to use his financial success to extract the best of nature and bring the benefits to the world – by investing in the ethnobotanical properties of the plant kingdom.

The Program and Compensation

Univera decided to market their products with a direct sales approach through a traditional multi-level marketing system.  Commissions are paid on sales generated by customers, down-line commissions of 15% on people you personally enroll, 10% on those they enroll, and commissions paid up to four levels deep, plus other bonuses and incentives.  To become an associate you must purchase a starter kit ($40), sign up for a Convenience Plan (personal monthly product order that is automatically delivered to you), and order the number of Renewal Gift Packs you desire (product samples plus Univera overview literature — $125 to $750 and up).  The chosen business model is called Relationship Marketing, which is basically using your warm market of friends and family for product sales and prospecting.  They call their particular method the Gift-Team-Enroll model.  Associates give a gift pack to a prospect, then follow up with them if they are interested in becoming an associate (watch a DVD or attend a party), and then enroll those who choose to join.

Analysis

The Health and Wellness industry continues to thrive despite a down global economy, and the Univera products are well regarded in the industry, especially with the emphasis on natural healing.  The cost of entry is relatively low as well, so this opportunity is something that is financially within reach of the average person.  But the model of Relationship Marketing is dated and minimally effective in a global economy powered by the Internet.  Many people are uncomfortable selling to and prospecting their friends and family, and the warm market is extremely finite even for those skilled in sales.  Also, members are required to buy a rather substantial amount of the product monthly for personal use, so this must be a consideration.  Finally, aside from some conferences, training and mentoring is generally left up to the associates — so those who have an up-line that chooses to help you may find greater success than the average member.  If you are a skilled sales person who doesn’t mind selling to your friends and family, attending home and hotel meetings, and buying and using the Univera products on a monthly basis, then this opportunity might be the answer to your home-business search.  If you are looking for a more modern marketing method, personal coaching and training, and a step-by-step process to build success, then you should continue your research.

**Keith Hartung strives to be a servant of God, a committed husband, and a loving dad.  He is also an internet marketer and home business coach, working with people around the world to create financial success in their lives by leveraging the power of the Internet. To see how Keith is making money online enter your information in the form on the right.