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.

The Company and Products

Nu Skin was formed in 1984 by three entrepreneurs who wanted to build a company that would combine high quality personal care products with a direct sales business opportunity that would attract high-caliber salespeople.  With their signature ageLOC line of anti-aging products along with other skin-care and nutritional offerings, they have propelled the company to $1.25 billion in sales in 2008.  Nu Skin’s line is generally considered to be high quality, but comes with a higher price tag than other similar products on the market.  Approximately 800,000 independent distributors sell their products in more than 40 countries.

The Program and Compensation

Nu Skin is operated as a traditional multi-level marketing or direct sales organization, where the distributors make money two ways: from the retail markup of the products that they buy wholesale and from commissions they earn on sales from their recruited down-line.  To become a distributor you purchase a Business Kit for a small fee and then you are able to purchase the products at wholesale prices, which in turn you can sell at a Nu Skin-recommended 30% markup.  There is a fairly complicated commission/bonus plan for the different levels as a distributor climbs the ranks in the company.

Analysis

By 2012, approximately 26% (80.6 million) of the US population will be aged 55 and over.  This aging US and world population means that there is a growing market of people desiring anti-aging products and able to pay the premium prices they command.  And the quality of the Nu Skin product line will keep this company around for years to come.  But the average distributor will face several challenges with this home business opportunity.  The first will be that even with the most expensive products in the Nu Skin line, the retail markups (what the distributor keeps as profit) will be small – meaning that they will need to sell major volume to make significant money.  This need for volume can be accomplished by recruiting many people into their down-line, but then they face the age-old MLM problem of recruiting family and friends in order to make their business profitable.  This is a difficult and uncomfortable proposition for most distributors, and once they work through their warm market list, most will have very few ideas for targeted leads to expand their business.  Hosting home and hotel presentations to recruit strangers is even less desirable for many.  And without a superior mentor in the business, most will fail within a few months.  In fact, the 2008 average monthly commission for US Active Distributors was $814.50 or $9,774 annualized.  Not a bad supplemental income, but hardly a full-time income for the effort that you will need to put into the business.  So if you are looking to earn a supplemental income by selling quality products from a solid company, Nu Skin is a nice choice for your home business.  But if you want to create financial freedom by earning a higher commission, avoid recruiting friends and family, and find a mentor that will teach you to have a global reach through the Internet, I would continue my 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.

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.