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.