Isagenix Scam? Is Isagenix Good For Your Wallet?

By | January 28, 2017

This Isagenix review will be focused on the business opportunity.  I’ll discuss their products but this website is about making money and not health issues.

 

Isagenix Scam?

Isagenix Website

Isagenix Website

Isagenix is a multi-level marketing (MLM) company that sells supplements in the weight loss sector.  The MLM industry is legal in the US.  Also selling supplements is legal in the US.  Based on my search for lawsuits vs. Isagenix, I found nothing of significance.  What I did find, I’ll discuss later in this article.

Based on my research (remember I’m not a lawyer), Isagenix is operating a legal company selling legit products. Does that mean they are not a scam?  No, it means they are operating legally.  It does not mean it’s a good business opportunity for you.  Let’s dig more into the company.

Isagenix History

Company started in 2002

Founders: John Anderson, Jim and Kathy Coover

John Anderson: The founder and the innovator of the formulas used in the products.  The Isagenix website and several others discuss his extensive background in the supplement industry.  Some websites refer to him as Dr. but the Isagenix website does not.  None of the websites discuss his educational background or how he got started in formulating supplements.  Some discuss how he started out owning a leather company and real estate planning.  If you have more information about John Anderson’s background before he started in the supplement industry, please share it with us in the comments below.

Jim and Kathy Coover:  They co-founded the company with John Anderson then in 2005 they purchased the majority share of the business from John Anderson.  According to the Isagenix website, the Coover’s had an extensive and successful career in multi-level marketing before founding Isagenix.  No details of this background is provided.

There are several websites that list Jim Coover as the CFO for The Cambridge Diet.  Why is this important?  Well, it was another MLM company that had a product with many controversies surrounding it.  Apparently, the product had several side effects that made people very sick.  One website says people died but I’m not able to confirm that as true.  The FDA and regulators had to get involved.  This all happen in the 1980’s well before Isagenix started.  If you have more information about Jim Coover’s background and The Cambridge Diet please add it to the comments below.

So what does all this tell us about Isagenix?  Not much really.  There is not any really specific details good or bad about the backgrounds of the founders to come to any real conclusion.

How Is Isagenix Doing?

As a company they are doing very well.   They are steadily growing.  According to businessforhome.org, Isagenix net sales:

  • 2011 net sales of $262 million
  • 2012 net sales of$334 million
  • 2013 net sales of$448 million
  • 2014 net sales of$725 million

As you can see from the sales numbers above the company is doing well.  From a few other websites, I see that Isagenix is doing extremely well overseas in the last 2 to 3 years.  They have expanded their business into South America and Asia.

Isagenix Products

There are a whole host of health and fitness products offered by Isagenix:Isagenix scam

  • Ageless Actives
  • AMPED Fuel
  • FiberPro
  • Isacrunch
  • Isagenix Coffee
  • Isalean Bars
  • Rejuvity – Age-Defying Eye Cream
  • SlimCakes
  • and many more.

Isagenix Product Reviews

How good are the Isagenix products?  This is hard to say.  There are some reviews that sing praises of how they lost weight using these products.  A couple of problems with these reviews. First, as with any weight loss product it may work with one person and not another.  So, there is no way to know if it will work for you or anyone you sell it to.  Second, many people writing these reviews are also selling the products.  Are they being biased by the hope of making some money?

There are also a lot of bad reviews for these products. Same as above, these types of products don’t work for everyone.  If it didn’t work for you, then you are going to give it a bad review.  There are also whole food experts and nutritionist that are saying these products are unhealthy and are bad for you.  These people will say this about most of the supplements on the market because they don’t believe in using supplements.

Are the products any good will depend on your view of supplements?  For me personally, I don’t like supplements and would recommend against selling supplements.

Isagenix Product Prices

Several reviews indicated that the products were overpriced. That you could get equivalent products at the department store for half or a third of these products.

Here is a 2016 Isagenix product price list to checkout for yourself:

http://www.isagenix.com/~/media/BBCC7BEE25D1494CB75CE7C939089D5B

The claim of an MLM product being overpriced is not surprising.  All the distributors are expecting to earn money off their sale.  Plus every person upline from them will also be earning a percentage of that sale.  For their to be enough money for everyone, the price has to be elevated.

Can You Make Money With Isagenix?

Isagenix reviewsOf course you can make money with Isagenix because as of December 31, 2015, 165 associates had achieve millionaire status with Isagenix.  This number came from the Isagenix 2015 Earnings Disclosure located here: https://www.isagenix.com/~/media/compliance/earnings-statement/us-en-earnings-statement.pdf

The problem is very few people will achieve this status.  This same disclosure indicates less than 1% of it’s associates earn more than $50,000 per year. It also shows that only 5.3% of it’s associates are business builders and earning more than $500 per year.  That 11.5% of the associates earn on average $145 per year.  While 83.3% of associates only use their products so they are not building a business and not earning money.

These numbers tell you a couple of things about this business opportunity.  Building a down line is going to be very difficult because most people are only interested in using the product and not interested in building the business.  The idea behind the MLM concept is that you build a large downline of people building their down lines and you have all the commissions rolling up to you.  As the low number of top earners shows that it’s very difficult to build a successful down line.

Isagenix Review Conclusion

As a business opportunity, Isagenix is a poor choice.  The weight loss niche can be very attractive especially if you have lost weight with these products.  The problem with the supplement industry is that there is little regulation and little scientific proof that these products will work.  As you sell the product, some will be happy that they lost weight.  But you’ll also have many upset with you because the product you sold them did nothing for them.

The low cost of entry also makes it an attractive option but it’s actually a negative aspect of the business.  If your trying to build a business with a low cost entry, you’ll find many people will quickly drop out when things don’t go well quickly.  Not everyone that joins the business will have the same motivation that you have for the business.  Many people join these businesses at the spur of the moment or based on the dream of big money.  A few days or weeks later when they realize it’s actually hard work to grow a business, they’ll quit the business.  Why? For them, it’s a loss of a couple hundred dollars or working hard.  Many will choose the loss of money.  For many businesses that cost tens of thousands or hundreds of thousands of dollars to get started, there is a lot more motivation to work hard to not lose that investment.

There are many better options for starting a business.  This website discusses many different options.  Consider starting your own business online starting with a free website and some marketing training.  To get a offline business going look into building some skills for building your business.  Selling is an essential skill for all businesses and Grant Cardone is one of the best in teaching people how to sell.

2 thoughts on “Isagenix Scam? Is Isagenix Good For Your Wallet?

    1. Steve Post author

      I’ve seen that he was a top executive for the Cambridge Diet but I have not seen that he was a co=founder. I wrote in the article about some of the issues that surrounded the Cambridge Diet. If you have a good source you can provide a link to I would greatly appreciate the insight.

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