Is LifeVantage a Scam

Founded in 2003, LifeVantage Corporation is a publicly traded (ticker LFVN) MLM business specializing in scientific anti-aging products using its clinically studied Protandim supplement.

LifeVantage has a very interesting history

The company’s stock skyrocketed earlier on 2005 after they made public the clinical studies and television specials by ABC, the Today Show and PBS concerning their Protandim product in 2005, The corporation’s stock went through the roof. This early publicity sent their stock up to more than twenty dollars per share but it could not sustain it with no sales to support the hype. During this time Protantim was just obtainable by means of retail channels and it did not do well on the shelves of nutritional stores.

On May, 2009, after more than 6 months of planning and research they ventured into MLM for distribution|After more than 6 months of developing and preparation, in May of 2009. Not surprising to those who know the power of Multi-Level Marketing, LifeVantage sales have dramatically improved and with that their stock price has more than tripled from its lowest point of less than $0.10 in Nov. 2008. Still a bit too early to say, but it looks like network marketing is proving to be a good strategy.

As with all assessment, let’s start off with the easiest area to spot a scam THE PRODUCT!

Protandim Review – I cannot speak for the product since I’ve not yet tested it speak for the product. What I do know is I am more willing to try it than any other nutritional product I have seen recently due to the extensive clinical studies and peer reviewed studies that was used on it. More than twenty universities have started a number of self funded medical studies on the product in relationship to its relation on anti-aging and disease. Quite a few have been completed and are posted on www.pubmed.gov under Protandim to see.

In contrast to the majority of nutritional merchandise, Protandim is not an antioxidant by supplementation but rather a merchandise that activates the body’s production of its own natural enzymes which the body makes use of to tear down free radicals. Clinical studies appear to prove that it is many times more efficient than taking external antioxidants for this purpose. The LifeVantage corporate website () lists access to all the studies, information and news video releases on their product that explains how it acts and what it does.

What I like most regarding Protandim is the distinctive marketing approach it has

In constrast to many MLM companies which almost always use the old “try it out (for 30, 60 or 90 days) and see how you feel” script, LifeVantage distributors are able toconfidently exclaim that Protandim is clinically proven to lessen oxidative stress by slowing down the rate of cell aging to that of a 20 year old.

This alone is not enough to build a business on, but it’s a huge introduction for distributors. More often than not the hardest part in shaping a nutritional networking business is getting individuals to check out the product and LifeVantage holds the aces in this area.

I was pleasantly surprised at the price of the product. In an industry where product autoships are almost always above one hundred dollars per month, a one month autoship supply of Protandim for a retail “preferred customer” is only $39! This pricing is way less than the industry norm, thus making it doable to gain loyal retail consumers.

Besides the Protandim product, LifeVantage also has a skin care product called TrueScience which is a skin cream designed with the anti-aging properties of Protandim. What’s striking about the overall product line is its simplicity; just two fundamental products, with one core selling point, and a cost that is truly not expensive.

Ultimately it is going to take a lot more than research and advertising for a product to make it. Protandim will have to make a noticeable impression on the overall health of people taking it, whether it be additional energy, improved sleep, not getting sick as often, etc. There’s not a lot of individuals who will use their splurge on a product monthly based on research alone. If you are reading this article and have actually tried Protandim, please feel free give us comment on the product.

LifeVantage MLM compensation plan

I’m not going to go to the matter of how lucrative the MLM compensation plan is. There is quite a lot of money available in every MLM compensation plan as long as it’s legit. If you hear somebody going on about how their MLM comp plan pays the highest in the business, huge chance something is not right.

Technically speaking LifeVantage uses a unilevel pay plan paying down 9 dynamically compressed levels with the potential for a matching bonus on the 1st 4 levels and a coded bonus for LifeVantage pack qualifiers that allows for bonuses to be earned through unlimited depth. If none of this makes sense to you don’t worry about it.

The most important part about the MLM compensation plan is legal, because it only pays commissions on product sales. LifeVantage has taken an added step to promote the movement of product that I truly like and which does a lot to ensure legitimacy. Like all company, distributors must stay qualified to earn commissions, here in LifeVantage this means 200 PV per month in personal volume. The nice thing is that the volume generated from personal “preferred customers” reduces personal volume requirements for distributors. This means that as a distributor, I can reduce my monthly personal volume requirement down to the minimum of 30 PV if I have enough personal customers consuming product.

Behavior rewarded will be duplicated so when you see a company reward the enrollment of loyal retail “preferred customers” (individuals buying the product, but not does not involve themselves in the business opportunity), you will most likely have a higher customer to distributor ratio. This ratio is one of the most crucial things the attorney general and FTC look at when determining if a company is a pyramid scheme or not.

Company and Leadership of LifeVantage

There are a few notable points of interest about the LifeVantage beyond the short history I have mentioned. The company is a member of the Direct Selling Association () and the BBB (). They were implicated in and settled a lawsuit with Zrii. In this lawsuit, they were alleged to have conspired with ex- Zrii management/distributors to breach contracts and switch to companies. It was settled for 400,000 even if the lawsuit asked for damages of 250 million. This type of lawsuit is normal in the network marketing business and in my opinion nothing to be worried about.

As for the leadership behind the company, formerly with Metabolife, David Brown, is the CEO and Dr. Joe McCord, the driving force behind Protandim, is the Director of Science. It is noteworthy that Dr. McCord was the co-discoverer of antioxidant enzymes and their relationship to free radicals in 1968 at Duke University. It is also good to know that LifeVantage has skilled in-house legal counsel with Eric Marchant, who has counseled multi-national hundred million dollar network marketings in the past.

A quick look at the industry and competition

It is common knowledge that nutrition is the backbone of MLM industry and there is no doubt that the health and wellness industry is growing and will on the rise and will still increase. On the flipside I think at present you have an overload of companies coming into the industry and it is easy to get confused and be lost inside the rubble unless you have something exceptional I think LifeVantage has just that. With a low product price point and the type of studies and publicity behind Protandim, I think they are suited to thrive in the networking business.

In conclusion…

LifeVantage sells a legitimate product at a price point that real customers can afford and together with a compensation plan that for me solid more sturdy than your standard Multi-Level Marketing. While there is a lot of research and publicity behind this company you still want to be sure your belief is 100% behind it before delving into it. In multilevel marketing, belief in a product is still top priority and you cannot trade whatever amount of research for that. If you’re not willing to give it a year, then better if you don’t give it any other day at all. LifeVantage will work if you work it.

Is ZamZuu A Scam – A 3rd Party Look Into Their Business Model

ZamZuu is an emerging company that appears to be a major player in the e-commerce arena with it’s continual profits as a “discount online store” of sorts. Some questions have been risen regarding ZamZuu’s success though. Many people unfamiliar with network marketing think ZamZuu could be a scam. Is it?

NETWORK MARKETING
Zamzuu attracts some negativity because it is a network marketing company (also known as Multi-Level-Marketing or an MLM). Network Marketing is referred to as a “pyramid scheme” by some individuals because it’s members can profit from people they recruit into the business. There’s one huge difference between the two though. A network marketing company, such as ZamZuu, has a product or service for sale, whereas an illegal pyramid scheme does not.

ZamZuu is not the only company to operate using this business model (some big names include Amway, Avon, and Tupperware). They choose to market this way because they see the value in referral marketing.

What is referral marketing? There was a recent survey done that inquired about the consumer’s motive on why they bought (or didn’t’ buy) a particular product. The results revealed the importance of word-of-mouth endorsements and recommendations. It was the #1 contributor in the consumers’ decision on why those chose to purchase a particular good or service. What can a company do to encourage this powerful, free tool?

Network marketing companies like ZamZuu, choose to spend very little, if any, on advertising in the traditional sense. Because of this, they can keep their prices lower than the competition and be able to pay distributors to market for them. They pay more to members who recruit additional distributors for a simple reason. If there wasn’t an incentive to recruit additional members, the company would eventually go out of business.

You may find it interesting that Warren Buffet, Donald Trump, and Robert Kiyosaki have all endorsed this network marketing model.
I believe the people that call ZamZuu a scam, just because it’s a network marketing company, are uninformed on the facts. Let’s take a look at the actual company.

ZAMZUU
Zamzuu was created to take advantage of the popularity of shopping online. Customers can shop at over 700 stores through Zamzuu. Some big name retailers in their system include Curcuit City, Target, and Wal-Mart. Shoppers benefit by receiving commissions and cash-back for shopping through the ZamZuu website. This gives them incentive to login to a distributor’s Zamzuu page and shop there instead of curcuitcity.com, for instance, where they would receive no additional perks.

If you are looking to make some extra money you could also become a merchant. An initial fee of $249 is required to set up your customized retail store followed by a $49.95 monthly cost for maintaining your website. Once you start to build your business you can receive up to 50- 60% commissions and gain health and life insurance!

HOW TO GROW YOUR ZAMZUU BUSINESS
If you are interested in this opportunity, it would be wise to examine ways to market online effectively. Once you learn and implement these marketing techniques you will have the advantage over 95% of your competitors and be able to explode your business! Your friends and family members may shop from your site from time to time, but no matter how popular you may be, you will see limited results. With the Internet you can access a much broader audience and make some real cash with your ZamZuu opportunity!!