Current CEO: Brian Connolly
Startup Cost: $79
Full Review Of AdvoCare
The company was founded in 1993 by Charles Ragus and specialises in health and wellness products aimed at helping people perform at their peak. The company operates in the US and Canada.
These products are supposedly of a very high quality and are backed by their own team of scientists, doctors and other fancy titles. Although it does not appear that their products are actively endorsed by any legit third party at this point. Specifically they are delivering nutrition, energy, weight loss and other products aimed at helping you ‘become a champion’.
Essentially you are signing up to become a distributor and can earn money in 5 different ways:
- Retail profits- re-sell products you purchase at wholesale and make a profit
- Wholesale Commissions- make a cut from what your downline is purchasing
- Overrides- make money based on your whole organisations volume
- Leadership Bonuses- bonuses from 3 – 19.75% of your organisations performance
- Other goodies- basically just more bonuses and incentives as a cherry on top
Update: I have since taken an in depth look at the pros and cons of selling AdvoCare products.
The company does something I really admire… they openly share the income their distributors are making instead of trying to hide everything like a lot of mlm’s out there. This is a BIG plus in my books and while it does show that most people aren’t making tons of money, success really comes down to your own efforts like anything.
Becoming A Rookie Distributor
When you sign up as a distributor for $79 you are able to make retail profits and wholesale commissions, along with getting your hands on some mlm training and being able to buy products at a discount. You can sponsor people into your downline at this level and earn wholesale commissions on their purchases. The cost of renewal each year is $50, which isn’t too bad.
Let me explain this ‘wholesale commission’ gig real quick…
So from my understanding this allows a distributor to earn a commission based on the difference of what your discount is and that of your direct sponsor. So let’s say you are at a 20% discount level and you sign someone up and they are at the same discount level. If they make a purchases, you’ll make nothing.
But if you increase your discount level or move up to advisor (which is 40% discount level on products), then you make a 20% profit off your downline distributor when they make a purchase.
Sound confusing… yep did my head in too! They attempt to demystify the whole thing with an example I found:
The real truth is that if you want to make any real money you’re going to want to progress up to ‘Advisor’ and beyond as quickly as possible.
Becoming An Advisor
At this level you are going to be getting the highest discount on products to re-sell (40%) and will be eligible to earn overrides and leadership bonuses as well. What is an override you ask?
It basically means you’re now eligible to start making bank on your organisations activity to the tune of 7% (best case). There’s also some weird and wonderful leadership bonuses on tap for the real go getters.
This requirement is not very cool I have to admit, I did some digging and found this to be less than desirable. Pretty much you get a nasty slap if you don’t meet certain criteria and can even lose most of your organisation. That would suck… imagine working your tail off only to fall below the yellow line one year and lose it all!
You need to make $6,000 in volume in one calendar year to remain an advisor, you can keep your directly sponsored distributors but will lose everyone else. In other words if your organisation doesn’t meet their lofty criteria AdvoCare set out, your business is obliterated!
Ok so that picture is a little extreme but I liked it 😉
Is it hard to meet this criteria? Well I think it’s crazy and it creates a major barrier for people trying to build a business and get ahead.
Out of that 6k requirement, $3,000 needs to be in personal purchases and the rest can be from your organisations volume. So you might end up packing 3k worth of vitamins and supplements in your garage if you want to stay an advisor!
An Alternative- The other option is that you achieve $3000 in organisation volume within three consecutive pay periods (6 weeks) at some point throughout the year. So that’s averaging $500 per week in sales volume from yourself and/or your organisation for 6 weeks.
The bottom line is it’s going to be hard for the average person to achieve this so I imagine a lot of people being stuck at distributor level. Heck I would almost be worried about moving up to advisor level with those numbers until you are certain you can meet that criteria or you may lose a LOT of hard work.
The Costs Involved
- $79 to get started, $50 renewal for distributor rank
- Minimum purchasing requirements
- Success School convention- $169
What I liked
- Seem to go to great lengths to create legit products and have them tested
- They are very upfront about what you can expect to earn, no false hype
- Low entry cost and renewal fee
What I Didn’t Like
- Staying qualified as an advisor is a bit ridiculous and even concerning
- They push the credibility of their products with a lot of paid public figures like sports stars, doctors and other trusted experts
- The training entails how to market to your friends and family primarily, good luck with that
- Based on the average earnings of an advisor and the cost to stay qualified if you don’t have enough volume, most people will not make money on average until they hit Silver level. How much product will you be buying to get there?
Building Your Business
Most of the training within this company is based on warm market lead generation and motivational speaking… the hype and glitter. But what I want to know is how to make money with this, the nuts and bolts. One of the key things that stop people from achieving success in this business is not being able to find decent leads beyond friends and family. Believe me when I say your ‘warm market’ will only stay warm for so long, and may turn cold quite quickly.
Most of your friends do not want to hear about your opportunity and can you blame them? You are being taught to leverage a trusted relationship with the objective of selling them into your business, plain and simple. You are NOT being shown how to go out and recruit targeted leads that are already interested in what you have to say.
The AdvoCare opportunity doesn’t cost much to get started, but to realise any real profit you’ll be purchasing a stack of product and trying to offload it to friends and family. This presents a real barrier to people in reaching the higher levels in the organisation where the real money is made. It’s not a scam and it does seem like a legit company, but I do believe there are better options to consider.
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