It Works is a direct sales company that specializes in selling products related to body shape, skin care, and nutrition.
Mark and Cindy Pentecost founded the company in 2001 by selling the Ultimate Body Applicator, the company’s flagship product. The company is now worth hundreds of millions of dollars of dollars and employs more than 10,000 people. Does this mean I’m involved?
This video explains everything:
Make sense? Either way, here’s the full review on It Works.
Sign-Up Cost: $99
Global Revenue: $538 million
The Good: Useful starter kit for distributors; expanded product line.
The Bad: Poor rating from Better Business Bureau; widespread customer complaints; no assurance of product safety or validity; monthly requirements for sales.
Google Trends
Products
As previously mentioned, the flagship product of It Works is the Ultimate Body Applicator. It’s a cloth wrap that helps tighten and tone skin, eliminating cellulite and improving skin texture. It can be utilized over several body parts including the abdomen, back, legs, and buttocks.
The Ultimate Body Applicator was the product that helped to launch It Works, but the company now offers a variety of other products. The company sells a gel that it recommends be used in conjuncture with the body wrap.
It Works also offers roughly 10 different skin care products such as toners, cleansers, and an exfoliating peel (think poor man’s Nerium).
The company also has a line of “Greens,” which are dietary supplements that offer various health benefits.
It Works also has a full line of Lifestyle products. This line includes essential oils, coconut oil, minerals, and a variety of gift sets. There are also a variety of packs that combine many of the company’s products that are designed to complement one another.
Opportunity
It Works sells its products online, but the company also relies on its independent marketers called Wrapreneurs. These Wrapreneurs pay a $99 startup fee and receive a Business Starter Kit to help them along. They are then able to make money in the following ways:
• Retail Commission – The difference between the wholesale price of a product and the retail price, which varies depending on the product.
• Loyal Customer Commissions – Signing up loyal customers, which means someone who buys regularly but does not become a distributor, leads to residual income for as long as they remain customers.
• Team Commissions – Additional commissions earned from sponsoring others to join It Works as distributors, ranging from 2 to 10% based on their team location. There are additional bonuses for continuing to build a team and rise through company ranks.
The Good
The starter kit that It Works provides for new distributors is a meaningful asset that can be quite helpful to new members who may not have much experience with multi-level marketing. The kit includes four Ultimate Body Applicators, catalogs, marketing materials, and business cards.
The Wrapreneurs also have access to online training, a personal mentor, personal development coaching, and a customized website to help them run their business that’s free for the first 30 days.
Also included in the starter kit are suggestions for diet and exercise that can help complement It Works’ product line. This kit offers far more than what the average multi-level marketing firm gives to its new distributors to help get them started.
By offering so much, the company lets its members know they are serious about helping them, which in turn, will make the distributors serious about achieving high levels of success (1).
The fact that It Works has expanded its product line to include more than just the Ultimate Body Applicator is also a huge plus. It’s not difficult to imagine a large amount of people excited to give a body wrap a chance, and so having products that can complement the company’s base product adds to the earning potential of each distributor.
Moreover, even if a customer is not sold on the body wrap, the distributor still has a chance to turn them into a buyer because of the other products offered. Therefore, selling for It Works is not an all or nothing proposition.
The Bad
Of course, while It Works’ body wraps and other products may sound enticing to some, there is little scientific evidence backing up their validity. There are a number of caveats to using body wraps that every person should look into before using one. For instance, users are required to drink large amounts of water on the day of use and the days following use. It’s also important to combine use of a body wrap with proper diet and exercise.
The Food and Drug Administration also warns against the use of body wraps, citing several potential medical complications, especially for those with pre-existing conditions.
There have also been a variety of complaints targeted at It Works. These complaints include customers receiving the wrong products, continuing to receive products and being charged even after cancelling their membership, and charging customers a cancellation fee without proper notice.
The high volume of complaints has contributed to It Works receiving a poor rating from the Better Business Bureau. There is also a mix of both positive and negative reviews coming from those inside the company, meaning not all employees and distributors are pleased with their experience.
One final thing to be aware of is the monthly sales requirement for distributors. The overall compensation plan is fair and balanced, but distributors need to achieve a monthly sales quote that amounts to roughly $112 in product purchases in order to be eligible to receive commissions.
This may sound reasonable from the company’s perspective, but it can make it difficult for casual distributors to keep up, causing them to lose out on any commissions they may make.
Recap
It Works is far from a terrible company, but there are several reasons why one should be cautious with regards to joining as a distributor. The uncertainty about the effectiveness of their products combined with the possible adverse effects of body wraps are enough to make one think twice about getting involved with It Works.
The volume of complaints from both customers and those within the company should also be an area of great concern.
If you like automated ways to build passive income, there are better ways.
(and you can trash those old MLM habits, too)
from MLM Companies
No comments:
Post a Comment