Advocare Review: Is It a Legit MLM or a Pyramid Scheme?
Advocare Review Is It a Legit MLM or a Pyramid Scheme

When it comes to health and wellness products, AdvoCare is a name that has garnered both loyal followers and skeptical critics over the years. Founded in 1993, this Texas-based company quickly rose to prominence with its array of dietary supplements, weight management solutions, and performance-enhancing products. However, AdvoCare’s journey has been anything but smooth, marked by significant legal challenges and a dramatic shift in its business model.

In this comprehensive review, we will delve deep into AdvoCare’s history, its controversial transition from a multi-level marketing (MLM) firm to a single-level direct sales company, and what this means for current and potential distributors. We will explore the intricacies of AdvoCare’s compensation plan, examine the pros and cons of joining as a distributor, and ultimately help you determine whether AdvoCare is a legitimate business opportunity or not.

Whether you are considering becoming an AdvoCare distributor, are curious about the company’s products, or simply want to understand more about the MLM industry, this review aims to provide you with the insights and information you need. Let’s get started by looking at what AdvoCare is and how it has evolved over the years.

Disclaimer: This Advocare MLM review has been thoroughly researched with information and testimonials that are available online to anyone in the public.  Any conclusions drawn from that information are my own opinions.

Advocare MLM Review Overview

Product Name: Advocare

Owner: 

Product Type: Health and wellness MLM company

Price: $59 plus tax, and then $50 a year to remain active

Best For: Not Really Anyone

advocare-mlm-website

Pros

  • Affordable startup package.
  • If you can meet your regular monthly allocation you’re not called to auto-ship items

Cons

  • You do not get a great deal of training for coming to be a distributor.
  • Lots of people wind up purchasing items just to retain their subscriptions.
  • Lots of people are required to resort to paid advertising to generate income. They encountered lawsuits as a result of how their workers were treated.
  • Ordinary annual incomes are not encouraging.
  • Advocare was accused of being a pyramid scheme

Quick Summary

AdvoCare, a well-known name in the health and wellness industry, has experienced significant changes since its founding in 1993. Originally operating as a multi-level marketing (MLM) company, AdvoCare was compelled to transition to a single-level direct sales model in 2019 following regulatory scrutiny by the Federal Trade Commission (FTC). This shift means that distributors now earn income solely from direct product sales rather than recruiting downlines, simplifying the compensation plan but also potentially limiting earning opportunities.

The company’s product line remains robust, featuring a variety of dietary supplements, weight management solutions, and performance-enhancing products. Despite some mixed reviews, many users swear by the effectiveness of AdvoCare’s offerings. However, success as a distributor is challenging due to the competitive market and the need for strong marketing skills. While the initial costs to join are relatively low compared to other companies, the lack of extensive training and the necessity to invest in personal use and marketing can be daunting for new distributors.

In conclusion, AdvoCare is no longer a pyramid scheme and operates legally as a direct sales company. While it presents a legitimate opportunity for those passionate about its products, the potential for significant income is limited and requires dedication and effective sales strategies. For those seeking flexible and lucrative home-based business opportunities, there may be better options available. Nonetheless, AdvoCare’s commitment to product quality and compliance with regulations makes it a trustworthy choice for individuals with a strong interest in health and wellness.

Rating
1.5/5

Recommended? No, Technically, Advocare is a legit MLM, but it's got traits of a pyramid scheme, a low success rate, and therefore, is not recommended

Table of Contents

What Is Advocare?

AdvoCare was originally a health and wellness Multi-Level Marketing (MLM) firm that specialized in a variety of weight management supplements. Founded in 1993 in Texas, it quickly rose to prominence, becoming a multimillion-dollar company by the 2000s.

advocare-mlm-website

However, in 2019, AdvoCare was compelled to redesign its business structure to a single-level direct sales model. This change came after the Federal Trade Commission (FTC) determined that AdvoCare had been operating like a pyramid scheme. Despite this structural adjustment, AdvoCare continues to market the same health and wellness products.

Today, AdvoCare operates as a direct selling company, focusing on providing high-quality health and wellness products directly to consumers. This shift ensures that all revenue is generated through product sales rather than recruitment. AdvoCare’s product line includes dietary supplements, energy drinks, and sports performance products, which are popular among fitness enthusiasts and health-conscious individuals.

AdvoCare’s commitment to product quality and consumer satisfaction remains strong. The company now emphasizes transparency, compliance, and ethical business practices, aiming to rebuild trust and maintain its reputation in the health and wellness industry.

Related Post: Herbalife MLM Review

Is Advocare a Pyramid Scheme?

AdvoCare is no longer considered a pyramid scheme. Under the new business model, representatives can only earn commissions from selling AdvoCare’s products directly.

Pyramid schemes are illegal in the U.S. and are punished by the FTC, as evidenced by AdvoCare’s legal issues in 2019. However, AdvoCare has adapted to comply with legal standards and now operates through direct product sales.

This means that representatives can earn extra income through product sales without engaging in any questionable recruitment practices. Since there are no direct payments for merely signing up new members, AdvoCare has eliminated the shady practices associated with pyramid schemes. Therefore, AdvoCare is no longer a pyramid scheme.

In essence, pyramid schemes require recruitment to generate income, whereas legitimate MLMs and direct sales companies generate income through product sales. AdvoCare’s transition to a single-level sales model aligns it with the latter.

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Is Advocare a Scam or Legit MLM?

AdvoCare is not a scam. While it has faced controversies and crossed the thin line between network marketing and a pyramid scheme, resulting in financial losses for its representatives, it has since restructured to comply with legal guidelines.

Today, AdvoCare operates as a legitimate direct selling company. Distributors can no longer build a network of sellers or earn commissions and bonuses from others’ efforts in their network. Instead, their income is derived solely from direct product sales.

In summary, AdvoCare is now a 100% legitimate direct selling company. The restructuring ensures transparency and compliance, providing a viable opportunity for individuals to earn through direct sales without the complexities and legal risks associated with MLM structures.

Related Post: Forever Living MLM Review

How Does Advocare Work?

Before July 2019, AdvoCare operated as a multi-level marketing (MLM) company. However, in March 2019, AdvoCare announced it would revisit its MLM business model to comply with the Federal Trade Commission (FTC) regulations. As a result, AdvoCare informed its 100,000-plus representatives that it was shifting away from the MLM structure, and would now only pay commissions for actual product sales.

This change means that AdvoCare representatives can no longer earn money through recruitment. Instead, their earnings come solely from direct sales of AdvoCare products. This ensures compliance with FTC regulations and emphasizes the company’s commitment to ethical business practices.

Let’s move on to talking about some of the products you can sell and the potential earnings from selling them…

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What Are Advocare Products?

AdvoCare offers a diverse selection of dietary supplements, weight management products, and performance-enhancing supplements designed for athletes and bodybuilders. Since its founding in 1993, AdvoCare has developed its own formulas and ingredients, positioning itself as a key player in the health and wellness market.

advocare-mlm-product-line

While some users swear by AdvoCare products for their effectiveness, others have shared unfavorable reviews. It’s important to consider individual experiences and results when evaluating these products.

Advocare Most Popular Products

AdvoCare has an extensive product line, but some items are more popular or frequently created than others. Here are some of AdvoCare’s most popular products:

24-Day Jumpstart

The 24-Day Jumpstart program is designed to help individuals achieve their weight loss or body wellness goals within 24 days.

advocare-mlm-24-jumpstart

It includes a combination of supplements and dietary guidelines to support users on their journey.

The Trim Line

The Trim line aims to assist individuals in losing weight. It includes a range of products formulated to help users manage their weight effectively.

The Active Line

The Active line consists of supplements designed to enhance endurance and overall energy levels. These products are ideal for individuals looking to boost their daily performance and stamina.

The Well Line

The Well line focuses on improving overall wellness by managing stress and promoting better health. This line includes supplements that support mental and physical well-being.

Performance Elite Line

The Performance Elite line is tailored for professional athletes and bodybuilders, helping them perform at their best. These products are formulated to enhance athletic performance and support muscle growth and recovery.

By understanding how AdvoCare works and the range of products they offer, you can better assess whether this opportunity aligns with your goals and needs. The company’s transition to a direct sales model ensures that your earnings are based on actual product sales, promoting a more transparent and ethical business environment.

Related Post: DoTerra MLM Review

How Much Does It Cost To Join Advocare MLM?

To become an AdvoCare Distributor, the initial cost is $59 plus tax, with an additional $50 annual fee to remain active. This fee grants you access to AdvoCare’s range of products at a distributor discount and the opportunity to earn commissions on your sales.

advocare-mlm-distributor

Previously, it cost $79 to sign up, and distributors were required to meet a monthly sales quota to remain active. The updated structure eliminates these quotas, making it easier to maintain your status as an active distributor. The only requirement for earning commissions now is providing your social security number for tax purposes.

While there are no mandatory sales quotas to meet, it is highly recommended that you use the products yourself. Personal experience with AdvoCare’s products can significantly enhance your ability to market and sell them effectively. To truly speak from personal experience, you should consider spending at least $50 on these products.

Additional Considerations for Success

If you are serious about generating income with AdvoCare, there are a few additional investments to consider:

  1. Product Usage: Regularly using AdvoCare products will help you better understand their benefits and address customer inquiries with firsthand knowledge.
  2. Marketing Skills: Learning how to market products online effectively is crucial. Investing in courses or training on digital marketing, social media promotion, and content creation can significantly boost your sales potential.
  3. Website Hosting: Having a personal website to showcase AdvoCare products and share your personal testimonials can help you reach a broader audience. Consider setting aside funds for website hosting and maintenance.
  4. Training and Tools: Allocating around $100 a month for training and marketing tools is advisable. This budget can cover online courses, advertising, and other resources needed to enhance your sales skills and grow your business.

By considering these additional factors and investing wisely, you can maximise your potential for success as an AdvoCare distributor. The initial and ongoing costs are manageable, especially with the removal of sales quotas, making it easier to focus on genuine product sales and customer satisfaction.

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What Is Advocare’s Compensation Plan?

Many network marketing firms have complex and difficult-to-understand compensation plans. However, with AdvoCare’s shift to a single-level direct sales model, the compensation plan has become much simpler and more straightforward. Currently, there are only two ways to make money with AdvoCare:

Retail Earnings

The most basic way to earn money is by purchasing AdvoCare products at a wholesale price and selling them at the retail price.

advocare-mlm-retail-commissions

The difference between the wholesale cost and the retail price is your profit. This method allows you to earn a direct profit on each sale you make.

Wholesale Commissions

If you have “preferred customers” who regularly purchase AdvoCare products, you can sell to them at wholesale prices.

advocare-mlm-wholesale-commissions

In this scenario, you earn a commission of around 20% on these wholesale sales. This provides an additional stream of income based on the volume of products your preferred customers purchase.

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Can You Make Money With Advocare?

Historically, making substantial income from AdvoCare has been challenging. In 2017, only 1 out of 665 members earned $50,000, and these were typically skilled sales managers who had built large sales teams.

With the transition to a single-level direct sales model, earning significant income has become even more difficult. While you can still make money, the opportunities for high earnings are limited. For example, even if you manage to sell 100 products worth $50 each month, your maximum potential earnings would be around $2,000 per month at a 40% commission rate.

Key Takeaways

  1. Simplified Compensation Plan: AdvoCare’s compensation plan is now easier to understand with only two main income streams—retail earnings and wholesale commissions.
  2. Realistic Earnings: While it’s possible to make money with AdvoCare, significant income requires consistent sales and a strong customer base.
  3. Focus on Sales: Success with AdvoCare now hinges on your ability to sell products directly to consumers rather than building a large network of distributors.

By understanding AdvoCare’s compensation plan and setting realistic expectations, you can better evaluate whether this direct sales opportunity aligns with your financial goals and capabilities.

Related Post: Younique MLM Review

Advocare MLM Review: Pros & Cons

In this review, I’ve expanded on the pros and cons to help you weigh your options more effectively. Unfortunately for AdvoCare, the disadvantages vastly outweigh the benefits.

Pros

One of the main advantages of joining AdvoCare is its affordability compared to other companies in the health and wellness niche. For example, joining AdvoCare is less expensive than companies like Herbalife, making it a more accessible option for those looking to start their own business in this field. Additionally, AdvoCare does not require you to auto-ship items if you can meet your regular monthly sales allocation. This flexibility can be beneficial for those who want to avoid the pressure of automatic shipments and the associated costs.

Cons

However, there are several significant drawbacks to consider. Firstly, AdvoCare does not provide a great deal of training for new distributors. Without sufficient training and support, many individuals may struggle to effectively sell products and grow their business.

Secondly, a common issue faced by distributors is the need to purchase products simply to maintain their active status. This can lead to accumulating unwanted inventory and increased personal expenses.

Thirdly, many distributors resort to paid advertising to generate income. This additional cost can eat into profits and make it more challenging to achieve financial success.

Moreover, AdvoCare has faced lawsuits concerning the treatment of its workers. These legal issues can tarnish the company’s reputation and raise ethical concerns for potential distributors.

In terms of financial rewards, the ordinary annual incomes for AdvoCare distributors are not encouraging. With limited earning potential and a competitive market, achieving substantial income through AdvoCare can be quite difficult.

Lastly, AdvoCare was accused of being a pyramid scheme. Although the company has restructured its business model to comply with FTC regulations, this past controversy continues to cast a shadow over its legitimacy and ethical practices.

Advocare MLM Review: Conclusion

Can you still earn money with AdvoCare as a distributor? Yes, it is possible to generate income with AdvoCare under the new business model. With the company’s shift to a single-level direct sales approach, distributors can earn money from the compensation they receive for product sales. However, it is important to note that you can no longer earn income through the recruitment of downlines, as was possible under the previous MLM structure.

The critical question remains: Is AdvoCare a good business opportunity? Based on my analysis, I do not recommend AdvoCare as a viable business venture. The company has already proven to be a challenging environment for achieving success. The restructuring to comply with FTC regulations, while necessary, further limits the earning potential and flexibility that many distributors might seek in a direct sales opportunity.

That said, if you are genuinely passionate about AdvoCare’s products and possess strong marketing skills, there is potential to take advantage of the AdvoCare compensation plan and earn an income as a distributor. Your success will largely depend on your ability to sell the products directly to consumers and build a loyal customer base.

Ultimately, the choice is yours. AdvoCare is no longer a scam, and it operates within legal guidelines as a direct sales company. However, given the numerous challenges and limited earning potential, there are likely better ways to make money from home that may offer greater flexibility and financial rewards.

Thank you for reading my AdvoCare MLM review. What are your thoughts? Do you believe AdvoCare is a pyramid scheme or a scam? Have you been a part of this business, or are you currently involved with AdvoCare?

Feel free to share your experiences and reviews at the end of this page!

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Thanks for reading my Advocare MLM Review!  If you have any questions, or any experiences to share then please write them in the comments below. ;). 

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