Welcome to my in-depth review of It Works!, a well-known multi-level marketing (MLM) company that has gained attention for its health and wellness products. If you’ve been wondering whether It Works! is a legitimate business opportunity or just another pyramid scheme, you’re in the right place. In this review, I will dissect the company’s business model, products, compensation plan, and the experiences of its distributors.
It Works! has been around since 2001, offering a variety of products designed to enhance health and beauty. While the company markets itself as a straightforward MLM with real products, there are many claims and concerns about its legitimacy and the actual income potential for its distributors. With numerous online reviews and varying opinions, it’s essential to get a clear and unbiased perspective.
In this review, we will explore whether It Works! is truly a legitimate MLM opportunity or if it operates more like a pyramid scheme in disguise. We’ll look at the costs involved, how the compensation plan works, and the experiences of those who have joined the program. By the end of this review, you’ll have a comprehensive understanding of what It Works! entails and whether it’s worth your time and investment.
Let’s dive in and uncover the truth about It Works!
Disclaimer: This It Works 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.
It Works MLM Review Overview
Product Name: It Works
Owner: Mark & Cindy Pentecost
Product Type: Skincare MLM company
Price: $99 joining fee, plus $20 for a website, plus $35 yearly membership fee
Best For: If you love their products
Pros
- Use Modern Marketing Strategies
- Positive Reviews
- Range of Products to Promote
- Discounts in First Month
- Charity
Cons
- Overpriced Products
- The “Loyal Client Program” Scam
- Expensive Start-up Costs
- 90% Of Recruiters Make No Money
- A Pyramid Scheme in Disguise
- Negative Reviews on BBB
Quick Summary
It Works! is a multi-level marketing company that has garnered attention for its health and wellness products, particularly its body wraps. Founded in 2001, the company promotes a wide range of items, including skincare products and nutritional supplements, marketed primarily through social media by its distributors. While It Works! positions itself as a legitimate business opportunity, there are significant concerns regarding its business model and the actual earnings of its distributors.
The company’s structure relies heavily on recruitment and maintaining monthly purchases to remain active, raising questions about its resemblance to a pyramid scheme. Many distributors face high start-up and ongoing costs, often finding it challenging to earn a profit. Despite some positive reviews and testimonials, the majority of distributors earn very little, with a significant portion failing to cover their expenses, which paints a rather bleak picture of the earning potential within this MLM.
Overall, while It Works! offers legitimate products and operates within legal boundaries, the financial viability for most distributors is questionable. The heavy emphasis on recruitment and the low average earnings suggest that potential participants should approach this opportunity with caution. Thorough research and a realistic understanding of the MLM business model are crucial before deciding to join It Works!.
Recommended? It Works! sounds like a great idea at first, but in reality, it is a complicated, expensive and risky MLM that is best for those who run it
Table of Contents
What Is It Works?
It Works! is a multi-level marketing (MLM) business based in Florida. It specializes in selling a range of skincare and nutritional products designed to enhance your overall health and appearance.
Founded by Mark and Cindy Pentecost in 2001, the company has grown significantly over the years, gaining a substantial following and a notable market presence.
Mark Pentecost, before starting It Works!, was a public school teacher in Michigan. His journey into the world of MLM began when he joined a few different multi-level marketing companies. Through these experiences, he realized that to achieve significant financial success, he would need to create his own company. This realization led to the birth of It Works!.
The company’s product line includes items such as body wraps, supplements, and skincare products, all marketed with the promise of improving the user’s health and beauty. It Works! representatives, also known as distributors, earn money through direct sales of these products and by recruiting new members to join their sales team.
So, is It Works! a legitimate MLM opportunity, or does it operate as a pyramid scheme? I will delve into this question in the next few sections of my It Works! MLM review. Stay tuned for a thorough analysis and factual insights.
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Is It Works a Pyramid Scheme?
First things first, It Works! is not a pyramid scheme since it markets actual products such as starter sets, body wraps, and weight-loss items. The company has run an effective social media campaign, which has diversified its sales beyond the flagship item known as the “crazy wrap thing.”
As you know, pyramid schemes are illegal. However, It Works! does possess certain characteristics that make it resemble a pyramid scheme to some. Before diving deeper, let’s clarify what a pyramid scheme is.
What Is a Pyramid Scheme?
According to Wikipedia, “A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales.” Pyramid schemes rely heavily on the recruitment of new members rather than the sale of actual products or services. You can check out a short video below to learn more.
So why do so many people assume that It Works! is a pyramid scheme?
It’s primarily because you can earn money by recruiting a significant number of individuals into the multi-level marketing (MLM) plan. This recruitment-focused income potential is the main reason some people label it as a pyramid scheme in disguise.
Is It Works a Pyramid Scheme in Disguise?
As highlighted in my review so far, It Works! is not a scam or a pyramid scheme. The company promises commissions based on sales made by you and those you recruit, but there are no direct payments just for signing up new members. This lack of direct recruitment payments indicates that there is no shady activity typically associated with pyramid schemes. To put it simply, the company sells real products for people to use.
In pyramid schemes, members are forced to recruit others to generate income. In contrast, a legitimate MLM like It Works! allows members to earn money through recruitment or selling physical products to consumers. This distinction is crucial in understanding why It Works! is not a pyramid scheme but a classic MLM.
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Is It Works a Scam or Legit MLM?
It Works! is not a scam. As previously mentioned, there are two specific reasons why it is a legitimate MLM:
- Product-Based Earnings: Multi-level marketing companies, including It Works!, pay their distributors primarily based on sales commissions. This means you can earn money by selling products, not just by recruiting new members.
- Effort and Work Required: While MLM companies can offer significant earning potential, it often requires substantial effort and work. Representatives must actively market and sell products, frequently using social media to attract potential customers and recruits.
However, it’s essential to understand that the MLM business model requires a considerable amount of effort. Many people do not realize the level of dedication needed to achieve noteworthy income, resulting in a high failure rate. Approximately 99% of individuals who join such companies do not succeed quickly.
This high failure rate and the significant effort required lead to the perception that It Works! might be a scam or a pyramid scheme. But as explained in my review, It Works! operates as a legitimate MLM company. It is important to understand the business model before diving in to ensure it aligns with your expectations and commitment level.
In conclusion, while It Works! is a legitimate MLM company, potential members should educate themselves thoroughly on how it works and what it takes to succeed in such a business model.
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How Does It Works MLM Work?
It Works! does not have brick-and-mortar stores offering its items. Instead, the products are sold online through their ‘Distributors,’ who use social media to advertise, personally use the items, and create videos displaying their results. This online-centric sales strategy leverages personal testimonials and social media influence to attract customers and recruits.
As with many MLM businesses, Distributors not only earn commissions by selling products but also by recruiting new members into the scheme. Each person they recruit becomes part of their downline, and the more people they recruit, the more money they can potentially earn.
As you can see from the compensation plan, It Works! operates like a typical MLM firm, where earnings are generated both from product sales and recruitment. However, something that sets It Works! apart from other MLM companies is its philanthropic wing, the It Works! Charity Foundation. This foundation supports various charitable causes, which adds a layer of credibility to the company, suggesting that it is not just focused on profit but also on giving back to the community.
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Turn Your Passion into Profits
What Products Does It Works! Sell?
One of the most popular products offered by It Works! is the Ultimate Body Applicator, a body wrap that claims to tighten, tone, firm, and reduce cellulite within 45 minutes. This product is the flagship item and has garnered significant attention.
Additionally, It Works! offers a range of other health and wellness products, including protein powders, hair supplements, and various other nutritional and skincare items. These products are marketed with the promise of enhancing health, wellness, and physical appearance.
Are It Works! Products Any Good?
While It Works! promotes the numerous health and fat-burning benefits of its products, it is crucial to note that none of the It Works! products have been evaluated or approved by the FDA. The company has not provided clinical evidence to substantiate the health claims it makes.
The FDA has issued warnings regarding body wraps in general, stating that there are no long-term contouring effects and that the practice can be potentially hazardous. The way body wraps work is by causing temporary water loss through sweating, while ingredients like alcohol and green tea extract can dry out the skin, giving a temporary taut appearance. However, this effect only lasts for a day or two and does not result in real fat loss. You cannot lose weight by simply applying a topical product, even if it is a “non-woven cloth wrap infused with a powerful, botanically-based cream formula.”
Another concern with It Works! products is the significant markup rate, meaning that any discount you receive as a distributor or ‘loyal customer’ might not be a genuine discount at all. This pricing strategy raises questions about the true value of the products.
I will delve more into the pricing and value of It Works! products later in my review. Stay tuned for a deeper analysis of whether these products live up to their promises and whether the business model is worth considering.
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How Much Does It Cost To Join It Works?
To get started with It Works!, you need to purchase the Business Builder Representative Package, which costs $99. This package includes a pack of wraps, small samples of the gel, and some brochures to help you get started. Once you’ve acquired this package, you will become a ‘Wrapreneur.’
As a Wrapreneur, you will also receive your own website, which functions as a collection of affiliate marketing links. Any product purchased through your webpage will contribute to your commissions. However, there is a monthly fee of $20 to maintain this website.
Are There Any Additional Costs After Joining It Works?
Yes, there are additional costs involved in maintaining your status and earning potential as an It Works! distributor:
- Recurring Yearly Fee: There is a $35 recurring yearly fee for being part of the It Works! network.
- Monthly Auto-Ship Requirement: To qualify for any commissions, you need to maintain a monthly auto-ship of 80 Personal Volume (PV) points, which equates to about $112 worth of products. This auto-ship ensures that you are actively purchasing and using the products you sell.
- Monthly Sales Requirement: You must sell 400 PV points worth of products each month, which totals approximately $560. If you do not meet this sales target, you will not receive commissions for the sales made in that month.
Adding up all these costs, the annual expense of running an It Works! business comes to at least $1,500. This is significant, especially considering that over 83% of Distributors earn less than this amount annually.
This brings us to an important point: to stay an active distributor and earn commissions, you need to continually invest in both the products and the required sales volume. This “pay to play” aspect is a key criterion often associated with pyramid schemes, raising concerns about the financial viability and ethical nature of the business model.
Understanding these costs and requirements is crucial before deciding to join It Works!. Evaluating whether you can meet these financial commitments and whether the potential earnings justify the investment is essential.
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How To Make Money With It Works?
As with most MLM companies, there are two primary ways you can make money from It Works!:
- Selling Products: Distributors earn commissions by selling It Works! products, such as body wraps, nutritional supplements, and skincare items.
- Recruiting New Members: Distributors can also make money by recruiting others to join the MLM program and earning commissions from their recruits’ sales.
The key factor distinguishing legal MLMs from illegal pyramid schemes is the focus on product sales. To avoid being classified as a pyramid scheme, a company should generate at least 70% of its revenue from retail sales to the general public rather than from recruitment.
With It Works!, many distributors actively display and promote the products online, often sharing before-and-after photos and testimonials to demonstrate the effectiveness of the products. While you can make some money through retail commissions and loyal customer commissions, significant earnings typically come from building a downline and earning team commissions. This residual income increases as you recruit more people into your team and they, in turn, make sales.
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It Works MLM Compensation Plan
There are seven ways to earn money with It Works!:
- Retail Commission: Earn a percentage of the sales from products you sell directly.
- Loyal Customer Commission: Earn 45% of all orders placed by your loyal customers.
- Fast Start Bonus: Earn $100 for enrolling a new distributor who completes the fast track program (they need to enroll two members into the MLM program).
- Uni-Level Management Bonus: Earn commissions when members in your downline make sales.
- Diamond Generation Bonus: Earn bonuses as you advance in rank and your team grows.
- Diamond Leadership Bonus: Receive $80-$150 when anyone in your downline enrolls someone in the fast track program.
- Leadership Bonuses: Enjoy incentive trips and other rewards for top-performing leaders.
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Can You Make Money With It Works?
To understand if distributors are making money with It Works!, we should look at their Income Disclosure Statement. According to the 2022 Income Disclosure Statement, a significant majority of distributors earn very little. In 2022, 85.94% of all distributors earned an average of $48 per month. Only 1.49% of distributors earned $2,009 a month or more, and less than 2% of active representatives earned a minimum wage equivalent.
These statistics indicate that over 98% of people in the business are earning less than minimum wage, highlighting the challenges of making a substantial income through It Works!. This information underscores the importance of understanding the business model and the level of effort required before joining.
For the most up-to-date information and details on the Income Disclosure Statement, you can visit the official It Works! Income Disclosure Statement page (It Works) (It Works) (It Works).
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Turn Your Passion into Profits
It Works MLM Review: Pros
As I have mentioned earlier in my review, It Works! is a legitimate business. Here are some key reasons why:
#1 They Use Modern Marketing Strategies
Many online marketing programs still rely on traditional methods such as “home parties” to showcase products and recruit new members. These methods have become increasingly ineffective as people grow more skeptical. Fortunately, It Works! focuses on modern marketing strategies, leveraging social media and providing distributors with ready-made websites to promote their products and business opportunity.
#2 Positive It Works! Reviews Online
One of the best ways to determine if It Works! is a scam or a legitimate opportunity is by reading online reviews. Many individuals share positive experiences, highlighting how they enjoy meeting new people and working remotely. However, it’s important to note that not everyone has a positive experience, and some people may encounter challenges in the business.
#3 Range of Products to Promote
It Works! offers a wide range of products for distributors to promote, including body wraps, nutritional supplements, and skincare items. This diversity allows affiliates to find a niche that works best for them, rather than being limited to selling just one type of product. The variety can help distributors reach a broader audience and potentially increase their sales.
#4 Discounts In The First Month
When you join the It Works! MLM, you receive unique discounts during the first month, which you can use to offer to others. This can help you kick-start your home business quickly. However, it’s important to be aware that the first month can be the hardest time to recruit others since you won’t have any personal success record to showcase.
#5 It Works! Charity
It Works! is committed to giving back through its charitable wing, the It Works! Charity Foundation. The foundation supports various causes and helps address global issues. This philanthropic effort demonstrates that the company is not solely focused on making money but also on making a positive impact on the world.
These factors contribute to the legitimacy of It Works! and provide potential distributors with various tools and opportunities to succeed in the MLM business.
It Works MLM Review: Cons
While It Works! is not a scam or a pyramid scheme, there are several significant drawbacks to this business model and the company itself:
#1 Overpriced Products
Elizabeth Tanzi, MD, a dermatologist, claims there is no real clinical evidence that supports body wraps drawing toxins out of your body. Even if they do work to some extent, you can find similar products on Amazon for significantly less money. This makes It Works! products appear overpriced compared to alternatives available in the market.
#2 The “Loyal Client Program” Scam
The Loyal Client Program seems attractive because it suggests there is no membership cost. However, participants are required to purchase products for three consecutive months. If you try to cancel the program before the three months are up, you are charged a $50 fee. This has led to numerous complaints, with some customers labeling It Works! a scam due to these unexpected charges.
#3 Expensive Start-Up Costs
While $99 to start a business might not seem exorbitant, the additional costs add up quickly. You need to pay $20 monthly for your website and around $100 monthly for products to remain active. This can quickly become a substantial financial burden, especially for new distributors.
#4 90% Of Recruiters Make No Money
According to the It Works! income disclosure statement, 90% of all distributors make almost no money. The average monthly earnings are $208, but when considering that some top earners make over $115,000 a month, it’s clear that the majority of distributors earn much less. Many individuals earning under $250 a month are likely losing money after accounting for expenses.
#5 It Works is a Pyramid Scheme in Disguise
While It Works! sells legitimate products and is technically not a pyramid scheme, the primary way to make significant income is by recruiting a large number of people. This recruitment-focused earnings structure is why many MLMs, including It Works!, are often seen as pyramid schemes in disguise. Without heavy recruitment, it’s challenging to make substantial earnings.
#6 Negative It Works Reviews on BBB
It Works! has received 484 complaints in the last three years on the Better Business Bureau (BBB) and holds a 2.2 out of 5 rating or a C+ score. Many complaints involve misleading information about their return policy, with customers claiming they can’t get a refund despite the company’s guarantee. These negative reviews and complaints contribute to the perception of It Works! being a scam by some customers.
These cons highlight the potential challenges and risks associated with joining It Works! as a distributor. Prospective members should carefully consider these factors and thoroughly research the company before making a commitment.
It Works MLM Review: Conclusion
Most MLMs closely resemble pyramid schemes, and It Works! is no different. With a significant emphasis on recruitment, costs to join, and the pressure to buy products to hit targets, It Works! appears to operate similarly to a pyramid scheme.
What I find most concerning is that many It Works! distributors do not make a profit, calling into question the legitimacy of this business model. While it is possible to become a millionaire through multi-level marketing, this typically only happens for those at the top of the pyramid. Statistics show that 99% of participants lose money in such systems, making multi-level marketing a less than ideal industry for most people seeking financial success.
Given these factors, I do not recommend joining It Works! or any other MLM scheme. The odds of achieving success are extremely low, and the financial risks are high.
Thank you for reading my It Works! review. What is your opinion? Do you think It Works! is a pyramid scheme or scam? Have you been a part of, or are you currently involved with, this business? Feel free to share your experiences and reviews in the comments section below!
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Thanks for reading my It Works! MLM Review! If you have any questions, or any experiences to share then please write them in the comments below. ;).
