Is Optavia a pyramid scheme? Well… Their business model is that of a MLM and is structured to put much of focus on recruitment, but does this total it being fully a pyramid scheme?
I'm guessing that you are probably reading my post here because you are contacted by an Optavia coach and asked to become listed on in on the business enterprise opportunity, or possibly a friend or family member was. But anyways… It doesn't really matter your reason behind reading this. In this short review I will undoubtedly be addressing the claims that Optavia may very well be described as a pyramid scheme.
What Is Optavia?
Optavia is a weight reduction MLM company that sells meal plans scientifically designed for weight reduction, similar to Avisae, It Works, and Shaklee. They have a more holistic method of weight reduction, not just emphasizing the short-term, but instead having an even more long-term focus. The goal would be to adopt new healthy habits one at any given time in your lifetime so the changes you make stick.
This is an approach that I must say i like. Plenty of people lose weight and then gain it right back. They place in all of this work and effort losing the weight but end up regressing back for their old unhealthy habits. Optavia's goal is to help change those habits to healthier ones.
At the core of the Optavia business model are coaches which can be there to help guide and support people on the weight reduction journeys. These coaches may be anyone. You're I both could join the business enterprise as a coach and earn money doing so. Coaches can earn money by selling weight reduction products in addition to by recruiting and other coaches beneath them and earning from what they sell.
This recruitment element of everything is the reason why individuals are calling a pyramid scheme. Yes… Coaches can earn money by recruiting in other coaches and etc, but this doesn't mean it is a pyramid scheme. To be able to get a better comprehension of what is going on here we first need to have a look at the compensation plan and observe how these coaches are receiving compensated.
Pyramid Scheme?
Okay… So a MLM type business like this is completely legitimate and depend on recruitment of other distributors, in this instance “coaches”, to a good deal. What separates a legitimate MLM from in illegal pyramid scheme is how much they actually depend on recruitment of distributors. When they depend on recruitment like this an excessive amount of and do not focus enough on selling products to everyone, that's where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is not at all enough here for me personally to state that this is a pyramid scheme, BUT… I'm somewhat concerned when considering their compensation plan. They do not really seem to own any safeguards in place to help keep a pyramid scheme -like scenario from playing out.
As far as I am aware, you could become a coach and to complete nothing but recruit in other coaches to go up the ranks and make tons of money. Some MLM's that I have reviewed require you to sell a certain amount of products every month to everyone (non-distributors), while Optavia does not.
But anyways… Know this doesn't seem such as a pyramid scheme to me. Recruitment like that is completely legal and though it mightn't be probably the most trustworthy business, because so many coaches are available simply to recruit a lot of people in and earn money, it's still legal.
