It Works: Pyramid Scheme? Scam? Or Just MLM?
You probably have been told of some “sound too good to be true” tactics to get rich through the MLM from It Works!
They sounded convincing when they said you can get richer while becoming healthier and more well with the products they are offering didn’t they?
Then you start thinking, who wouldn’t want to stay healthy and wealthy at the same time? You sure do want to have that financial freedom and still enjoy a healthy lifestyle.
But then you also start to wonder if things could turn out the same for you if you join the community of It Works…
You then begin to doubt and think, is this a legit business to start with? What if it is a pyramid scheme cover-up?
Let’s dig deep into the hype of It Works! Allow us to present to you our unbiased review on this company that people everywhere are curious about.
You may also want to grab a good cup of coffee first and make yourself comfortable as we will be having quite a long discussion on this.
So the question still remains, is It Works! just a pyramid scheme?
To accurately answer these questions, we need to define first exactly how a business is flagged as a pyramid scheme.
Table of Contents
Can You Easily Spot A Pyramid Scheme?
A business is flagged as a pyramid scheme when its business model only focuses on recruiting a member who will participate in investing in the business, and will recruit another investor to join in the business, where the recruiter will be compensated by the company for enlisting a business partner.
When the primary goal is to just recruit, and not to move products, then you can easily conclude that that company is just a pyramid scheme, and will eventually disappear and take away the bulk of investments. This is illegal in the US and anywhere else in the world.
So many companies have emerged as a pyramid scheme, most are connected to MLM companies. A pyramid scheme usually disguises itself to be a legit MLM company, as there would be a product package to be purchased to be able to join the company.
However, if you know your math, you will see that the product you will receive only costs a little portion of the joining fee. This is another clear hint that you are on your way to getting involved in a pyramid scheme.
Business partners or recruiters from a pyramid scheme were trained to lure people to join the company by presenting the extreme business opportunity.
They tempt you to shell out a substantial amount of money to join the company, hoping to earn the 6-digit income they were promised to get if they recruit and grow their network.
Recruiters even use impressive pitches and testimonials, tempting people to even quit their jobs so they can focus on expanding their multi-level marketing business.
This is a typical pyramid scheme set up, where members, also called distributors, are trained to keep recruiting and inviting new distributors so there would be a constant flow of finances into the business.
In a nutshell, where there is no emphasis on product selling, then beware that this is a striking red flag that the company is a pyramid scheme.
If a company is flagged as a pyramid scheme, then it is ultimately a scam.
This brings us back to the question, is It Works! a pyramid scheme?
Or is it just one of those legit MLM companies?
Is It Works A Multi-Level Marketing Scheme?
We will directly answer this question with a strong NO. It is not a scheme.
It Works! is a multi-level marketing company that pays off a distributor each time they sell one of their products, and when the distributor convinced people to buy a starter kit.
Similar to many MLM companies, It Works’ compensation plan promises various ways to reward a distributor. They actually offer seven (7) ways to earn.
Just like most MLM companies, It Works encourages people in their company to keep recruiting.
The compensation plan lures people to keep inviting, as they give more income in the recruitment side than the selling part.
The more people are added to your network, the more income you can gain from this company.
Imagine the reward of a hundred dollar bucks for just inviting at least 2 new distributors. Sounds lucrative, huh?
You can encourage your friends and family members to join It Works, by promising them to earn the same $100 reward for just enlisting two new distributors as well.
The $100 reward is given on a weekly basis, so members are encouraged to recruit two new distributors on a weekly basis as well.
Consequently, the network will grow as more people are added on a weekly basis. This is a typical MLM business structure.
What Is It Works!?
It Works! claims to be a beauty and nutrition company with a mission to empower people to live the life of their dreams.
It Works! is known for its wrap thing and slimming tea line called Skinny Tea, which comes in two flavors: All Day Rose and Lemon flavors.
It Works! founder Mark Pentecost started the business in 1995. Mark and Cindy, his wife, created a strategy to earn an extra $500 monthly through this home-based MLM company.
In 2001, It Works! continued to pursue their mission when Mark Pentecost saw the need for a unique body wrap.
Mr. Pentecost knew that the biggest challenge in this kind of business, as well as in the global industry, is to be able to offer something that is not common and something unique that will captivate people.
With this thought in mind, Mark was able to create the It Works! Skinny Wrap, more popularly knows as the Ultimate Body Applicator.
It Works! is dedicated to continuous innovation, to be able to create and offer new products in the market. After a few years, the entity came out with first-rate supplements.
It Works introduced its new line of premium supplements in 2005. The innovative product resulted from Mr. Pentecost’s regular visit to his doctor.
In one of his visits, he was surprised when his doctor told him that the latter has no brand to recommend him when he asked for a good multi-vitamin to take regularly.
This response from his physician led him to dig deeper to find and create himself the best multi-vitamins to meet this particular basic need of people.
How Huge Is Their Community?
This MLM community has been bombarding famous social media platforms like Facebook and Instagram. Their social marketing campaigns are crushing everywhere and more people are getting exposed to their products.
Due to their aggressive social media campaigns, their community has way expanded from the United States, to Canada, Australia, UK, New Zealand and several European countries as well.
Success has been their stable culture and the entity has even made it to the Inc. 500 List in 2013. And in 2017, they have increased their workforce to over ten thousand people, with a net value of hundreds of millions of dollars.
How Cool Is Their Community?
It Works! is also known for its office culture, its 3:05 PM habit. Apparently, they established this culture of encouraging their employees at this appointed time of the day.
Have you heard that all their employees stop whatever they are doing in the office when the clock hand hits 3:05 PM? They have a tall order to stop and take time to give their colleagues a high five. Yeah, a high five! Simple but empowering for their community.
It Works! Rating On BBB
The Better Business Bureau (BBB) has given a C+ rating to It Works! The report shows there have been 680 complaints closed in the last 3 years, and 371 complaints closed in the last 12 months. For the Customer Review rating, BBB reflects an average of 453 customer reviews for It Works!
Do It Works! Products Really Work?
It Works! offers an extensive list of products for people to live a healthier life. You and your friends have probably seen their products flooding your news feed on Facebook.
They have products on beauty and personal care, nutrition, weight control, energy, and endurance. They also have products that are Keto and Vegan friendly.
Also, they have come up with apparel and accessories to complement the healthy lifestyle they are promoting through their products.
It Works! also ventured into body wraps by introducing their innovative product called Ultimate Body Applicator, which promises quick results with just a simple wrap thing.
Check out below the list of products under the different product categories of It Works!
Beauty and Personal Care Products
To add as one of your beauty regimens, you can choose from It Works!
Hydrating Facial Mask, It Works! Sleepy Tea, Defining Gel, Firming Neck Treatment, It Works! CollagenWorks, or Illuminating Facial Pads.
Exactly the perfect variants for one’s skin care. No one should neglect this responsibility to care for one’s skin.
This MLM company also has products for the more mature customers, such as the It Works! Protect Ageless Day Cream, It Works! Repair Ageless Night Cream, It Works! Radiance Hydrating Serum, It Works! Beauty Works Collection, It Works! Refresh Daily Cleansing Gel, Hair Skin Nails Beautifying Supplement, It Works! Immunity, and It Works! Cleanse.
Weight Control Products
For those who are maintaining or wanting to have a more fit figure, It Works! is offering the Slimming Gummies, ThermoFight Xx, It Works! Skinny Tea [All Day Rose or Lemon flavor], Skinny Brew, It Works! Carb Control, Advanced Formula Fat Fighter, and It Works! Best Fat Fuel.
Try one of them or all of them!
For your daily nutrition needs, try one of these products: It Works! Immunity, It Works! Super Reds on the Go, It Works! Probiotic, It Works! Just Celery, Hydrate+, and Confianza.
Keto and Vegan
Those who are on a strict diet program can benefit from It Works! products that are Keto and Vegan friendly.
It Works! has a keto diet product line such as Keto Coffee Pods Salted Caramel Flavor, It Works! Keto Coffee, It Works! Keto Tea, It Works! Just Celery, It Works! Super Reds on the Go and It Works! Super Greens on the Go [in Berry and Chocolate flavors].
Pick one or two products and add them to your regular diet menus.
Apparel and Accessories
Network marketing would not be complete without offering brand apparel and accessories. This is also one powerful tool to market the product, which is beneficial if you are aiming for direct sales.
This category completes the community’s goal to make you feel and look good while achieving that healthy lifestyle.
Which Body Wrap Fits Me Well?
It Works! created this intelligent flagship product that will greatly benefit those who are not disciplined enough to go on a very strict diet and consistent exercise routine.
Sure you have heard about this powerful body firming wrap that It Works! is offering. People can enjoy the trimming session as easy as pie. As the company says, It Works! will change your life!
This flagship product has reached ultimate popularity as people began seeing a lot of invites for a wrap party. This is something no other network marketing companies have thought of doing.
A wrap party? How genius could that be? They even came out with a new term “wrapreneurs,” combining the term “wrap” plus “entrepreneur.” This became a famous company culture for this community, where the sales representatives are called wrapreneurs.
Check out the It Works! Skinny Wrap and experience how you can begin to lose weight in as fast as 45 minutes!
It Works! Ultimate Body Applicator
Maybe you are one of those people who have tried different kinds of body wraps to achieve that sexy beach body.
It Works! Skinny Wrap can help you achieve your dream vital statistics. This innovative product from this MLM company is a body contouring wrap.
This flagship product is a non-woven fabric wrap containing a powerful, botanically-based formula that provides maximum tightening, toning, and firming results, in as fast as 45 minutes only.
This Ultimate Body Applicator also has hydrating effects for firmer, smoother, more youthful-looking skin. What’s more loved about this body wrap is that it reduces the appearance of skin slackening and cellulite.
Among the list of body wraps available in the market, this body wrap from It Works! is such a magical experience!
You just take it out from the pack, then put it on that part of your body where you think you need it most.
You can put the body wrap on your stomach, back, upper arms, sides, thighs, or lower legs. Then wait for 45 minutes to see the instant result.
With very promising lose weight products such as this, your friends and family would surely be convinced to attend a wrapreneur party you will soon host and they will immediately buy this It Works! Skinny Wrap. MLM companies with such effective products are not likely one of those pyramid schemes.
It Works! Fab Wrap To Wrap Up Your Body Wrap
The wrap thing craze does not end with It Works! Skinny Wrap. The way to lose weight more accurately is to utilize the assistance of this product called Fab Wrap. This product helps people in keeping the Skinny Wrap in place. It has the self-adhering property, and the breathable, hypoallergenic foam material to provide comfort and convenience.
For better toning, tightening, and firming experience with body wraps, check out this wrap and lose weight with ease.
Does ItWorks Actually Make You Money?
If you are considering joining this MLM company, you may wonder if this business is really capable of bringing in more bucks to your bank account.
You may also want to check out first which products will you be able to sell first to your family members.
Which product line will give you more money?
Should you focus on retail commission or on the networking side?
These are valid questions and there are hundreds of other things to consider as well before you finally give your Yes to the distributor who has been chasing you to join their network.
Let’s check out some things before you go back to that persistent distributor and actually join their community.
How Much Does It Cost For One To Join It Works?
Just like in any business, people need to invest something to get the ball rolling. People who do not have a huge capital to start a business can opt to join this MLM company. For only $99, one can purchase a starter kit, also known as Business Builder Kit, to become one of the distributors of It Works! For less than a hundred dollars, a member can already start making a genuine income from the business model of It Works!
Are There Other Costs To Pay After The Starter Kit?
Well, the Business Builder Kit is just the starting point. Doing this business will require distributors to shell out money to pay for their website fee and other expenses in hosting wrap parties.
Aside from these overhead expenses, distributors are required to buy a minimum of $80 worth of products on a monthly basis. This is the auto-ship program of the company.
Upon signing up on this auto-ship program, distributors will then be labeled as loyal customers and will be able to earn more money, aside from the retail income that people earn from selling the products.
Review: It Works Compensation Plan
There are seven ways to earn in doing this business. Let us review each part of It Works! compensation plan.
This compensation plan allows the distributors to earn up to 40% profit when they sell It Works! products. Since distributors are given the discounted wholesale price, they can earn significantly when they sell the products at retail price.
Loyal Customer Program
Income levels up at this point. This is when the company rewards the distributors with downlines who repeatedly purchase It Works! products on a monthly basis.
When the downline enlisted to the Loyal Customer Program, the company will pay the distributor who recruited this loyal customer up to 45% of his total purchases. This is computed on a monthly basis.
This offers free support to monitor and follow up with your customers. They call this team the Loyal Customer Support Team or Utopia. The Utopia agent will be the one to contact your customers to discuss more about the product, or if there is a new product to offer.
Fast Start Bonus
When distributors enroll a new member, then the company will pay out $100 to the sponsoring member. This is being paid weekly, which means that distributors can enlist as many new distributors on a weekly basis, to enjoy this unlimited cash bonus.
However, there’s a catch to watch out for. Distributors should first meet the qualifications for the Fast Start Bonus so they can enjoy earning this bonus.
To qualify, distributors just need to purchase the business builder kit and enroll at least two new distributors.
Distributors can earn up to 42% through 6 levels. A distributor can earn a 15% commission on the purchases of his 1st level downlines.
He can also earn a 10% commission on the purchases of his 2nd level downlines. Then for the 3rd to 5th levels, distributors can earn 5% each from the purchases done in these levels.
Lastly, distributors can earn an additional 2% on the purchases of their business partners down to the 6th level.
Diamond Generation Bonus
To qualify for this compensation, the distributors need to comply with two things: First is they should have reached the “Diamond” rank; Secondly, they should have produced a downline to reach the same diamond rank as well. The bonus is up to 10% and applies down to the 5th generation.
Diamond Leadership Bonus
This compensation plan allows distributors, with Diamond rank, to earn $80 to $150 each time any member from your network becomes a Fast Start Bonus qualified by simply acquiring 2 loyal customers.
Diamond distributors can earn this bonus from any member throughout his network, not necessarily his personal recruit.
The goal here is to reach certain management levels. The bigger you grow your network, the higher you climb up the different management levels. This is why a lot of people are utilizing Facebook to spread the brand and community.
It Works! boasts of the three characteristics of their network, and these are friendship, fun, and freedom. Qualified distributors can enjoy the perks of doing the business with Mark and Cindy Pentecost. They give out instant free trips, free use of their jet, helicopter, island, and many more.
Is This The Perfect Business Opportunity For Me?
After learning these things about It Works! review, the next step is to check if this business opportunity suits you perfectly.
We suggest that you’ll review your strengths. Which product will you be good at selling? Do you have a potential market? Do you have an existing network? Do you have what it takes to reach the Diamond rank?
Another tip we can give you is for you to think long-term. Before you hop in on square one, set up your plans on a long-term basis. Envision your future with It Works!
So, Can We Flag It Works! As One Of Those Pyramid Schemes?
According to the stories of this YouTuber who was once a distributor of It Works, it appears that the compensation plan of It Works seems to be heading to a thin line between pyramid schemes and an extreme MLM company.
The YouTuber boasts that she has earned much from recruiting new members to join It Works. She said it is in the recruiting that she was able to earn a lot of bucks, and not in the selling of products.
Based on the video narrative, the former It Works distributor emphasized that she can only make a huge amount of income if she will keep on recruiting people to join the company.
She also explained that the distributor needs to reach a certain level called “Diamond level” so he/she can earn more commissions.
The vlogger also mentioned that it is not easy to reach that level, as it requires the distributor to build a huge network to qualify as a diamond-ranking distributor.
The former member also kept emphasizing that members of this MLM company do not get richer from merely selling the product, but by recruiting people to grow their network. Hmmm……sounds like a red flag huh?
What About the Auto-Ship Program?
In the same video, the ex-member of It Works also mentioned that a distributor can only get their commissions from recruiting if he is enrolled in the auto-ship program of the company. This set-up means that It Works enlisted the member to buy a certain amount of products on a monthly basis.
As we have defined earlier, an MLM company can be considered a pyramid scheme when the distributors only earn through building their network, even without buying the products.
However, in the case of It Works, their members are enrolled in the auto-ship program to qualify for the commissions.
So since, we can say there is a movement of products on a monthly basis, and not just plain recruiting….they get to avoid the chance to be flagged as a pyramid scheme.