Is Optavia a pyramid scheme? Well… Their business model is that of a MLM and is structured to put a good deal of increased exposure of recruitment, but does this amount to it being truly a pyramid scheme?
I'm guessing that you will be probably reading my post here because you're contacted by an Optavia coach and asked to become listed on in on the business opportunity, or even a friend or relative was. But anyways… It doesn't really matter your reason for reading this. In this short review I will be addressing the claims that Optavia may well be a pyramid scheme.
What Is Optavia?
Optavia is a fat loss MLM company that sells meal plans scientifically designed for weight loss, similar to Avisae, It Works, and Shaklee. They have a more holistic way of fat loss, not only focusing on the short-term, but rather having an even more long-term focus. The target is to adopt new healthy habits one at any given time in your lifetime so your changes you make stick.
That is an approach that I truly like. Lots of people lose weight and then gain it right back. They place in all of this work and effort losing the weight but then find yourself 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 are there to help guide and support people on their fat loss journeys. These coaches can be anyone. You're I both could join the business as an instructor and generate income doing so. Coaches can generate income by selling fat loss products as well as by recruiting and other coaches beneath them and earning from what they sell.
This recruitment part of everything is the reason individuals are calling a pyramid scheme. Yes… Coaches can generate income by recruiting in other coaches and etc, but this doesn't mean it is really a pyramid scheme. In order to get a better knowledge of what is going on here we first have to have a look at the compensation plan and see how these coaches are becoming compensated.
Pyramid Scheme?
Okay… So a MLM type business like this can be completely legitimate and depend on recruitment of other distributors, in this case “coaches”, to a great deal. What separates a legitimate MLM from in illegal pyramid scheme is simply how much they really depend on recruitment of distributors. Should they depend on recruitment similar to this a lot of and don't focus enough on selling products to the general public, that's where it begins to cross line and becoming an illegal pyramid scheme.
That said…there is certainly not enough here for me personally to state that this can be a pyramid scheme, BUT… I am a bit concerned when looking at their compensation plan. They do not really seem to possess any safeguards in position to help keep a pyramid scheme -like scenario from playing out.
In terms of I understand, you can become an instructor and to accomplish nothing but recruit in other coaches to move up the ranks and make a lot of money. Some MLM's that I have reviewed require you to sell a specific amount of products each month to the general public (non-distributors), while Optavia does not.
But anyways… Know this doesn't seem just like a pyramid scheme to me. Recruitment like this is completely legal and though it might not be the most trustworthy business, since many coaches are out there simply to recruit a number of people in and generate income, it's still legal.
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