Shaklee Review (MLM or Pyramid Scheme Scam?)

Health and wellness has been the focus of most companies throughout the centuries even when we are still not born yet and it has been evolving as the years go by. The competition from this niche has already saturated the market that you can see them in almost every corner of the world. But there is a patron for all of these health and wellness companies, the Shaklee Corporation. Let’s see who they were and what they do nowadays.

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Shaklee was founded in 1956, but can be dated back to 1915 when chiropractor practitioner and nutritionist Forrest C. Shaklee Sr. invented the “Shaklee’s Vitalize Minerals”. Shaklee, together with his two sons then created Shaklee Corporation to redevelop nutritional supplements and tried to sell it to the market. Forrest Jr. manages the accounting part, Rayleigh for the marketing part, and their dad Forrest Sr. for the science part of the company. What a great team aren’t they?

They then started looking for contractors (and not permanent employees) to introduce and make their products public to the masses. These contractors were offered remunerative incentives that will be based on the result of their sales. Other than nutritional products, they also now  tackle the field of sports, beauty (which includes products for pregnant women) and in-home essentials like sanitizers, dishwashing soap and detergents. Proof that they’ve adapted to the market since establishment. 

In today’s generation, you can join Shaklee at the cost of $49.95 as the basic membership (or Distributor Welcome Kit as they call it). This includes your digital tools and 3 months of access to your personal website that can help you keep track of your business. You can still then choose to pay for the “Prove It Challenge” pack that’s worth $250 or so which contains different Shaklee products. This pack will be proven useful later on.

As part of their compensation plan, and the same as any other MLM out there, you can receive retail commissions. Percentages were not specified but you can earn the difference of the wholesale and retail price when you sell the product. With a wide variety of products, you can find different customers that have different needs to sell them to and make profit from it.

And now we have the Prove It Challenge bonus where you get $75 for each group of three “Prove It Challenge” pack you sold monthly. You can also use this pack instead of buying different items just to be able to maintain your rank as Director which requires you to buy a monthly PV of 100. Rank rewards are also up for claims, and there are 9 ranks in Shaklee for you to attain and get rewards from (affiliates to senior directors are excluded to these rewards).

They also have a personal group bonus that gives up to 20% bonus based on your PGV output which concerns you and your recruited customers and distributors. Residual commissions are earned through your downline in a unilevel structure (not binary). Infinity bonus of up to 8% beyond their 6 levels in the unilevel team. And there’s a matching bonus and presidential bonus to add to that.

There are several lawsuits filed concerning Shaklee. FTC ordered them to discontinue and pull out their product “Instant Protein” because of false advertising back in 1974. Then fined, again by FTC in 1976 due to retail price rigging. They were forcing their contractors to advertise their own suggested retail prices of their products. They sued former distributors for product defamation and interference in business relationships after they signed on to a rival company in 1978.

It was then discovered that back in 1973, Shaklee already knew that their alfalfa tablets were contaminated with salmonella bacteria but still continued production not until 1977 when they tried to treat it with a fumigant which was suspected to be carcinogenic. And a more recent one was in 2016, when they were accused of trademark infringement of their Healthprint product.

Shaklee is not a scam. Maybe you can sell their products since they have a wide variety to choose from but take note, these products are much more expensive than the products you can see and buy at local stores which offer the same if not better qualities and results.

50% of all MLM participants quit within one year, and it is either because they had a hard time selling the products or they’re having a hard time recruiting people to join which are the only ways to earn money in this kind of setup. You better start and think it over before joining such companies.

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About the author: If you want someone who will talk straight with you, respect your time, and show you a business that might actually work for you, you should watch this short video.