Mannatech MLM Review: Pyramid Scheme or Scam?

Mannatech MLM Review: Pyramid Scheme or Scam?

Today we will be reviewing a company called Mannatech. Is Mannatech a pyramid scheme or scam? Find out in this Mannatech MLM review.

If you have not heard of Mannatech before, then you are not alone. I am positive that the majority of the population hasn’t heard of them either. No wonder, since Mannatech is quite an obscure company, just like any other MLM.If you are wondering how come there are people talking about Mannatech once you research it, then it is because these hunbots working for the MLM are the ones doing advertising for it.

To be honest, I know that you would’ve never heard of Mannatech your whole life until some hunbot managed to find their way to your inbox. Unsurprising, yet sad, that MLMs have now infiltrated social media. Seems like MLMs have both squeezed their way in to our social circles and now to our social media presence.

If you think they are being compensated to do all these work, then that is where you are wrong, in fact you are in for a ride today in this Mannatech MLM review.

Before we go further in this Mannatech MLM review, I will define two terms first: MLM and pyramid scheme.

MLM members make money by selling products and recruiting new members. In pyramid schemes, members could only make money by recruiting people. Pyramid schemes are illegal and banned by the FTC.

As a disclaimer, I am not affiliated with Mannatech in any way.

Hopefully this Mannatech MLM review can help you decide whether you want to sign up for the company or not.

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What is Mannatech?

Mannatech is a multi-level marketing company that sells wellness products. The company was founded in 1995, stemming from the scientific breakthrough from the research about aloe plants.

Mannatech MLM Review - Mannatech products

This is how the company launched their flagship product, Ambrotose Complex. From there, they have built a branded centered around innovative products supporting health, wellness, and beauty.

Mannatech MLM Review - Mannatech Ambrotose Complex

Feel free to watch this video to learn more about Ambrotose.

Mannatech’s motto is “Live a little better. Feel a lot healthier. Connect more often.” The company is currently based in Texas, United States.

How Do MLMs Work?

Welcome to the section where I talk about why MLMs are the worst, why they have no place in modern society, and why I think the FTC should just ban all of them.

MLMs are always being likened to pyramid schemes, because of how recruiting is so prevalent in their business model, to the point that it is more encouraged to recruit than to sell products.

Most of the time, MLMs use cult-like tactics to keep their members in line. Let me mention some examples.

First off, MLMs often parade their successful members in a pedestal. There are always instances like seminars and talks where the successful members speak about their experiences and how they attained their so-called success. Members are encouraged to attend this in order to get inspired.

Second, MLMs dictate how you should spend your money. If this is your first time hearing about an MLM, then I guess I should explain this. MLMs often set monthly quotas that their members have to meet, or else they’ll be kicked out of the company. This is usually a set number of products that their members have to buy.

Last but not the least, MLMs often regard themselves as your savior. It makes you depend on them as often as you can. That is why they encourage you to recruit people, just like how churches recruit their members. They want their members to bring more people in, in exchange of bonuses and benefits. Also, since their business model is unsustainable, you have no choice but to fulfill their demands to continue with your business venture.

You cannot say anything negative against the owners, and you cannot criticize anything they say. Definitely sounds like a cult to me.

MLMs are a big waste of time and money, and have no place in modern society.

Is Mannatech a Pyramid Scheme?

Since Mannatech members earn money both by selling services and recruiting new members, then it is safe to say that Mannatech is not a pyramid scheme.

However, since Mannatech is still an MLM, do not expect to make money if you have no plans on recruiting people. Recruiting will earn you significantly more money than actual product selling, and is more encouraged.

This just makes Mannatech look like a pyramid scheme in disguise, doesn’t it?

Pyramid scheme vs Multi-level marketing

Like Alphay, Revital U, and Sunrider, Mannatech is not a pyramid scheme.

Is Mannatech a Scam?

No, Mannatech is not a scam.

However, before you jump into conclusions and want to join it right away, then I advise against that action. A company not being a scam is just the most basic thing, to be honest.

Before you decide to make a decision that you will not regret, then I suggest searching for third-party reviews, like this Mannatech MLM review. We are not affiliated with Mannatech, so you can be confident that the review you are reading right now is not biased, and we only show factual truths backed by our grueling hours of researching the company.

You can also look for forums that actively discuss MLMs. There are quite a lot of them, to be honest. A lot of these forums have a lot of active users, so you have people to ask for valuable insights regarding MLMs.

There are also a lot of ex-member testimonies that you can find. They could either be videos, vlogs, or blog posts. Either way, the people who made them have worked in MLMs themselves, so they have valuable information about how the company operates, and how they treat their members.

Either way, I suggest doing a thorough research before making a decision. Making the wrong move will just result in you losing precious time and money. You would not want that, right?

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How to Make Money from Mannatech

Since Alphay is an MLM, there are only two ways to make money with the company. and these are:

  1. Selling products
  2. Recruiting members

There are bonuses and benefits available to the “most hard-working” members in Mannatech. Well, I am sure that all members who sign up for them are hard-working, so how do they pick these people?

Simple. To be categorized as “hard-working” in Mannatech, or in any MLM in general, you need to build a downline. That is where the recruiting part comes in.

Recruiting is easier said than done. It is not as easy as these MLMs make them out to be. They require charisma and people skills, and not all people have that.

However, if you want the passive income that Mannatech advertises, then you have no choice but to do it. It is the only way because having a downline earns you commissions from the products they buy. The more people under you, the more chances of earning.

Remember that the MLM business model is not sustainable, so as time goes by, you will run out of people to recruit.

MLMs do not really care about how many products you sell. What they care about is how many you buy and how many people you can bring in.

How to Join Mannatech

You can join Mannatech by clicking this link.

It is a pretty straightforward process, to be honest. All you have to do is follow the instructions.

You need to pay $49.99 to start your business. That fee covers your startup fee, and it includes the following perks:

  • Turnkey business with global distribution
  • 90 days of free premium business tools
  • Earn income via commissions, bonuses and incentives
  • 10% Discount Off Retail Pricing
  • Earn up to 20% in Loyalty Points
  • Special value bundles
  • Eligible for Automatic Orders
  • 180 Day Money Back Guarantee
  • Join a global community of independent Associates for support, events and fun
  • World class customer support

It is quite low compared to most MLMs that charge hundreds or even thousands of dollars just to sign up. I guess this is a pretty good deal, because with only a small investment, you do not have to fear that you will lose a lot of money. This also gives you enough time to learn the business without the pressure of making your money back straight away.

Mannatech Products

Mannatech MLM Review - Mannatech products 2

Mannatech’s products are divided in the following categories:

  • Integrative Health
  • Targeted Health
  • Essentials
  • Weight + Fitness
  • Skincare

How Much Can You Make?

Here is Mannatech’s income disclosure statement.

Mannatech MLM Review - Mannatech income disclosure

It seems like majority of the company does not make any money. Observe the average income in the rightmost corner. Also, there are people who actually made less than $100 in their one year stay in the company. That does not seem promising, yet very unsurprising.

That is just how an MLM is. They parade success when not even half of their company makes any money.

Things I Like in Mannatech

Established Company

Mannatech was launched in 1995, and they still operate to this day. That is pretty impressive for an MLM company, seeing that the lifespan of an MLM is typically 1 to 3 years only. It is already quite lucky to reach 3 years, by how unsustainable the business model is.

In Mannatech’s case, I guess they are being managed properly. Judging from how long they have been in the business, I guess they have also made a loyal customer base by now.

Things I Dislike in Mannatech

Legal Issues

This reason might be the main reason why people are not interested to make business with Mannatech. Mannatech has been through quite a lot of legal trouble.

In 2005, a class-action lawsuit was filed against Mannatech for violating the Securities Exchange Act. The year after that, in 2006, a U.K. general practitioner was found to have abused her power for illegally promoting Mannatech’s products as a treatment for diseases and medical conditions. Again, in 2007, Mannatech was investigated for teaching its recruits to target vulnerable people desperate for cures to their illnesses.

In 2014, Ben Carson, a politician was under fire for claiming that Mannatech products were the reason why his cancer symptoms disappeared. Also, in 2017, Mannatech received a warning from the FDA for marketing their products as medicinal.

That is quite a lot of issues that could be found with a simple Google search. If your customers become aware of them, they will surely not buy from you anymore.

Expensive Products

This is the main thing that drives customers away from Mannatech. Mostly, people who get interested with Mannatech are customers, not potential members. Once they compare prices with bigger and more well-known brands, they turn to those instead.

Remember that people value their money and are not willing to pay for products that they could get cheaper elsewhere. Also, I do not get this pricing at all, seeing at how obscure Mannatech already is. Are they purposely driving customers away? Who knows.

Saturated Market

Mannatech is your typical health and wellness company that does not stand out whatsoever. The problem with this is there are already a lot of companies selling the same stuff as they do, and with Mannatech being obscure, those brands are being chosen by more people.

People rarely try out new things, especially if they already have trusted brands where they buy from regularly. This is an obstacle that you have to overcome if you want to join Mannatech.

It is an MLM

This is an MLM, so it means that a lot of people definitely failed in this venture. In fact, 99% of people who join MLMs fail to make money, and they do not even earn back their initial investment.

Mannatech Compensation Plan

You can view and access Mannatech’s compensation plan by clicking this link.

The ways to get paid with Mannatech are as follows:

Retail Profit

10% of the costs of your product sales are paid to you by Mannatech.

Member Commission

These are commissions you get from getting people to sign up for Mannatech.

Direct Bonus

This bonus is obtained from the sale of starter packs to your recruited members.

Team Bonus

You can get this $100 bonus when you build a downline with six members.

Team Development Bonus

You get this bonus by helping your downline members rank up.

Personal Power Bonus

This is awarded to those who reach the rank of Premium/All-Star Associate or above, and have accumulated 6,000 Pack Qualifying Credits (PQC).

Fast Start Bonus

If you earn the Personal Power Bonus within your first three months in the company, you get a $500 bonus.

Matching Power Bonus

When any of your downline earns the Personal Power Bonus, you also get $500.

Matching Fast Start Bonus

When any of your downline earns the Fast Start Bonus, you also get $500.

Unilateral Bonus

To get this bonus, you must 50 QV within the specified time.

Leadership and Generational Bonuses

This is extra unilateral commission levels for those who reach the ranks of Regional Director and above.

Leadership Development Bonus

Once you reach the rank of National Director (ND) or higher, you earn $100 per ND in your downline.

Leg Star Bonus

This is paid out for every sale of every Premium (All-Star) and Premium Renewal Pack.

Presidential Development Bonus

This is paid from 5% of total company sales, and can be obtained by reaching the Presidential Director Rank.

Global Volume Bonus

This is intended to cover travel costs and business development for those in the Presidential Director rank.

Auto Order Bonus

This is paid to those who have any member of their downline sign up for the auto order arrangement.

Incentives

These are other bonuses including trips, special rewards, and attendance to conferences.

You can also watch this video to learn more about Mannatech’s compensation plan.

10 Shocking MLM Statistics That You Need To Know!

MLM stats

  • Almost 99% participants of all multi-level marketing companies lose money, according to the FTC.
  • There are 38% more chances of you profiting from your own any kind of small business than joining these MLMs.
  • Success rate of an online business, which will give you financial and time freedom, is 20% more than joining MLMs for making money.
  • The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from MLMs.
  • According to the AARP foundation, 47% distributors of all MLMs lose their money. Apart from this, 27% do not make a single penny.
  • In the remaining 26% that actually make money, 53% of them make less than $5000/year.
  • 39% of those 53%, who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
  • Forget about building a long term business with MLMs, because 50% of all MLMs participants quit within one year.
  • 75% people that joined MLMs say that they will never again join any kind of MLM.
  • A poll was conducted in 2018 among 1050 MLM distributors and it was concluded that most of them made 70 cents an hour and 20% of them did not make a sale. 60% of them made less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their MLM involvements.

SOURCES:

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Final Verdict – Mannatech

Before I end this Mannatech MLM review, I would like to share a few more insights that could help you.

I have already reviewed quite a lot of MLMs in the past, and even if every MLM sells different products, they are all the same to me. They work the same way, and all are equally as guilty of operating like a pyramid scheme in my eyes.

Sure, Mannatech could be quite tempting to join judging from how many benefits they offer, but just look at the income disclosure statement again. Those people put their trust in a company that is willing to pay them a lot of money for their hard work, but for what? For less than $100 a year.

Also, just take note of how the compensation plan mentions a lot about your downline and how much products you need to buy. They mention it many times, and you can earn a lot of bonuses from them. But they are missing the plot here.

From my observation, they rarely mentioning anything about selling to people at all. Isn’t a business made to sell products to customers?

Well, seems like they already have their loyal customers – their members. The company is making money at the cost of the financial ruin of the members that are trying their best to stay afloat.

That’s it for my Mannatech MLM review. Hopefully this Mannatech MLM review helps with your decision.

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