Does Market America have the best opportunity with their unfranchise business model? Can you really make money and will it offer the lifestyle business that we all strive to create? If your thinking that you might want to join as a distributor but your not sure whether this is legit or a scam my review will give you some insight regarding this mlm business and what the pros and cons are.
- What Is Market America Unfranchise Business Opportunity
- What Are The Products
- How To Become A Market America Unfranchise Distributor
- How Much Money Can You Make
- Who Should Join Market America
- Reality Of The Market America Success Rate
- Market America Pros and Cons
- Market America BBB Rating & Complaints
- Final Thoughts
Company: Market America
Owner: JR and Loren Ridinger
Cost: $129 to $399 + monthly fee
What Is Market America Unfranchise Business Opportunity
If your looking into this opportunity it might be hard to figure out exactly what its about and how do you make money as a distributor.
First off this is a multi level marketing company so independent distributors will be selling products retail as well as recruiting others to form a team. You will have the opportunity to earn off of the sales your team produces.
As for the company, they are calling themselves a product broker. In other words they buy products from suppliers and then mark it up and resell to their customers.
Their customers being the independent distributors.
Another interesting tidbit is that they own shop.com which was purchased back in 2010.
What Are The Products
The company has a wide range of products that span just about every category including supplements, skincare, wellness, financial, internet marketing services.
One of their own brands called Isotonix is being promoted as “The World’s Most Advanced Nutraceuticals”.
These MLM’s love selling supplements with exaggerated claims because it is hard to prove or disprove if they work or not. Plus there are huge margins to be made with these types of products.
There is also a strong emphasis on selling Market America branded products because of the large margins. When you private label it gives the chance to sell at a higher price because a consumer can’t compare prices.
The company also owns shop.com which is shopping comparison search engine. Part of the Market America business opportunity is to refer customers and people to shop.com and earn commissions when they make a purchase.
How To Become A Market America Unfranchise Distributor
If your thinking of jumping into this opportunity then you can either find another independent distributor that will help you sign up or there is the option to sign up on the company website without a distributors help.
Once you register you will need to purchase a starter kit.
Market America Fast Start Kit Choices
As you can see above there are 4 starter kits and you will need to choose one to get started. The kits aren’t cheap at a cost of $399.
Usually these starter kits barely have enough products in them to really be a great selling tool when your doing a presentation, so you can expect to buy more shortly after getting started.
Along with the Market America start up cost of the kit, there will also be a quarterly requirement of $200 in retail sales that needs to be maintained.
So if you can’t generate enough sales to cover the requirement then you will need to pay it out of your own pocket. This is one of the reason that I am not a fan of mlm.
Sure you should be selling products to make money, but many of these mlm companies survive just on the mandatory purchasing requirements from their distributors. That is why I prefer affiliate marketing over mlm, so I don’t need to deal with autoships and mandatory purchases.
In order to run your Market America business your going to need access to the back office as well as a website to promote the opportunity to try and recruit others.
This will be an additional $20 per month.
Plus every year on the date that you joined Market America there will be the annual renewal fee of $99 that needs to be paid.
How Much Money Can You Make
Making money with Market America is done through retail sales and earnings from the sales of your downline. Retail sales will be between 30% to 50% depending on the products or services that you sell.
If your going to do retail sales then you buy at the wholesale price and then sell retail to your customers. An easier way though would be to get them on an monthly autoship program.
If your joining Market America then you should be planning on recruiting others and building a downline. This is really the only way to make any real money with this opportunity.
Its great to make 30% to 50% on the retail side, but its time consuming compared to getting commissions from a team that you built.
Once again the compensation is going to depend on what your downline is selling.
One thing to keep in mind is that your going to need a rather large downline to make money with this opportunity. So if your planning on trying to work the business part time every other weekend then you won’t make any money with it.
Binary Comp Plan
You need to build “2 legs” with this comp plan basically a right leg and left leg. The goal is to keep each leg balanced with the distributors that you recruit.
Whichever is the weaker leg is the one that your going to get paid from.
Who Should Join Market America
Typically only the top 3% of people in most mlm companies are the ones making the money. One of the biggest reasons is that they know how to sell and they are not afraid of going out of their comfort zone.
They can basically sell snow to an eskimo!
If you have an out going personality and your not afraid to get rejected or shunned on a regular basis then maybe you might be interested. If your not into hitting up your friends and relatives on a regular basis then there are other ways to make money you could get involved with.
Reality Of The Market America Success Rate
Unfortunately I could not find an up to date income disclosure showing what Market America distributors were earning.
But based on all the other mlm company reviews that I have done the company probably only has a small percentage of their reps making any money.
Typically its 3% or less.
Trying to analyze the success for Market America distributors doesn’t tell the whole story as well.
The income disclosures only show what distributors total earnings are but they don’t show the costs involved.
Market America Pros and Cons
This is a popular company in the mlm world so in order to really get an idea if the company and its products can work for you I will bring some of the good and bad to light.
Pros ( the good stuff )
- Lots of products to promote
- Brand name products
- Established company
Cons ( the not so good stuff )
- Need to recruit others
- Products are over priced
- Expensive starter kit and monthly fees
Market America BBB Rating & Complaints
After doing some research I came to a website that had many complaints about the company and their products. Some of which I have pasted below:
Product are unhealthy for the body, and very, very over priced compared to other wholesales.
If you try to do things a different way like just focus on the products, they will NOT support you and you will fail. I was active and had a number of people on both my left and right side, received 2 $300 checks but that was it.
I paid thousands of dollars a year, about $6000 on average, and made a few thousand every year, about $3000. This was WAY better than most. So I was losing twice as much as I was gaining but they kept saying “Fake it til you make it!”.
To be fair there were some people that were sticking up for the company although I didn’t see them mentioning if they were making money or not.
Just last year a lawsuit was filed against Market America by an Asian couple that claims the company was targeting Chinese immigrants to become distributors so that they would sell their products to friends and family in China.
In the courts filing its says “Over 90% of Market America distributors average net losses. No persons, except individual defendants and secretly placed individuals into the ‘representative’ tiers of the company, makes any money.”
So it will be interesting to see how this plays out. MLM’s straddle a fine line between being legitimate versus a pyramid scheme.
The same story plays out time and time again when it comes to mlm companies such as Market America. They need to overprice their products in order to be able to pay the commissions.
So selling Market America products for an independent distributor will be an uphill battle when your customers can go to the store and buy similar products for a lot less money.
There are some people that have spent as much as $35,000 to try and get this business to work, only to come away with little to show.
Personally I like being in control of what I can sell without having to pay a company hundreds per month. Autoships requiring a set amount of monthly purchases only benefits the company and essentially puts pressure on a consultant to sell to recoup their money.
That is why I have gone to using affiliate marketing as a way to earn income online. All that is needed is a computer and internet connection.
Now I work from home with a true lifestyle business without having to bug my friends and family to buy products and I owe it all to this training where I got started 2 years ago.
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