Shaklee Pyramid Scheme Review: Why It's Kind Of Sketchy...
If you are here because you are curious to know more about Shaklee after being sales talked to by a friend or relative, I would like to commend you for doing the research before making a decision.
We’re going to review Shaklee Corp. to decide if it really is the best multi-level marketing (MLM) course out there.
We’ll talk about whether MLM is the right online business for you.
At the end, I’ll answer some of the most frequently asked questions regarding Shaklee Corp. and MLMs in general.
And most important, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off MLMs for good because it uses some of the same skills but in a much more powerful and profitable way!
Check Out This Simple Way To Run A Digital Real Estate Empire Online
This is so simple, it should be illegal.
Table of Contents
What Is Shaklee?
Shaklee Corporation is a leading manufacturer and distributor of nutrition supplements, weight management products, beauty products, and household products among MLM companies. Shaklee products are largely developed in-house and sold by teams of independent distributors in the United States country and around the world through a multi-level marketing system.
In recent years, Shaklee distributors have started to set up websites, allowing customers to buy Shaklee products over the Internet.
In 1915, Forrest C. Shaklee (1894–1985), an American chiropractor and nutritionist based in Iowa and later Oakland, California, created the first vitamin labeled “Shaklee‘s Vitalized Minerals” in the United States. Shaklee and his two sons, Forrest Jr., and Raleigh, founded the Shaklee Corporation in 1956 to manufacture food supplements.
Forrest Jr. handled accounting and managed the day-to-day operations of the company, while Raleigh, a former insurance salesman, was in charge of marketing operations. Their father was in charge of research and development.
The first product of the company was a protein-lecithin supplement called Pro-Lecin Nibblers, which was created by Dr. Shaklee himself. Herb-lax, a herbal laxative, was added later in 1956. Vita Lea, a multivitamin, multimineral supplement in tablet form, was introduced the following year and quickly became their flagship product and one of the mainstays of the company.
Rather than hiring permanent salespeople, the company decided to hire independent contractors from the start and offer them a series of lucrative incentives tied to the number of sales they generated. It was an unstructured system that required highly self-motivated participants, according to one loyal Shaklee saleswoman.
Shaklee experienced phenomenal growth in the 1970s. By the end of the decade, annual sales had risen from $20 million to more than $300 million. The Forrest C. Shaklee Research Center, which opened in Hayward, California in 1971, was the first new research facility of the company. In 1972, the multi-level marketing company adopted its current name and went public and was listed on the New York Stock Exchange the following year.
The company moved its headquarters to a cutting-edge skyscraper in the San Francisco Financial District in 1980.
Shaklee was named to the Fortune 500 list in 1982.
The company began diversifying in November 1986, when it paid $123 million to RJR Nabisco for the Bear Creek Corporation, a direct marketing company best known for its Harry and David Fruit-of-the-Month Club operation.
Shaklee sold 78 percent of its stake in Shaklee Japan to Yamanouchi Pharmaceutical Company for $350 million in February 1989, while keeping its licensing agreement and collecting royalties from the Japanese operations.
Yamanouchi sold Shaklee Corporation for $310 million in April 2004 to American multi-millionaire Roger Barnett, managing partner of Activated Holdings LLC and a Wolfson family member. Bear Creek and the Harry and David line were sold to Wasserstein Perella & Co. for $260 million.
Roger Barnett has remained Chairman and CEO of Shaklee Corporation to this day.
Are Shaklee Products Manufactured In The United States?
Shaklee manufactures their own products in the United States of America.
What Are The Shaklee Products?
This company offers a wide range of products that are divided into five categories:
- Under this category, they have:
- Nutrition Regimens
- Vitamins (Vitamins for Women, Vitamins for Men, Vita-Lea Vitamins, Life-strip, etc…)
- New Life Shake product line
- All Protein Shakes
- Prenatal Nutrition supplements.
Healthy Weight Products
Some of the weight loss products under this category are Weight Loss Kits that come in 4 options, Weight Loss Shakes (Plant Protein Weight Loss Shake, Soy Protein Weight Loss Shake, and Whey Smoothee), Meal In-A-Bar & Snacks, Energizing Tea, and Metabolic Boost.
Products under this category are: Anti-Aging Collection, Hydrating Collection, Personalized Regimen, Perfecting Makeup, Accessories (BB Cream Applicator Brush, Mesh Carry-all Bag, Cosmetics Wedge, etc…)
- Performance Packs (Endurance Pack, Fitness Pack)
- Build, Energize (Zero Calorie Energy Drink and Energy Chews)
- Hydrate (Low-Calorie Electrolyte Drink, Endurance Electrolyte Drink)
- Recovery (PM Recovery Complex)
Green Home Products
These are comprised of household products such as (but not limited to):
- Basic H2 Biodegradable Cleaner
- Moisturizing Hand Sanitizer
- Hand Wash Concentrate
- Hand Dish Wash Liquid Concentrate
- Fresh Laundry Concentrate
What Health Issues Are Being Targeted By Shaklee Products?
Shaklee has a wide range of nutrition products to address many kinds of health issues. Below are a list of health issues that their products target:
- Blood Sugar
- Bone & Joint
- Cleanse & Detox
- Digestive Health
- Heart Health
- Men’s Health
- Stress & Mood
- Women’s Health
Shaklee Review: Are Shaklee Products Good?
Many people who have used and tested the Shaklee product line agree that they are not only effective but also environmentally friendly.
Shaklee emphasizes that their products will not only benefit individuals but will also aid in the promotion of a healthier planet.
Their household cleaning products, for example, contain no chemicals and are therefore effective, gentle, and odorless. Many people who have tried Shaklee products have been so impressed with the results that they have switched completely to Shaklee.
Can Customers Purchase Shaklee Products On Amazon?
You’d think that as an MLM company, you’d only be able to purchase products from their Partner Distributors or their own website. Regrettably, this isn’t the case. Many of their products are available for purchase on Amazon.
Their prices at this online retail store are much cheaper than if you buy them directly from the company or distributor, but the downside of buying them here is that they will not be covered by the Shaklee Guarantee.
This means that Shaklee will only issue refunds if the products are purchased directly from the company.
Shaklee Review: Is Shaklee A Reputable MLM Business? Or Is It A Scam?
Nutrition supplements and nutritions MLMs are almost always shady, but Shaklee products are among the most well-known and trusted MLMs in the industry. They’ve made a deal with NASA (they created Astroade, a rehydration product for astronauts). That’s as legitimate as it gets.
They also have a reputation for being one of the greenest, most environmentally conscious nutrition and supplement MLM companies around, and with good reason. Shaklee was the world’s first company to be certified as Climate Neutral. They were the first company to formally offset its own carbon footprint, making them carbon neutral, and they’ve won numerous awards for environmentally friendly business practices and green design.
It is entirely possible to build a profitable, successful MLM business. But, when it comes to building a business, you have plenty of options. My #1 pick proves this. And unlike Shaklee Corp., it actually provides real proof of real success from real people as recently as a few days ago.
And even if you’re dead set on becoming an [course profession], you’ve got way better options than Shaklee.
Keep in mind, I don’t get paid to promote any of the programs I review. I personally think MLM is a great business model, but you could end up leaving way too much money on the table.
Shaklee Review: Is Shaklee an MLM or a Pyramid Scheme?
Multilevel marketing has an unpleasant odor of hucksterism for some people who have been turned off by a story about a get-rich-quick scam and pyramid scheme.
Multilevel marketing, as practiced by Shaklee, entails a network of independent salespeople selling directly to customers, often in their homes. There are no retail locations that are set in stone. Salespeople are paid commissions, as well as individual and group bonuses on both their own product sales and those made by salespeople they recruit.
Pyramid schemes, on the other hand, which are frequently a scam, promise payments solely for bringing in new recruits rather than actually selling products. In this regard, Shaklee is definitely not a pyramid scam.
Multilevel marketing, also known as direct sales, is a legitimate strategy, according to analysts, because it allows MLM companies to avoid the costs of storefronts, salaried salespeople, and advertising while leveraging the power of anecdotal testimonials and devoted distributors who work entirely on commission.
“As a finance guy, you can’t help but love the direct-selling business model. It’s a very low capital investment and You have a sales force that has been outsourced. You don’t need to put a lot of money into marketing your product. Direct selling has excellent gross margins, with sales gross margins of around 80%. They give the distributor roughly half of that as a sales commission, leaving them with 40%. That’s a significant margin.”
-Scott Van Winkle, managing director of Canaccord Adams, a Canadian investment bank that counts direct sellers Herbalife and Usana Health Sciences among its clients.
Are There Any Lawsuits Involving Shaklee?
A series of lawsuits have been filed against this MLM company, which we consider to be an immediate red flag.
Shaklee agreed in 1974 to stop marketing its product “Instant Protein” as appropriate for infants and to stop misrepresenting the amount of protein in “Instant Protein” in response to a Federal Trade Commission order.
In 1976, the FTC fined Shaklee for “requiring, coercing, threatening, or otherwise exerting pressure” on its distributors to keep or advertise suggested retail prices.
After signing on with a rival company in 1978, former distributors were sued by Shaklee for defaming their products and interfering with business relationships. Shaklee won the lawsuit in 1981, but the judgment was inadequate to pay the legal fees of the MLM company.
In that lawsuit, Shaklee was discovered to have learned that their alfalfa tablets were tainted with salmonella bacteria in 1973, but didn’t stop selling them until 1977, after trying to treat the alfalfa with a fumigant that was suspected of being carcinogenic.
How Can I Join Shaklee?
There are several different ways for you to enjoy the benefits of Shaklee. You can be a simple consumer of their products or choose to create your own home office and become a Distributor. You make the decision on what level you would like to participate.
Become A Member
As a Member, you unlock access to Loyalty Rewards. With Loyalty Rewards, you earn free products and other rewards.
Perks of the Loyalty Rewards
- First access to new products and promotions.
- Referral rewards. When you share with a friend, both of you will receive $10 off on any order of $100+.
- Free shipping on orders of $150+.
- Order Flexibility. You can change, cancel, or add to your order at any time.
How to be a Member
- Spend $150 on any product(s) and instantly qualify for a free Membership for free.
- Pay $19.95 for Membership fee.
- Purchase $60 worth of a personalized supplement plan and instantly become a Member with free Membership free.
Become A Distributor
Shaklee Distributors have the opportunity to sell Shaklee products, earn bonuses, and recruit others to join Shaklee.
Steps To Become A Distributor
A Starter Kit is the best way to get your Shaklee business up and running quickly. All Shaklee starter kits are designed to teach you how to earn money, get to know the products, and start your own business. Choose one that is best for your health, goals, and budget as the first step.
Starter Kit Options
Meology Prove It Starter Kit - $159 + $49.95 Starter Kit ($365 Value)
Includes Meology personalized supplement plan created just for YOU, your choice of 2 Life Shake canisters, a free 7-Day Healthy Cleanse, and essential business tools.
Prove It Starter Kit - $159 + $49.85 Starter Kit ($340 Value)
Includes: Vitalizer supplement strip, your choice of 2 Life Shake canisters, a free 7-Day Healthy Cleanse, and all our essential business tools.
Starter Kit - $49.95 ($82 Value)
Includes: The essential business tools: Personal Website (PWS) to get selling, mobile apps to manage your business, samples to share with family, and support and training to get you started quickly.
Can I Make Money With The Shaklee Compensation Plan?
Yes, you can make money in the Company Compensation Plan. Product sales pay distributors anywhere from 16 percent to 36 percent.
The downline commission rate ranges from 12 to 20%. This is significantly higher than many other MLM compensation plans. Shaklee also offers some incentives, such as a $100 bonus for selling a specific package that is paid out weekly.
Additional benefits are available based on the point system of the company for ranking its distributors.
But there’s a lot that comes along with Network that many people struggle with.
In fact, check out our Top 5 Reason Why Network Marketers Fail.
Now, don’t get me wrong…
You can certainly make money with MLM, but if you’re gonna put in the amount of grueling work to become a Shaklee distributor (which, trust me, isn’t easy), you might as well bring in some REAL money.
The program that helped skyrocket my online business to $40,000+ per month teaches some of the same direct selling skills but shows you how to monetize them in a much, MUCH more profitable way.
Shaklee Review: Customer Comments In Amazon Page
Here are some product reviews of Shaklee customers who made verified purchases of the Shaklee Alfalfa Complex. These purchases were verified by Amazon and not by me.
Shaklee Alfalfa Tablets are my favorite item. They’re smoother and easier to swallow because they’re thinner and polished. I use them to help with allergies. To help control my allergy symptoms, I take 4 in the morning and 5 at night with no side effects. They also aid in the cleansing of your blood and the maintenance of your joints. My checkup and blood work came out good. I’ve been taking these for about 20 years and enjoy the benefits they provide.
People, I have the worst seasonal allergies you’ve ever heard of. These were given to me by a friend. I took two of them. I had NO allergies once they’d dissolved in my system! THERE ARE NO ALLERGIES. My 5 acres have been mowed and weeded. The bottom line, it’s a miracle in a bottle. God, thank you for this! I’m finally back in the real world!
What Is Our Top Recommendation For Making Money Online In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Shaklee falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this!
Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this digital real estate program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
But as it is with Shaklee… You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the Shaklee group in our opinion. This group is much more active.
Unlike Shaklee, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Shaklee, more people have been able to walk away from their 9-5 job as well.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…