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Is Plexus a Pyramid Scheme?

Plexus a Pyramid

Plexus is a multi-level marketing company that sells health and wellness products. However, there has been some controversy over whether Plexus operates as a pyramid scheme. 

This article will examine what Plexus is, whether it can be considered a pyramid scheme, reasons why people are leaving Plexus, and the safety of Plexus products.

What is Plexus?

Plexus is a multi-level marketing company founded in 2006 that sells health supplements, weight loss products, and personal care items. Their most popular products include the Plexus Slim weight loss drink, the Plexus BioCleanse detox supplement, and the Plexus Nerve pill for chronic pain. 

Plexus uses a multi-level marketing structure where distributors can earn commissions not only from their own sales, but from the sales of distributors they recruit. 

This allows for potentially unlimited levels of recruits and commissions. Over 500,000 people have joined Plexus as distributors. However, the company has faced accusations of operating like a pyramid scheme.

Is Plexus a Pyramid Scheme?

While Plexus does sell legitimate products, there are several red flags that indicate it may be a pyramid scheme:

  • Distributors earn more money from recruitment than product sales. Plexus emphasizes recruiting a “downline” of distributors underneath you.
  • There is a monthly quota to stay “active” and qualify for bonuses. This encourages inventory loading.
  • Most distributors lose money, with less than 1% making a profit.
  • The compensation plan is very complex and difficult to understand.
  • Plexus makes bold health claims that are often unproven or exaggerated.

While not an outright pyramid scheme, Plexus resembles one through its focus on endless recruitment over retail sales.

What is a Pyramid Scheme?

A pyramid scheme is a fraudulent business model that primarily makes money by recruiting an endless chain of new distributors. Little to no focus is placed on actual product sales. Recruits are encouraged to buy into the business and then recruit others below them. Money flows to those at the top while people further down the pyramid lose their investments.

Pyramid schemes eventually collapse when recruitment dies down. They are illegal in the U.S. and most countries. Some signs of a pyramid scheme:

– Emphasis on recruitment over product sales

– Paying to participate (large starter kits)

– Complex commission structure  

– Recruits required to buy products 

– Most money comes from recruitment, not product sales

– High turnover rate 

Why Are People Leaving Plexus?

In recent years, ambassadors are started leaving plexus and spoken out against the company. Here are some reasons why:

– Difficulty making money. Less than 1% of Plexus ambassadors turn a profit after expenses.

– Pressure to recruit. Bonuses are tied to building a downline, not selling products.  

– Saturated market. Too many ambassadors competing in the same areas.

– Complaints of poor customer service from the company. 

– Starter kits and monthly quotas are expensive.

– Health claims about the products are exaggerated.

– Preference for selling products over recruitment.

– Company denial that it is a pyramid scheme.

The endless focus on recruitment over retail sales has driven away many ambassadors hoping to simply earn commissions on products.

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Are Plexus Products Safe?

While Plexus products are marketed as natural health supplements, there are some safety concerns:

– Lack of research. Very little clinical data exists to back up product claims.

– Inaccurate health claims. Products are said to treat, cure or prevent diseases without proof.

– Some side effects reported. Stomach issues, headaches, insomnia, etc.

– Not evaluated by the FDA. As a supplement company, Plexus has little FDA oversight.

– Quality control issues. Some products have been found to contain contaminants or improper ingredients.

Plexus users should be cautious and consult a doctor, especially if pregnant, nursing or on medication. While some ingredients are natural, natural does not always mean safe. More research is needed on both the benefits and risks of taking Plexus products.

Conclusion

Plexus relies heavily on endless recruitment of new distributors and has many characteristics of a pyramid scheme. The majority of participants lose money, products are priced high, and retail sales are dwarfed by fees paid to the company. 

While Plexus does sell products, its compensation plan incentivizes focusing on recruitment over sales. Users should be wary of exaggerated health claims and understand the risks. For these reasons, Plexus resembles a legalized pyramid scheme more than a viable income opportunity for most people.

About the author

Jack Reuben Fletcher

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