Welcome to my XanGo review!
Is XanGo a scam? Or are they a legitimate source of income?
These questions might be going in your head as you contemplate whether to invest money and effort into the company.
You might have heard of them from your friend that claims how amazing their products are. And then, they might have shown you their business opportunity as well.
If you are seeking answers, then you have come to the right place.
Read through the article as I attempt to help you make the conclusive decision whether you should even consider this company.
So once again, is XanGo a scam? Or are they legitimate?
Let’s begin…
XanGo Review
- Name: XanGo
- Website: xango.com (former site); zijainternational.com (current owner).
- Founder: Aaron Garrity, Joe Morton, Kent Wood, Gordon Morton, and Gary Hollister
- Price: Initial registration fee of $35.
- Recommended?: Never!
What is XanGo?
XanGo is an MLM (Multi-Level Marketing) that specializes in the health and wellness niche.
It was incepted in 2002 by five founding members that include Aaron Garrity, Joe Morton, Kent Wood, Gordon Morton, and Gary Hollister.
It is in existence for about two decades now, and the company has experienced a lot of dramas if you will.
Just recently, on May 6, 2017, to be exact, the company was acquired by another MLM company called Zija International. Like XanGo, Zija is also in the health and wellness niche.
I have also reviewed Zija International in the past—here is the link if you like to see the article.
Other interesting cases include the lawsuit in 2003 by Tahiti International, which accused XanGo of stealing the idea of Mangosteen products.
Other cases include their health claims and investors.
I am not here to discuss their products or company controversies any further.
My main focus here is to determine whether the company is the right investment. Or is XanGo a scam?
Let’s continue with the review…
The XanGo business opportunity
Complicated and almost incomprehensible compensation plans are the trademark of Multi-Level Marketing.
It appears that you may even need a finance expert to understand their convoluted compensation plan completely.
Most MLMs do this to confuse potential recruits from asking further queries intentionally. And to completely save their selves, they would just show how high you’d earn.
By doing so, it blinds recruits from seeing the flaws of such a business model.
An MLM compensation plan really works in two ways—
- Retail commissions – it is the income that’ based on retail sales.
- Recruitment – it is where the consultant has to recruit more people under their line to advance in ranking and earn a higher income.
XanGo has somehow made an effort to simplify its compensation plan. They have divided them into the following—
- Retail commissions
- PowerStart
- Unilevel
- Bonus pool
The business also currently rewards eleven ranks. The summary of rankings is as follows—
What are its income streams?
In this section, I’ll discuss each of XanGo’s income streams—
Retail commissions
This income is based on retail sales the consultant made from customers or his lower network.
However, the company did not mention the essential details of the commission like percentages, nor are there any additional mechanics.
All they said is that it is based on the difference between the retail cost and wholesale price.
PowerStart Commissions
The PowerStart Commissions is based on the initial orders that are placed within the first month of registration.
The consultant receives it for the first 1,000 sales volumes it was able to generate.
The commission is also based on whether the customer avails the autoship orders or not.
The summary is as follows—
- Basic PowerStart – it’s a 20% commissions on the first level. But for you to qualify, you need a 100 PV without the autoship. And 25% commission on the second level. But for you to qualify, you need a 200 PV with autoship.
- Plus PowerStart – it’s a 30% commissions on the first level. But for you to qualify, you need a 100 PV with autoship. And 15% commission on the second level. But for you to qualify, you need 200 PV with autoship.
The payout is provided every week.
Unilevel Commissions
Xango offers a monthly residual commission that pays a unilevel model of network marketing.
The consultant earns commissions, up-to nine levels deep. The commissions are based on retail sales, either that comes from personally recruited downline or retail customers.
The summary of the bonus is as follows—
The payout is provided monthly. But to qualify, the position or rankings must be maintained for at least three months.
Bonus Pool
The company rewards two types of income streams—500K Bonus Pool and Global Bonus Pool.
- 500K Bonus Pool – the bonus rewards consultants in the ranks of 500K Pool and above. The company set aside 2% of its worldwide profit and shares it with qualified consultants.
- Global Bonus Pool - the bonus rewards consultants in the ranks of 500K Pool and above. The company set aside 2% of its worldwide profit and shares it with qualified consultants.
How much will it cost me to join?
XanGo did not directly state how much the membership fee is, but I was able to find that it would cost you about $35.
And then, to improve your personal volume, you might spend at least $120 to $140 per month.
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Can you make a reliable income from XanGo?
Success in Multi-Level Marketing is extremely rare.
According to the Federal Trade Commission, people who join MLMs are more likely to incur losses than earn any profits, which is about 98% of the time.
This instance was detailed in Jon Taylor’s book, “Multi-Level Marketing Unmasked.”
It was further added that MLMs fail to meet expectations because of two things—
Capitalization
Have you heard of the term Garage Qualified?
It is a specific definition given to MLM consultants to describe how they tend to over-purchase company products for the sake of improving personal volume.
As a result, the consultant often runs out of money to fund the business. Eventually, they become inactive or quit altogether.
Recruitment
A significant factor if you want to advance in rankings and earn a higher income in the future is recruitment.
A new consultant may try to recruit their family member, friends, or several acquaintances first.
Even if they know the consultant, it is still no guarantee that they would invest in the business opportunity.
And persistently pushing the business opportunity may eventually lead to annoyance or even resentment.
Doing MLMs is more difficult if the person has no marketing background.
But it becomes extra challenging if they run out of people they know whom they could sell the business opportunity. And then, eventually tries to sell them to complete strangers.
As a result, they may end frustrated and become inactive and quit altogether.
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Is XanGo a scam?
XanGo is neither another pyramid scheme nor a scam. The business is a legitimate Multi-Level Marketing that sells health and wellness products.
However, some of you might argue that MLMs are in substance a pyramid scheme in disguise.
Although I agree to some extent, both are different in terms of legality. A pyramid scheme is technically legal because they offer something of value in exchange for your investment.
Therefore, the business looks like a direct-selling company on the outside.
On the other hand, a pyramid scheme is illegal because you don’t get anything in return. What you get is only a promise of high returns.
What I Don't Like About XanGo
Success is recruitment–based
You have to recruit and make sure that your recruits are productive as well to advance in rankings and earn a higher income.
Low success rate
As the FTC has stated, your chances of succeeding are only approximately 1%.
Not BBB accredited
Since being in the business for almost two decades, they are not BBB accredited.
Although it doesn’t necessarily mean that the business is fraudulent in any, it may affect the decision-making of potential recruits.
What I Like About XanGo
In the business for years
XanGo is in existence for a very long time now, which only means that the company is doing something right.
Final thoughts
I hope my review has provided you sufficient information in addressing the question—is XanGo a scam? Or can you rely on them for a sustainable source of income?
Although the business is technically legal, I don’t recommend the company or any MLMs for the matter.
If your desire is a more reliable source of income, then doing MLMs stints is apparently not the way to go.
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Thank you for your time and for reading my XanGo review!
I hope to see you next time!
Peace!
