It Works is an MLM company with an impressive amount of distributors and a staggering revenue of 1.2 billion in the three years. Customer base is vast: one million of recurring clients.
It Works founder: CEO Mark Pentecost
Founded in 2001
Products: skincare products and nutritional supplements, the flagship product Ultimate Body Applicator
Type of business: multi-level marketing
The ability to earn money: very low
It Works history
The founder, CEO Mark Pentecost was a teacher in Michigan. Looking for extra cash, he joined a few direct sales companies. Here he worked with billionaire Kenny Trout. I guess that the right company inspired him. Mark was able to recognize the product, which helped to start a successful business.
One entrepreneur introduced to a body wrap that created the look of the fast slimming. The future billionaire understands that it is a promising product, especially when his wife and daughter tried on.
How does It Works work?
The company has over 100,000 distributors, mainly consisting of home moms, hairdressers, teachers, and anybody who wants to earn extra cash.
Social media plays a significant role. Facebook spreads a message posting video after video, sharing experience, and inviting new people to check out how does it work.
Imagine your friend bragging about instant success using the Ultimate Body Applicator. You would like to try it, at least. Of course, it is a feminine product. Guys are not into weight losing products so much as women.
This particular product sells like a hot pancake, fast and without regrets. It is understandable because of wanting to look slimmer as much as possible.
It seems that the company has excellent financial success according to the earning plan in 2015. The company earned $538 million in revenue.
It Works company products.
The original and most famous product is the Ultimate Body Applicator. I can see why customers excited about this. It Works product.
You can apply it to various body parts, not only on the tummy. Feet, legs, breasts, neck, arms, and buttocks are popular areas. Do you have a wedding or a party where the dress must be perfect and the body too? Date or vacation? No worries. This product will help shape fast.
People like the word fast. However, if you want to see results, you need to use not only this miraculous product but start to exercise, watch your diet, drink enough of water, and give yourself some time.
The Ultimate Body Applicator comes to your help.
Does it work for sure?
You would ask, why does it work? These wraps contain herbal nutrients that help detox and feed the complicated area. Results are real; especially it is combined with the right diet and exercise. Some customers use not only one wrap but a few of them together to achieve faster results.
I can understand that because the body needs to move and use vital nutrients for metabolism. However, Business Insider researched the effectiveness of these wraps.
Interviewed doctors did not agree with the claims that these wraps help to become slimmer. They said that bodies could lose some water during wrapping. The diet and exercises help too.
Other It Works products
The company offers:
- Fat Fighter
- It Works Greens
- It Works Probiotics
- Defining Gel
- Hair Skin Nails
- WOW for Wrinkles
- Ultimate Thermofit
- It’s Vital Complete
- Ultimate Profit
It Works uses multi-level marketing.
Distributors are the primary foundation for the company. They work as a public relations agency, recruiters, marketers, and sellers.
Distributors get training and understanding how to present products and attract customers.
There are three main areas which generate income for the company:
- Retail customers who come to your store and buy products
- Loyal or recurring customers
It Works company has over 100,000 distributors and a million loyal customer base.
Benefits for newbies
- People who accumulate 400 Personal Bonus Volume and have 80 points in auto-ship, qualify to commissions
- The first four new customers recruited during the 30 days, bring in $120 in product credit
- Newbies who enroll new members could earn points and use them to purchase facial applications or body wraps.
- Fast start bonus earned when you sign up a new distributor who spend 80 PV and sign up a couple of loyal customers. The amount is $100.
- A multi-level marketing business system lets people earn from recruiting others and their sold products.
Does It Works company have ranks?
Yes, it has. Depending on which level members are, the earnings differ substantially.
If you just started, you need to recruit people under you because of the need to build downline. Each contracted distributor goes into the so-called leg at your group. If these people generate 400 Group Volume each month, this leg can qualify for commissions.
More qualifying legs you have, the faster you can climb ranks.
As you see in the table above, you can reach Emerald rank when you four qualifying legs. However, if distributors do not make commissions, they counted as part of the level above them.
Newbies have an advantage because of the fresh start. 47% of the money, spent on the It Works products, will to their upline as commission.
Is it profitable to be part of the It Works company?
It is wise to comprehend the real situation and not to be swept away with the broom of whistles and blows. It Works products mean to help people regain the best shape as possible. It is nothing wrong about that, especially when you see videos from enthusiastic users on YouTube or Facebook.
However, I want to find out which company offers the best-earning possibilities for affiliates or distributors.
Let’s check 2018 It Works income disclosure statement:
Do you see something different here? Some numbers little bit dissimilar, but overall, everything goes in the same way.
The downline earns a little bit, and the top 1% gets all cream.
The majority of distributors are 83.20%. The average earnings are $47 per month. Okay, you would think that reaching the Executive level, sounds good,(does it not?), you could improve your situation?
Nope. The average is $223 monthly. Of course, it is the money, but that you can buy for that?
Remember that you need to spend money on products and look for recruits.
How much do newbies invest?
The starter kit costs $99. The $80 goes to the monthly spending on products and the website.
Additional costs can be hosting parties for future clients and distributors.
Is it worth to be a part of the It Works company?
I do not see here any intention to be excited about the possibility of working here. When you count all expenses, such as monthly purchases to stay active, the starter fee, it goes for a year around $1000.
If you are on Ruby level, you will have in your pocket an average sum monthly $370.
Your downline will spend more money than they will earn at the beginning.
Of course, there are excellent examples that live their dreams. However, the percentage is meager. You can check the chart above and see that only 3.09 percent of the whole bunch It Works distributors earn more than 2000 dollars on the bottom starting from the Diamond level and finishing with the Ambassador level, which makes around 24,000 monthly.
Only 3.09 percent can earn money, but the rest of 96.91 percent of distributors can barely connect the dots. Uh, it does not sound appealing to me.
Yes, I can buy and use products because of the effectiveness but make a living? No.
It Works Cons
- Investitions do not pay off to the majority of distributors
- Discounts for products do not work if you do not sign for three months agreement to use the auto-ship
- The cancellation of the deal costs $5o
- Additional costs are for housing parties and buying upfront products to sell newbies
- You can find products of good quality without being part of the company
It Works Pros
- Company’s products make people happy
- Company’s products promote the excellent attitude and prompt to take care of themselves
It Works company does make a considerable profit. Unfortunately, most of the distributors do not earn a decent living. $200 monthly is not enough ends meet unless you use the time machine and would go a hundred years back into the past.
The multi-level marketing model makes companies productive. It does not let people gain financial freedom.
Companies use distributors to promote their products without spending a dime. Besides, the company It Works does not need a sales force. Believers act as promoters and salespersons.
Do I recommend this company as the source to make a substantial living?
No, because of the wasting time and money to sell products that belong to your boss, in this case, company. Once It Works, the founder told that the American Dream comes back alive using direct sales in his company.
The Business Insider made the point clearly:
It sounded like a bit of an overstatement at first, but now I get it. The American Dream’s not about everyone having a piece of the pie. It’s about everyone believing they can get it if they work hard enough. And if there’s one thing It Works! is good at, it’s selling that fantasy.
Did you have an experience wit It Works? Did you experience success?