Mannatech Review – Is Mannatech A Pyramid Scheme

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This is another MLM business opportunity Coffee Talk.

Our discussion today is a review of Mannatech.

Yes, the Mannatech that Ben Carson, the 2016 GOP Presidential Candidate, claimed to cure his prostate cancer.

Claims like Mr. Carson has raised the question, “Is Mannatech a scam?”

Since Mannatech is an mlm company, the scam question also has many wonders, “Is Mannatech a pyramid scheme?”

If Mannatech is a pyramid scheme, then Mannatech is a scam.

We have talked about this in our MLM vs Affiliate Marketing discussion, where we followed the FTC guideline to determine a legit mlm versus a pyramid scheme.

But… if you remember, the FTC guideline failed short of telling us anything about making money with mlm home-based business opportunity.

Why do we start a business?

Yes, we start a business to make money and gain financial freedom.

There are many home-based business opportunities, which are more lucrative and profitable than Mannatech, available for us to invest.

So, before investing in this business opportunity, we need to know more than, “Is Mannatech a pyramid?”

We like to know,

  • How to become a Mannatech Associate?
  • How much does it cost to become a Mannatech Associate?
  • Can you make money with Mannatech? And
  • Is Mannatech mlm business opportunity profitable?

“Profit” is what we are looking for in a business opportunity. It’s the only option for us to recover our investments with Mannatech.

Before investing your hard earn dollars with the Mannatech home-based business, you should at least read this Mannatech Review to understand the risks and rewards of becoming a Mannatech Associate.

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Mannatech Review Summary

Business name: Mannatech

Direct Competitors: Immunotec, Shaklee, USANA, 4Life, YOR Health, Total Life Changes, NHT Global, Youngevity

Annual Revenue:
$174 Million

Business Opportunity:
Multilevel-Marketing (MLM)

Initial Investments:
$49.99 Associate Fee. With $24.95 Annual Renewal.

Business Earnings Estimate: 
<$228.10 Per Year

  • Mannatech is an mlm business opportunity that promotes and sells dietary supplements and personal care products.
  • The company revenue is on a decline due to false claims and lawsuits. Based on the Mannatech financial information, it is very difficult to earn a decent income as an Associate.
  • The majority, over 83%, of Mannatech associates earned an average monthly income of $19.
  • To make money with Mannatech, you must be super talented with Face-To-Face selling and recruiting people into your organization.
  • If you don’t like face-to-face recruiting, the Mannatech mlm business opportunity is not for you.

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What Is Mannatech?

Mannatech is a direct selling (mlm) company that manufactures and sells proprietary glycol nutritional supplement for use as dietary, sport, and skincare.

The company was founded by Samuel L. Caster in 1994 with headquarters in Flower Mound, Texas.

Mannatech annual sales revenue has been on a declined, from over $180 Million in 2015 to $$174 Million in 2018.

The decline was the result of the company legal troubles for false, misleading, and deceptive marketing practices.

In 2005, the company paid $11.35 million to settle a class action lawsuit for violating the Securities Exchange Act.

Then in 2009, Mannatech agreed to pay $7 million to Texas Attorney General, Greg Abbott, to settle the state charges of operation of an illegal marketing scheme.

The company primarily sells its products through an mlm network of 200,000 associates in 25 countries.

According to the Mannatech income disclosure statement, over 83% of associates earned an average annual income of less than $228.10.

The Mannatech mlm home business opportunity doesn’t seem to be a good investment.

Before investing with Mannatech, it’s smart to compare with other home-based business opportunities…

You can use My Writing Business to make a comparison.

How to Join Mannatech?

You can join Mannatech as a Preferred Customer or an Associate.

Mannatech review membership
  • Preferred customer is free to join, and you receive a 10% discount with purchases.
  • You can join as an independent Associate by paying a $49.99 Associate Fee. As an Independent Associate, you receive a 10% discount, and the opportunity to build a business promoting and selling Mannatech products for profits.

The Process To Become A Mannatech Associate

You don’t need a sponsor to join Mannatech.

You can visit the company website and complete the signup process by yourself.

Once you have paid the $49.99 associate fee, you’re a Mannatech Associate.

But, before you can earn commissions, you have to sell or recruit others to join Mannatech.

How Much Does It Cost to Join Mannatech?

Before October 2017, to join Mannatech as an associate, the costs are $48, plus one Starter Pack from $99 to $999.

Now, you can join Mannatech with an initial cost of $49.99, no starter pack is required.

But, you are required to renew the Associate Membership every year for $24.95, the “Renewal Fee.”

There are additional costs associated with operating a Mannatech mlm business.

These are business operating costs.

We will discuss the two major operating costs in this Mannatech Review, but this doesn’t mean the only expenses.

1. Building Your Mannatech business

I am talking about the time investment required to recruit and promote Mannatech. To make an annual income of $20,000 plus, you need to work full-time, at least 80 hours per week to build a successful Mannatech business.

If we use the minimum wage of $7.25 per hours, this means a Mannatech Associate must invest at least $580 per week, $2,320 per month.

2. Mannatech Hidden Operating Costs – “Monthly Minimum Purchase Requirement”

To earn commissions, all Mannatech Associates are required to meet a Personal Points Volume (PPV) of 150 to receive commissions.

Mannatech will tell you that no purchase volume is required.

But… this is a big BUT. If you want to receive commissions, you have to be an “Active Associates.”

And, according to Mannatech compensation plan, an active associate is an Associate that maintains a 150 PPV per month.

150 PPV is about $225 of products ordered.

Yes, it’s true that you don’t have to purchase 150 PPV each month. But…

If you want to make money with Mannatech you have to meet this minimum monthly product sales requirement.

This is why I call this a hidden expense.

Most mlm companies do not disclose this purchase requirement to new Associates.

Associates usually discover this requirement after making the first sale.

The real investments to start a Mannatech business is more than $49.99.

An associate that paid the $49.99 without meeting the monthly 150 PPV is considered inactive and earn not commissions.

Monthly PPV is the biggest operating expense for Mannatech Associates. It can end up costing them thousands of dollars over the years.

The monthly product purchase requirement is the reason why many people do not make money with mlm opportunities.

It destroys your chance of making a profit.

Other home-based business opportunities, like affiliate marketing, do not require personal purchases to earn commissions. Commissions are paid on every sale.

Do you know why Mannatech has a PPV requirement?

  • First to sell Mannatech products, and
  • Second to meet the FTC guideline as a legit mlm business.

Without product sales, Mannatech is a pyramid scheme or a scam.

These are the costs to join Mannatech.

Now, don’t you want to know how you can make money with Mannatech?

If you do, then let discuss…

Mannatech Compensation Plan

Mannatech has recently changed its compensation plan.

We are going to discuss the new version of the Mannatech compensation plan, not the old one.

Did you know that many Associates join an mlm opportunity without fully understand the compensation plan?

All mlm compensation plans are designed to confuse people and hide the fact that the Associates’ success failure rate is over 99%.

But, the compensation plan is the key document in determining your earning potential with Mannatech.

We will briefly talk about the Mannatech compensation plan. If you want to see it in detail, just download a copy to study later.

Mannatech claims that an Associate has 6 ways to earn under the new compensation plan.

Upon closed examination, we can tell you that Associates have two options to make money with Mannatech:

  • Earn commissions from product sales, and
  • Earn commissions from recruiting.

The Mannatech 6 ways to earn, all fall into these two categories.

But remember, an associate must meet the 150 PPV to earn commissions.

Earnings from the sale of products

Three options for Mannatech Associates to earn under this group.

Retail for profits.

This means the Associates purchase wholesale for retail.

But can you really make money selling Mannatech products on the market?

I did a quick search on the internet and found this Mannatech Catalyst MULTIVITAMIN for $46.99 with free shipping.

This same Multivitamin on Mannatech website retail for $54.99.

Mannatech product review

Associates price is $49.50 (10% discount).

How can you earn a retail profit with this?

Power Seller Bonus

The Power Seller Bonus is commission based on monthly sales volume. The commissions range from 5% to 15%, with the 5% kicks in after an Associate achieve the 150 PPV.

Autoship Qualified Bonus

A $75 bonus is paid to any associates with 5 Autoship Qualified Customers (AQ). An AQ is a preferred customer enrolled by the associate that subscribed to the Autoship program at least 100 PPV or more each month.

Recruiting Commissions

There are several ways to earn on your downline. This is the special feature of mlm.

We will discuss only the major bonuses in this Mannatech review.

First Order Bonus (FOB)

A 15% commission of FOB is earned when your recruit purchases a product Value Bundle within 30 days of joining Mannatech.

This is not the $49.99 Associates fee.

The recruit must purchase a product Value Bundle from $89.99 to $999.99.

You earn a 15% commission on the Value Bundle without no PPV requirement.

Autoship Qualified (AQ) Team Bonus

This AQ Team Bonus of $300 is earned when you have 2 members of your team achieve the AQ Bonus, (5 Autoship Qualified Customers).

This means you have to achieve 500 PPV on Autoship, and two members of your team also achieve the 500 PPV Autoship.

The total of 1,500 PPV, approximately $2,250 in sales, to earn $375 in commissions.

All these have to be achieved in a month.

Downline commissions

The next two commissions are based on downline sales volume, which Mannatech refers to as Downline Point Volume (DPV).

You can earn $30 to $100 Mentor Bonus starting with 750 DPV.

Depend on your leadership position, Mannatech pays from 3% up to 8% on DPV up to 7 levels.

The Mannatech compensation plan sounds impressive, right?

However, it is very difficult to make money with Mannatech.

The Mannatech compensation plan is designed to sell you a dream, not a profitable business.

Do you want to invest in a dream or a business?

Then we need to find out the Associates actual earnings with Mannatech, not the potential earnings.

Where can we find the answer?

Let talk about…

Can You Make Money With Mannatech?

The Mannatech compensation plan tells us the potential earnings starting a Mannatech mlm business.

However, we can only find the actual Mannatech Associates income by looking at the Mannatech earnings disclosure statement.

Here’s what I mean,

  • The Mannatech compensation plan outlines ways for Associates to earn, the POTENTIAL EARNING.
  • The Mannatech Earnings disclosure statement contains ACTUAL COMMISSIONS earned by Mannatech Associates in the prior year.

Making money as a business review writer, I look to the actual commissions/earnings to advise clients on an investment.

Potential earning is just a guess, an estimate.

Are you investing based on a guess?

If your answer is NO, then let discuss Mannatech earnings statement.

I suggest you download a copy to follow our analysis.

From the Mannatech earning disclosure statement, we discover the followings:

The first thing we notice is over 83% of Mannatech Associates earn an average annual income of less than $228.10, that’s only $19 a month.

Do you remember the 150 PPV ($225) monthly requirement?

This tells us most Associates do not earn enough to pay for their own products.

Over 83% of Mannatech business owners operate with a net loss, no profits.

Now, what do you consider a good income for a business?

I considered at least $100,000 per year, but none of the Mannatech Associates earned this much.

So, we can look at the $39,928.88 annual average earnings level. There are only 20 out of 200,000 associates achieved this income level, less than 1%.

We don’t need to analyze the top earners, because there are only 3 people.

I can tell you that your chance of becoming a Mannatech top earner is ZERO!

All the incomes we discussed above are not profits.

If you want to know the profits, you must take out operating expenses.

Earlier we talked about two expenses, which total about $2,545 per month, or $30,540 per year.

Did you know only 44 Mannatech Associates breakeven, earned $30,000 or more?

Can you see how difficult to make money with Mannatech?

Is this a profitable investment?

If you want to make money with Mannatech, you have to reach the leadership levels.

But according to Mannatech earnings disclosure, there only 8 Associates achieved this status.

Mannatech has been in business since 1994. After 24 years, only 8 achieved substantial profits operating a Mannatech mlm business.

Well, then…

Is Mannatech A Scam?

Yes, it is unlikely that you can make money with Mannatech, but this doesn’t make Mannatech a scam.

Mannatech mlm business is an investment opportunity.

Every startup business has risks, which means there a possibility of losing your investment.

Mannatech is a bad investment.

When you become a Mannatech Associate, you are willing to take on the highest level of business risk, over 99% of losing your investment.

Then, you cannot call Mannatech a scam when you lost your money.

Before starting a business, you have the responsibility to research and study the risks and rewards on the opportunity.

Many business owners hire professional financial analysts to evaluate the risks and rewards of every business deal before they invest.

As a Business Review Writer, I have evaluated hundreds of business opportunities to help investors managing the investment risks…

If you are careless with your investment, you cannot blame anyone but yourself.

Reading this Mannatech Review is the best way to discover the investment risks before signing up with Mannatech.

Why do you want to start a business when the chance of making money is less than 1%?

Yes, Mannatech is bad mlm business to get involved, but it’s not a scam.

But what about, a pyramid scheme… here’s

My View Regarding ‘Is Mannatech a pyramid scheme?’

First, I want to say that Mannatech is a legit mlm business under the law. But…

Why do I think Mannatech a pyramid scheme?

Well, do you notice something unusual about the Mannatech earnings report?

Yes, only a few at the top make money!

Here… tell me what do you see below? This is the Mannatech compensation plan.

Mannatech a pyramid scheme

Doesn’t this look like a pyramid scheme?

Yes, the more people you recruit, the more money you earn.

Mannatech is rewarding Associates to recruit people into the organization, not selling products.

Recruiting is the only options to make money with Mannatech!

Isn’t this a pyramid scheme?

You don’t have to agree with me on this. It’s not important

More important is the Mannatech earnings disclosure statement.

This financial document has shown us, the chance of making a profit selling and promoting Mannatech product is less than 1%.

OR…. Should I say, “There’s a 99% chance that you will earn nothing by becoming a Mannatech Associates.”

Is Mannatech Worth It?

Would you invest, now knowing there’s a 99% chance of earning nothing?

I’ll never invest in a business opportunity unless is profitable.

And the chance of profitability must be greater than 50%.

You have less than 1% chance of making money with Mannatech.

Do you know why you want to start a home-based business?

To earn extra money from home, to be your own boss, or to achieve financial freedom?

And to make money, we invest in a PROFITABLE business!

There are much better and less risky home-based business opportunities.

If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then read my #1 recommended online business opportunity.

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There’s NO traveling around town to attend late-night meetings and NO face-to-face sales or recruits with my online business.

The best part, you are working on the computer in your own home or anywhere you like.

Before concluding this Mannatech review,

I have a quest to ask: “Do you ever thought about Mannatech goes out of business?”

This is a major investment risk associated with mlm opportunities.

When Mannatech goes out of business, every Mannatech Associate is out of business on the same day.

When you become a Mannatech Associate, you have no controlled or ownership of your business.

Don’t you want to own your own business?

If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then…

You should read my #1 recommended online business opportunity.

Can you write?

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What do we learn from this Mannatech review?

Mannatech is no difference from other mlm opportunities.

Your chance of achieving financial success as a Mannatech Associate is near ZERO.

Even Mannatech is not a pyramid scheme, it’s a bad investment.

Don’t waste your time with this business.

Do you agree?

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