Plexus Worldwide is a multi-level marketing company in the health and diet industry most famous for Plexus Slim.
In 2011, the company launched its flagship products: Plexus Slim and Accelerator, jumpstarting the company’s growth to its current state. Plexus states that its core values are to be trustworthy, honest, reliable, and responsible, believing those values are the backbone of everything the company does.
The growth of Plexus over the last half-decade is quite impressive and undoubtedly a good sign for the company’s long-term outlook.
However, the relatively young age of the company is one of the many reasons to give pause before anointing Plexus as a company with a secure future.
Sign-Up Cost: $34.95
Global Revenue: $310 million
The Good: Good commission rates; products are generally safe for most consumers.
The Bad: Poor rating from Better Business Bureau; high volume of complaints; auto-program required; issues with FDA.
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Products
As previously stated, Plexus’ flagship products are Plexus Slim, a powder mix that’s meant to be consumed before meals, and Accelerator, a dietary supplement. The company states that consuming the products in conjunction with a healthy diet and exercise helps with weight management. Plexus offers several other health and dietary products, including the following:
- Plexus Boost – An alternative to Accelerator to be used in conjunction with Plexus Slim.
- MegaX – Supplement containing several omega fatty acids.
- XFactor – A multivitamin and antioxidant supplement.
- Bio Cleanse – A magnesium supplement.
- Plexus Block – Absorbs starches and sugars to help maintain healthy blood sugar levels.
- Breast Chek Kit – Kit for monthly self-breast exams.
- Plexus Body Cream
- Plexus Nerve – Combination of vitamins and minerals to support nervous system health.
- Plexus Ease – Available in both a cream and capsules to provide temporary relief from aches and pains.
Opportunity
Plexus Worldwide allows consumers of its products to join the company in two ways.
The signup fee of $34.95 allows makes one an Associate, which allows distributors to buy products at wholesale cost, but does not enable them to receive any commissions or bonuses. For an additional product package for either $99 or $199, you are able to become an Ambassador, enabling you sign up other distributors, sell to customers, and earn income from Plexus. Ambassadors have 11 ways to earn income:
- Personal Volume and Retail Profit
- Fast Start Achievement Bonus
- Preferred Customer Program
- Business Building Bonus
- Emerald Pool Bonus
- Sapphire Bonus
- Plexus Points
- Personal Volume Override Commission
- Achievement Bonus
- Diamond Pool Bonus
- Diamond Re-Entry Position
The Good
A full explanation of the Plexus compensation plan is available on the company’s website, but overall the plan is quite generous to those who qualify as Ambassadors. As long as Ambassadors meet all of the company’s base requirements and expectations, they will receive 50% commission on all sales, which is on the high end for any multi-level marketing firm. Plexus also gives its Ambassadors their own website to help them run their business. There are also discounts available for Preferred Customers and generous bonuses for those who sponsor new Ambassadors, giving Plexus distributors plenty of ways to make money.
Plexus also offers products that are safe and effective. The company’s flagship products don’t contain caffeine, which isn’t always the case with dietary products. They have also been proven to be safe for those with diabetes, which again is not a given with similar products. Moreover, the way Plexus has been able to expand its product line beyond its flagship products but not stray beyond the health and diet niche is a sign that the company is dedicated to focusing on one thing and doing that as well as possible, which adds some credibility to its product line.
The Bad
Unfortunately, Plexus has had some issues with the FDA with regard to its product line. There has been no clinical research performed on any of the company’s products, and Plexus has stated publically that there never will be.
The FDA does not regulate dietary supplements like those sold by Plexus, so the company is not obligated to gain FDA approval. Nevertheless, the FDA issuing a warning that a few of the company’s products are “not generally recognized as safe and effective” is something to be concerned about. In the past, the FDA has accused Plexus of making false claims on its website. The company has made the proper corrections, but the fact that they had to in the first place is at least a little troubling.
Not only has Plexus had issues with the FDA, but they also don’t seem to have a great relationship with the Better Business Bureau either. The BBB has not accredited Plexus and has given them a C grade.
The biggest reason for the mediocre grade is a large volume of complaints. To date, there have been over 600 complaints filed against Plexus, with over half of them being related to problems with the company’s products or services. The BBB admits that the company has done well to respond to these complaints, but it also says that Plexus has failed to fix the underlying cause for the vast number of complaints, which calls into question the integrity of the company.
One final issue worth mentioning is the list of requirements distributors must meet in order to be eligible for payment. Like other MLM companies, there is an auto-ship program that distributors must sign up for in order to be eligible for commissions and bonuses, which can make it difficult for someone who has only a casual interest in the business to join Plexus as an Ambassador. On top of that, the cost to qualify as an Ambassador in addition to the $34.95 signup cost can be a turnoff for some potential distributors.
Recap
Outside of an enticing compensation plan, there’s not all that much to like about Plexus. Of course, if you don’t mind the startup costs or the auto-ship program, the potential to make money for someone who’s dedicated to selling the company’s products is certainly there, which can make Plexus an intriguing MLM option.
However, one would be wise to take a closer look at the company’s dealings with the FDA, as well as the high volume of complaints filed through the Better Business Bureau. These are both red flags that relate to both the company’s products and the service it provides to its customers. If you’re satisfied with what you find with regard to those less-than-ideal circumstances, Plexus is certainly a promising multi-level marketing company for someone willing to take a moderate risk.
via http://mlmcompanies.org/plexus/
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