LifeVantage Review: By ExpertMLMReview
Founded in 2003, LifeVantage Corporation is a publicly traded (ticker LFVN) network marketing company specializing in scientific anti-aging products utilizing its clinically studied Protandim supplement.
LifeVantage has a very interesting history…
Their stock went through the roof back on 2005 after the release of clinical studies and TV specials by ABC, the Today Show and PBS regarding their Protandim product. This early publicity sent their stock up to over $20 per share but it could not stay there without sales to backup the publicity. At this point Protantim was only available through retail channels and it did not do well on the shelves of nutritional stores.
In May of 2009, after more than 6 months of planning and preparation they turned to network marketing for distribution. Not surprising to those who understand the power of MLM, LifeVantage sales have dramatically increased and in turn their stock price has more than tripled from its low of less than $0.10 in November of 2008. Still a bit too early to say, but it looks like MLM is proving to be a good fit.
As with every review, let’s start off with the easiest place to spot a scam… THE PRODUCT!
Protandim Review – I can’t speak for the product because I’ve not yet tried it. What I can say is I am more inclined to try it than any other nutritional product I’ve seen recently due to the extensive clinical research and peer reviewed studies that have gone into it. Over 20 universities have initiated various self funded medical studies on the product in relationship to its relation on anti-aging and disease. Several have been completed and are posted on www.pubmed.gov under Protandim to view.
Unlike most nutritional products, Protandim is not an antioxidant by way of supplementation but rather a product that stimulates the body’s production of its own natural enzymes which the body uses to destroy free radicals. Clinical studies appear to prove that it is many times more effective than ingesting external antioxidants for this purpose. The LifeVantage corporate website (http://www.lifevantage.com) gives access to all the studies, reports and news videos releases on their product that explains how it works and what it does.
What I like most about this product is the unique marketing angle it has…
Unlike most network marketing companies which must resort to the old “try it out (for 30, 60 or 90 days) and see how you feel” line, LifeVantage distributors are able to honestly say that Protandim is clinically proven to reduce oxidative stress by slowing down the rate of cell aging to the level of a 20 year old.
This alone is not enough to build a business on, but it’s a great ice breaker for distributors. Often the hardest part in building a nutritional MLM business is getting people to try the product and LifeVantage seems to have a bit of an advantage in this area.
As for the price of the product, I was also pleasantly surprised. In an industry where product auto ships are routinely over $100 per month, a one month autoship supply of Protandim for a retail “preferred customer” is only $39! This pricing is far less than the industry norm, thus making it possible to acquire true retail customers.
In addition to the core Protandim product, LifeVantage also has a skin care product called TrueScience which is a skin cream designed with the anti-aging properties of Protandim. What I like about the overall product line is its simplicity; just two core products, with one core selling point, and a price that is actually reasonable.
Ultimately it is going to take more than research and publicity for a product to make it. Protandim will have to make a noticeable impact on the wellbeing of people taking it, whether it be more energy, better sleep, not getting sick as often, etc. There are not too many people who will spend money on a product every month on studies alone. Only time will tell on this, if you are reading this and have tried the product, please feel free to give us your feedback below.
LifeVantage Compensation Plan
I’m not going to even touch the topic of how lucrative the compensation plan is. There is plenty of money available in every compensation plan as long as it’s legal. If you hear somebody going on about how their compensation plan pays the most money in the industry, good chance something is not right.
Technically speaking LifeVantage utilizes a unilevel comp plan paying down 9 dynamically compressed levels with the potential for a matching bonus on the first 4 levels and a coded bonus for Vantage pack qualifiers that allows for bonuses to be earned through unlimited depth. If none of this makes sense to you don’t worry about it.
The most important part about the compensation plan is legal, because it only pays commissions on product sales. LifeVantage has taken an additional step to promote the movement of product that I really like and which does a lot to ensure legality. As with every company, distributors must stay qualified to earn commissions, in LifeVantage this means 200 PV per month in personal volume. The nice part is that the volume generated from personal “preferred customers” reduces personal volume requirements for distributors. This means that as a distributor, if I have enough personal customers consuming product, I can reduce my monthly personal volume requirement down to the minimum of 30 PV.
Behavior rewarded will be duplicated so when you see a company reward the enrollment of true retail “preferred customers” (people buying the product, but not partaking in the business opportunity), you will likely have a high customer to distributor ratio. This ratio is one of the most important things the attorney general and FTC look at when determining if a company is a pyramid scheme or not.
LifeVantage – Company & Leadership
There are a few notable points of interest regarding the company beyond the brief history I’ve already mentioned. LifeVantage is a member of the Direct Selling
Association (http://www.dsa.org/forms/CompanyFormPublicMembers/view?id=44F6200000362) and the BBB (http://www.bbb.org/denver/business-reviews/health-and-diet-products-retail/lifevantage-corporation-in-littleton-co-90014185). They were involved in and settled a lawsuit with Zrii. In this lawsuit, they were alleged to have conspired with former Zrii management/distributors to break contracts and switch to companies. While the lawsuit sought damages of 250 million, it was settled for 400,000. This type of lawsuit is not uncommon in the network marketing industry and in my opinion nothing to be worried about.
As for the leadership behind the company, David Brown, formerly with Metabolife, is the CEO and Dr. Joe McCord, the driving force behind Protandim, is the Director of Science. It is noteworthy that Dr. McCord was the co-discoverer of antioxidant enzymes and their relationship to free radicals in 1968 at Duke University. I also like the fact that LifeVantage has experienced in-house legal counsel with Eric Marchant, who has counseled multi-national hundred million dollar MLMs in the past.
A look at the industry and competition…
It is common knowledge that nutrition is the backbone of network marketing industry and there is zero doubt that the health and wellness industry is growing and will continue to grow. On the other hand I think today you have an excess of companies entering into the industry and it is easy to get lost amid the confusion and clutter unless you have something unique… I think LifeVantage has just that. With a low product price point and the kind of research and publicity behind Protandim, I think they are suited to do very well in the network marketing industry.
The final word…
LifeVantage sells a legitimate product at a price point that real customers can afford and markets through a compensation plan that is in my opinion more legally sound than your average MLM. While there is a lot of research and publicity behind this company you still want to be sure your belief is 100% behind it before getting started. In network marketing, belief sells and no amount of research can replace that. Give it a year or don’t give it a month. Lifevantage will work if you work it.
Yours in Success,