Is It Works a Ponzi Scheme Or Pyramid Scheme? My Review Looks Into It!

There are hundreds of MLM and seemingly legit money-making schemes advertised on the internet but most of them just turn out to be pyramid schemes with a primary focus on recruitments. It Works is yet another addition to the list of websites advertising a potentially beneficial scheme for people looking to make money online.

As soon as I was introduced to the It Works website, the first question to my mind was “Is It Works a Ponzi scheme or is it just another version of a pyramid structure forcing or encouraging the members to focus on recruitments?”

If you’re interested in making money online by selling different products then an MLM company can seem like a good opportunity but it can often turn out to be the most irritating structure if things don’t work as per the claims made by the advertisements and promotional content of the website. Let’s first go through the basic introduction to It Works before analysing the pros and cons & seeing if we can really make money with it.

What Exactly Is It Works?

It Works is a decent and professional looking multi-page website and the company basically deals in health, fitness, and wellness related products. These products include essential oils, healthy greens, and body wraps (with their body wraps being the most popular) in addition to many other products.

It Works Products

I must give credit to the website developers as they’ve really done a wonderful job. The layout is excellent, the navigation is super easy and the colour-scheme is fantastic But that alone doesn’t qualify It Works as a legitimate scheme so we need to focus on some significant aspects rather than the looks of their existence online.

The It Works Compensation Plan

Like most of the MLM based schemes, It Works also presents two main money making options which include retail sales & recruitments.

As far as the retail sales are concerned, you basically purchase the products at wholesale price and sell them on at retail price. The difference between the two becomes your profit.

In the case of recruitments, you convince others to join the scheme and in return, you earn a certain commission percentage on the sales they make & the percentage you earn is based on your rank. The more retail sales you personally make, the higher your rank & in turn the higher commissions you can earn from your team (the people you recruit).

Multi Level Marketing Pyramid Scheme

Trust me though, neither of those methods should be seen as an “easy” way to make money because both of these earning methods require exceptional communication and marketing skills. Secondly, if you’re a beginner to this sort of thing it will take a lot of time to gain momentum, maybe some months and possibly even a more than a year. If you are patient enough to wait for this long while sticking to a consistent struggle, then you may think of joining the likes of It Works.

However I’ve got to admit I’ve seen scores of individuals who never managed to sell or recruit even once. Patience is the key and most of us don’t hold to it for as long as we should in this case. Plus often when it comes to MLM’s like It Works you will also have to keep spending money to stay active in the compensation plan… So even though you are not making money, the opportunity will still be costing you.

The truth is many people just end up spending more than they ever actually manage to make back. Not good!

How Does “It Works” Work?

It Works presents a fairly complex system of rankings, commission percentage, and bonuses. The structure is based on three management levels which are as follows:

  • Executive
  • Ruby
  • Emerald

After joining It Works as a recruiter, your first goal is to bring in two more distributors. Then there is the group volume which increases with the increase in the sale and purchase of the products (by you and the couple of recruiters you introduce to the platform).

To reach the Ruby level, you need to have three distributors under you, and for the Emerald level, there is the requirement for 4 distributors. But recruiting alone doesn’t serve the purpose. The recruiters in your group – beneath your level – have to perform & makes sales themselves. When they achieve the Executive level (as a minimum) you begin to earn in terms of commissions. The higher the rank, the deeper the commission-access to the levels below. Distributors at Emerald rank earn commissions 6-levels down.

In addition to the above mentioned three levels or ranks, there are more levels as well, for instance, the Diamond Leadership. But the concept is same and therefore there’s no need to get into it.

In short, as you can see the It Works compensation plan is pretty complicated just like most of the other network marketing compensations plans out there. I have no idea why they make their compensation plans so complex but they all do & it is likely to make it seem like you can earn more than you actually probably can to make the whole opportunity seem more enticing.

Is It Works a Ponzi Scheme?

In the case of a Ponzi scheme, the structure mainly encourages the distributors to focus on more recruitments rather than spending more time and effort on sales. It Works in NOT a Ponzi Scheme for the reason that the rules of the game within their company do encourage sales as well.

For instance, more sales take your group to higher Group Volume (GV) which contributes to the commission percentage. It is clear from the whole workings of the compensation plan that It Works has a pretty strong focus on encouraging sales. It also offers valuable products rather than just earning from the recruitments and distributing the commissions without offering anything of value.

Each distributors has to recruit just 4 members to reach the Emerald level and the rest of the effort is concentrated on making more sales. I can safely call it a fairly legitimate platform because of the provision of excellent and reliable health and wellness related products.

My Verdict – Is It Works a Scam?

The answer to that questions is no, It Works is not a scam – it’s actually a completely legitimate platform with strong focus on product sales & it follows the guidelines set for a lawful MLM scheme.

However if you seek my recommendation to whether or not join It Works, I’d say to wait & analyse the opportunity realistically and then make your move. These schemes on paper can appear highly profitable but the reality is often the complete opposite.

Yes they may turn out to be highly profitable for some, but generally only for those who have experience and expertise for this type of work. It you don’t have good selling and marketing skills then you need to focus on other online money making options related to your field of expertise.

In my opinion one of the best ways you can make money online is through something called affiliate marketing which you can learn more about for free over at Wealthy Affiliate. That’s actually the same way I personally generate most of my own income online & I’d highly recommend it to anybody.

But anyway hopefully my review here has given you a better insight into It Works & hopefully it’s helped you decide whether or not it’s really a company that you want to be joining. If you do still happen to have any further questions or comments about it though then don’t hesitate to leave them below & as always I’ll get back to you as soon as I can. 🙂

P.S. it’s time to be completely honest…

Making good money online isn’t easy, but it IS possible – and this free training gives the average person the best chance of success at launching their own profitable online business.

…I should know, because that EXACT training enabled me to leave my job as an electrician & pursue working from my laptop instead. See how I went from nothing to over $10k/month here.

About the Author:
Born & raised in England, Dale is the founder of Living More Working Less & he has been making a living from his laptop ever since leaving his job as an electrician back in 2012. Now he shares what he's learned to help others do the same... [read more]