Building a home-based business that generates a substantial income is a dream for many people. In the modern world, there are also plenty of companies that offer you the opportunity to do just that.
Multi-level marketing (MLM) companies often make attention-grabbing statements that suggest anyone can make a large income in a relatively short amount of time.
While this may be true, it's important to choose the right company to work with to give yourself the best chance of success.
In this Medifast review, we will consider their business model and give you the information to decide if this is the most suitable venture for your needs.
Medifast Review – Who Are They?
Although some may know this company as Medifast, they actually rebranded to Optavia in 2017. The business began in 1980, which means they've been trading for an impressive 41 years.
They specialize in health and wellness products which is a competitive marketplace, so their longevity suggests they offer quality products.
As well as offering opportunities to sell to their independent coaches, they also deal directly with medical professionals.
This is another positive sign as the medical establishment has a duty of care to patients. They would not recommend ineffective or substandard products.
Optavia provides a range of weight loss products to its customers. But they also offer coaching to help support people as they improve their diet.
This is the business's unique selling point. They claim that this extra support can make a huge difference to consumers hoping to lose weight.
They also advise that their products have scientific backing. Their massive growth suggests many consumers believe their claims.
It's important to note that although many MLM companies have a dubious reputation, there is nothing wrong with Optavia's trading methods.
The company allows its coaches to make money by selling products and services to consumers. This is entirely different from illegal pyramid schemes that only let associates make a profit when they recruit more members.
So far, this seems like a great opportunity for an aspiring entrepreneur. However, can you really make money as an Optavia coach?
How to Make Money with Optavia
If you're asking whether you can make money with Optaiva, the answer is yes. But, it is not quite as simple as that.
Although there are some impressive numbers, such as some coaches making over $100,000 in 2020, only 0.55% of their associates reached this level.
Optavia openly states on their website that they make no guarantee of financial success. They also provide an income statement for their coaches during 2020, and the results are concerning.
Over 50% of coaches made $500 or less during this period. In addition, these figures do not take into account any expenses that they may have incurred during their marketing efforts.
These figures look even worse when you consider a coach needs to purchase a business kit that costs $199 before they can begin selling.
This may be why many people who join an MLM company try to make money using the second available method – by recruiting more members to increase sales.
When a coach brings on more members, these people become part of their downline. When one of these recruits makes a sale, the original member then receives a percentage of the profit.
Although recruiting someone else to make the sales sounds like an attractive option, it also comes with considerable difficulties.
MLM Model Downsides
Direct marketing to others is difficult because you have to identify a target market and close sales. When competing in a saturated market, customers have a huge choice, so you have to work hard to stand out.
When you recruit others to make sales, they are likely to run into the same problems. People who join MLM companies can sometimes overlook just how difficult it can be to break through this issue.
Not only do you have to get ahead of online businesses and retail stores, but you also have to compete with other coaches with the same company.
Because Optavia equips all its coaches with the same materials, this can be extremely challenging.
You also need to consider how motivated your recruits will be when they realize this is not an easy way to make a lot of money. Some may share your desire to build their own business, but others may not.
If you have spent time and effort recruiting and mentoring these coaches, it can be frustrating when they leave without generating any profit.
Fortunately, there is another way to build an excellent online business that you may have heard of – affiliate marketing.
Benefits of Affiliate Marketing
Affiliate marketing involves promoting other companies' products and services. In return, you receive a percentage of the sales profit. This is not the same as MLM marketing because you do not need to pay an upfront fee.
There is also no requirement to hold stock, ship goods, or provide customer services. Instead, the product or service provider performs all of these actions. So, what do you do as an affiliate marketer?
Affiliate marketers advertise products or services through content creation or paid ads. One of the most cost-effective ways to begin is to create free blog posts or online videos and place affiliate links in the content.
If a consumer finds your content helpful, clicks on the link, and makes a purchase, you receive your cut of the profit from the seller.
While this may sound too good to be true, it's important to note this method takes skill and dedication. It's easy to spend time creating ineffectual content or spend money on ads that do not produce a return on investment.
It can be beneficial to work with an expert company with plenty of positive customer reviews to help guide you in the right direction.
Partner with Legendary Marketer
You can use the information in this Medifast review to help determine if MLM marketing is a useful business model for your needs.
In order for you to develop your skills, you should consider taking a free or paid marketing course. There are a variety of digital marketing courses you can take from businesses that can help you enhance your skills. As of writing this, over 80,000 new marketers have taken the Online Business Builder Challenge (only $7), and that might be a good starting place for you as well.
