Some Multi-Level Marketing (MLM) companies are just a hard nut to crack. It could be really difficult for investors to single them out as pyramid schemes. For one, these companies have been cleverly disguised so much that they would not fit, technically, into the mold of pyramid schemes. To say that Acti Labs belongs to this school of companies would not be too far away from the truth.
Acti Labs is an MLM company operating in the beauty and wellness niche market. It was founded in 2011 by John and Yelena Miller in France. It markets a range of weight loss and management products, skincare products, hair care products, make-up products, supplements, and personal care products.
To be fair, it would be necessary to separate Acti Labs MLM opportunity from Acti Labs Company and evaluate both differently. There seems to be no problem with the Acti Labs company. Nature and respect for nature guard its production and research, it claims. Acti Labs is also quite well certified. It fields proof of a Cosmetic Product Regulation on its website. It also features on the PETA list of cruelty-free brands. Plus, it is Better Business Bureau certified.
The problem with Acti Labs stems from its MLM opportunity. There is nothing about Acti Labs that makes it a unique opportunity to earn though it does have some special features that separate it from other MLM companies.
First, with Acti Labs, an investor does not need a sales quota to remain active. That is, there is no fixed rate of sales that makes an investor eligible. Also, investors do not really have to worry about their personal or group volume at Acti Labs.
Also, Acti Labs fields a relatively easy to understand compensation plan, and commissions are paid directly into investors’ personal accounts.
Yet, the Cons are higher than the Pros. An investor soon finds out that although sales and affiliate recruitment are not very pronounced at Acti Labs, they are still very much required for an investor who wants to earn much. An affiliate and its downline have to maintain a certain amount of sales for that affiliate to earn. One gets an image of a pyramid scheme in disguise.
Talking about earning, the level of work put into marketing by affiliates well as the promotional costs of selling Acti Labs does not equal the expected returns. Acti Labs makes sure its affiliates bear the expenses of marketing and promotion. In the end, they get so little for their efforts.
Apart from its low-income potential, Acti Labs products are expensive. This discourages sales and also makes the retail task herculean.
Acti Labs runs on a 9 tiered ranking system. This system, coupled with the Unilevel compensation plan that places an affiliate atop a unilevel team down an infinite number of levels, helps to Acti Labs shuffle funds amongst investors when necessary. This is something most Ponzi / pyramid schemes do.
Acti Labs is swathe in commissions and bonuses. Base commissions, additional personal sale bonus, fast start acti-cash, customer loyalty club bonus, team sales commissions, cheque match bonus, and car allowance.
These commissions and bonuses are clearly meant to incentivize sales. It gives off Acti Labs as more of a pyramid scheme than a true opportunity to invest and earn.
The Federal Trade Commission warns that 99% of all MLM participants lose money. Also, weighing the pros and cons of Acti Labs shows that it might not be a true investment opportunity after all.