Purium is a company that was founded by Dave Sandoval in 1993 that sells health and wellness products through the multi-level marketing (MLM) business model.
They primarily operate within the US and Canada and boast a global revenue of over $45 million every year. Apparently, they are offering people the best, fastest, and healthiest weight loss program on the planet and an equally amazing opportunity.
The Business Opportunity
The opportunity is marketed as a way for you to gain financial freedom while getting into shape with their products, in particular, the ’10 day transformation’.
This is pretty much a 10-day detox with special supplements and will set you back around $290 or less than that with the gift card discount.
Essentially the whole system works off a gift card system where you give people a $50 gift card and when they redeem that for the 10 day transformation, you get paid $50. They can purchase pretty much anything they want with this gift card from what I understand and you get more commissions the more they buy.
The Purium Compensation Plan
I have reviewed quite a few MLM companies since starting this website and I have to say this particular compensation plan was pretty confusing. I say this for two main reasons…
Firstly, knowing what you need to do to get started and in particular how much EXACTLY it is going to cost you to start making money is rather difficult. The website itself does give you a nice overview and seems to make it all sounds so simple, but a lot of information is lacking in my opinion.
Secondly, I managed to find the compensation plan and it provides a very short and basic explanation which doesn’t help people fill in the gaps so to speak. It focuses more on telling you how great everything is instead of laying out the facts. Anyway, I did my homework and I’ll break it down for you below.
Ways You Can Earn
Retail Commissions: You can make money by selling people the products themselves through your website or in person, up to 30% in fact.
Referring People: Like all MLMs you can make money referring people into your downline. The amount of money you make depends on what level you are at. There are 18 levels of rank within this company. The good thing about this company is that apparently, you can earn commissions from your downline infinite levels deep.
Various Bonuses: These guys are pretty set on the bonus side of things. You can make weekly bonus commissions on signing people up into either a gold, platinum or launch pack. There are also 4 other types of bonuses you can earn.
To get qualified as a ‘member’ you need to purchase a starter kit for $75/ or $25 after your discount. It only comes with 5 gift cards though and essentially this is the only way you make money, by giving these gift cards away. So this starter membership cost is not going to cut it.
You will be paying much more than $25 to really get started with this I can assure you, I will break this down shortly. To upgrade to the ‘associate’ level (very basic level) you need to have an auto-ship in place of about $65 per month to achieve your 50PV. This PV is just the points associated with each commissionable product.
Maintaining Your Status
To remain an Associate, you just need to continue getting your auto-ship or have customers buying $65 worth of product off you each month.
First Year Cost Estimate
I do this to help people understand the real costs involved in being in business during the first year. I believe it is always good to know what you are really up for before entering a business, any business for that matter.
Platinum Starter Kit= $25 after discount is the cheapest option, however… for anyone serious about building this business you will be needing to buy at least the 50 gift card ‘Platinum Enrolment pack’ for $549. Apparently, this is their most popular pack for newbies.
Replicated website system called ‘DREAMS’= $149 per year
Required Auto-Ship= $780 per year if you are not making this much in personal sales.
Gift Cards= In order to give people this wonderful free $50 gift card, you must actually BUY GIFT CARDS yourself! To me this really wasn’t explained clearly when navigating their promotional material, it was not clear that you would actually be having to buy these gift cards.
Without the gift cards, you WON’T be in business, plain and simple. You get some with your welcome pack depending on which one you choose but here is the cost after they run out…
Personally, I would be choosing the $249 gift card pack based on the initial 50 I got with the Platinum pack. So for the first year, I would now have 250 gift cards. This is the bare minimum you would need in my opinion.
Other Costs= This would include conventions, seminars, additional training, products and indirect costs associated with running a business.
My Total First Year Cost Estimate= $1727 +
This is a pretty far stretch from thinking you can jump on board and start earning real money with the basic $75 starter kit. Now of course this is not indicative of everyone’s costs, but based on what I would expect to pay if I was serious about building this business. The other point worth noting is that the auto-ship cost is only necessary if you are not making enough sales, so this could be drastically reduced. Also the cost of the gift cards could be offset by sales, essentially this is just the cost of doing business with Purium.
About The Earnings Potential
One of the things I liked about this company is how they display the average rep earnings on their website. It does not take into account their expenses though and as you will see in this picture, it is going to take a lot of time and hustling to reach a reasonable income level.
What I Liked
- Products seem reasonably good, the 10 day transformation I think could be very popular with consumers
- They display their typical earnings chart, this is a massive plus in my opinion and shows credibility
- They don’t have many complaints
- The idea of the gift card is kind of cool, but be aware you are paying for this
- They pay reps frequently
What I Didn’t Like
- I do not like auto-shipping requirements
- They make it sound way too easy, like as if if you can hand someone a gift card your going to be very successful
- They’ve changed their name from Organic By Nature to Purium which may be worth checking into
- The details within the compensation plan are too basic and leave out important details in my opinion
- The warm market approach is not the most ideal way to build a business
Building Your Business
Unfortunately, you are primarily taught how to offer these products through a warm market approach. What this really means is that you will be shown how to hustle everyone you know and everyone they know to try to sell products and bring them into your business.
Now I am not saying this is always a bad thing if the product or business is legit, but it really isn’t a great way to build a decent income in my opinion. Sooner or later those prospects dry up, then you are left with tons of you purchased just to stay active. This is why it’s very important to only join a company whose products you really love and want to use yourself.
The Purium products seem pretty good based on my research and I do like how they disclose the average earnings of their distributors.
However, I also think that relying on friends and family is a bad idea since most of them won’t want a bar of it, and it’s not very scalable unless you become a full-time hustler.
Personally, I think there are better ways to start a business, but provided you love the products, this might be a good opportunity to consider.