The Company: Xango
CEO's: Joe and Gordon Morton
Startup Cost: $35
The company was founded in 2002 by Joe and Gordon Morton and specialises in health and wellness products. They distribute these products through an mlm business structure and have a global reach.
Apparently, they started this company with a dream of creating total wellness and offering people the perfect opportunity. How did they go? Read on…
The Mangosteen Products
The core products are based on a fruit named mangosteen which is primarily grown in southeast Asia. It has also been used in some traditional medicine there as well. The products consists of juices, skin care creams and various supplements designed to enhance a persons well being and physical appearance.
It should be noted that the health benefits are not all that well researched in modern medicine and according the Xango website, the health claims have not been evaluated by the FDA. I haven’t used these products and I’m not a health professional, so how good they are is not something I can really weigh in on.
The Business Opportunity
Xango states they offer a simple and easy to explain opportunity for people looking to create a life changing income with health and wellness products. Simply buy great products and share your experience with others to create a life changing income, connect your dreams with other peoples dreams. Sounds good, but is this realistic or just hype?
The Xango Compensation Plan
I’m going to break down the Xango compensation plan to give you the best grasp on what is being offered by the company. One of the most annoying things about mlm companies is trying to understand their comp plans so hopefully I am making your job a little easier!
Ways You Can Earn
There are various ways you can earn within the company and I’ll break these down for you now.
As a rep you are eligible to purchase product at wholesale and re-sell at retail price. You can do this or direct people to the companies website and get a commission that way, minus a ‘handling fee’. How much you retail the products for is up to you but the difference between wholesale and retail on every product I looked at on the official 2016 Xango product price list was only 10%.
One thing worth noting is how literally anyone can go to the main company website and become a ‘preferred customer’ for free which entitles them to wholesale pricing.
Why on earth would I expect people to be buying product off me at full retail when they can become a wholesale customer for free? They wouldn’t. There does seem to be a structure in place whereby you can receive a 15% commissions on your customers orders and a small commission on your downlines customers orders 9 levels deep so you will make money either way.
This is called ‘customer connect’ and this is (in my opinion) the only way reps will be making commissions on their customer orders. Makes sense, I don’t see why anyone would pay retail.
Power Start Commissions
Essentially this is a weekly commission of 15-25% paid to you on your direct sponsors initial order. So if you sponsor someone and they make a purchase within 30 days, you’ll get this bonus. To receive this you must be qualified and if you don’t have an auto ship in place, you won’t see the full 25%.
This is the core of your potential earnings where you make commissions on the activity of those you sponsor. There are 9 levels of rank within this company and each level brings with it new earnings potential.
Like most mlm’s there are quite a few different kinds of bonuses and incentives to get reps performing at a higher level within the company.
From what I can see, to become a ‘representative’ which is the first base level in Xango requires a once off $35 sign up fee. You don’t need to buy any product to become a rep initially other than this, although to start earning you’ll need to be placing regular orders yourself or be able to sell a set amount to your customers.
Maintaining Your Business
In order to maintain your business and be eligible for commissions you’ll need to be placing at least 100PV worth of orders each month for the base line ‘representative’ status. The term ‘PV’ stands for personal volume and includes buying anything yourself for personal consumption or products you intend to sell at retail.
Reaching the next level (preferred representative) you need to have an ADP in place. This stands for automatic delivery program, which is another way of saying auto-ship.
So you’ll need to place 100PV worth of orders for yourself or sell this amount each and every month except through a locked in auto-shipping arrangement. This is required just to maintain the second most basic level of your business. Looking at the US price list again, this equates to at least $100 each month, that was the cheapest option I could find.
To get to level 5 within this company you need double that amount of auto-shipping every month. Personally, I cannot stand these auto-shipping requirements to maintain your business but these aren’t crazy high costs. The biggest thing I will say is to make sure you love the product yourself. Never buy products just to stay active as many reps will go on for months without earning, at least if you love the products, you are not losing out either way. You’ll also be in a much better position to promote these since you believe in them.
The Costs Involved
Sign Up Fee= $35
Requirement To Maintain Business= $100 p/m OR $1200 per year minimum
There are other costs involved with these opportunities but as a base cost this is very reasonable and achieving $100 per month in sales isn’t a huge task once you get into things.
Growing Your Business
While some may only want to make a few extra bucks, there are many joining this that are going to be wanting to build a life changing income. Unfortunately, this company teaches people how to build your business primarily by chasing family and friends and leaning on them to get them into your business and buy product.
In other words… you’ll be looking to leverage any and all friendships and family relationships as a way to get people into your business. While it can work for some it does not work for the majority. Those leads will inevitably dry up and you will be left paying for product every month without having a solid income stream. I’m not saying this to put you off, but it does pay to learn how to leverage the internet if you are looking to make more than a few extra dollars each month.
What I Liked
- Lots of product related information on their website
- Don’t use too much hype regarding the opportunity and have a strong product focus
- Low cost to start and grow you biz
What I Didn’t Like
- Some say the products are overpriced
- They teach the warm market technique
The company has a reasonable amount of business and product information on their website, they have a low complaint number on the BBB and have a very low entry point of only $35. I think if you love the products and are confident you can attract enough people to grow your downline, go for it. Either way, I hope this review has been helpful.