Is Plexus a Legit MLM or Pyramid Scheme? [Review]

Plexus is a multi-level marketing company that sells health and wellness products. It’s claimed that their products can promote gut health, skin care, weight management, and overall nutrition.

Chances are, you’ve heard about Plexus from someone you know – a friend or family member who’s trying to sell you some products. With many people looking for extra income these days, it’s no surprise that Plexus is offering an opportunity to work from home by becoming one of their brand ambassadors. 

Now, here’s the big question: Is Plexus a legit MLM or a pyramid scheme? We’ll get into that. And hey, we’ll also fill you in on a better way to make money from home.

Who Am I?

Hey there! I’m Benjamin, the person behind MLM Scam Insider. I used to be a sales rep at an MLM company, so I’ve seen both the good and bad sides of the MLM world.

After college, I joined HSBC as a relationship manager. Unfortunately, I got laid off due to some silly mistakes, and I felt pretty hopeless. During this tough time, a friend suggested I join his team.

He flaunted his success on Instagram with a Lamborghini (later, I discovered he had just rented it), so I believed I could attain the same. I purchased a starter kit from him and became a distributor. However, being a sales representative at an MLM company wasn’t what I had anticipated – it felt like a pyramid scheme. Uncomfortable with the idea of pitching to my friends and family, I only managed to sell a few starter kits.

Fortunately, I discovered how to make money blogging during Covid. So I soon quit my job as a sales rep and focused on my blog about budgeting, later selling it for $170k. Now, I’m a full-time internet entrepreneur running several blogs, including this one.

My goal is to provide you with honest reviews of various MLM companies, using my personal experiences to help you understand what’s really happening. I have connections with friends in the network marketing industry, and my team and I have spoken with different MLM distributors to give you the inside scoop.

What is Plexus?

Plexus is a supplement company known for its various health products, including the popular “pink drink.” It offers supplements for gut health, weight loss, and skincare.

Recently, Plexus introduced Plexus Pivotal, a 90-day program with tips, recipes, and workouts. Despite claims of improving gut health, these are not scientifically proven, and none of Plexus’ products are FDA-tested.

Founded in 2006, Plexus originally focused on DIY breast cancer checks and skincare before rebranding for weight loss supplements. Their signature products come in powder form and are mixed with water, often sold through social media by Plexus ambassadors.

Check Out The Best Alternative Here

Is Plexus An MLM?

Yes, Plexus is an MLM company, meaning it uses a multilevel marketing structure where products are mainly sold by brand ambassadors. These ambassadors may earn money through product sales and recruiting new distributors.

You can think of its multi-level business structure as a triangle. Everyone in this triangle is part of your direct downline (in MLM lingo, those below you are your “downline,” and you are their “upline”), and you receive commissions from the sales made within this triangle.

The more people you can recruit, the more commissions you’re likely to earn. However, the FTC warns that MLMs could be pyramid schemes if they prioritize recruitment over product sales.

On average, Plexus ambassadors earned only $544 in 2020, according to the company’s website. Ambassadors often lack healthcare qualifications, yet recommend products to customers.

Is Plexus A Pyramid Scheme?

No, Plexus is not a pyramid scheme. Unlike pyramid schemes, Plexus members can earn money by selling products rather than solely through recruitment.

Pyramid schemes lure people in with promises of high rewards for recruiting others, but they’re unsustainable and often scams. Plexus claims to have a feasible buyback structure if you want to quit or can’t sell certain products, but it’s challenging to achieve.

The Plexus Compensation Plan is complex and difficult to understand. To join as an associate, you pay an annual fee of $35. However, this only allows you to buy their products. To sell products and earn commissions, you must reach Ambassador status, which requires a minimum monthly order of $100.

This requirement applies to your recruited members as well, so that you can earn commissions from their sales. Accordingly, members are encouraged to prioritize recruitment over sales. 

While Plexus claims high income potential, roughly 96% of ambassadors make less than $4,000 annually before meeting the mandatory spending requirements. 

Learn more about the differences between MLM and pyramid scheme. 

What Products Does Plexus Offer?

Plexus offers a variety of products grouped into different categories: Gut Health, Weight Management, Nutrition, Joyōme Skin Care, Personal Care, and Combos.

One of their most popular products is the “Pink Drink,” which acts as an appetite suppressant, earning Plexus the nickname “Pink Drink” company.

The main ingredients in the Pink Drink are chromium and the Plexus Slim Blend, containing green coffee bean extract, Garcinia Cambogia, and alpha-lipoic acid. These ingredients work together to curb hunger temporarily. However, there’s no evidence proving they lead to long-term weight loss in humans.

Check Out The Best Alternative Here

Are Plexus Products Safe?

Plexus makes strong claims about their products.

Unfortunately, there’s no research backing up the safety of Plexus supplements.

Moreover, Plexus products aren’t checked by independent labs to ensure they’re pure and accurate.

Some users have reported experiencing side effects like bloating, gas, nausea, stomach ache, and constipation from Plexus products.

There are even more serious cases, like one person who developed a blood disorder called secondary immune thrombocytopenic purpura (ITP) after using Plexus Slim.

Plexus Compensation Plan

To become an Ambassador, you’ll need to pay an annual membership fee of $39.95 and purchase a welcome packet. There are options for a $99 or $199 welcome pack as well.

Remember, this fee is recurring annually to maintain your status.

As an Ambassador, you can recruit new distributors, sell products to customers, and start earning money. However, to earn commissions, you’ll need to achieve a monthly PV (personal volume) of 100.

Overall, there are 11 different ways Ambassadors can earn money through Plexus:

1. Personal Volume and Retail Profit
2. Fast Start Achievement Bonus
3. Preferred Customer Program
4. Business Building Bonus
5. Emerald Pool Bonus
6. Sapphire Bonus
7. Plexus Points
8. Personal Volume Override Commission
9. Achievement Bonus
10. Diamond Pool Bonus
11. Diamond Re-Entry Position

Check Out The Best Alternative Here

How Much Money Do Plexus Ambassadors Make?

To figure out how much Plexus Ambassadors are earning, we checked the 2016 Plexus Income Disclosure Statement for the United States.

This document tells us how much Plexus ambassadors in the U.S. were paid in 2016. Here’s what it says:

A quick calculation shows us that 99.5% of Plexus Ambassadors earned less than $31,000 in 2016.

If the system is supposed to be reliable and profitable, then why do so few make enough from the Plexus opportunity to live on full-time?

While it’s technically possible to be among the 0.06% who earned close to $500,000 in 2016, it’s not very likely. In fact, you’d probably do better with a regular job.

After all, only 1 in 200 Plexus Ambassadors earned a full-time income in 2016.

Plexus Allegations and Lawsuits

The Better Business Bureau (BBB) has received over 600 formal complaints about Plexus, with 60% being negative.

Many of these complaints relate to issues with products and services, especially when customers try to cancel memberships and get refunds for unopened products under the Buy-Back agreement.

Many customers are facing difficulties in canceling memberships, even after contacting customer service representatives.

In 2014, Plexus faced scrutiny for adding hoodia, an endangered African plant, to their products for appetite control.

In 2020, the FTC warned Plexus about social media posts falsely suggesting their products could treat or prevent COVID-19.

The FDA issued a warning letter to Plexus, stating that some of their products, including Fast Relief, Biocleanse, and Probio5, were not recognized as safe and effective for the uses promoted on the website. The FDA stated:

“New drugs may not be legally introduced or delivered for introduction into interstate commerce without prior approval from FDA, as described in section 505(a) of the Act [21 U.S.C. § 355(a)]; see also section 301(d) of the Act [21 U.S.C. § 331(d)].”

The FDA noted that Plexus was promoting these products for conditions that should be treated under medical supervision, rather than through self-diagnosis or self-treatment.

Check Out The Best Alternative Here

Is Plexus a Scam? 5 Red Flags Exposed

While Plexus appears to be a legitimate multi-level company selling health supplements, some people consider it a scam for various reasons:

1. Constant Recruitment of New Members

While it’s possible to make money with Plexus, it requires a lot of effort. You not only need to build a substantial downline but also maintain it.

Every time someone in your organization quits, you have to replace them.

This constant need for recruitment raises another red flag because it’s not sustainable in the long run.

2. Promotion Through Recruitment

Once you’re qualified to earn commissions, you can earn even more by growing your downline.

To reach the highest level, Diamond Ambassador, you need to personally sponsor at least 7 new Plexus Ambassadors and meet certain criteria.

While this may sound appealing, it raises another red flag for us because it seems like you’re mainly promoted through recruiting others.

3. Pay to Play

You have to meet certain requirements to earn commissions with Plexus.

First, you need to pay an annual fee, then you have to purchase at least 100 PV worth of products each month.

Active Plexus Ambassadors argue that you need to use the products yourself, but for us, this raises another red flag because it feels like a “pay to play” scheme.

4. Most of the Rewards go to your Upline

We noticed that 50% of the sales volume that can earn commissions is paid out monthly.

This might sound good, but it’s a red flag for us. It suggests that the prices paid by Ambassadors include these generous payouts.

This raises concerns because most of the rewards go to those higher up in the system.

5. More than 5 Levels in the Payout Plan

Plexus proudly mentions that they pay commissions up to 7 levels down.

While this might sound appealing as you can earn from people you’ve never met, for us, this raises another red flag because it’s more than 5 levels in the payout plan.

Should You Join Plexus?

No, I wouldn’t recommend it if you’re looking to make money.

Plexus, like many other MLM companies, promises big earnings for its ambassadors. But the reality is, the average ambassador made just $544 per year in 2020, as stated on the Plexus website.

To earn a substantial income with Plexus, you’d need to recruit aggressively. Based on the 2016 Plexus income claims, we found that only 0.5% of Plexus Ambassadors are making $30k or more per year, which is enough commission to replace a full-time income.

Plexus also makes bold claims about its products’ effectiveness without backing them up with clinical evidence or third-party testing. In fact, they even got a warning letter from the Federal Trade Commission in 2020 for posts on social media suggesting their products could treat or prevent COVID-19.

Many people think Plexus is a scam because of its marketing tactics and the numerous complaints from customers.

In general, Plexus operates much like a pyramid scheme, with a few at the top making a lot more money than those at the bottom.

Check Out The Best Alternative Here

Other MLM Opportunities

Here are the other MLM companies we have reviewed:

Is There A Better Way To Make Money From Home?

If you’re looking for a legit way to make money online, consider affiliate marketing with Wealthy Affiliate. It’s a trusted platform offering top-notch training and tools to build your affiliate marketing business from scratch. 

With affiliate marketing, you recommend products or services to people and earn a commission for each sale made through your affiliate links.

Wealthy Affiliate offers a free starter membership, a free website and training on search engine optimization (SEO) to help you start making money online.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while using free traffic methods.

Check Out The Best Alternative Here