Wondering if Xango is a good opportunity, a scam or even a pyramid scheme? This Xango review gives you real insight into this company.
I want to explicitly state that even though we mention a little bit about some of its products, this is a comprehensive review of the opportunity XanGo presents and NOT a review of individual products.
Here is a bullet-form summary of what the XanGo opportunity is about before we drive in deep into the review:
- It is NOT a work from home opportunity. You will have to go out and sell to people
- You will have to pay a $35 distributor fee before you can purchase products to distribute
- You must buy the products before you can promote them
- It operates a Multi-Level Marketing (MLM) business model
- It is possible to make money but like most MLMs, it is improbable
- Their compensation plan is somewhat complicated
What is XanGo?
This is an MLM-based company that sells juice and other supplements made from a fruit called Mangosteen (nothing to do with Mango). The company was founded in 2002 by Joe Morton, Aaron Garrity and Gordon Morton. XanGo is based in Utah.
Whenever you are considering any kind of MLM opportunity, you have to look beyond the income potential they present to you and look at the products they are offering. The difference between a legit MLM company and a typical scam opportunity lies in the products.
As a distributor, you will not stand a chance of making any money if the products are expensive and not unique high-quality products. Why would somebody want to buy from you when they can get something better and cheaper at an actual store?
Before you join any MLM, take a good look at the products you will be promoting. If you truly believe that there is value in the product, then you stand a chance. If you don’t believe in the value of the product but you are blinded by the earning opportunity, don’t bother. You will not succeed in selling it.
Some of the products XanGo offers are:
- Mangosteen Juice
- Sleeping Pills
- Skincare products
- Anti-ageing products
- Hair supplements
- Vitamin and mineral supplements
- Meal Packs
- Shampoo and Body Wash
I have not personally used any of their products, so I cannot really go into details of the quality of each product. However, I can tell you this: The products are generally not unique and are very expensive. The closest feature to being unique about the products sold by this company is the fact that the Mangosteen juice is packaged in a fancy bottle.
To begin with, there are many MLMs selling dietary and health supplements. Then there are more reputable regular stores that sell this kind of products for much cheaper. Why then would any rational person buy from you?
I looked up reviews on their products and an overwhelming majority are complaining about the product. In fact, most of the people saying positive things about XanGo products are distributors of the products.
Another interesting thing I noticed below one of XanGo’s product pages is:
*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
The products are not unique, they are expensive and they are not trustworthy. To make matters worse, you will have to convince buyers to purchase products they are not familiar with. Most people do not know what Mangosteen is and will not see the need to buy it.
This is not a good MLM company to make money from. Distributors are set up to fail from the very beginning. Answer this question: If someone came to you with these products, would you buy them?
The Business Opportunity
I spoke a lot about the strength and quality of the products so we can establish how unlikely it is that you will earn any profits by selling their products only.
Most MLMs try to make their company look more legitimate by mentioning products when in fact, the real business opportunity lies with recruiting people into the system. Whether you choose to sell products or recruit new members, you have to pay the $35 distributor fee and you get a XanGo starter kit, along with a duplicate xango.net website.
Another thing you have to do is purchase 4 bottles of XanGo juice for an additional $100. Each of these bottles can be re-sold for $45, which implies a potential $20 profit on each bottle.
To be honest, it is typically so much “easier” to sell the business opportunity of an MLM than to sell their products. I can imagine people would be more excited about being able to earn some money than having to spend money on some weird juice made from Mangosteen.
You are highly unlikely to make money from either of them but you stand a better chance at recruiting people than selling their overpriced products.
The Compensation Plan
I don’t like writing about the compensation plan of most MLM companies. They purposely design the compensation structure in such a way that it becomes easy to see the huge earning potential without putting into perspective how difficult and unlikely it is to achieve it.
Prior to this moment, I thought USANA had the most complicated MLM commission structure I had come across but now I think XanGo is even worse. I will let you hear the compensation structure from the horse’s mouth.
Disclaimer: I do NOT endorse this video. I do not recommend XanGo and I am sharing this video solely for educational purposes.
Your qualification to a higher level does not depend on you but your group volume which is determined by the success of your downline.
If you are fortunate to have a good group of seasoned network marketers, you will progress rapidly. If you have a weak group, you will remain stuck on one level and there is hardly anything you can do to change it.
Putting your earnings into perspective: If everything works out well for you, you could earn the 50% commissions. If not, you will be earning close to nothing. Historical MLM statistics shows that you are very likely to be part of the latter category.
Pros of XanGo
- The Company has been around since 2002
- If everything clicks well for you, you could earn nice money
Cons of XanGo
- They products are expensive, untrustworthy and not unique
- This makes making money through selling the products nearly impossible
- It is an MLM
- MLMs are extremely difficult to succeed in
- This business is expensive to operate
Who Is It For?
I think this is for experienced multi-level marketers. If you are looking for a work from home opportunity, this is not for you. If you are not fascinated by the idea of going out and talking to people in order to sell them products or this opportunity, I would say this not for you either.
The Cost of XanGo
I mentioned earlier that you have to pay the $35 distributor fee and purchase $100 worth of XanGo juice. What they don’t tell you until you become a distributor is that you have to purchase the XanGo juice every month. This is regardless of if you were able to sell the previous juice bottles you had purchased.
If you were able to sell all 4 juice bottles in your starter pack in less than a month and you wanted to keep selling, you would have to purchase more juice bottles to keep selling within that month. If you are unable to sell all 4 juice bottles within a month, you will still need to purchase more juice bottles regardless.
I have read complaints from people that lost thousands of d0llars to these recurring juice purchases. And by the way, you have no business attempting anything network marketing if you cannot make 4 sales anyway. Try something else.
Is XanGo a Pyramid Scheme?
People could make an argument for both yes and no. I think it is a pyramid scheme because I believe the strength from recruiting people into the system far outweighs the quality of the products. A lot of their product sales will be made from distributors buying the products.
Others could argue that the products they offer are real products and these real products are being sold, therefore it is not a pyramid scheme. They do not care that the products are being sold to both regular customers and distributors, all they care about is the fact that products are sold. This is why the company has existed for so long, still exists and will likely not be shutting down soon.
In any case, the same pyramid scheme cons still stand: the top 2% of the distributors get over 90% of the earnings, while the bottom 98% share less than 10% of the earnings. This is why the failure rate of MLMs is beyond ridiculous.
The best time to join a pyramid scheme is near the beginning. If you go ahead and join XanGo, you will be at the bottom of the pyramid of a company that is about 15 years old! Think about that for a second.
MLM companies never ever tell you how difficult it is to make money with their system. I do not like MLMs in general but you stand a chance of making money with some.
The system at XanGo is not set up for you to succeed and you just will NOT make money off this company. The worst part is your progression into higher levels and success depends on the progress and success of your downline, most of whom you will not know personally.
If you would like to start up your own online business where you can promote absolutely anything you want without recruiting, hard-selling or cold-calling, check out the program that taught me.
PRODUCT NAME: XanGo
Price: $35 Distributor Fee + $100 Starter Pack
Overall Ranking: 30/100
Owners: Joe Morton, Aaron Garrity and Gordon Morton
Summary: The company itself has real products but the business opportunity is a pyramid scheme and you are highly unlikely to make money. My recommendation is that you build your own income-yielding online business.