So you ran into someone promoting Success by Health and you want to know if Success by Health is a scam. In this Success by Health review, I'll be breaking down how the income opportunity works, and if it's a legitimate opportunity to earn some extra income from home.
What is Success by Health?
Success by Health (SBH) is a Nevada-based multi-level marketing company founded by James Dwight Noland. The company specializes in coffee-based nutritional beverages. The number one selling product is called G-FYX, which is a powder-based drink with a wide range of all-natural ingredients, such as; organic Ganoderma coffee, tumeric, raspberry extract, brocooli, cumin, Kale, Aloe Vera, and many others. Success by Health also offers other products, various coffees, chocolate, capsules, and teas.
Success by Health uses the typical multi-level marketing business model to use independent distributors to generate sales while reward the distributors with the promise of income. Chances are you heard about this company not because of their products but because of the potential to earn money with them. Very few people join multi-level marketing companies for their products. Let's take a look at how the income opportunity works.
Is Success by Health a Scam?
Success by Health is being investigated by the FTC for operating as a pyramid scheme and it will likely be shut down in the near future. According to the complaint, only 2% of compensation plan participants earned more than they spent, earning an average of $250 a month. It's clear Success by Health is a scam.
Honestly, most multi-level marketing companies offer similar profit margins. In fact, on average, 99% of members lose money to multi-level marketing companies. It's nice to see the FTC taking action on these companies. I'm sure there are lots of other MLMs they can shut down.
To add to that, Success by Health was created by Jay Noland, who was investigated in 2002 for operating a pyramid scheme called Bigsmart. Besides the obvious pyramid scheme structure, Success by Health's products are insultingly high. One packet of G-FYX costs $79.
How Much Does It Cost to Join Success by Health?
It costs $45 annually to join the Success by Health compensation plan, and you also have to buy a Business Package. The Business Packages range from $139 to $2033 (they recommend the $500 pack). And you'll also be pressured you to enroll in the monthly auto-ship program.
Affiliate marketing success stories!
~ real people, real work
4 - 5 figures/month online!
How Do You Make Money with Success by Health?
Since Success by Health seems to be on it's last legs, they aren't advertising their income opportunity any more. I believe members can still be recruited in person.
They have a 26 minute long video explaining how the commission structure works. You can watch the video, or if you don't have the time, summarize the main points for you below:
Note: In the video he says he wants you to quit your job, and you'll be able to after 6 months with their program. Knowing what we know now that only 2% of members earn more than they spend, that's a funny claim.
As you might expect, you can make money by buying wholesale and selling at retail value, which is a 10% markup. Not that much. Most people don't care about making product sales, it's all about the team-building bonuses.
Accelerator Pack Commissions
These are commissions on Business Packs sold. There's no set commission rate, but rather a flat-fee. For selling $500 pack you will earn $125 in commissions. You'll also earn product credit and rebates that you can spend to buy products for personal use or stock.
6-Tier Residual Commissions
The promise of residual commissions is what attracts most people to multi-level marketing businesses. The truth is that all the numbers are theoretical and you'll quickly run into a limit for people under you. Success by Health's residual commissions work like this:
- 10% at Tier 0 - The starting level
- 10% for 1st Level
- 6% at 2cnd Level
- 4% at 3rd
- 3% at 4th
- And finally 2% at 5th.
The idea is to earn commissions on people under you, and the people under them, and so on. Basically, exactly like a pyramid scheme. There are also cash bonuses for reaching new levels and expanding your team.
Wait a Minute!
Promoting a MLM Company is NOT a good idea.
BAM Bonuses are cash bonuses for adding a certain number of people to auto-ship programs. For example, 10 members on $100+ auto-shipment will earn you a $1000 one-time bonus.
There are a few other ways to earn income too, but the short version is you need to recruit people and get them on an auto-ship program. And assume they stick to it forever!
Success by Health Downsides:
Besides the fact SBH is essentially a pyramids scheme, here are some other downsides I noticed:
1 . No Income Disclosure
Currently, Success by Health does not have an income disclosure statement. The fact they don't have one should give you an idea as to how valid their income claims are.
2. Overly Expensive Products
Granted, the products do have a lot of organic ingredients mix in, but the price is shockingly high. You can buy similar supplements from any store for a fraction of the price and the health benefits would be able the same, if not better. One packet of their flagship coffee costs $79. For one cup! No thanks!
3. Smoke and Mirrors
To put it nicely. Most of the marketing material is straight up based on "what if" scenarios, with no real-life proof. Jay Noland claims to be extremely successful millionaire but financial documents state he always had a negative net worth. Mostly smoke and mirrors, and it sucks that people fall for it.
The Bottom Line:
The bottom line is Success by Health is a scam. Is it as bad as other multi-level marketing companies? Hard to say, but what I do know is it's very hard to make any money with a multi-level marketing company, even though they claim otherwise. You can make money online, and maybe you can earn a bit with MLMs, but your chances of making a profit are very slim.
So what can you do? I recommend learning how to build a legitimate business online, not joining someone else's plan. You can do this by building an affiliate website, investing in an e-commerce business, or something entirely different. The business model I recommend is affiliate marketing because it's easy for the average person to get into.