What is Xooma About? Is It a Pyramid Scheme?
Looking for unbiased information to explain what is Xooma about? Maybe you think the MLM opportunity is worth checking out. If that's the case, when you're done reading this review you'll know exactly what to expect of the company and your chances of success if you decided to use them.
Xooma Review Summary:
Product Name: Xooma Worldwide
Type: MLM System
Price: Kit Purchase Required ($249 - $1049.99)
Summary: MLM company that promotes over 30 products. Their flagship product is Xooma X20 Extreme Water, which creates alkalinity and balances your body's pH levels, among other benefits.
What is Xooma?
Xooma is a MLM company in the wellness industry. The company aims to be the #1 Wellness company in the world, their mission being to provide the finest quality wellness products to consumers.
Naturally, the company offers a "Prosperity Plan" which works much like other MLM company's compensation plans, with a few small changes. We'll discuss the compensation plan in more detail, as well as the chances of your seeing success with the system, later on in this review.
In the meantime, let's look at some of their core products.
Xooma Product Catalog:
Too many people rush to join MLM companies because of the promise of unlimited wealth, but soon realize the job is not as elegant as the advertisements.
If you're considering signing on as a Xooma Distributor, than you should know what it is you'll be promoting 24/7. This brief look at the product catalog will show you what you're expected to promote to your friends and family.
Most Xooma products revolve around water, such as water bottles, powders, mixtures, and other drinks. Xooma water bottles are designed with special BPA-Free resin, and made from 100% recyclable materials.
Flagship Product: X20 Extreme Water
Who would have thought that water could be extreme? Xooma's main product is X20 Extreme Water which is much like a vitamin drink, but designed to balance pH levels, and provide your body with over 70 trace minerals. They also claim this mix can make water "Wetter" by increasing the pH level.
Just rip open the packet, pour into water, mix thoroughly, and drink. Use the product multiple times a day, and it's supposed to bring about all kinds of positive health benefits, even improve bone density.
Of course, we can't verify all the claims, but we do know most MLM companies slightly exaggerate the benefits of their products. On Amazon, the product only has 29 customer reviews, with a rating of 3.6/5 stars.
Price: $35.90 - one packet - 6 servings.
Here are a list of some other products:
- Water Bottle (mentioned earlier)
- Blender Ball Shaker Cup
- Chocolate Fix
- Focus UP Capsules
- Nature's Body Cleanse
- And much more.
You'll find over 30 products in the catalog and you can choose to buy packages with a combination of products as well.
Now that you know what type of products you're expected to promote, let's take a look at the prosperity plan. Most people won't sign up to MLM companies unless they can make money out of them somehow, and the next section is all about making cash.
If you do decide to promote Xooma products, consider promoting them in Google by ranking content organically. Don't know what I'm talking about, read this post to see how to get free traffic to any online product.
Xooma's Prosperity Plan:
We'll run you through the whole process, from the requirements to get started, to the paychecks and bonuses. If you want to know exactly what is Xooma about, this is the section for you, so don't go anywhere.
One upside is Xooma does not charge an enrollment fee. But I wouldn't call it free to join either. There are some requirements you need to know about. One of which is the purchase of a single kit.
These kits are called "Sign Up" packages, and you have to purchase at least one to continue with the system. On the first order you'll receive a $50 discount.
Below is a list of some of the packages, and their prices:
- Gift Card Consumer Pack - $687 Retail
- GC National Manager Builder Pack - $1,555 Retail
- CG Business Development Package - $3,843 Retail
- Gift Card Platinum Pack - $3,113 Retail
There are cheaper packs, too:
- Test the Water Pack - $146 Retail
- Test the Water Pack X20 - same as above.
Now, there is a little fine-print I noticed that I would like to warn you about before you continue with the system. Can you see it?
In the package details, it states the package you choose will be placed on a monthly auto-ship service. In other words, you'll be charged every month. The fact that this text is hidden in the fine-print is quite suspicious.
Even worse, they say slightly different package. What if the slightly different package is way more expensive? Strange.
Can you imagine if Amazon used a policy liked that? Okay you ordered a product from us, but we'll send you something slightly different just because.
Besides that, members also need to commit to ordering a minimum of $100 worth of product every month. On top of that you'll also need to personally refer four of your friends, and have them become active Xooma members.
While there is no official enrollment fee, these other requirements make up for it.
Earning with Xooma Worldwide:
In Xooma Worldwide, the compensation plan is called a "Prosperity Plan" which makes it sound much more attractive than it is. As you can imagine, it works much like other MLM compensation plans, with a few changes here and there.
There are 8 ways to earn with Xooma Worldwide:
- Rapid Rewards
- Team Commissions
- Executive Pay Match
- Generational Pay Match
- Cash Back Bonus
- Direct Sales/Retail Sales
- Car Deals
- Leadership Cash Pools
Like with most multi-level marketing companies, they list a lot of ways to earn, but most people will only make money from a couple of them.
The executive bonuses are usually so far out of reach only the owners benefit from them in the first place. So in the case of Xooma, the majority of members will be making money with Rapid Rewards, Team Commissions, and Retail Sales.
The rest is far out of reach.
Rapid Rewards is a start-up plan designed to earn you quick cash. Remember when I mentioned earlier you'll need to invite at least four people to the system? This is where that comes into the picture.
To participate in this system you not only need to invite four people but also purchase a minimum of $100 worth of products every month, then have your referrals do the same. The more people under you, the more bonuses you earn.
How much can you earn?
It comes to about $20 for each active member. If you have 4 active members under you, you will qualify for a $80 bonus. Likewise, if you have 16 members under you, that's a $320 bonus. Either way, it comes to about $20 for each active member.
Thanks to the Internet, I'm constantly getting at least 20 new leads per day without doing any cold calling, hard selling or recruiting.
I've already achieved financial independence after working 1 year in affiliate marketing by earning a 4-Figure Passive Income Online.
But keep in mind, these members have the same requirements you do. In other words, they also have to move $100 worth of product a month and refer four other people. If they don't, then they won't be marked as "Active" and you won't be able to earn a bonus from them.
As you can imagine, this scheme is the "Meat" of the compensation plan. It is what most people are working on because it can bring in the most cash. The Xooma leaders know this, so they add various incentives to motivate people.
For example, if you can meet the entry-level requirements in 60 days you'll receive a free Xooma Watch as a gift. Likewise, if you can get 20 active members under you, you can receive a free brand-name tablet. To me, this system looks shockingly like a pyramid scheme.
If you need help avoiding online scams, read our How to Spot a Scam article to make sure you not working with a shady company.
Dual Team Commissions:
Xooma Worldwide uses a dual-team system for down-lines. It's basically exactly the same as the binary-system other MLM's use, but with a different name. The way it works, is the same. Two teams on the left and right side.
The goal is to get each team to earn as much Sales Volume as possible, so you can earn those sweet cash bonuses. To reach the first bonus, or "Pay Cycle" your lesser team needs to reach $160 worth of sales.
Generational Pay Match will reward you when you have more "Generations" under you. In other words, when you personally refer someone, that is Level 1, and when they refer someone under them, that person is your Level 2. Except, it doesn't even matter how many generations are under you because the bonus is the same, it's always 10% match.
With Executive Pay Match the Xooma system will reward you when your personally sponsored members earn a certain amount of cash. For example, if they earn $500 then you'll earn $125, and so on.
The other ways to earn are more of the same, so we won't cover them in detail here. But there's one method you will likely use, retail sales and commissions.
Members can purchase Xooma products wholesale, and sell them for a mark up to pocket the profits. The profit varies, depending on various factors such as your rank, but it falls between 20 and 50%.
But you can also make money from the people under you. When they make sales, you'll earn a 10% commission on their sales too.
There are over 11 ranks you can reach in the Xooma compensation plan. But as I mentioned earlier, most of these will totally out of reach for the average member, so there's not much point talking about them.
They're divided into three categories:
- Marketing Representative (most people here)
- Director (not many people here)
- Vice President (only the owners here)
The Marketing Representative and Director ranks and split into three groups; National, International, and Senior.
The first four:
- Marketing Representative
- National Marketing Representative
- International Marketing Representative
- Senior Marketing Representative
- National Director
- International Director
- Senior Director
And so on.
Each rank comes with requirements and benefits. The requirements are in regards to your team, the higher the rank, the more QV your team has to earn to maintain the rank. The benefits don't change so much, mostly an increase in pay cycles and a couple other bonuses.
Xooma Worldwide Pros:
Now that you have an idea of what Xooma is about, let's review what we learned with the pros and cons. Here are some things I like about Xooma.
1. Pay Cycles Every Week:
One good thing about the Xooma compensation plan is they pay every week. You have to meet the requirements and meet the minimum pay out to be paid, but if you actually manage to recruit a bunch of people, it's possible to receive weekly paychecks.
Unfortunately, I can't think of anything else to mention here.
The Cons with Xooma:
Moving onto the cons. These are the main challenges you'll need to overcome if you want to promote Xooma as a distributor. If you can, maybe you'll see success, but your chances are not great. It's important to know what you're getting into.
1. It's Based on Pseudoscience:
One of my issues with these kind of companies is they base their entire business on pseudoscience. They'll take a claim that may or may not be true, and create products based on that claim.
One example would be the detox products. The whole concept of removing toxins with special chemicals is based on weak science. The same goes for "Extreme" water. Regular water is just fine. Let's take the bone density case as an example.
"...His bone density went from 64% to over 100%!" This advertisement is all over Xooma's homepage, but it doesn't really make sense. For one, there are over 8 bone density tests, and each one measures varies aspects of bone mineral density and calculates it with different measurements.
For example, there's T-Score and Z-Score, and the amount varies depending on age and weight, as well as genetics. It's not an exact science, because everyone has different body types and lifestyle choices that can effect bone density (age, gender, ethnicity, height, etc). So making a claim like Xooma's is quite strange.
Xooma, and many other MLM companies, make giant leaps when it comes to their product's health benefits. You have to do your own research.
2. High Entry Level Requirements:
As we mentioned earlier, there's no actual enrollment fee, but there are a lot of other requirements. To me, it feels like too many. Especially since you have to drop a few hundreds dollars right off the bat to buy a Sign-up Kit.
Of course, the kit doesn't guarantee you'll make any money at all. On top of that you still have to get four active referrals and then try to make sales.
Difficult to Earn:
Considering most people don't care about over-priced vitamin drinks, making a sale will be a challenge. So you'll drop a few hundred bucks on a kit that you probably won't use, to join a rewards plan that probably won't reward you. To me, it feels like a waste of time.
3. No Income Disclosure Statement:
Xooma has been around for awhile, almost 20 years, but for some reason they still don't have an income disclosure statement. There's no way to tell if anyone is making money with their rewards plan. If I had to guess, from experience, I'm sure not many people.
But the fact they don't make their member's income statements public is a bit suspicious. If people are actually making cash, why not advertise that? Surely that will get more people to join. I guess it's the opposite.
For best results, Xooma recommends buying kits so you have products for various needs. But these kits cost hundreds, even thousands, of dollars. If you choose to buy individual products, they're still incredibly over-priced. For example, one small packet of X20 (the drink) costs $35.
How many vegetables can you buy with that? Just buy a bunch of vegetables, throw some in a blender, and boom - a much more nutritious drink. No need to buy anything else.
Is Xooma a Scam?
Having said all that, I'll wrap this review up with a few final thoughts. Xooma, in my opinion, is very close to being a scam. The bogus health claims, pyramid scheme-style rewards plan, over-blown hype - it all screams scam.
But - technically - the company is not a scam because they do deliver a product. The quality of the product is questionable but they still deliver. And, for the most part, the compensation plan works. The problem is most people drop out because you have to spend a lot of money to make a few dollars. Not worth it.
A Much Better Alternative:
Chances are you're looking into MLM opportunities because you want to learn how to make money from home. Well, I'v got some good news and bad news.
The good news is there are plenty of ways to make money online. The bad news is MLM companies rarely work. Finding a MLM company that actually delivers as promised is like looking for a needle in a haystack, a very expensive haystack.
Though MLM companies sound fancy and their compensation plans look good on the surface, it rarely works out. It was discovered that around 99% of people who join MLM companies end up losing cash, instead of earning it.
I recommend a much easier business model, affiliate marketing.
It's simple. you make a website, write reviews, promote products you like as an affiliate. Boom. Super easy and straight forward. No need for 20 page reports on compensation plans and schemes. Want to learn more?
Thanks for taking the time to read this review about what is Xooma. Hopefully now you have a clear picture of the company and their compensation plan.
You're free to make your own decisions, but as someone who reviewed many of these companies, I don't recommend this one.
Leave a comment if you have any questions.