Agel Enterprises is a typical MLM business that uses independent distributors to market their line of nutritional supplements instead of using a traditional storefront distribution system. Distributors can earn money from retail sales of the products they buy at wholesale prices from the company or recruit people into the system and receive a commission from sales made by the new recruits. Practically all MLM companies structure their compensation plans to entice new recruits. After all, that's usually where the real money is for both the company and the distributors. Take a good look at the compensation plan offered by any MLM company and crunch some numbers so you don't end up working like a horse for small change.
The Company and Their Products
Agel Enterprises was founded in March 2005 in Provo, Utah by Glen Jensen. Agel sells a unique nutrition delivery system they call 'gelceuticals', which they claim to be the world's first nutritional supplements suspended in a gel. Critics have argued that such products are not new but concede that Agel could very well have been the first to target adults as a market for these types of products. Some of the Agel's supplements are certified as kosher or halal, making them acceptable for Jews and Muslims to ingest, which probably accounts for its success in Israel and many Muslim countries like Malaysia and Indonesia. Agel now sells its products in 53 countries.
The Compensation Plan
To become a distributor, you'll be asked to buy in with either a Personal Pack ($250) or an Executive Kit ($1000). Agel has basically tweaked a multi-level marketing two-leg commission model (binary) and given it the name "Quadra-Plan." Some distributors have been known to oversell Agel's income opportunity. Agel's plan is supposed to generate massive residual income for its distributors, but while it is theoretically possible to make $25,000 US a month, the chances of everything lining up exactly the way you want it to are very, very small. In fact, a more realistic outlook would be to consider that in order to make just $2,000 per month, you would need to have around 400 people receiving Agel products on auto-ship.
The Verdict
Like any MLM business opportunity, you can earn by selling the product at retail prices. However, since Agel's products are a little on the expensive side, it becomes more difficult to convince the regular consumer to keep purchasing the product. That's why distributors tend to sell the business opportunity instead of the actual product. There's nothing wrong with that. Many MLM businesses do the same. But let's not kid anyone about the chances of duplicating the success of the Agel pioneers who had a head start in distributing Agel products, shall we?
Typically, the more people in a particular MLM business opportunity, the harder it becomes to find new people to recruit into the program, especially when the products being sold are expensive. I'm not saying it can't be done. I'm saying that this is not something you get into without the right mindset and expectations.