LifeVantage Compensation Plan Review 2024

LifeVantage Compensation Plan: Unlocking Earning Potential and Navigating the Pros and Cons

The LifeVantage compensation plan has been the talk of the MLM industry, with promises of life-changing income and financial freedom. But is it really all it’s cracked up to be? In this honest and unbiased review, we’ll dive deep into the LifeVantage compensation plan, examining its structure, earning potential, pros, cons, and real income stats.

We’ll start by giving you a brief overview of LifeVantage as a company, its history, and its product line. Then, we’ll break down the compensation plan into its various components, explaining how you can earn money through retail commissions, recruitment commissions, team building bonuses, and leadership incentives.

But we won’t just focus on the positive aspects of the LifeVantage compensation plan. We’ll also examine its potential drawbacks, such as high qualifying requirements, sales quotas, and the infamous “income disclosure statement.” We’ll reveal the hard truth about how much LifeVantage distributors really make and whether it’s possible to achieve the lifestyle promoted by the company.

Moreover, we’ll address the controversial question: Is LifeVantage a pyramid scheme or a legitimate business opportunity? We’ll look at the company’s focus on recruitment vs. product sales and compare it to the FTC’s guidelines for MLMs.

To give you a realistic picture of what’s possible with LifeVantage, we’ll also showcase some of the top earners in the company and share their stories. However, we’ll also point out that these individuals represent the tiny fraction of distributors who make it to the top, while the vast majority struggle to make a profit.

Finally, we’ll provide you with a step-by-step guide on how to make money with LifeVantage, if you still decide to join after reading this review. We’ll share some proven strategies and tips for success, as well as common pitfalls to avoid.

So, whether you’re a prospective LifeVantage distributor or just curious about the company, this comprehensive review will give you all the information you need to make an informed decision. Let’s dive in and uncover the truth about the LifeVantage compensation plan!

LifeVantage is a publicly-traded multi-level marketing (MLM) company in the health and wellness industry, offering a range of nutritional supplements and products. The company’s compensation plan, known as the Evolve Compensation Plan, is designed to provide flexibility and opportunity for Independent LifeVantage Consultants to earn income based on product sales to customers.

LifeVantage Corporation is a publicly-traded multi-level marketing company based in the United States that offers dietary supplements, skincare products, and energy drinks. The company was founded in 2003 and has since expanded its operations to several countries worldwide.

What is LifeVantage? Company Overview and History

LifeVantage is a multi-level marketing company founded in 2003 and headquartered in Sandy, Utah. The company started under the name Lifeline Therapeutics and initially focused on developing and selling a single dietary supplement called Protandim. In 2009, the company rebranded as LifeVantage and expanded its product line to include additional supplements, skincare products, and energy drinks.

LifeVantage operates in several countries, including the United States, Canada, Australia, Japan, Hong Kong, Mexico, Thailand, and the United Kingdom. The company went public in 2012 and is traded on the Nasdaq Capital Market under the ticker symbol LFVN.

Over the years, LifeVantage has faced some controversies and legal challenges. In 2018, the company settled a class-action lawsuit that alleged false advertising claims about its products. Despite these setbacks, LifeVantage has continued to grow its distributor base and revenue, reporting $232 million in net sales for the fiscal year 2020.

LifeVantage was founded in 2003 under the name Lifeline Therapeutics. The company initially focused on developing and marketing a dietary supplement called Protandim, which was designed to combat oxidative stress. In 2009, the company changed its name to LifeVantage Corporation and began expanding its product line.

In 2011, LifeVantage transitioned to a multi-level marketing (MLM) business model, allowing independent distributors (called Consultants) to sell its products directly to consumers. The company has since experienced significant growth, with revenue increasing from $11 million in 2009 to $232 million in 2020.

In recent years, LifeVantage has faced some legal challenges, including a class-action lawsuit in 2018 alleging that the company made false and misleading statements about its products. The company settled the lawsuit in 2020 for $1.8 million while denying any wrongdoing.

LifeVantage MLM Leadership Team and Founders

The current leadership team at LifeVantage includes:

  • Steve Fife, President and Chief Executive Officer
  • Justin Rose, Chief Sales Officer
  • Carl Aure, Chief Financial Officer
  • Brian Dixon, Senior Vice President of R&D and Quality

The company was founded by Paul Myhill and William W. Driscoll, who served as the company’s first CEO and President, respectively. Myhill and Driscoll are no longer actively involved in the company’s management.

Countries of Operation

LifeVantage operates in several countries, including:

  • United States
  • Canada
  • Mexico
  • Australia
  • New Zealand
  • Japan
  • Hong Kong
  • Thailand
  • United Kingdom
  • Germany
  • Netherlands
  • Austria
  • Spain
LifeVantage Headquarters

LifeVantage’s corporate headquarters is located in Sandy, Utah, United States.

Notable Achievements

  • In 2017, LifeVantage was named one of the “Best Places to Work” by the Direct Selling News.
  • The company has been recognized for its growth, making the Inc. 5000 list of America’s fastest-growing private companies multiple times.
  • LifeVantage has received several awards for its products, including the SupplySide Editor’s Choice Award for its Protandim NRF1 Synergizer supplement in 2018.

LifeVantage has established itself as a growing MLM company in the health and wellness industry. Despite facing some legal challenges, the company continues to expand its operations and product offerings. With a focus on dietary supplements and skincare products, LifeVantage aims to help its customers achieve their health and wellness goals while providing a business opportunity for its Consultants.

LifeVantage offers a range of dietary supplements, skincare products, and energy drinks. The company’s flagship product, Protandim, is marketed as a supplement that helps reduce oxidative stress and supports overall health and wellness.

LifeVantage Direct Selling Product Categories and Flagship Products:
  1. Dietary Supplements
  • Protandim Nrf2 Synergizer: A patented blend of natural ingredients designed to reduce oxidative stress and activate the Nrf2 protein pathway.
  • Protandim NRF1 Synergizer: A supplement that supports mitochondrial health and energy production.
  • LifeVantage Omega+: A fish oil supplement that supports heart, brain, and joint health.
  • LifeVantage ProBio: A probiotic supplement that supports digestive health and immune function.
  1. Skincare
  • TrueScience Beauty System: A line of skincare products that includes a cleanser, perfecting lotion, eye serum, and anti-aging cream.
  • TrueScience Hair Care System: A collection of hair care products that includes a shampoo, conditioner, and scalp serum.
  1. Energy Drinks
  • Axio: A powdered energy drink mix that contains natural ingredients like green tea extract and B vitamins to support mental clarity and physical performance.
  1. Pet Products
  • Petandim for Dogs: A supplement designed to reduce oxidative stress and support healthy aging in dogs.
LifeVantage MLM Notable Top Earners

While LifeVantage does not publicly name its top earners, some high-ranking Consultants have been featured in company events and publications:

  • Carrie Dickie: A Presidential Consultant who has been with the company since 2011 and has built a large international team.
  • Robert and Jill Harris: A husband and wife team who have achieved the rank of Presidential Consultant and have been recognized for their leadership and success within the company.

LifeVantage’s product offerings focus on dietary supplements, skincare, and energy drinks, with Protandim serving as the company’s flagship product. While top earners in the company can achieve significant income, it is important to understand that success as a LifeVantage Consultant requires dedication, hard work, and the ability to effectively sell products and build a team.

LifeVantage MLM Revenue

LifeVantage Corporation (NASDAQ: LFVN) is a publicly-traded company, which means it is required to disclose its financial performance through annual reports and filings with the U.S. Securities and Exchange Commission (SEC). Here is a summary of LifeVantage’s revenue and net income (profit) for the past five fiscal years:

Fiscal Year 2020 (ended June 30, 2020):

  • Revenue: $232.9 million
  • Net Income: $11.5 million

Fiscal Year 2019 (ended June 30, 2019):

  • Revenue: $226.0 million
  • Net Income: $7.4 million

Fiscal Year 2018 (ended June 30, 2018):

  • Revenue: $203.2 million
  • Net Income: $5.8 million

Fiscal Year 2017 (ended June 30, 2017):

  • Revenue: $199.5 million
  • Net Income: $4.0 million

Fiscal Year 2016 (ended June 30, 2016):

  • Revenue: $206.5 million
  • Net Income: $6.1 million

Over the past five years, LifeVantage has maintained relatively stable revenue, with a slight increase in the most recent fiscal year. The company has also consistently reported positive net income, indicating profitability.

It’s important to note that these figures represent the overall financial performance of the company and do not necessarily reflect the earnings of individual Consultants. The success of a Consultant depends on various factors, such as their ability to sell products, recruit new Consultants, and build a strong team.

For more detailed financial information, you can access LifeVantage’s annual reports and SEC filings on the company’s investor relations website or through the SEC’s EDGAR database.

Earning Potential

  1. Customer Sales Profit Consultants earn the difference between the price their customers pay and the Consultant price, which is approximately 20% off the One Time Retail price. This allows Consultants to earn a profit on every customer order.
  2. Personal Sales Bonus Consultants can earn up to 20% on their total monthly customer sales, depending on the Sales Volume (SV) they generate. The bonus tiers are: 5% (Onyx) for 500-999.99 SV, 10% (Emerald) for 1,000-1,999.99 SV, 15% (Sapphire) for 2,000-3,999.99 SV, and 20% (Diamond) for 4,000+ SV.
  3. Fast Track Bonuses During their first three full calendar months, new Consultants can earn additional bonuses for achieving certain milestones, such as enrolling customers or other Consultants and advancing in rank.
  4. Level Commissions Consultants can earn commissions on the sales volume of their downline, with percentages and the number of levels paid out increasing as they advance in rank.
  5. Leadership Match and Leadership Pool At higher ranks (Managing Consultant 2 and above), Consultants can earn a percentage match on the Level Commissions of their downline Generations. They can also earn shares in a global Leadership Pool, which is 4% of the company’s global monthly Commissionable Volume (CV).

LifeVantage Evolve Compensation Plan, focusing on the career path and each earning opportunity.

LifeVantage Career Path:

The LifeVantage Evolve Compensation Plan offers a career path with 15 ranks, each with its own set of qualifications and benefits:

  1. Consultant
  2. Consultant 1, 2, and 3
  3. Senior Consultant 1, 2, and 3
  4. Managing Consultant 1, 2, and 3
  5. Executive Consultant 1, 2, 3, and 4
  6. Presidential Consultant

To advance in rank, Consultants must meet specific requirements in Personal Sales Volume (PSV), Sales Volume Requirement (SVR), Group Sales Volume (GSV), and Maximum Volume Rule (MVR).

LifeVantage Network Marketing Earning Opportunities:

  1. Customer Sales Profit Consultants earn the difference between the price their customers pay and the Consultant price. For example, if a customer purchases a product at the One Time Retail price of $100 and the Consultant price is $80, the Consultant earns a Customer Sales Profit of $20.
  2. Personal Sales Bonus Consultants can earn a bonus based on their total monthly Customer Sales Volume (CSV). The bonus tiers are:
  • 5% (Onyx) for 500-999.99 CSV
  • 10% (Emerald) for 1,000-1,999.99 CSV
  • 15% (Sapphire) for 2,000-3,999.99 CSV
  • 20% (Diamond) for 4,000+ CSV

Example: If a Consultant generates 2,200 CSV in a month, they will earn a 15% Personal Sales Bonus on that volume, which equals $330.

  1. Fast Track Bonuses During their first three full calendar months, new Consultants can earn additional bonuses: a. Customer Track: $50 for each set of 3 customers who order 100 SV in their first purchase month. b. Consultant Track: $50 for each set of 3 personally enrolled Consultants who are Active in their enrollment month. c. Rank Advancement Track: $100 when advancing to Senior Consultant 1 for the first time. d. Accelerator Track: $50 when achieving any Fast Track Bonus before the end of the first full calendar month.
  2. Level Commissions Consultants can earn commissions on the sales volume of their downline, with percentages and the number of levels paid out increasing as they advance in rank. For example, a Managing Consultant 1 earns 10% on Level 1, 7% on Level 2, 7% on Level 3, 6% on Level 4, and 6% on Level 5.
  3. Leadership Match At Managing Consultant 2 rank and above, Consultants can earn a percentage match on the Level Commissions of their downline Generations. For example, a Managing Consultant 3 earns a 12% match on their Generation 1 and a 10% match on their Generation 2.
  4. Leadership Pool At Executive Consultant 1 rank and above, Consultants can earn shares in a global Leadership Pool, which is 4% of the company’s global monthly Commissionable Volume (CV). The number of shares earned depends on the Consultant’s rank, with higher ranks earning more shares.

Example: An Executive Consultant 3 earns 5 shares in the Leadership Pool. If the total Leadership Pool amount for a given month is $100,000 and there are 1,000 shares in total, each share would be worth $100. The Executive Consultant 3 would earn $500 from the Leadership Pool that month.

This detailed explanation should provide a clearer understanding of the LifeVantage Evolve Compensation Plan, its career path, and the various earning opportunities available to Consultants. The examples illustrate how Consultants can earn income at different ranks and through different aspects of the plan.

How Does the LifeVantage Direct Selling LifeVantage Compensation Plan Work?

The LifeVantage compensation plan is designed to reward distributors for selling products and building a team of other distributors. The plan is based on a unilevel structure, which means that distributors can earn commissions on the sales of their recruits, as well as the recruits of their recruits, up to nine levels deep.

The compensation plan includes several ways for distributors to earn money, including:

LifeVantage MLM Retail Commissions and Customer Bonuses:

Distributors can earn retail commissions by selling LifeVantage products to customers at a markup. The company also offers customer bonuses for distributors who sign up new customers and maintain a certain volume of customer sales.

LifeVantage MLM Recruitment Commissions and Team Building Bonuses:

Distributors can earn commissions on the sales of their recruits and the recruits of their recruits, up to nine levels deep. The percentage of commissions earned depends on the distributor’s rank and the volume of sales generated by their downline. The compensation plan also includes various team building bonuses for distributors who help their recruits advance in rank and build their own teams.

LifeVantage Network Marketing Leadership Bonuses and Rank Advancement Incentives

As distributors advance in rank, they become eligible for additional leadership bonuses, such as the Elite Bonus Pool and the Generational Matching Bonus. The company also offers incentives for distributors who achieve certain rank advancement milestones, such as car bonuses and travel rewards.

LifeVantage Direct Selling Compensation Plan Pros and Cons

Like any MLM compensation plan, the LifeVantage plan has its advantages and disadvantages. Here are some of the pros and cons to consider:

The Evolve Compensation Plan is divided into three main categories: Share, Build & Grow, and Lead. Each category focuses on different aspects of building a LifeVantage business, from selling products to customers to developing and leading a team of Consultants.

Pros of LifeVantage MLM:

  1. Multiple ways to earn income (retail sales, bonuses, commissions, and leadership rewards)
  2. Emphasis on customer sales and customer acquisition
  3. Fast Track Bonuses encourage new Consultants to get off to a strong start
  4. Opportunity for leadership development and mentorship
  5. Potential for leveraged income through team building
  6. Generous customer bonuses for signing up new customers and maintaining customer sales volume
  7. Opportunity to build a residual income stream by developing a team of distributors
  8. Rank advancement incentives and rewards for top performers

Cons of LifeVantage MLM:

  1. Complexity of the compensation plan may be challenging for some Consultants to understand
  2. Qualification requirements for higher ranks may be difficult to achieve and maintain
  3. Success relies heavily on recruiting and team building, which may not appeal to everyone
  4. Income potential is largely dependent on individual effort and the performance of one’s downline
  5. As with most MLMs, there is a risk of market saturation and competition within the company
  6. High start-up costs, including the purchase of a starter kit and monthly product purchases to remain active
  7. Complex compensation plan with many different bonuses and qualifications
  8. Emphasis on recruitment over product sales, which can lead to pyramid scheme concerns
  9. Difficult to earn a significant income without building a large downline team
  10. Low success rate, with the majority of distributors earning little to no money

LifeVantage Direct Selling Income Disclosure Statement: The Hard Truth

To provide transparency about the earning potential of its distributors, LifeVantage publishes an annual Income Disclosure Statement. The statement reveals that the majority of LifeVantage distributors earn very little money, with the average annual earnings ranging from $36 to $1,431, depending on the distributor’s rank.

According to the 2020 Income Disclosure Statement, only 0.51% of LifeVantage distributors achieved the rank of Elite or higher, which is required to earn a full-time income from the business. The top 1% of distributors earned an average annual income of $51,437, while the bottom 80% earned an average of just $115 per year.

These figures suggest that the LifeVantage compensation plan, like most MLM plans, is heavily skewed towards the top earners, with the vast majority of distributors struggling to make a profit. It’s important for potential distributors to understand these income statistics before joining the company.

Is LifeVantage a Pyramid Scheme or Legit Opportunity?

One of the most common questions about MLM companies like LifeVantage is whether they are legitimate business opportunities or illegal pyramid schemes. While LifeVantage is a legal MLM company, some critics argue that its compensation plan places too much emphasis on recruitment over product sales, which is a red flag for pyramid scheme behavior.

To be considered a legitimate MLM, a company must have a viable product or service that distributors can sell to customers outside of the distributor network. While LifeVantage does offer a range of dietary supplements and skincare products, some distributors may feel pressure to focus more on recruiting new distributors than on selling products to customers.

Ultimately, the legitimacy of LifeVantage as a business opportunity depends on how individual distributors choose to build their businesses. Distributors who prioritize product sales and customer service are more likely to succeed in the long run than those who rely solely on recruitment.

Top LifeVantage Earners: The 1% Reality

While the LifeVantage compensation plan offers the potential for high earnings, the reality is that only a small percentage of distributors achieve significant income from the business. According to the company’s Income Disclosure Statement, the top 1% of distributors earn an average annual income of $51,437, while the top 0.1% earn an average of $253,137 per year.

These top earners typically have large downline teams and high sales volumes, and they often serve as company spokespersons and recruiters. However, it’s important to note that these individuals represent a tiny fraction of the overall distributor base, and their success is not necessarily typical or achievable for the average distributor.

In fact, the vast majority of LifeVantage distributors earn little to no money from the business, with many losing money after accounting for expenses like product purchases and marketing materials. This is a common trend in the MLM industry, where the top earners often benefit from the efforts of their downline teams, while the majority of distributors struggle to turn a profit.

LifeVantage Product Reviews: Do They Really Work?

LifeVantage offers a range of dietary supplements and skincare products that are marketed as anti-aging and wellness solutions. The company’s flagship product, Protandim, is a patented blend of herbs and nutrients that is claimed to reduce oxidative stress and support healthy aging.

While some customers and distributors report positive results from using LifeVantage products, the scientific evidence for their effectiveness is mixed. Some studies have suggested that Protandim may have antioxidant and anti-inflammatory properties, but more research is needed to confirm these benefits.

Other LifeVantage products, such as the TrueScience skincare line and the Axio energy drink, have received mixed reviews from customers. Some users report improvements in skin appearance and energy levels, while others find the products overpriced and ineffective.

As with any health or wellness product, individual results may vary, and it’s important to consult with a healthcare professional before starting any new supplement or skincare regimen. Potential distributors should also be aware that the primary focus of the LifeVantage business opportunity is on recruiting new distributors, rather than on selling products to customers.

How to Make Money with LifeVantage: The Step-by-Step Guide

If you’re considering joining LifeVantage as a distributor, here are the steps you’ll need to take to start earning money with the company:

Step 1: Sign up as a distributor by purchasing a starter kit and agreeing to the company’s policies and procedures.

Step 2: Set up your online distributor account and familiarize yourself with the company’s products and compensation plan.

Step 3: Begin selling LifeVantage products to customers, either through in-person sales or online marketing.

Step 4: Recruit new distributors to join your downline team and help them get started with the business.

Step 5: Work to advance in rank by increasing your personal sales volume and building a larger downline team.

Step 6: Participate in company training and events to improve your sales and recruitment skills and stay motivated.

Step 7: Focus on providing excellent customer service and supporting your downline team to maximize your earnings potential.

While these steps may seem simple, building a successful LifeVantage business requires hard work, dedication, and a willingness to learn and adapt. It’s also important to have realistic expectations about the earning potential of the business and to be aware of the challenges and limitations of the MLM model.

LifeVantage Compensation Plan Verdict: Is It Worth Joining?

After examining the LifeVantage compensation plan in detail, it’s clear that the business opportunity has both potential benefits and significant drawbacks. On the positive side, the plan offers multiple ways to earn income, generous customer bonuses, and the potential to build a residual income stream. The company also provides training and support for its distributors and offers incentives for rank advancement and top performance.

However, the LifeVantage compensation plan also has several red flags that potential distributors should be aware of. The high start-up costs, complex qualification requirements, and emphasis on recruitment over product sales are all common criticisms of MLM plans. Additionally, the low success rate and average earnings of most distributors suggest that the majority of participants will struggle to make a significant income from the business.

Ultimately, whether the LifeVantage compensation plan is worth joining depends on your individual goals, skills, and risk tolerance. If you’re passionate about the company’s products and believe in the MLM model, and if you’re willing to put in the time and effort required to build a successful business, then LifeVantage may be a good fit for you. However, if you’re looking for a quick and easy way to make money, or if you’re uncomfortable with the idea of recruiting others into the business, then LifeVantage may not be the best choice.

Before joining LifeVantage or any other MLM company, it’s important to do your research, understand the compensation plan and income potential, and weigh the pros and cons carefully. It’s also a good idea to consult with a financial advisor or business mentor to help you make an informed decision and set realistic goals for your MLM business.

LifeVantage Compensation Plan FAQs

To become a LifeVantage distributor, you’ll need to purchase a starter kit, which ranges in price from $50 to $1,200, depending on the kit you choose. You’ll also need to agree to the company’s policies and procedures and set up a monthly autoship order to remain active.

While it is possible to earn money by selling LifeVantage products to customers, the compensation plan is heavily focused on recruiting new distributors and building a downline team. Most of the high-earning distributors in the company have large downline teams and earn the majority of their income from recruitment commissions and bonuses.

According to the company’s Income Disclosure Statement, the average annual earnings for LifeVantage distributors range from $36 to $1,431, depending on the distributor’s rank. Only a small percentage of distributors (0.51%) achieve the rank of Elite or higher, which is required to earn a full-time income from the business. It’s important to have realistic expectations about the earning potential of the LifeVantage opportunity and to understand that individual results may vary.
Yes, LifeVantage provides a range of training and support resources for its distributors, including online courses, webinars, and live events. The company also offers a mentorship program that pairs new distributors with experienced leaders to help them build their businesses.
No, LifeVantage is not a pyramid scheme. The company offers legitimate products for sale and compensates distributors based on their sales volume and the sales volume of their downline teams. However, like many MLM companies, LifeVantage’s compensation plan does place a heavy emphasis on recruitment, which can be a red flag for pyramid scheme behavior. It’s important for distributors to focus on selling products to customers and building a sustainable business, rather than relying solely on recruitment for income.

Highlights

Subscribe to growth alerts

Sign up for the exciting and eventful company updates and get notified anytime there is a change in revenue or rankings.

Scroll to Top