Lifevantage is a Utah based wellness company which was started in 2003. In 2009, they decided to give up on traditional retail sales. Instead they chose to promote their products using Network Marketing. In 2016, Lifevantage reported revenue of US $207 Million, which earned them 68th place on the 2017 DSN Global 100 list.
Life Vantage flagship product is Protandim which they say can reduce the effects of aging. They explain that the antioxidants in this product can help your body on a cellular level. Also, healthy cells will also improve your energy levels in the day and your quality of sleep at night.
LIFE ADVANTAGE COMPENSATION PLAN
1. Retail Sales
You can earn a retail margin from Lifevantage when customers purchase either directly from you or through your Lifevantage website. We believe that retail sales are your best option to make money in any MLM. Lifevantage calls retail the ‘most obvious way to earn money’, but doesn’t really tell us much more than that about it.
If you join any network marketing company, it’s important to remember that sales are a key part of your business. If you’re not selling product, then you’re not making money. In our opinion, building a retail customer base is critical to making money in MLM
2. Smart Start Bonus
The Smart Start Bonus is designed to reward you for signing on either new preferred customers or new distributors to Lifevantage. This bonus is paid for the first calendar month after you have enrolled a new customer or distributor to Lifevantage.
Depending on how much Personal Volume (PV) you have generated, you can earn a smart start bonus of either 30% or 40% on all Lifevantage products purchased by new preferred customers. You can also earn a smart start bonus if your newly enrolled distributors join with either a silver, gold or platinum pack.
3. Launch Bonus
This is similar to the smart start bonus except it’s paid on customers and distributors recruited by others in your downline organization. Lifevantage call this a ‘trickle up’ bonus. There are 6 levels of launch bonus that are paid to the next eligible Lifevantage rank in the upline.
Depending on your rank, and which package the new distributor buys, you might earn a launch bonus ranging from $2.50 up to $50.00. To qualify for the launch bonus, you and your customers must buy enough Lifevantage products to generate at least 200 PV per month.
4. Royalty Commissions
Royalty commissions are the monthly income you can earn from all product sales within your Lifevantage organization. In order to qualify for more royalties, you need to obtain a higher rank in Lifevantage. Rank is achieved by recruiting a downline and generating enough product sales to meet the PV and organizational volume (OV) requirements.
The amount of commission which you can earn at each rank, and the qualification criteria is shown in the image below:
Lifevantage proudly tell us that they pay commission of up to 43% on all products purchased within your organization. The most you can earn per sale is 9%, but it is true that a total of 43% is paid to all the different levels in the MLM.
5. Generational Matching
Once you reach the Lifevantage rank of ‘Pro 3’ or higher, you will qualify to earn a monthly generational matching bonus. This amount is calculated based on the royalty commissions earned in your downline. It is paid on up to 5 levels below you in your organization as shown in the image below:
Lifevantage can pay up to 30% in generational matching bonuses on any royalty commissions earned in your organization. The video we watched explained that this bonus kept people at the higher levels in Lifevantage motivated to help everyone in their downlines. By this we assume they mean that this bonus ensures that
6. Elite Bonus Pool
This monthly bonus is only paid to those who have reached the level of Pro 7 or higher with Lifevantage. Every month Lifevantage will take 4% of all sales made in all organizations in the MLM, and pay this as an Elite Bonus Pool to those who have reached the highest ranks.
The higher up the ranks you go, the more Elite Bonus you can earn. 1% is shared with Pro 7, 8, 9, 10. Then another 1% is shared with Pro 8, 9 10. A third 1% is shared with Pro 9, 10. The final 1% is only shared with the Pro 10 members of Lifevantage.
What we see is that 4% of every dollar you spend on Lifevantage products is funding this bonus. You are paying an extra 4% so that those at the top of the system can earn this bonus.
7. Achievement Bonus
This bonus is a one time payment made to those who reach the Pro 10 levels with Lifevantage. The payment can range from $100,000 at the ‘master level’ to $500,000 at the Presidential level’.
8. Business Centers
If you reach the Lifevantage rank of ‘Premier Pro 5’, then you will be eligible for your first new business center. By the time you achieve a rank of Pro 10, you will have been eligible for a total of 4 new business centers.
A new business center allows you to sponsor yourself and start a new Lifevantage business in your own downline. You can then earn commission at two levels on any sales made under your new business center. If you strategically place all four new business centers, you could earn on up to 5 different levels from the sales generated by the lowest business center.