Shaklee

Review of Shaklee Pyramid Scheme: Why it's kind of sketchy?

What is Shaklee?

Shaklee Corporation is a major distributor and manufacturer of nutrition supplements, weight management, beauty products and household products for MLM companies. Shaklee products are developed in-house. They are sold worldwide by independent distributors through multi-level marketing.

Shaklee distributors started setting up websites in recent years to allow customers to order Shaklee products online.

History of Shaklee

Forrest C. Shaklee (1894-1985), an American nutritionist and chiropractor, founded the first Vitamin labeled " Shaklee’s Vitalized Minerals" in the United States in 1915. In 1956, Shaklee, his sons Forrest Jr. and Raleigh founded the Shaklee Corporation to produce food supplements.

Forrest Jr. was responsible for accounting and the day-today operations of the company. Raleigh, an ex-insurance salesman, was responsible for marketing operations. Their father was responsible for research and development.

The company's first product was a protein-lecithin-supplement called Pro-Lecin Nibblers. It was developed by Dr. Shaklee. In 1956, herb-lax, which is a herbal laxative was added. Vita Lea was introduced in 1956. It quickly became the company's flagship product and a mainstay.

Instead of hiring salespeople full-time, the company hired independent contractors right away and offered lucrative incentives tied to how many sales they generated. According to one loyal Shaklee Saleswoman, it was an unstructured system which required self-motivated participants.

Shaklee saw incredible growth in the 1970s. Annual sales grew from $20 million to over $300 million by the end of the decade. The company's first research facility was the Forrest C. Shaklee Research Center. It opened in Hayward in California in 1971. The multi-level marketing firm became public in 1972. It was also listed on the New York Stock Exchange.

In 1980, the company moved its headquarters from San Francisco to a new skyscraper in San Francisco's Financial District.

Shaklee made it to the Fortune 500 in 1982.

In November 1986, the company began diversifying when it paid $123,000,000 to RJR Nabisco, for Bear Creek Corporation. This direct marketing company is best known for its Harry and David Fruit-of-the-Month club operation.

Shaklee sold its stake in Japan to Yamanouchi Pharmaceutical Company, for $350,000,000 in February 1989. The company kept its licensing agreement and collected royalties from Japanese operations.

Yamanouchi sold Shklee Corporation to Roger Barnett, an American multi-millionaire and managing partner of Activated Holdings LLC. Barnett is also a Wolfson family member. Wasserstein Perella & Co. purchased Bear Creek and the Harry and David lines for $260 million.

Roger Barnett is still Chairman and CEO at Shaklee Corporation.

Is Shaklee Products Made in The United States?

Many who have tested and used the Shaklee products agree that they are both effective and environmentally-friendly.

Shaklee stresses that their products not only will benefit individuals, but also will promote a healthier planet.

For example, their household cleaning products are free of chemicals, so they are safe, gentle, and non-toxic. Many who have used Shaklee products are so happy with their results, they have made the switch to Shaklee.

Shaklee products can be purchased on Amazon by customers

As an MLM company, it would seem that you could only purchase products through their Partner Distributors. Unfortunately, this is not the case. Amazon has many of their products available for purchase.

They are cheaper at this online retailer than if they were purchased directly from the distributor or company. However, the downside to buying them here is that the Shaklee Guarantee will not cover them.

Shaklee cannot issue refunds for products purchased directly from them.

Shaklee Review: Shaklee is a Reputable MLM Company? Or is it a scam?

Although nutrition supplements and nutrition MLMs can be shady, Shaklee products remain one of the most trusted and well-known MLMs in this industry. They have a deal with NASA to create Astroade, an astronaut-rehydrating product. This is as legit as it gets.

They are also known for being the most environmentally-conscious MLM company in nutrition and supplements. Shaklee was the first company in the world to be certified Climate Neutral. They were the first company in the world to offset its carbon footprint. This makes them carbon neutral.

It's possible to create a successful MLM company that is profitable. There are many options when it comes building a business. 

This is my #1 choice!

It is, however, a real example of success that real people have shown just a few days back.

Even if you are determined to become a [course profession], there are better options than Shaklee.

Remember that I do not get paid to review any programs. MLM is a great model for business, but it could lead to you losing a lot of money.

Shaklee Review: Shaklee Is an MLM Or a Pyramid Scheme?

Multilevel marketing can have an unpleasant odor of hucksterism if it isn't accompanied by a story about a pyramid scheme or get-rich-quick scheme.

Multilevel marketing is a method of selling direct to customers through a network, such as Shaklee. There is no set retail location. Salespeople receive commissions as well as individual or group bonuses for both product sales and sales made by other salespeople.

Pyramid schemes, on one hand, are often a scam. They promise payment only for recruiting new people, and not for actually selling products. Shaklee does not appear to be a pyramid scheme.

Analysts consider multilevel marketing to be legitimate because it allows MLM companies avoid the cost of advertising, salespeople and storefronts. It also leverages the power of testimonials and dedicated distributors who earn 100% commission.

Direct-selling is a great business model for finance guys. This business model requires very little capital investment. You also have an outsourced sales team. Marketing your product doesn't require a lot of money. Direct selling offers excellent gross margins with sales gross margins around 80%. The distributor receives roughly half as a commission for sales, while they have 40%. This is a substantial margin.

Scott Van Winkle, managing Director of Canaccord Adams, Canada's investment bank, which counts direct sellers Herbalife & Usana Health Sciences as its clients.

Are there any law suits involving Shaklee?

This MLM company has been the subject of a series of lawsuits, which we consider a red flag.

In 1974, Shaklee agreed to cease marketing "Instant protein" as suitable for infants. Also, it was ordered by the Federal Trade Commission to stop misrepresenting "Instant protein"'s content.

Shaklee was fined by the FTC in 1976 for "requiring, coercing and threatening to or otherwise exerting pressure" upon its distributors to advertise or keep suggested retail prices.

Shaklee sued former distributors for defaming the products of their rivals and interfering in business relationships after they signed on to the company in 1978. Although Shaklee won the case in 1981, the judgment was not sufficient to cover the legal fees of MLM company.

Shaklee was found to have discovered that their alfalfa tablet had been contaminated with salmonella bacteria in 1973. However, they continued to sell them until 1977 after treating the alfalfa using a fumigant, which was believed to be carcinogenic.

How do I join Shaklee?