‘Why is everyone leaving Plexus,’ this and many more questions are in the minds of people right now, especially those who have once known the company to be one of the leading health and wellness companies in town. There has been a recent mass exodus from the company – even those who usually fill their social media feeds with Plexus praises have secretly left the room.
So, why is everyone leaving Plexus? What is the problem with the company? Are they going out of business? All these and many more questions are what we are going to address in this post. We will show you all you need to know about this so-called pyramid company and why you may need to stay away from it too. So, just keep reading!
A Quick Look at the World of Plexus
Plexus Worldwide is a notable network marketing company that was created in 2006. Since its establishment, the company has been able to calf a unique name for itself as one of the leading companies dealing in health, weight loss, and beauty products.
The company has its headquarters in Scottsdale, Arizona, and offers a tired ambassadorship program that comprises seven different categories. From entry-level ‘ambassadors’ to the prestigious ‘diamond ambassador,’ Plexus has something to offer anyone at their level.
If you would like to join the ranks of Plexus distributors, you would be required to pay an annual membership fee of $34.95. That fee will allow you to buy their product bundle at $99 or $199. Additionally, distributors must maintain a monthly personal volume (PV) averaging 100 points to sustain their ambassador position.
When Plexus is being talked about to a potential distributor, one of the things that is mostly talked about is the network marketing aspect. They promised potential distributors the ability to start their own businesses and earn good money even without any initial investment. This makes their offerings quite appealing to people looking to commence a wonderful entrepreneurial journey.
Why Is Everyone Leaving Plexus?
Plexus Faces Bans in Several Countries
Once celebrated worldwide, Plexus suffered a major setback when it encountered bans in various countries. The governments of Australia, New Zealand, and Canada took decisive action, prohibiting the sale and distribution of Plexus products within their territories.
For example, Canada’s government issued a warning specifically targeting the importation of two Plexus products: the Plexus Slim Accelerator 3-Day Trial box and the Plexus Slim Accelerator pills. Despite being manufactured elsewhere, concerns regarding their safety and compliance with local regulations prompted the cautionary measure.
These bans, coupled with safety warnings from regulatory bodies like the Therapeutic Goods Administration (TGA), have shattered trust and left many individuals questioning their continued association with Plexus. The prohibition of Plexus products in multiple countries has undoubtedly played a significant role in the mass exodus from the company.
FDA Questions Plexus Products
Another reason we can attribute to the reasons ‘why is everyone leaving Plexus’ is FDA’s recent concern about their products. Plexus recently faced trouble when the FDA issued a warning letter expressing serious concerns about three of its products.
The FDA accused these products of being both unsafe and ineffective, while also stating that they were misbranded due to insufficient safety instructions.
The FDA’s questioning of Plexus products has sparked alarm among consumers. When a regulatory authority like the FDA raises concerns about potential dangers, efficacy, and misbranding, it raises doubts about the reliability and trustworthiness of the products.
This development has contributed significantly to the growing number of individuals choosing to distance themselves from Plexus.
Banned by Amazon in Early 2014
Plexus faced a significant setback when the e-commerce giant Amazon made a decisive move in early 2014, permanently prohibiting the sale of Plexus products on its platform. The ban was primarily driven by a substantial number of negative customer reviews.
Overwhelmed by a deluge of one-star ratings, it became evident that a considerable portion of consumers had experienced dissatisfaction with Plexus. This wave of discontent raised serious doubts about the effectiveness and quality of the company’s products.
Moreover, reports indicated that Plexus products contained dimethylamylamine, a major concern regarding the company’s formulation integrity and compliance. As a result, Amazon firmly took a stance, permanently excluding Plexus products from their marketplace. Even today, two of Plexus’ products remain on Amazon’s prohibited list, reflecting the ongoing reservations surrounding their safety and efficacy.
Shattered Trust through Misleading Marketing Claims
Plexus’s marketing endeavors were marked by the use of misleading claims that touted the exceptional efficacy of their products. These exaggerated assertions created an atmosphere of unrealistic expectations, leading customers to anticipate miraculous transformations and swift resolutions to their health and wellness concerns.
However, when these promises failed to materialize, a sense of disillusionment quickly took hold. The stark disparity between the enticing marketing claims and the actual outcomes left individuals feeling deceived and betrayed, compelling them to seek out alternative solutions.
The breakdown of trust caused by these misleading marketing practices has played a significant role in the exodus of individuals from Plexus.
Concerns about Plexus’s Pyramid-Like Structure
One of the noteworthy concerns surrounding Plexus is its resemblance to a pyramid scheme, rather than a traditional multi-level marketing company regulated by the Federal Trade Commission (FTC).
The pyramid-like structure raises alarm bells as it provides operators ample opportunity to defraud unsuspecting victims before the FTC can intervene. This resemblance to a pyramid scheme is a cause for concern among potential participants.
Adding to the issue, the income disclosure statement for 2015 revealed a disheartening reality for the majority of Plexus ambassadors. The report indicated that most ambassadors earned less than $5,000 annually, with an average income of a mere $417.
In fact, for those at the Ambassador-Diamond levels, the average yearly commission was $1,885.99, while the median annual commission was a meager $213.23.
These statistics shed light on the challenging financial prospects for Plexus ambassadors. The majority find themselves struggling to achieve substantial earnings, with only a small fraction able to attain modest returns for their efforts.
Why Is Everyone Leaving Plexus
Why Was Plexus Banned In Australia?
Australia, known for its stringent regulations on health and safety, took decisive action by banning Plexus from its market. The ban stemmed from concerns raised regarding the safety and compliance of Plexus products with local regulations.
The Therapeutic Goods Administration (TGA), Australia’s regulatory body for therapeutic goods, deemed certain Plexus products as non-compliant and potentially harmful. These concerns revolved around the ingredients, formulation, and labeling of the products.
Does Plexus Demote Distributors?
Yes, Plexus has a system in place where distributors can be demoted based on their performance. Within the Plexus ambassadorship program, distributors can progress through various ranks and levels based on their sales volume, team growth, and other performance metrics.
However, if distributors fail to meet the requirements or maintain the necessary qualifications for their current rank, they can be demoted to a lower level within the program. This demotion can result in a loss of benefits, reduced commission rates, and a decrease in their overall status within the Plexus network.
Does Plexus Contain Xylitol?
Yes, some Plexus products contain Xylitol. Xylitol is a sugar substitute commonly used in many food and beverage products, including some dietary supplements. It is often added to provide a sweet taste without the high-calorie content of sugar.
However, not all Plexus products contain Xylitol. So, while Plexus could contain Xylitol, not all their products can be linked to this – it all depends on the specific product and formulation.
Why is Plexus Considered A Pyramid Scheme?
Plexus has been subject to scrutiny and considered by some critics to exhibit characteristics of a pyramid scheme. Here are a few reasons why Plexus has been associated with such concerns:
- Emphasis on recruitment: Pyramid schemes prioritize recruiting new members over selling actual products or services. Some individuals claim that Plexus places a heavy focus on recruiting new distributors rather than emphasizing the sale of their products.
- Earning potential based on recruitment: In pyramid schemes, the primary way to earn a significant income is by recruiting new participants and earning commissions from their sales. Critics argue that the compensation structure of Plexus relies heavily on recruitment and building a downline, potentially incentivizing recruitment over product sales.
- Limited retail customer base: Pyramid schemes typically lack a substantial customer base outside of their distributors. Some skeptics assert that Plexus struggles to generate significant sales to customers who are not also distributors, suggesting an over-reliance on internal consumption rather than attracting external customers.
- Unbalanced compensation structure: Pyramid schemes often feature a compensation structure that disproportionately rewards those at the top of the hierarchy while making it difficult for the majority of participants to earn a substantial income. Critics argue that Plexus’s compensation plan disproportionately benefits those at higher levels, potentially perpetuating income inequality within the organization.
Why Is Everyone Leaving Plexus – Final Note
Now you have a clearer picture of why people are staying away from this health and wellness company, Plexus. Many things have been looming behind the exodus of people from Plexus. Important among them is its ban by FDA and many countries across the globe.
Their products are also associated with misleading advertisements and their close relation to being a pyramid scheme rather than an MLM.
If the reason you are asking, ‘Why is everyone leaving Plexus’ is so you can become their distributor or use some of their products, you might need to stay away from them too. You can’t really trust them or anything they say!
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