AdvoCare has a long history of working with professional athletes to promote their products and business opportunity. Also, they are famous for their sales and recruitment technique called the “Bulletproof Shield.” ESPN has released a recent report on them that calls into question the legitimacy of the opportunity that AdvoCare offers.
ESPN (Entertainment and Sports Programming Network) – The American International Basic Cable Sports channel was founded in 1979 and owned by Walt Disney Firm.
My subscribers have requested that I take a look into the AdvoCare business opportunity. Here is what I have found.
AdvoCare Scam Claims
People from all walks of life are having success with AdvoCare, enjoying time and financial freedom, and making a difference along the way.
We Build Champions.
Here is how the business opportunity is presented:
AdvoCare Scam Reality
AdvoCare International is a nutrition, weight-loss and skin-care company founded by Charles Ragus. Ragus, joined Herbalife in 1983, became one of the company’s top distributors. In 1989, he founded a company called Omnitrition. Webster v Omnitrition became a landmark case in the legalities of running a MLM. In 1992 distributors of Omnitrition, who had lost money, brought suit against the company and its principals, alleging the exist-ence of an illegal pyramid scheme. The case was settled for an undisclosed amount. Ragus in 1993 created AdvoCare International. The company slogan is, “We Build Champions.”
AdvoCare representatives use a sales and recruitment technique called the “Bulletproof Shield.” With the “Bulletproof Shield” a representative uses endorsements and the AdvoCare scientific and medical advisory board to deflect questions about the product and business opportunity. The way a representative does this is when they get tough questions about the company they reply, “Well, I don’t know about (X), but what I do know is” — and then they reference specific athletes or doctors who have vouched for AdvoCare. “You sell the products and the opportunity with the heart and the eyes, not extensive knowledge.” – Source advoarmy.com
In my opinion, the “Bulletproof Shield” is far from bulletproof.
Nutrition experts contend that all we need is what’s typically found in a routine diet. On October 10, 2011, researchers from the University of Minnesota found that women who took supplemental multivitamins died at rates higher than those who didn’t. Two days later, researchers from the Cleveland Clinic found that men who took vitamin E had an increased risk of prostate cancer. “It’s been a tough week for vitamins,” said Carrie Gann of ABC News. These findings weren’t new. Seven previous studies had already shown that vitamins increased the risk of cancer and heart disease and shortened lives.
– Source theatlantic.com
Here is one of the dangers of taking supplements as a professional athlete:
Olympic swimmer, Jessica Hardy, was notified on July 23, 2008 that her blood tested positive for clenbuterol. Hardy used a powdered supplement called Arginine Extreme made by one of her sponsors, Advocare. Hardy claimed innocence and said she has never even heard of clenbuterol, attributing her positive drug result to either a tainted nutritional supplement or sabotage. Hardy sued AdvoCare for supplying tainted supplements; AdvoCare countersued for making false claims. AdvoCare disputed the findings of the arbitration hearing, which found that the supplements were contaminated, and reduced Hardy’s suspension.
– Source the.honoluluadvertiser.com
Professional and celebrity endorsements are used quite heavily by AdvoCare as a way to gain trust. I have heard many times that these sponsors are not paid and support Advocare because of the great products they make.
“Drew is our unpaid, National Spokeman and has been using AdvoCare products for many years. To be a product endorser an athlete is not allowed to supplement any other product and must be a tested product user for two years. At this type of level, voluntary endorsement equals extraordinary products.” – Source AdvoCare Representatives
Drew Brees is a paid endorser, providing personal services and social media promotion for AdvoCare.
– Source drewbrees.com
AdvoCare contributes to the Brees Dream Foundation. Drew Brees is also compensated for his role as AdvoCare National Spokesperson. Drew Brees receives a percentage of the sales from DB9® Signature Series products.
– Source advocare.com
Network marketing representatives often claim that they have created more millionaires than any single industry in the USA. This is not true. More educators have millionaire households than business owners.
Millionaire Household Occupations
| Occupation | Percent of Millionaires |
| Manager | 17% |
| Educator | 12% |
| Sr. Corporate Executive | 7% |
| Business Owner | 6% |
| Accountant | 4% |
| Sales Person | 4% |
| Attorney | 2% |
| Doctor/Dentist | 2% |
MLM sales literature often claims that 20% of American millionaires made their millions in multilevel marketing. After months of interviews, Money could find no one able to document the 20% figure.
– Source money.cnn.com
AdvoCare is not a franchise opportunity, but representatives like to compare the AdvoCare business opportunity to franchises.
Here is how a former Platinum level distributor explains how to make money with AdvoCare
As a former Platinum level distributor with Advocare it does require both selling the product and recruiting people. I always told people that if you want to earn around $500/mo you could do so by hustling products, joining a Business Networking Group, doing booths in various settings etc…but to earn more than that and to get into the more significant income bracket, you absolutely have to be a very gifted and/or skilled recruiter. The money grows as you recruit new advisors and then you must pour as much time and energy into helping those advisors sell products and recruit people until they have a solid foundation of business builders under them. That typically looks like a pyramid as the goal is for one person to find 3 strong “legs” of business builders/advisors horizontally below them. Then each of those three needs to recruit 3 “legs” of business builders under them and so-on and so-on. As a sponsor you tend to stay actively involved in that group until the leader becomes skilled enough to continue helping their advisors on their own. If you want to make more money, you continue this pyramid building process underneath you in a horizontal fashion. The money rolling up to the main sponsor comes in as one entire pyramid leg below them generates at least $3000 per two week pay period-that’s the main goal of a sponsor, help grow a “leg” of business in this pyramid type fashion to the point where there is at least $3000 worth of products moving through that organization. When that happens, the original, first sponsor, receives a monetary bonus. As you solidify this same goal in another pyramid beneath you, another bonus gets tacked on. This is the process- that in order to earn any real money -must take place.
How great of an opportunity is AdvoCare for making money? Of the 517,666 salespeople in 2014, less than 70% of the distributors received a commission check from AdvoCare and 96% of those that did get a check made $5000 or less per year. This does not include expenses.
Why and how do people get involved with schemes like this? Because the promise of health, wealth and good fortune, coupled with a well crafted sales pitch, is difficult for the best of us to turn away from. After all, they make it sound so easy!
Why are there few complaints about this business opportunity? When people join these companies, they’re often recruited by family or friends, and they go on to enlist others who are close to them. As a result, if they complain about the business, they’re admitting that they exploited their family and friends.
Former AdvoCare members say loyalty keeps distributors silent — but so does shame, because people who struggle are told, over and over, that they simply aren’t trying hard enough.
Here is one persons account of the personal cost of this business opportunity
You know what gets me? You distributors that are here defending AdvoCare, you’ve never been on the other side of your family. You’ve never been told that just because you don’t support your family member they have to turn their backs on you because that’s what Danny McDaniel tells them to do. Here’s his direct quote from his Twitter account “Want to know what real confidence is? If someone doubts your dreams, separate your life from them & keep moving” What kind of pastor says that? Do you know how many families have been disrupted because of the cult like atmosphere of AdvoCare? Husbands and Wives who are afraid of losing the roof over their heads because their spouse is “ALL IN” with AdvoCare. I lost part of my family and I have friends that have been in this position. Think about what you are supporting. Stop the deception and see the light! Oh, and while we’re at it why don’t we talk about how you all love to place orders under each other to hit that 3K club every 2 weeks?
– Source Shelly Morgan
People from all walks of life are making little or no money with AdvoCare, enjoying time taking supplements that are not necessary for the vast majority of people, and making a difference by getting others to make the same choices.
Cost
$79 plus taxes and shipping to become a distributor.
$50 Annual Renewal Fee.
“The best way to become an advisor is to simply place a $3000 retail order and you immediately reach the advisor level and the 40% discount level. As long as you pay your yearly membership fee of $50, you will always be at the 40% level. The $3000 retail order will cost you approximately $2100 depending on sales tax and whether you will be paying shipping costs because you will get the products at a discount but get credit for the retail amount.” – Source nutritionalhope.com
Products
24-Day Challenge®
Trim
Active
Well
Performance Elite
Compensation Plan
Products may only be sold person-to-person or through the Distributor’s personal AdvoCare Microsite.
Distributor Revenue Sources
- Retail Profits
- Wholesale Earnings
As a new Distributor, you qualify for 20 percent off retail. This can increase to 40 percent depending on your volume.
Check out the report for: INFINii
The Wholesale Commission, which AdvoCare pays directly to you, is the difference between your discount and the discount of the Distributor(s) you sponsor. If you are at the same level you do not make a wholesale commission.
Advisor Revenue Sources
- Retail Profits
- Wholesale Earnings
- Incentives
- Overrides
- Leadership Bonuses
You must show that you made at least five (5) retail sales to at least five (5) different customers (other than yourself) in each pay period during which any Override, Leadership Bonus or other bonus incentive is earned.
Advisor qualification requires $3000 in PV and GV, with at least $500 of that being PV generated in one to three consecutive pay periods. You can buy your way to being an Advisor or you can work your way to being an Advisor.
When you are working your way to be an Advisor, you must have at least $500 of Personal Volume in each qualifying period. Most qualifying periods are 2 weeks, but a few are 3 weeks.
You can build your organization infinitely wide and three advisors deep by recruiting people into AdvoCare.
“The great benefit of building both wide and deep is that you’re showing people how to lead by example; among other things, YOU must continue to personally sponsor at least one or two new Advisors at least each month or two.” – Source ADVOCARE SUCCESS CURRICULUM Module 102
Recruitment is required to receive the top AdvoCare leadership bonuses.
Personal Volume (PV) is defined as the total suggested retail value of product purchases made by you, your retail customers and your downline Distributors. This excludes the volume of downline Distributors who are former Advisors (Distributors at the 40% discount level) and those who are using their volume to qualify for Advisor status.
Group Volume (GV) is defined as the total suggested retail value of product purchases made by your downline Distributors who are in a qualifying period to achieve Advisor status ($500 in product purchases or more). This excludes any volume of former Advisors (Distributors at the 40% discount level).
In my opinion, there is a limited amount of money to be made through retail sales with AdvoCare. The majority of money to be made is through recruiting representatives who personally purchase the products and the Incentives, Overrides, and Leadership Bonuses that come from that.
Income Disclosure
Less than 70% of distributors receive a commission check from AdvoCare.
96% of those that do get a check make less than $5000 per year. This does not include expenses.
An active Distributor is anyone that earned a check in 2014 (154,819 total Distributors). The overall number of Distributors on December 31, 2014 was 517,666.
– Source AdvoCare Income Disclosure
AdvoCare is a great way to make less than part time minimum wage.
Refund Policy
A Retail Customer is entitled to a refund on any Product purchased in the last 30 days. Distributors must refund a Retail Customer’s money immediately if asked to do so. Failure to do so may result in the suspension or termination of a Distributorship at the sole discretion of
AdvoCare. After issuing a refund to a Retail Customer, Distributors must return the unused portion of the product along with a copy of the Retail Sales Receipt and a completed Retail Customer Product Return form in order to receive a replacement for the product from AdvoCare.
AdvoCare will permit a Distributor to return or exchange product up to an amount of $500.00 in retail value within a calendar year. The products must be unopened. Any Distributor wishing to return Product worth more than $500 in retail value within one calendar year must resign his or her Distributorship.
Distributors who choose to resign may be entitled to receive a refund for the cost of his or her Distributor Kit, plus shipping and handling, sales tax (if applicable) as well as a refund or credit for any unopened products purchased from AdvoCare.
To be entitled to a refund, the following requirements must be met:
- Products must be unopened and returned to AdvoCare at the time the Resignation Form is submitted;
- Returned Products must be accompanied by an inventory list and proof of purchase.
- Returned Products must also appear in the order history of the Distributor to be eligible for a refund; and
- Returned Products must have been purchased within the 12 months preceding the date of resignation.
A distributor must be able to certify that he or she has sold or consumed at least 70 percent of all products previously purchased prior to placing a new order.
– Source AdvoCare Policies And Procedures
Distributors are required to consume or sell at least 70% of the products that they purchase each month. There will not be much left to return if a distributor is unsuccessful.
Is AdvoCare a scam?
Yes, AdvoCare is just another recruiting scam. They charge you an upfront free and then try to get you to make a large $2100 product purchase. You have to recruit people to receive the top bonuses they offer. Less than 70% of distributors receive a commission check from AdvoCare. 96% of those that do get a check make less than $5000 per year. This does not include expenses. People from all walks of life are making little or no money with AdvoCare, enjoying time taking supplements that are not necessary for the vast majority of people, and making a difference by getting others to make the same choices. I would avoid the AdvoCare business opportunity.
One of my cousins posted on Facebook today about a product she tried called Spark, and how good it was. I saw the Advocare name in the pic she posted, and somehow it rang a bell w/ me immediately, so I came straight to this site to check it out. Uggh! This same cousin has sold It Works!, Younique, etc. at different times. When will they learn? ????
In my area, we have a “fit club” operator who has been advertising on groupon for years. He just picks 4-5 public parks, shows up and has people run around, do pushups & situps and push trees.
And then of course, pushes Advocare on the side.
I didn’t know this until I went thru a years or so worth of the guys facebook posts. So its well hidden. But I knew it had to be an MLM scam involved.
So your fit club is a public park and as a bonus, you can lose money in advocare too.
Don’t these people understand that you can make a lot more money with a minimum wage job ?
I used advocare before. I did see results from sparks drink and other products, but in the end I got really sick and couldn’t take products anymore. Since I stopped i feel a lot better. I don’t think the no longer have sparks energy drink. There are natural foods that we eat every are more safe then this product. When taking supplements it takes away from the bodies natural abilities to perform. In my opinion it’s a balance in power in the body. Thanks Fam, you are right on the money. Hard to find straight forward people like you.
AdvoCare Sued For Being A Pyramid Scheme
It looks like AdvoCare is doing a bit more than just building champions. I reported on the AdvoCare scam back in March of 2016. They have recently been sued for being a pyramid scheme.
AdvoCare International is a nutrition, weight-loss and skin-care company founded by Charles Ragus. Ragus, joined Herbalife in 1983, became one of the company’s top distributors. In 1989, he founded a company called Omnitrition. Webster v Omnitrition became a landmark case in the legalities of running a MLM. In 1992 distributors of Omnitrition, who had lost money, brought suit against the company and its principals, alleging the exist-ence of an illegal pyramid scheme. The case was settled for an undisclosed amount. Ragus in 1993 created AdvoCare International. The company slogan is, “We Build Champions.”
AdvoCare is now in court just like Omnitrition was in the past for being a pyramid scheme.
Here are the details of why AdvoCare is being sued:
AdvoCare is one of the largest multi-level marketing companies (“MLMs”) in the world, reportedly generating $719 million in net revenues in 2015. It also operates a pyramid scheme. AdvoCare’s many millions in revenues are primarily derived from bilking hundreds of thousands of individuals, known as “Distributors,” who participate in AdvoCare’s business opportunity.
In a classic pyramid scheme, participants pay money into the scheme for the right to receive compensation from the scheme based, in large part, on bringing new participants into the scheme. Each participant’s money is used to pay others in the scheme, as well as the scheme promoter. The more recruits a participant has under him, and the closer to the top of the pyramid he is, the more money he might make. Participants will lose their money unless they recruit enough new participants, who will also lose their money unless they recruit enough new participants, and so on. Because there is little or no money flowing into the scheme from non-participants, and since payments are shared with the promoter and disproportionately with the persons closer to the top of the pyramid, the vast majority of participants are doomed to lose most or all of their money.
Some MLMs (like AdvoCare) are pyramid schemes with a twist—rather than simply selling participants a right to share in the money paid in by other participants, the MLM sells participants a product and the right to share in the money paid in by other participants. The sale of the product is just a mask to obfuscate the true nature of the scheme.
For example, if the promoter of the classic pyramid scheme “sold” participants $100 toothpicks and the right to compensation from bringing in new participants to purchase $100 toothpicks (who would also bring in more toothpick-buying participants), the scheme is no less a pyramid scheme because the participants purchased toothpicks. The sale of toothpicks merely provides a mask of legitimacy to the pyramid scheme, allowing the promoter to claim he is a multilevel marketer of toothpicks instead of a pyramid scheme promoter. Here, rather than selling overpriced toothpicks to disguise its scheme, AdvoCare sells overpriced nutritional supplements.
Participants in the pyramid scheme operated by AdvoCare are its Distributors. AdvoCare requires Distributors to purchase start-up packages and pay annual dues, and the AdvoCare system makes it a virtual necessity that the Distributors regularly purchase AdvoCare products. In return, the Distributors get the right to receive compensation based in primary part on their recruitment of new Distributors (who pay fees, pay dues, and purchase product). Just like a classic pyramid scheme, the more recruits a Distributor brings into the AdvoCare program (and the more money those recruits pay AdvoCare), the more money that Distributor can make.
Unlike participants in a classic pyramid scheme, the AdvoCare Distributors receive products—nutritional supplements—in return for the money they pay into the scheme, which the Distributors can theoretically consume or sell. But that fact makes AdvoCare no less a pyramid scheme. The Distributors can sell little product at retail, at least for any amount above the wholesale price they pay AdvoCare (just as the $100 toothpicks are unlikely to be sold for a profit). The Distributors may use some of the product they buy, or they sell it for deep discounts, or they give it away for free as part of their recruiting efforts. But selling the product to non-Distributors for a profit is not a real income-generating possibility.
The Distributors cannot sell the AdvoCare product for a profit for many reasons. Products just as good, if not better, are widely available for cheaper on Amazon, eBay, and at GNC. The protein powder, amino acids, supposedly nutritional shakes, and other products AdvoCare sells have the same principal ingredients as cheaper alternatives widely available. In addition, AdvoCare prohibits Distributors from selling goods on e-commerce platforms and in almost all brick-and-mortar businesses, so there is no realistic way for Distributors to sell the overpriced products. Moreover, because the Distributors get stuck with AdvoCare product they cannot sell for a profit, some Distributors ignore AdvoCare’s prohibition on e-commerce sales and sell the products on the internet for the wholesale price or less, further frustrating other Distributors’ efforts at selling for a profit.
Other than the theoretical possibility of selling AdvoCare products for a profit to retail customers, all of AdvoCare’s business incentives depend on recruiting—just like a classic pyramid scheme pays based on recruiting. The primary financial incentives in AdvoCare’s compensation plan are bonuses based on purchases made by junior Distributors. And without recruiting, there are no junior Distributors. Thus, AdvoCare’s compensation system strongly encourages recruiting, and it provides very little reward for retail sales.
Moreover, AdvoCare’s system strongly encourages Distributors to buy more and more product, regardless of whether they need it for retail sales or would otherwise buy it for personal use. Distributors must achieve certain levels of purchases by themselves or in conjunction with junior Distributors to maintain their eligibility for each type of bonus from AdvoCare. This pressure to maintain their statuses incentivizes the Distributors to purchase product they do not need. Indeed, AdvoCare specifically designed its system to incentivize Distributors to purchase product they do not need.
AdvoCare claims to have over 600,000 Distributors, but the vast majority of AdvoCare’s Distributors lose money. According to AdvoCare’s 2015 Income Disclosure Statement, AdvoCare paid 71.5% of its Distributors $0 in 2015. It paid 93% of its Distributors $500 or less. These are gross income numbers that do not account for the money the Distributors paid AdvoCare in fees and product purchases. On information and belief, at least 95% of AdvoCare’s Distributors pay AdvoCare more money than AdvoCare pays them.
The only people who make money from the AdvoCare pyramid scheme are the very few at the top of the pyramid. These few—including Defendants McDaniel, Donnelly, Thurber, Bewley, Funk, and DeBerry (collectively, the “Individual Defendants”)—have gotten rich from defrauding the 90+% of Distributors who lose money. The Individual Defendants promote the pyramid scheme. Moreover, they, like AdvoCare, misrepresent the financial rewards available to Distributors and falsely argue that AdvoCare is a legitimate, legal enterprise. Plaintiffs seek to hold them liable as some of the principal promoters and profiteers from the illegal scheme.
Perhaps most damning is the fact that AdvoCare and the Individual Defendants do not prey on those who seek a get-rich-quick or idle investment scheme. Rather, they market the scheme to good people willing to work hard to make better lives for themselves and their families. They prey on people in tight financial circumstances looking for some extra income. They tell their victims that, with enough hard work, they can help themselves financially by growing their AdvoCare business. They tell unsuccessful Distributors (and the overwhelming majority are unsuccessful) that their lack of success is due to their not working hard enough at growing their AdvoCare business (i.e., recruiting more Distributors). AdvoCare thus uses its victims’ good natures to encourage them to join and stay in the scheme.
AdvoCare and the Individual Defendants have formed a fraudulent, criminal enterprise with the purpose and effect of defrauding hundreds of thousands of Distributors. On their own behalves and on behalf of a class of similarly injured Distributors, Plaintiffs seek to hold Defendants financially liable for the operation and promotion of a pyramid scheme.
– Source Ranieri et al vs Advocare International LP et al
If you have lost money selling AdvoCare products or have interest in acting as a lead plaintiff, please go to the class action website: http://www.advocare-lawsuit.com.
AdvoCare Scam Conclusion
In my opinion, AdvoCare is another recruiting scam. They charge you an upfront free and then try to get you to make a large $2100 product purchase. You have to recruit people to receive the top bonuses they offer. Less than 70% of distributors receive a commission check from AdvoCare. 96% of those that do get a check make less than $5000 per year. This does not include expenses. People from all walks of life are making little or no money with AdvoCare, enjoying time taking supplements that are not necessary for the vast majority of people, and making a difference by getting others to make the same choices. I would avoid the AdvoCare business opportunity.
Nothing is guaranteed. My friends are bricks in the “pyramid” of Scentsy, Pampered Chef, It Works, Beach Body, Younique…..
The reason I am the brick: I’m a product lover because it made me feel better back in 2011. I have no expectations that I’m going to be at the “top of the pyramid” as you put it. I simply know what I like and if someone wants to try it, then great! Would I love people to join me so I can grow an empire? HELL YEAH! But I don’t work that way. I don’t make false promises and I don’t tell tales of huge income. I believe that’s where this whole thing has gone wrong. A lot of greedy people telling tall tales and making promises they can’t keep. Getting people to join them and not helping them further with what they need.
Thank you for yet another amazing review! This was a perfect way to start my week! There is nothing more exciting than seeing one of these gigantic MLM nightmares getting heat from the legal system.
I loved the article written by ESPN, and it makes me sad that someone like Drew Brees (one of the highest paid QB’s of all time), a beloved member of the NFL, could be caught up in this nonsense. It becomes painfully obvious that professional athletes wouldn’t be caught dead wasting their money on these potions once you learn about their regimens.
I was recently stuck watching more Major League Soccer, and it made me absolutely sick to see them riddled with MLM endorsement monies. They all have Herbalife and Advocare on their jerseys, there is revolving signage around the stadium with Herbalife and Advocare, and they even have a nice little graphic next to the clock and scores with their names. It is absolutely devastating to watch this, especially since soccer has a gigantic Latino community following. As soon as I see people like Ronaldo (the most popular athlete in the world and human billboard), wearing Herbalife and hyping it constantly, it makes me wonder if these professional athletes truly have no soul.
Here you go again . If it doesn’t put $$$ in your pocket it must be a scam. The mlm industry does 100 time the revenue than the NFL. Pays out over 200 million per month in commissions. What about the scam of education $. Student loans more than credit card debt ! There are 4,200 collages across this country with an avg. of 12,000 students totaling 52,000000 & NO JOBS. Give your answer to extra income . I guess I could ” blog ” & tell everyone franchises are illegal…
This is the most moronic thing I’ve ever read. AdvoCare for life! They’re products work! No auto ships. No forced monthly fees. No pressure. I’ve used products for years and have NEVER been pressured into selling by the company! You get out what you put in. If you work hard you EARN your pay…just like any other job in the world….that’s life!
The company’s legit, Bro! Get out from behind your keyboard of negativity and get you a life!
P.S. They sell a product called “Clear Mood” that would be AWESOME for you! Just saying! ????
It’s now 2023 and AdvoCare is now basically a spark supplier. They were sued, and then fined for 150 million for fraudulent practices by the FTC. Thousands of people came forward to tell their stories how they were preyed up and lost money. They were forced out of business and those that stole from them moved on to another company before the ink was dry on the settlement. You have been deceived and bought into the lie like so many others, and instead of being upset because you have been taken advantage of you lash out at the ones trying to expose the frauds.