By the Numbers with Advocare

Okay, lets take a look at who makes the money in Advocare by using the 2014 Income Disclosure Statement. Let’s break it down to the simplest form and use only the facts, as stated by Advocare, and what current and former distributors have shared with me. You can follow along by opening this spreadsheet. While we break it down we will use the averages only as stated by Advocare.

Fact – Advocare states in 2014 there were 517,666 distributors

Fact – Advocare states 154,819, or 29.9% of their distributors received a check.

Fact – 362,847 distributors or 70.09% made $0.

Fact – Pay cycles are every two weeks which equal 2 checks per month

Fact – Distributors must purchase $500 of product EACH pay cycle to receive commissions. That’s $1000 per month of personal purchases.

Fact – You only get paid at your pin level if you meet the requirements EVERY pay period! So if you are Gold but don’t meet Gold guidelines you would be paid at the silver level!

Fact – Not included in the $1000 monthly personal purchases are the shipping charge and taxes. I’ve been told that shipping charges will range from $40 – $70 per $500 product purchases (depending on what product is bought). So if we use averages as Advocare does that would be $55 S/H per order. Two orders per month = $110 S/H cost.

Fact – The $1000 monthly volume distributor’s purchase to receive commission does not include taxes paid. Taxes vary by state so let’s use a very reasonable average of 5% of purchase amount which would equal $25.00 per order. Two orders a month = $50.00 monthly taxes.

Fact – The income, as stated, is before expenses such as meeting cost, samples, business supplies, auto expense, etc.

Ok, so lets break down the first three levels of pay. The distributor, advisor, and silver levels using the monthly income in the green average level from the Income Disclosure statement.

Distributor level represents 32.54% or 53,444 active distributors who received a check.

Advisor level represents 58.04% or 90,414

Silver level represents 4.70% or 7,276

Distributor average monthly check = $69. Cost to get that check = $1,160. Profit\Loss -$1,091

Advisor average monthly check = $183. Cost to get that check = $1,160. Profit\Loss -$977

Silver level average monthly check = $1068. Cost to get that check = $1,160. Profit\Loss -$92 Keep in mind according to Advocare the average to hit this level is 14 months. That is 14 months of losing the above stated amounts of the distributor and advisor level.

So, based on Advocare’s numbers 151,134 distributors are losing money chasing a dream! Shall we continue, or are you ready to realize the truth?

Ok, so lets look at the Gold level. Average monthly check is $3,204, subtract out the $1,160 to get that check equals $2,044 so called profit. But is it really? It takes, on an average, 25 months to hit this level so that is 25 months of losing money on the other three levels.

Since Advocare likes to use average lets average that out.

$1091 + $977 + $92 = $2,160 divided by 3 levels = -$720 average loss per month.

-$720 X 25 months = -$18,000 of losses before you hit the Gold level. So you would have to continue to hit that $2,044 a month to make up the -$18,000 cost for 9 months to just break even. How many people would continue to lose money for 34 months just to break even?

Those three levels represent 95.28% of distributors that get a check losing money. Keep that in mind when you hear the stories by Advocare distributors of how quickly you can make money and how much money you can make. The stories of people quitting they’re jobs, my ass. Oh, they do quit their jobs going all in but I hear from their wives, husbands, family and friends telling me of the heartache and the trouble they have finding another job once they’ve racked up 6 months or a years worth of debt trying to make a go of being ALL IN with Advocare. I’m sorry friends but it’s just not possible. Read Advocare’s Policy & Procedures and you will understand. THEY’VE STACKED THE ODDS AGAINST YOU!

You can extend all levels out with the above figures but keep in in mind these figures do not include all other expenses.

Now let’s tackle the claim that retail sells are not included in the income figures. This can only be told by what current and former distributors have shared with me. But from what I understand I do believe they are the norm inside of Advocare. Of the $1,000 monthly cost of product to get a check, at least $600 of that is used for samples, another $200 is used for mixers, and the balance of $200 is used for personal use.

It is true that Advocare has no way of telling what the face to face sales are. That’s why they insist all sales go through the micro-sites. It also allows them to enforce their prices.

Ask yourself why they don’t disclose the amounts purchased by non-distributors from their Advocare micro-sites? That could be done. They have the figures from the micro-sites. They do not show those numbers because, it’s my opinion, that number would be so low they would get the attention of the FTC.

There are no meaningful retail sales because the product cost is so high. That is simply a fact that every distributor I’ve ever spoken with will agree to.

Note: I’d like to thank the current and former distributors who helped in putting this article together. Although I can’t thank you by name, you know who you are. I thank you!

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