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Xango opened its doors for business in November 2002
and by the end of its 8th month in business, was
completely debt free. By the end of its first year,
Xango had achieved an impressive $50 Million in sales.
This is mainly due to the large front end purchases many
distributors are encouraged to purchase. The management
is solid and has solid industry experience that many
gained while at a company called Morinda.
MLM
Watch Dog reported that Morinda filed a
lawsuit against Xango for Torturous Interference, and
shortly thereafter Xango filed a countersuit against
Morinda. I’ll post more as more court papers become
available.
Xango distributors have used a third party marketing
company for sales literature which has allowed them to
go further making product claims than other companies
have let happen in the past. However the pressure made
other companies reverse their opinion and let their reps
use those materials as long as they have nothing to do
with it. So now Xango, Noni and Life Force distributors
will all be using sales literature from the same
company. Basically the sales aides focus on ingredients
and do not mention the company or product in the actual
text. Many companies have are now following that
marketing method.
Many
Xango distributors have reported to me (while trying
to sign me up in Xango) that with a 5% commission on 6
levels- many distributors will need well over 20
members to reach break even. After 5,000 in volume they
say the plan pays well. This means the compensation
plan is geared more for the hitter than the little guy.
To really make money you would need to be on $200 auto
ship and receive 8 bottles a month. One distributor
site reported that the average distributor made roughly
11% commissions on group volume the first 10 months the
company was in business. That means if you had 2,000 in
volume you would have made roughly $211. That’s unless
you’re a hitter, he said, and can produce 5,000 in
volume, then your commission jumps to 25% and goes up
from there with leadership pools etc. I'm not sure if
what he said was true but is really meaningless and the
big incomes at the top always make any company "average"
income meaningless.
It's interesting
that most companies have a adopted a “wave 4”
compensation plan in the last few years; meaning a new
distributor gets the majority of the retail
commissions and can get in profit by helping only 4 or 5
people. The way the
Xango Distributor plan is set up it appears the new
person would need at least 20 people (5%) to break even-
that is if they don't qualify for all the over rides and
bonuses that the hitters qualify for.
Xango is a good, solid, record breaking company.
You will find some people stayed away from Xango in the
early days because of the legal turmoil, but today Xango
is one of the best for a new distributor in regards to
the marketing and the opportunity..
Namaste,
Chris Tinney
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