Organo Gold: A Careful Review

by Martin Russell on May 8, 2011



There has been a lot of talk, both positive and negative, about joining Organo Gold as a way to make money. It is best to set things straight.

The way to do this is to review the background of the business, and then the pros and cons of what the company is offering. From this, you can decide for yourself if the “Organo Gold scam” talk holds water, and what exactly to make of this company.

About Organo Gold

Organo Gold (OG / www.OrganoGold.com), was founded by veteran network marketer Bernardo Chua in 2008, and is one of the biggest players in a global movement promoting coffee alternatives as health and wellness products.

The ingredient that is central to the company is the Ganoderma Lucidum herb, that Organo Gold uses for it’s coffee and other lines. Ganoderma is a mushroom originating from China, where is it used for its therapeutic properties.

OG has certainly been growing very strongly particularly since 2010 and is not just in Canada and the US, but also into Europe and around the globe. It’s corporate website even has versions in multiple diverse languages.

One of the reasons why Organo Gold continues to grow is the multi-level compensation plan the company uses. Their products are purchased by distributors wholesale and then sold individually at retail prices. There are a number of ways to get paid: the Retail Profit (paid daily or weekly), Fast Start Bonus (weekly), Dual Team Bonus (weekly), the Unilevel Bonus (monthly), Unilevel Matching Bonus (monthly), generational bonus (monthly), and Global Pool Bonus (quarterly). So overall in MLM terms, Organo Gold is a combination of a Unilevel and Binary (they use the term “placement tree”) compensation plan.

But with that background, let’s get to the guts of the issues.

The Pros

First, the distributor gets free sales training as part of their distributorship. This is a way to improve one’s networking and social skills. It is a plus when you want not just professional but personal development. Bernardo Chua himself comes with a successful history as a distributor, and they have been around long enough to have many experienced people in the company.

Second, there is access to sell a widely consumed product, coffee, with a herbal wellness component, Ganoderma, with marketing support from one of the biggest companies in this market today. Each of these aspects makes this an easier product to promote and market.

Third, further earnings come from helping other people succeed. The multi-level aspect means you earn not just on your sales, but on the sales of others you introduce to the business so your earning potential is greater than just opening up a coffee shop or running a wholesale business.

However unless the claims are hyped, the pro side of OG isn’t going to put people off or make them think it is a scam, so let’s examine the other side.

The Cons

Firstly, the products are more expensive than the coffee people already drink. Some people might prefer the taste, but basically the value is based on the health aspects of ganoderma, not discount pricing.

Second, it takes time to build a successful network because most people won’t want to do this as a business, even if they are happy to drink the coffee. It also takes time to train people and you need to develop leadership skills to retain their commitment and help them grow their own business.

Third, the basic package to sign up as a distributor is $49, but there are different start-up packages ranging from $199 up to $1295 that will give you products from the OG lines AND qualify you to begin at higher compensation levels. Then there is an ongoing minimum purchase order which is optional, but it’s the only way to qualify for the monthly commissions, before you build up sufficient personal sales. The ‘Organo Gold scam’ tag probably comes most often from the fact that these expenses are not always clearly understood.

The Verdict on Organo Gold?

Well simply put, the ‘Organo Gold scam’ idea is a myth. Sure the product line it offers isn’t for everyone – not everyone is wanting health benefits from their coffee – and the business model isn’t for everyone either, but that isn’t the way to know if it is a scam or not.

It is true that there are no guarantees of a return on your investment – at worst you end up with alot of coffee (so taste it and make sure you like it first) – but then again even with other start-up businesses, there is no assurance of success either. You are doing the advertising, marketing, and selling on behalf of the company so it is important to understand the value in the products, and how to get others to experience that value too.

You will need to begin with people you already know so you can practice safely, but to grow a big business with a steady, residual and growing income you will also need to expand your networks and connect with others who may be interested in your business too. Make sure you plan for your marketing to do this.

Here’s the plan I use, and recommend you take a look at too for [section “”]generating MLM prospects[/section] that will actually buy from you.

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