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You’ve seen the pretty women and their emoji-laden posts lauding the praises of It Works!® Global. But are they actually making money? I’ll tell you what I think, and you tell me what you think!
Oh, and before we begin, let me make this disclosure: I have no skin in the game here. I’m a dude who couldn’t care less about body wraps. The only wrap I’ve been caring about lately is McDonald’s Sweet Chili Signature McWrap. I do not know anybody with an It Works business, and I do not make any money from It Works for this article. I simply felt like doing some research into a business phenomenon involving women of my generation that I’ve seen sweeping social media simply because I love Millennial entrepreneurship!
So here’s the short answer:
Table of Contents
Just Like Any Business, Some Are Making Money, and Some Aren’t.
So my entrepreneurial venture is blogging, and I’ve done pretty well with it. But there are obviously bloggers who are losing money every month. It’s the same story in virtually every industry on the planet; there are winners, and there are losers.
And the beauty of entrepreneurship is that you create your own destiny.
It Works is no different, and a good thing about It Works in particular is that, unlike other industries, it is required to disclose its income statistics so you can see exactly what you’re getting into. And I know what you’re thinking: it’s only a few at the top who are making any real money right? Wrong!
Take a look at the disclosure statement for It Works. Even at the Ruby level – third from the bottom – you have some people taking home over $60,000 per year. And at the Emerald level – one up from Ruby – you have some people taking home almost $170,000 per year.
And I don’t know about you, but $170,000 per year is certainly “real money” to me. It’s definitely more than I make at my corporate job.
And it just goes up from there: the next level you have people making $200,000+; you have people at the next level making almost $400,000; and obviously at the very top you have people clearing $1,000,000 – $2,300,000.
Entrepreneurship Is The #1 Way to Take Control of Your Financial Future.
I say it over and over on this blog: you need to find a way to make money for yourself. Not for your company. Not for your boss. For you. That is the only way that you will find the financial freedom you crave and the lifestyle you desire.
That’s the entire reason this blog exists: because I wanted to create a business that is able to make me as much money as I am willing to work for. There’s no salary limit on your own business, and the only person you have to ask for a raise from is yourself.
And These Women Are Doing It.
Although I’m not sure if It Works brands itself as a “franchise”, that’s essentially what it is: a virtual franchise. And that’s beautiful. Because franchises are an amazing way to jumpstart entrepreneurship. The system’s already in place for you — whether’s it’s a McDonald’s franchise or an It Works sign-up — all you have to do is put in the work.
With every party they throw or product they sell or downline they bring on these women are claiming their share of the American dream. They are building a stream of income for themselves and for their family in ways that most people in this country aren’t.
Instead of watching TV, they’re building their business.
Instead of idly chatting with their neighbors, they’re promoting their brand.
Instead of wasting time on Facebook, they’re using this powerful social media platform to get ahead.
And I for one am happy to see the women of my generation — Millennials like me — who are redeeming their time on social media for themselves and for their families. So post on, my body-wrapping sisters. 😉
NOTE: if you have direct experience with It Works!® Global, I’d love to hear about it in the comment section below!
Author:
Logan is a practicing CPA and founder of Choice Tax Relief and Money Done Right. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.
I can’t tell you enough how much I love this blog! I have been with Itworks for almost 2 years now. Making actual money every month. The products I take have been life changing for me & allowed me to help other people. When you join someone’s team you become part of their Itworks family. Everything is so close knit.
I love this!!! Thank You! ???
I love this Blog!! Thank you!!! I joined this it works business and yes like jou said, you can either make money or waste money. It’s all up to you and the work you are willing to put into your business
This article is one of a kind! Myself and my wife have been with it works for a little over a year. I am an Emerald and she is a Ruby! All to often we hear that this is a scheme and something no one can be good at unless you have a ton of friends! This couldn’t be further from the truth. As long as you have a drive to make it work. You will find a way to make someone you don’t know become your friend who will help themselves to help you in your journey! Keep up the good work and thank you for taking the time to validate the It Works business as nothing less than what it is!
Thank you!! I’ve been with It Works Global for over 3 years and you’re absolutely right. There are winners and there are losers. The winners are the ones that make IW their priority, not TV, or scrolling fb all day. It’s definitely work, but the money is insane!!! Within a year of joining I was able to completely replace my full time income, and retire my husband.
Direct sales is the future, and I wish more people embraced it with such an open mind like you do. Cheers to the entrepreneurs making that money!!!
I love this!!! It sure does work! This single momma of two paid off her car two years early, all credit catd debt and got debt FREE in 2016 because of this business! I also bought our first home for my babies and I this year! I love not only the income and freedom its given me but health, and friends who turned into family!
ItWorks distributors carry inventory, right? Can anyone tell me if the income amounts listed in the disclosure statment take inventory/giveaway costs into the equation? Most MLM people I know don’t do the math…
For example… Say I spend $300 on inventory and over the span of a few months I sell my inventory for a total of $500. Would my “income” for that month be listed as $500 or $200?
Inventory is not necessary with itworks! Most sales are completed through the loyal customer program online because that is the best deal for the products. Many distributors do however carry wraps on had for people to sample at $25 each (they come in a package of 4), this is another way to make money. Usually the inventory on hand is our personal use items. We are truly a product of the product. I hope that answers your question.
We are not required to carry inventory. ? However, we are required to use 1-3 products monthly ($80-$100 avg) to have our own testimonials bc of all of the skeptics lol. As long as you use at least one for testimonials, you can sell the others at full retail. It also qualifies is for commission and increases our credibility as representatives.
Thanks for the explanation, Patty! That’s exactly the math I couldn’t figure out.. so 80 some percent of distributors spend $80-$100/month and make back $54…. yet everyone claims that it’s super profitable. I’m just not seeing the number line up.
Anyways, thanks again!
Actually, that’s not entirely accurate either. Distributors are not required to use or purchase products (although to be more knowledgeable it IS helpful if you use them as well). Another option is to have monthly customer sales that total $150 or more – its an either or situation. Plus… any products a distributor buys can be turned around and sold to a customer and offer the distributor a chance to have that monthly product order covered as well as provide additional income (for example, selling wraps for $25 each). All of this can be especially beneficial to building a business with little to no overhead, particularly when people get started to make extra income and funds may be tight anyway.
Monthly average is based on commission pay. So say i got the $54 last month but spent 118 on 2 boxes of wraps and sold them for 200. That an additional $80 on top of the $54. So yeah $14 pure profit but that’s month 1, if i continue to work and build my business but don’t promote and still only get 2 boxes of wraps my commission will grow and I’ll make another 200 in wrap cash. In turn increasing my pure profit.
Whoops my maths all wrong. Lol you get the point though ??
I don’t know where this 54$ check talk is coming from? However my 1st check was way more with including my wrap cash, I made as much as 2 ranks higher then me my 1st check, it is all what you wanna make. What you put in you get out ? I wanna show you a different set of math. I started – 122.31 after taxes and shippping then sold my stuff that came in my kit. Now I got my 112.31 back plus 25$ so now I’m ahead then I worked my business and got 99$ for each person I signed up after they got FSQ (fast start qualified ) which is there 1st to customers, I did that twice so now I’m ahead 225$ then I signed ppl and made 78$ my 1st commison check.now that’s $303 I’m up. Now all them ppl I signed I get a box of wraps for only 25$ for ever two I signed I signed over 10 ppl. Let’s just say it was 10 so if it’s for ever 2 customer I get cheap wraps I got 5 boxes of them that come with 4 wraps per boxx I sold them for 25$ each wrap. That’s a total of 500$ for my 5 boxes of wraps so now my grand 1st month total is $803.00 there is so many ways to make money and I’m mean good money no matter what rank you are that’s why on those charts there is a low of 54$ and a high bc if you work, you will make it!
We aren’t required to have products on hand or to buy products, it does help if you use the products because they seriously sell themselves. The income levels are correct and are only exceeding in on going years from years prior. Itworks is faith based and is truly amazing, aside from the products.
I am a distributor.
No It Works! Distributors do not have to carry inventory. Some choose to but it is not required
no we do not carry ANY inventory, everything is done on the distributors personal website, if a distributor decides to purchace products then it is for their personal use. we becomme a product of the product, i fell in love with the products they have helped me beyond belief i dont know where i would be today if it wasnt for it works and my amazing team <3
The problem is the facade that “if you join, you can make $170,000 a year like this person”. When right there in plain sight is the fact a whopping 82% make $54 aka $654 per year. That’s a HUGE difference, and doesn’t account for hefty self employment taxes, giveaways, etc.
Steve, you are right in that there are varying levels of income. If you treat it like a business, you’ll earn money like a business. If you treat it like a hobby, that’s the kind of money you’ll make. You are also able to deduct lots of business expenses that tend to offset any other fees etc. Because we are considered work from home, a percentage our homes and expenses therein are deductible as well.
MLM is NOT a business. You are not a business owner. You’re a 1099 (independent contractor) working for a large corporation. You’re also being taken advantage of by said corporation as they don’t care enough to even give you a guaranteed minimum. You can’t make real business decisions and don’t make the full profit you would earn as a real business owner. The delusion is strong.
Edina, I disagree a 1099 doesn’t mean your not a business. I run and operate my own non MLM company that PayPal is where I get most of my payments from and get a 1099. So just because someone gets a 1099 for their company doesn’t mean it’s not a business. I guess my biggest issue is why does it matter how these ladies make money. MLM has been around forever and it’s not going anywhere anytime soon as long as there are people that are getting to work towards the dream.
Not a business?! Actually, when you hit an income level, your CPA takes your sole proprietorship and turns it into an LLC first and then into an S-Corp. I’m living proof ? And by doing so, you avoid self-employment tax. This thread shows how vastly uneducated the public is…… Talk to a CPA instead of anyone on this thread! (And yes, I’ve done it and have an active S-Corp with the IRS and state through It Works Global)
Good for you! I myself have no interest in MLM but would never post the hurtful, spiteful, jealous and assumptive statements others have no problem saying. They come across as classless and very catty. Why do people waste their time trying to put others down? I am happy for you and your success…congrats! I find it vey funny when people make comments like the one above saying “you don’t know the definition of retirement and I’m sure you have no retirement savings. ” Tring to make you look stupid but in fact they come off as the assumptive idiots. How do they know abutting about you?? Makes me laugh because these people know nothing about you, including your finances, and just come off as a-holes. Hope it makes you chuckle too, as you are able to take their comments and laugh about it all the way to the bank! ?
Multi level marketing is not a personal business. It is not a small business. You’re a contractor. 99% of people lose money in MLM. You cannot work those stats like a business owner because you are not a business owner.
Actually, you file it as an LLC and then as an S-Corp as it grows. Man oh man, the ignorance on this thread….I’m assuming you’re not a CPA….
(Yes, I have my own tax ID and registered S-Corp from my It Works Global earnings)
Amelia… Your stats and uneducated posts are awful! Why are you so cruel to others who are running successful BUSINESSES ?
You get in exactly what you put out..If you work this like a business it pays like a business..I retired myself and my husband after 22 months..This company changed our lives…You will always find good and bad reviews for every company..Normally the bad reviews are from people that didn’t work it and didn’t make any money yet complain because it didn’t make them rich…Work the business..Social media is endless…I am zero excuses…This company is faith based and will change your life…You just have to want it..
I feel like you might be confused about the term “retire”. You retired, yet you “work it like a business?”
Someone doesn’t know the meaning of the word retirement. And they never will, as I’m sure they don’t have retirement savings.
We use the term retired when this businesss brought us home from corporate America and back to our families. It’s residual income, and freedom to choose our hours. You eventually earn the right to take months off at a time, if you wish. As for retirement accounts….yes, many of us have retirement accounts that are triple + of the average retirement accts of our peers. I personally have a 401k and many IRAs as a sector of my S-Corp specifically from this business (yes, you turn youcan sole proprietorship into a corporation via your CPA when you hit an income level), and we won’t have debt like many retirees, AND we have are paid residual income which, I promise you, is far more of a monthly payment that most retirees will receive monthly. So yes, we have retirement covered also ?? welcome to 2017!
FYI…I have zero connections to this company and just stumbled across your comment. I just can’t comprehend your response. How are you sure they don’t have retirement savings?
You their banker? Have access to their financials? If you are/do then i apologize, as you are stating a fact. If you are not/don’t, then you have made a bold, extremely rude and narcissistic statement . To a stranger. You may want to think twice before you post your assumptions about others in the future. .. about anyone or any topic. You don’t need to take my advice but here it is: try to think of others feelings before posting statements like this. You are being very hurtful. Maybe you don’t realize or just don’t care. Perhaps a minute of self reflection before posting words like this will make you see how you may be hurting someone. Your words make you sound unkind, spiteful and jealous. I’m hoping you don’t speak like this to others or jump to conclusions like this often in your real life communication with others. If you do though, a word of warning: other people don’t like being spoken to like this and will not stay friends with someone who speaks to them this way. Hopefully you are just an internet troll. I’d hate to think people would really talk to others this way. Otherwise you are going to be very lonely in life.
My comment was for Amelia
It’s an amazing business!!! I’ve been with it works for 5 years and a multi millionaire now, full time & still dreaming even bigger. I love this company. It changed my life!!!
I love this article ! We have been with the company since 2009 and it has blessed us in so many ways! Not only in my own personal success with the products , but the ability to help others do the same has been a joy ! Our lifestyle is our Own and it wouldn’t be this way without it works ! Yes we work hard . But we would work just as hard at a job and wouldn’t have nearly the same amount of satisfaction or income ! We are so glad we said yes !
I’ve been with It Works for only 2 months and already tripled my $99 investment, just in commissions and bonuses(not including wrap cash). As stated above in previous blogs, as long as you have customers you don’t have to purchase the products, however that’s the whole reason I decided to join!
I love the products and want to purchase them, so why not help others with their healthy lifestyle goals and share these products with them, but also build a future for my husband and I. I’m looking forward to continued success with this company as I know many people personally who have. My It Works family is amazing!
Thankyou for this blog it’s great!
I love this article! This company brought me home from corporate America and I’ve made multiple 6 figures in two years. My CPA has turned it into an S-Corporation and we enjoy all of those tax benefits as well. Money aside…this business teaches people to hang around a better crowd, pay off debt, believe in themselves, and give back to others in need. It’s a Win all the way around!
It Works has changed my life. Your business works when you do! I promoted from Distributor to Executive and 2 days later to Ruby, HOW? I’m working, my team is working, I have real relationships with my customers! WHERE? At my in-laws house while we were playing pool and hanging out. I get to work anywhere. I talk to complete strangers about what I do because it excites me. My self-confidence is at an all time and growing because I am my own boss and I have power over my life again.
You go girl!! Don’t forget awesome leadership! 😉 but most importantly, we don’t do this for quick cash.. we do this for to change lives in the best possible ways! If our team doesn’t succeed, neither do we. We might be in business for ourselves, but certainly NOT by ourselves. ?
It Works has changed my life!! I was a SAHM and I was going crazy from not doing anything other than chores and taking care of the kid! As soon as I joined It Works, I felt an immediate change in my mindset. I was immediately more confident and hopeful for the future!! It helps that I love the products 🙂
It works has changed my life forever. The people that I’ve met the places that I’ve been the products that I sell the new friendships that I have built is all life changing to me I am forever thankful for this business and for the friendship that I have made during the two-year process.