You need to be agile to make it with Agel
A lot of people want to start their own business, but have trouble finding the right opportunity. A lot of people want to be their own boss, but don’t want to venture out to develop there own model or risk their own capital for payroll etc.
I know we all hate the “M” word. It’s okay… I’m going to say it… multi-level marketing… MLM. The term carries so many different biases it’s almost hilarious. What ends the joke so quickly, is when we take a second to look at how effective it really can be. In 2003, Amway reported the global market for multi-level-marketing to be 82 billion dollars large. I was reminded again this past week as I was approached by a number of different friends regarding a new product line and company known as Agel. Before I identify a few gaping fallacies I observed with Agel, let me give a quick background regarding my familiarity with MLM companies.
As special contractor at Morinda Inc, (the mother company of Tahitian Noni International) I saw first hand the effectiveness of rapid market penetration with low overhead provided by network marketing companies. As part of the original team that pioneered the research, development and marketing roll-out strategy for the animal products lines at Tahitian Noni International, I had a unique opportunity to work with the corporate family and distributors alike to introduce the new product line. After a year and a half of release, the product line has already grossed over 12 million dollars and remains today the #2 best selling product behind the Original Tahitian Noni Juice. In addition to some hands on work, I also wrote my honors thesis on Nutraceutical multi-level marketing companies in China: Past obstacles become future opportunity. (It’s over 60 pages with in-depth industry interviews and more.–It should be in the BYU Library by January if anyone is interested.)
I’ll avoid any ethical or philosophical points here, but let me just give my thoughts on the Agel opportunity. If you watch their promotional video it identifies a number of different advantages that their product has; in addition to an incredible comp plan, and strong scientific foundation, (what vitamins don’t have scientific data to back them up), it identifies two other points which I think help to illustrate the weakness of the product and foreshadow its difficulty in sustainability:
- No competitors! I can’t believe that Agel dared to say that because it is a liquid vitamin pouch that it has no competitors. That statement carries at least two major fallacies. First, everyone who is in involved in the MLM industry knows that it is, for the most part, a fixed pie demographic. ‘MLMers’ buy from the MLMs, it certainly doesn’t share with the standard retail industry. Every nutraceutical MLM with their own unique product (and they’ve each got one) is a competitor. Secondly, a liquid vitamin is relatively the same as any liquid juice supplement out there. Whether its Malaleuca, Tahitian Noni Juice, Xango or whatever, the Agel liquid vitamin supplement is certainly a direct competitor with them… I wander if maybe Agel just doesn’t know it yet…
It looks cool! I can’t believe they really included that in their campaign. I can understand maybe using that line if you were selling clothes or trendy accessories–but it really weakens your product for a health supplement. When you think about it, this point really just drives home what I feel is their their biggest obstacle for long-term sustainability: Their demographic.
Their ads are filled with happy, active people ages 18-30. Their lingo is clearly as ‘hip’ as they can be. Their packaging is cool. But their real story and marketing base is weak. I’m concerned that they sell the product like it was more of a fashion fad than a real health supplement. Don’t get me wrong, they do a great a job of hitting their demographic. Just last week I had two people–ages 23 and 22 who approached me to see what I thought about helping them sell their product and pentrate Asia. Even with very limited required involvement, I decided rather adamently not to do it. Of course I have my own ethical/philosphical disputes with their model but really, I just don’t see it as a long term solution for people who are in an age and demographic where they should working to acquire long-term skills and experience for their futures.
In short, I don’t think it has long term sustainability, and unless you’re a cereal MLMer, it’s not a good investment of your time and money.
November 16th, 2005 at 3:16 pm
There are more pyramids than ancient Egypt here in Utah Valley – I’m glad that you recognized the weakness in this particular company’s model and are helping other people recognize such.
November 16th, 2005 at 3:18 pm
Unfortunately the fallacy pointed out by the above article is taken from one piece of the Agel marketing line. To then take this one 30 sec commercial and draw a complete conclusion that the Agel’s marketing campaign is to the “young and hip” is in and of it’s self a fallacy.
The other point that was made was that Agel has stated that they are in a non-competitors arena. The reason that statement is made is if I wanted to go buy vitamins in a gel substance I would only find them at Agel currently.
I do appreciate the above article bringing up some good points. It’s only through good questions that we come up with answers that help us to take action.
chrisgwilliams18@hotmail.com
-Chris
November 16th, 2005 at 3:33 pm
Chris,
In addition to the infamous 2 min commercial, I have explored their website, read their marketing literature and the comp plan and spoken with a number of their distributors. It’s a good product. It also carries with it a number of the same symptoms found in other multi-level marketing companies, however it lacks some of the long term elements found in the more successful companies.
I don’t mean to say that the marketing campaign of “young and hip” is a fallacy, what I mean to say is that it is indicative of a unsustainable long term model–Fashion trendy so to speak.
February 5th, 2006 at 8:06 am
All publicity is good publicity. Agel will deliver to those who can see it an opportunity to change their financial future by grabbing hold and going for it.
A great tool to do that, internationally is a web site called http://www.AgelTeamHQ.com developed out of Australia by some very professional network marketers with serious corporate and filed success behind them. http://www.AgelTeamHQ.com is only $15 per month – it’s cheap. No rejection, no meetings, no pain, but for little risk and some concentrated effort and this tool you can get an incredible result.
You know for some people this is their only chance – don’t spoil it – encourage it. Check it out http://www.AgelTeamHQ.com
March 24th, 2006 at 5:03 pm
Just came across your article.
For myself, I have been fortunate to fall upon Agel. The Gelceuticals are second to none and speak for themselves.
Working with Randy Gage who is in the TOP 5 in the World as Network Marketers. His training and support you cannot put a price tag on.
From living the simple life to now one that I couldnt even imagine before Agel.
I am now living my dream!
wanda
August 12th, 2007 at 5:16 pm
Hi, the only people i read who are knocking Agel are ones who see them as a threat,other networkers who dont like the new kid on the block, the Noni juice $12 Million in sales does not compare to Agels sales in their first month, also i wish people would stop refering to the Agel product as a juice its not a juice, its a gel, big difference,what s wrong with the product being labeled as cool, does that mean only 18 /25 year olds will buy it, of course not.
The Agel compensation plan is incredible,people rarely take the time to study comp plans so i suggest you have a look at it and see the power of it, regarding juices Noni and others out there, i never hear a thing about them these days, i am sure there out there but have they lasted and grown at a fantastic rate i dont think so, people are bored with them now, anyway for me Agel has the product , the comp plan, and the financial clout behind it to last for many a year to come.
Cheers, Patrick.
June 12th, 2008 at 12:38 pm
What I dont understand is why people don’t get that Network Marketing/MLM is just a marketing system… like anything else. You wouldnt say that “restaurants are bad” because of 1 bad restaurant. It seems like it would be common sense to evaluate each company individually, rather than lumping them into 1 category.
Obviously people arent going to be interested in a product like Amway, unless there is an opportunity to make money. So you end up with every buying product they dont want, in order to make money from other people who are buying product they don’t want. House of cards. Seems like common sense, but common sense isnt common.