XanGo LLC is a network marketing company that offers a mangosteen juice supplement, as well as a business opportunity to generate income by selling the juice. They are one of the largest MLM companies today, with a large distributor base and millions of dollars in sales revenue.
However, there are some very real concerns about starting or participating in a XanGo business. In this article, we’ll review and give an unbiased review of the pros and cons of doing business with Xango, and see if Xango is a great business opportunity…or a great scam.
- Xango – The good guy
Xango was founded in 2002 by Joseph and Gordon Morton. After working for Enrich International, a multi-level street vendor of vitamin products, they saw the potential for what could become a network marketing business. They studied research on the mangosteen fruit, which they found to have medicinal properties. That was enough for them to ask Aaron Garrity, a colleague of Enrich’s, to be CEO, and Xango was born.
The benefits of fruit juice vary depending on who you listen to. Testimonials range from the understated (acid reflux, headaches) to the outrageous (some fans say it can prevent cancer or reverse heart disease). Juicing is generally recognized as beneficial to health, but to what extent depends on who you’re talking to.
- Xango – The bad guy
Xango is a network marketing company with a distributor base of more than 800,000 in 23 countries. Distributors are compensated by reselling juice and hiring other distributors. Registration is $35, which allows someone to buy 4 bottles of juice for $100 and resell each bottle for $38 each.
The first sign is that the leadership in the business will not reveal how much real mangosteen is put in each bottle, or how much they pay for the fruit. The cost of a mangosteen in places like Thailand or Puerto Rico is $0.05. The cost of a whole fruit here in the US ranges from $4.00 to $6.00. The fact that the company refuses to disclose the actual amount of mangosteen in each bottle is cause for concern.
Three years ago, the FDA issued a series of threats to Xango over the wording of some of its promotional literature. As it turns out, Xango wasn’t at fault, but those Xango distributors were evidently making controversial claims about what the product could actually do.
- Xango – The Ugly
The really painful thing about starting or growing a Xango business is your marketing plan. Like many network marketing companies, Xango recommends that you pursue your “warm market,” friends and family. They teach their distributors to hand out bottles of juice, make lists of people they know, and sell the juice to them. When a Xango distributor is down, he is encouraged to attend pep rallies, where he can meet other Xango distributors and cheer each other on.
Growing a Xango business can be a great opportunity. They seem to have a good product, but there are a lot of companies that have great products, and a lot of people who market great products never make a dime. There are also many terrible products that generate millions of dollars in revenue (anyone remember the mascot rock?) The difference is the salesperson and their ability to target their market effectively.
In closing, I would say that starting and growing a Xango business is lucrative if you know how to effectively use the phone, the Internet, and other effective marketing tools. It’s not a scam, but like any business, success will be determined by the salesperson’s skill set. Xango is definitely not a lottery ticket or stock option, which means you don’t just buy and wait for a payment.
If anyone doesn’t have the first clue on how to market effectively, I suggest learning how to be an effective marketer or just using mangosteen juice as a tasty drink to quench your thirst.
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