Advocare is a Texas based company which was founded in 1993, they produce a variety of dietary supplements, which they sell through network marketing. In 2016 Advocare had almost 600,000 distributors in their MLM system. The company made a profit of US $586 Million, which placed them at no. 37 on the 2017 Direct Selling News Global 100 list

We decided it was time for a streetonomic review of Advocare. We believe that you can't make money with network marketing, but will still give Advocare a chance to prove us wrong.

We are not associated with Advocare, and have not purchased or tried any of their products. Our review is based entirely on information which is publicly available on the internet. We appologize if any of the information we relied on is out of date or inaccurate

What is the Advocare Business Opportunity

If you've met an Advocare distributor, or a member of any MLM, then you have most likely heard how this could be a potentially life changing opportunity which could be your key to financial freedom. While statements like this may be true, the same could be said about buying lottery tickets.

On their website, they explain that there are 5 ways to earn with Advocare. Like all MLMs, they explain that making sales isn't the only way to profit from Advocare. You can also generate income if you recruit others and build a downline. The 5 ways to earn with Advocare are:

1. Retail Profits

2. Wholesale Commission

3. Overrides

4. Leadership Bonuses

5. Incentives

To find out more about how you can make money with Advocare, we read through the 2017 Advocare compensation plan. We will look at each of the 5 ways to earn in more detail below:

1. Retail Profit

According to the compensation plan, 'retail sales are the simplest way to earn income with Advocare'. Distributors can purchase products directly from Advocare at a price which is between 20% and 40% below the suggested retail price.

All you have to do make a profit, is buy the products then find customers who are willing to buy them from you at the retail price. Remember their retail price is just a suggestion so you can set your own prices and adjust this profit margin.

The strategy of adding a profit margin is a simple one. It's been used for centuries by every salesperson who ever attempted with a career in sales. We are willing to assume that salespeople have never had a 'stable income'. It's the kind of job where some earn a fortune, while the others (who might even be sitting at the desk right next to them), struggle to make ends meet.

2. Wholesale Commission

This is the 'passive income' which Advocare will pay you when people in your downline buy Advocare products. The amount you earn is based on the difference between your discount levels. For example, if you qualify for a 30% discount, and your new recruit qualifies for a 20% discount, then Advocare will pay you this 10% difference on any products purchased by the recruit. You will not earn any wholesale commission from members in your downline who are at at the same discount level as you.

Wholesale commission is also paid on any products ordered by your preferred customers. A preferred customer has paid a small joining fee so they can buy products directly from Advocare at prices 20%-30% below the suggested retail price.

All new distributors and preferred customers automatically qualify for a 20% discount. You can 'qualify' for larger discounts when you have generated enough Personal Volume (PV) on products you purchase or Group Volume (GV) on products purchased by your downline.

Your combined PV/GV is the total recommended retail value of all Advocare products ordered by you and your downline. As your PV/GV grows, you will qualify for larger discounts. As the saying goes, you can save money when you buy in bulk.

Your discount level is based on your cumulative PV/GVover up to 6 pay periods. There are 24 pay periods per calendar year with Advocare. Pay periods end on the fist and the third Tuesday of every month. This means that your discount is based on the total PV/GV you have generated over three months.

The table below shows the current PV/GV qualification levels needed for each discount level: