Agel (MLM company)
Agel Enterprises LLC
Agel Enterprises LLC, a nutritional supplement supplier, is a multi-level marketing (MLM) company and was started in March 2005 in Provo, Utah. Agel's first products shipped in May 2005 and are now sold in 53 countries. Agel sells nine different 'gelceuticals', which are the world's first nutritional supplements that are suspended in a gel. Agel also has the world's first all gel skin care line with Ageless. They are sold in single-serving 21 gram bottle-like packets that are notable for being a vitamin delivery system which doesn't need to be taken with water. The nine different products claim to target specific maladies to do things such as reduce joint pain, promote heart health, increase energy, and reduce appetite. Some of the supplements are also notable in that they are both kosher and halal certified, making them acceptable for Jews and Muslims to ingest. The company has become especially popular in Israel and many Muslim countries, such as Malaysia and Indonesia. It was recently recognized by the United Jewish Federation of Utah for its involvement in the Israeli business sector, and was awarded the Building Bridges Award by the United Jewsih Federation of Utah.
History
The founder, Glen Jensen, previously worked in other MLM companies such as Nu Skin Enterprises and Neways. He recently joined the World Federation of Direct Selling Associations. The federation consists of more than 50 national direct selling groups and one regional European association and consists of CEOs from the largest multinational direct selling companies including Nu Skin Enterprises, Avon Products, and Mary Kay. In September of 2008, the company moved its global headquarters from Provo, Utah to the Thanksgiving Point development in Lehi, Utah. This move was done to accommodate the company's rapid growth as well as to put it closer to the Salt Lake Airport, which is important given Agel's large international presence.
Business Model
To become a distributor there is a buy-in of either a Personal Pack or an Executive Kit and an initial emphasis on recruiting other people below you in order to receive commissions. Agel follows the structure of a multi-level marketing two-leg commission model where the recruited sales force are then broken down into a "stronger" and "weaker" leg. Commission based on this model is at 10% - Team Members only earning commission from the "weaker" leg of their recruited sales force. In addition, there are many other attractive bonuses that can apply as the business grows.
Criticism
Like many MLM systems, Agel has its detractors. As with many MLM companies, the complaints focus on excess predictions of sales volumes and resulting bonuses, high "buy-in" costs as well as the complex commission and reward structure.
Detractors also point out that there have been no serious independent studies to attest to the value of Agel products, that they are safe or effective when taken as directed or validating the benefits of delivery through gel.
There are also questions AbOUT the effectiveness of the Agel products. For instance, the FIT product uses hydroxycitric acid to promote weight loss. Trials were done on rats, but extrapolating that to human effectiveness has been controversial. Along with trials on rats, several human studies have been done showing lack of efficacy of low dosages of hydroxycitric acid.
Supporters and merchants who have become involved with Agel say that it is a genuine and profitable multi-level marketing business opportunity. Agel, like most established multi-level marketing companies, has taken steps to address and remove agents who have over sold the potential income opportunity. The success of a member of the Agel organization is said to depend on their own skills to sell the products, on similar skills of the sales force they have recruited under them, on the coaching given and the amount of effort and personal investment they individually put into their sales and recruiting. Actual product sales are, however not as heavily emphasised as marketing and motivational material. Heavy emphasis is placed on recruiting other agents rather than on selling the product.
Agel utilizes a binary system of compensation for its distributors. The binary system is often criticized as a more difficult method to earn money, in comparison to other compensation plans in the MLM industry.
See also
- List of multi-level marketing companies