Is LifoCity A Scam? (Worth Joining Or A Pyramid Scheme In Disguise?!)

It’s likely that you have come across LifoCity through an email list, on social media or got it recommended by a friend or family member.

Is LifoCity a scam? The reasons why you’re here is because you have want answers right so, that’s what I’m going to provide for you within this LifoCity review.

First and foremost I must commend you for actually doing a bit of extra research before committing to joining LifoCity. For all you could have known, the product could be a major scam so the fact you’re here right now, researching whether or not that’s the case is a pretty smart move on your part.

To be fully transparent with you, I am personally not a member of LifoCity so I can assure you that I will not attempt to sell you it unless of course it’s worth investing in.

What I will aim to do is provide you with an unbiased 3rd party look at LifoCity that will hopefully help you to make the best decision you can in the end.

PRODUCT NAME: LifoCity

OWNER/S: Doug and Sheila Braun

TYPE OF PRODUCT: CBD based MLM

PRICE: $30/year +starter kit

SUMMARY: No, LifoCity is not a pyramid scheme or a scam, in fact in comparison to other MLM’s, it’s compensation plan would make it among the most legit newer CBD MLM establishments around however, this isn’t to say I’d whole heartedly recommend joining.

There is still quite a bit of reliance on recruitment, the market that it’s in is quite competitive so it may be hard to sell these items over other more established and trusted corporations and of course the chances of success within the MLM space is pretty low too.

However, although I’d personally recommend looking into my #1 opportunity, LifoCity isn’t the worst decision you could make when it comes to newer MLM opportunities to work with.

FINAL RATING: 3/5

RECOMMENDED: No

Table of Contents

WHAT IS LIFOCITY?

LifoCity is a CBD oils based MLM founded by co-founders Doug and Sheila Braun. The company recently launched in May 2019 and is currently based out of Texas.

In regards to the history of the founders, Doug appears to have a fair bit of experience in the MLM industry as previously he was Usana’s Chief Marketing Officer from 2011 to mid 2018.

Other than this, he has also delved into other marketing and even medical ventures so it’s safe to say he is a fairly experienced entrepreneur.

One other thing worth noting is that LifoCity’s corparate address seems to be registered under Lacore enterprises which is owned by an individual named Terry Lacore.

Terry has also been around in the MLM industry for a while and this discovery does also imply that he’s at the very least a part owner of LifoCity too.

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LIFOCITY PRODUCTS

LifoCity offer two types of products also know as brands.

The first product type they offer is an item called durt. This is said to contain “the essential nutrition from the ground we tread on everyday”. This is kind of peculiar nonetheless, the product is sold as two different variations, namely Durt which retails for $64.95 and Dury Gold which retails for $69.95.

The other “brand” is Envoi, which is basically the company’s CBD oils range.

The products within this category include the following :

Full Spectrum Hemp Oil – “packed full of the beneficial compounds abundant in the hemp plant, including terpenes, cannabinoids and flavonoids”, retails at $69.95 a bottle (500 mg CBD)
Hemp Softgels with Curcumin – “combine(s) plant-based cannabidiol (CBD) and curcumin”, retails at $65.95 a bottle (25 mg per softgel)
Instant Relief – “Our soothing cream smells great, is moisturising to your skin and absorbs quickly without being sticky”, retails at $45.95 for a 60 ml tube (1000 mg CBD)

HOW DO YOU MAKE MONEY WITH PRODUCT?

As is the case with pretty much all MLM businesses there are 2 ways to make money with them, LifoCity being no exception.

1. The first method is by directly selling the product to other individuals and in return make a commission for the sales

2. You make money through your recruits and downline, by getting residual income by following and meeting certain criteria as well as make money through bonuses and incentives due to meeting company set goals.

HOW TO GET STARTED

If you want to become a LifoCity affiliate who qualifies for the MLM opportunity, you’d firstly need to invest $30 for the annual membership before purchasing one of the starter kits available :

a Brand Experience Kit for $313
a Brand Builder Kit for $589 or
a Business Builder Kit (cost not disclosed)

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COMPENSATION STRUCTURE

If you’re serious about joining LifoCity, it will be imperative that you learn the compensation plan, which is why in this section of the review I’ll be going over some of the more important elements.

Firstly, I’ll break down the different affiliate ranks you can achieve along with the criteria necessary to achieve them :

Affiliate – sign up as a Lifocity affiliate and maintain 50 PV a month
Level 1 Brand Partner – generate and maintain 50 PV a month and generate 500 PTV and 350 GV a month
Level 2 Brand Partner – maintain 50 PV a month and generate 500 PTV and 350 GV a month
Level 3 Brand Partner – maintain 50 PV a month and generate 2500 PTV and 5000 GV a month
Level 4 Brand Partner – generate and maintain 100 PV a month and generate 5000 PTV and 10,000 GV a month
Level 5 Brand Partner – maintain 100 PV a month and generate and maintain 7500 PTV and 20,000 GV a month, or sign up with a Business Builder Pack (one year auto rank qualification)
Level 6 Brand Partner – generate and maintain 200 PV a month and generate 15,000 PTV and 30,000 GV a month
Level 7 Brand Partner – maintain 200 PV a month and generate and maintain 30,000 PTV and 100,000 GV a month
Level 8 Brand Partner – maintain 200 PV a month and generate and maintain 50,000 PTV and 250,000 GV a month
Level 9 Brand Partner – maintain 200 PV a month and generate and maintain 100,000 PTV and 750,000 GV a month
Level 10 Brand Partner – maintain 200 PV a month and generate and maintain 250,000 PTV and 1,000,000 GV a month

Retail Commissions

The first way an affiliate will be able yo make money with LifoCity is through the product sales they make from retail customers. For this the compensation plan seems to employ a unilevel structure.

This simply means that an affiliate will be able to make percentage of sales their downlines infinitely horizontally but vertically the earnings will be capped. In this case the cap occurs at level 11.

As for what percentages are for each level, they include the following :

Level 1 Brand Partner – 5% on level 1 (personally recruited affiliates) and 1% on levels 2 to 8
Level 2 Brand Partner – 5% on levels 1 and 2 and 1% on levels 3 to 8
Level 3 Brand Partner – 5% on levels 1 to 3 and 1% on levels 4 to 8
Level 4 Brand Partner – 5% on levels 1 to 4 and 1% on levels 5 to 8
Level 5 Brand Partner – 5% on levels 1 to 5 and 1% on levels 6 and 8
Level 6 Brand Partner – 5% on levels 1 to 6 and 1% on levels 7 and 8
Level 7 Brand Partner – 5% on levels 1 to 7 and 1% on level 8
Level 8 Brand Partner and higher – 5% on levels 1 to 8

Level 8 brand partners are also eligible to unlock the ability to earn from levels 9 – 11 where they’ll earn a 1% commissions on retail orders too but, they have to meet the following criteria :

enroll ten retail customers who have placed an order (excludes trial packs and samples)
generate 1500 PTV and 1000 NV a month

Retailer Bonus

This is a 40% – 50% bonus paid out on the generated retail sales volume.

40% of 50% of sales volume generated by personally enrolled retail customers
5% on level 1 of the unilevel team, 10% on level 2 and 15% on level 3

Retail Commission Match

Affiliates are able to earn a percentage match on the retail commissions earned across the first three levels of their unilevel team.

Level 1 Brand Partners earn a 10% match on level 1
Level 2 Brand Partners earn a 10% match on levels 1 and 2
Level 3 Brand Partners and higher earn a 10% match on levels 1 to 3

Fast Start Bonus

This is split into 2 different sections called the the FastStart 14 bonus and the FastStart 30 Bonus. The first bonus will pay affiliates rewards after meeting the following qualifications

have generated 100 PV over the past month;
generate 800 PTV and 1000 GV; and
enroll two retail customers who have placed a product order (excludes trial packs and samples)

By achieving this, the affiliate will be eligible for the following rewards :

$250 cash
100 Life Bucks
increased enroller bonus commission rates

As for the FastStart 30 criteria, it includes the following steps :

have generated 100 PV over the past month;
generate 1600 PTV and 2000 GV; and
enroll four retail customers who have placed a product order (excludes trial packs and samples)

The rewards for this are as such :

$500
qualification for the FastStart30 Pool (1 share)
100 Life Bucks

An extra $1k bonus is in the table too as long as 5 recruited Affiliates also achieve the FastStart 30 bonus within 120 days.

There are also various other bonuses such as the 5G Champion bonus, the FastStart 30 pool, the Enroller Bonus and the Brand Champion Bonus but, I don’t think it’s worth learning these if you’re just starting out.

Of course if you still want to look at the compensation plan for yourself, click here to download the pdf file.

THE NOT SO GOOD THINGS

Recruitment Appears To Be Essential

Although LifoCity does offer individuals the ability to make money via retail sales, it’s still pretty clear to me that the you won’t really make much money at all in this manner because the percentage earned per sale is extremely low at 5%

However, I do like the fact that the large majority of its bonuses basically require that you enroll retail customers and have them purchase specific items as opposed to just earning off of a recruits autoship funds.

Nevertheless, even if this is the case, the fact is that in order to truly make the most out of the bonuses, particularly the retail commissions side of things, you will need to recruit a ton of individuals.

That’s why I’d say that if you’re not good at recruitment or aren’t willing to get good at it, you will more than likely struggle quite a bit with LifoCity.

The Market Is Quite Saturated

The thing with the CBD/ nutritional supplements market is that it has quite a lot of competition so unless a company is attacking this market at a somewhat unique angle or simply providing the best products within the niche, it’ll be quite hard for it to break through.

I’m not saying that LifoCity is necessarily a bad MLM as it doesn’t really show too many major negative points but, you’ve got to ask yourself, will people be willing to spend $60+ on these products over others?

Obviously only time will tell how things will go but, I’d definitely take the fact LifoCity is in such a competitive market into account.

The Chances Of Success Are Low

Of course because LifoCity isn’t even a year old there isn’t really any data directly from them to back this point up however, having seen tens of different MLM income disclosure statements over the years I do have a pretty solid idea as to how much money affiliates will likely make.

Generally speaking, I’ve found that only around 5% of all members tend to make $1K/month whilst 1% of all members tend to make a full time income in the $2k+/month range.

There will more than likely be fluctuations when the actual data is presented but, I doubt it’d be much better than what I’ve stated.

THE GOOD THINGS

Heavily Retail Focused

Although the opportunity is still that of a MLM, I do like the fact that enrolling retail customers pays a huge role in a large portion of the compensation plan as opposed to only recruiting other affiliates and earning from their autoship purchases and what not.

This factor alone makes it quite a promising MLM as it isn’t pushing people to recruit just so the owners can squeeze out cash from recruits through autoship plans.

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IS LIFOCITY A PYRAMID SCHEME/SCAM?

No, LifoCity is not a pyramid scheme or a scam, in fact in comparison to other MLM’s, it’s compensation plan would make it among the most legit newer CBD MLM establishments around however, this isn’t to say I’d whole heartedly recommend joining.

However, although I’d personally recommend looking into my #1 opportunity, LifoCity isn’t the worst decision you could make when it comes to newer MLM opportunities to work with.

MY PERSONAL RECOMMENDATION

I personally will always recommend against using a MLM business model to make money, not because you can’t make money through it (you totally can) but, the system has always seemed shady to myself and is kinda synonymous with the likes of a pyramid scheme or scams (MOBE and Digital altitude).

Instead I prefer working with something created through ones own means and is ultimately dependent on yourself and your work ethic alone.

This method I’m talking about is affiliate marketing.

The reasons as to why I recommend it over MLM based structures are because

– there is no need to recruit constantly

– it is a legitimate method that has been working consistently and continues to grow as more businesses want individuals to promote products

– and because it is free to start up, no unnecessarily large start up funds needed.

The service I recommend is Wealthy Affiliate. It’s free to sign up to and will get you set up and ready to start your affiliate marketing journey within minutes, as it did for me when I begun my journey.

If you have any questions that you would like to ask me regarding LifoCity, feel free to do so in the comments section below and I will get back to you as soon as I can. If you have your own thoughts about LifoCity and would like to talk about it, again feel free to do so in the comments below!

Thanks

Amhil