Company Name: GanoLife
Costs: $200, $500 or $1,000
What Is It
A MLM selling instant coffee, supplements and a few other random products.
GanoLife emphasizes the coffee component of its range and members end up trying to sell overpriced products to consumers that are often strongly brand loyal. Combined with the challenges inherent in sales and distribution, this makes it very hard to come out ahead with the company.
Even though the marketing emphasis for the company seems to be on coffee, the company has a number of different types of products. These include coffee, hot chocolate, tea, supplements, shampoo, conditioner and toothpaste.
The product mix is a bit of a strange one, especially as the company only has around 16 individual products.
Most of the coffees that the company produces are instant coffee and they don’t really seem that much different than other brands. For example, this is the claim for their black coffee:
That entire claim is pretty much meaningless because of that little word ‘like’. So, the company isn’t actually calling their product artisan quality or from a superior roast, even though they are certainly implying these things.
It is worth noting that the products do have Ganoderma Lucidum in them, although the company doesn’t say how much is present. This compound is supposed to offer health benefits, although the evidence for this role is very limited.
The big question, as with any MLM, is whether the products are any good. This is always hard to determine, because most people review the company, rather than the individual products. Some of GanoLife’s products are sold on Amazon, although the number of reviews for them is pretty low. For example, the breakdown below is for the Ganolife Black coffee.
This does suggest that the coffee tastes nice, but it’s also likely that at least some of the positive reviews come from distributors and are biased because of that. The worst thing is that many people will end up going into business for GanoLife without ever finding out whether they like the product first.
There is even less information on the other products from the company, like the supplements or shampoo. However, there really is only so much that companies can do to make supplements different. Odds are, the supplements from GanoLife are going to be similar to any other supplement out there.
To be honest, I almost bought some GanoLife coffee from Amazon last year just because I like coffee and didn't know it was MLM. I can't remember why I didn't buy, but ended up going with another brand due to price. This is a positive sign for the product (the fact that it can be sold without being tied up in a recruitment scheme), which is something I normally don't say. Most MLMs focus on recruiting instead of product, which is a huge mistake IMO.
Coffee might be very popular, but there’s also a lot of competition. How expensive the product is will affect how easy it is to sell. In this case, GanoLife sells its coffee at a retail price of $28.
With 30 sachets of coffee per box, this means that consumers are paying close to $1 per cup of coffee. That’s a pretty high price for instant coffee. While some people might be prepared to pay this, many people would not be.
Across its site, GanoLife really does focus on marketing and language, making their opportunity sound amazing. You can see this in the language right at the start of their explanation for how the company started. Yet, this language is hollow and the company doesn’t meet the claims that it makes.
The thing is that sentence above, and most of the marketing on their site, doesn’t really say all that much. It offers no indication of what the company actually sells or how they are innovative and unique.
That part is conveniently left out of all of the marketing.
Of course, this isn’t actually too surprising, because, as I will show you, GanoLife isn’t actually an innovative or unique as the company would like to think. Instead, the company is using the same network marketing (or MLM) model that countless companies repeat.
The company promotes three different sets of ways to earn money, one immediate, one short-term and one long-term. There are too many different components of this for me to go into detail about all of them, but I will attempt to offer an overview.
The immediate category of the plan includes making money by selling products, as well as bonuses from getting others to buy starter kits from the company. Members can also earn points from having autoships set up, but it takes six months before members can redeem them.
The bonuses in the other categories focus on growing your business. For example, the first one refers to a binary bonus. This means that you work on growing two sides (or teams) in your business. Doing this involves recruiting people and supporting them recruiting others and so forth down the line.
This is also the general pattern of the business, where your emphasis is on recruiting others and in turn getting them to recruit. Along the way, you also need to get certain amounts of sales at the different tiers of your business.
Making this model successful can be challenging because there are so many different places for things to go wrong. For example, you need a certain team size, certain ranks within your team and certain amounts of sales to meet bonuses.
You also have to heavily rely on the people you recruit and their success. Chances are, at least some of them won’t live up to what you need and expect of them. Even if they do, getting them to that point tends to require a lot of work.
It’s Harder Than It Looks
Companies like GanoLife are so misleading. They hype up all the potential of the opportunity, but completely underestimate the challenge involved in being successful.
With this company, the main product to promote really is the coffee. Coffee seems like an easy sell, because most adults drink coffee. In reality though, selling coffee is more challenging than most other products.
The problem is that people tend to be very brand loyal about their coffee. In fact, many people end up drinking the same brand (and even the same flavor) of coffee for decades, regardless of any changes in price.
Likewise, people are also picky and emotional about the taste of their coffee. So, even if you can successfully introduce someone to GanoLife coffee, there is a decent chance that they won’t like it.
These issues make selling the products from the company pretty challenging – and that’s only half of the story.
Most of the money in any MLM comes from recruiting others into the company. You can make money just from sales, but that money is always going to be limited. Instead, the company reserves most of its bonuses for people who recruit, to try and get as many people as possible recruiting.
Recruiting is no easy feat.
Most people aren’t going to be interested in the time and effort involved in the business, regardless of how much money they could earn. Additionally, many people that you do recruit will end up getting disinterested or will simply never be successful.
So, you have to support, teach and babysit the people on your team, while constantly finding new places to recruit people from.
Now, you probably don’t have much experience in recruiting, training or leading people, so there is a very steep learning curve before you even have a chance of being successful with the company.
A final challenge is staying active. To be able to make money from the company, members have to be both active and qualified. Doing so includes having a personal order of 50 PV as well as two people that they have enrolled under then, also at 50 PV.
PV refers to point volume and you get this each time you buy product. To put it in context, the PV works out to roughly 1 point per dollar spent. So, you have to spend at least $50 in products every month to be able to earn money.
That makes earning money even more difficult, because keeping up with a certain amount of orders each month can be difficult. That’s especially true if you have a bad month.
Trying to be successful with this type of company always ends up being more expensive than it first appears. One part of this is the autoshipping. You are supposed to have an autoship set up with the company, which means that you automatically receive (and are charged for) product every month.
This can quickly get expensive, especially as it can leave you with product that you don’t want and aren’t having much luck selling. Hitting your PV every month can also be expensive, especially if you hit months where you are making hardly any sales.
Finally, you have to pick a ‘business builder’ pack to sign up for. These packs cost $200, $500 or $1,000 depending on which one you pick, and offer various things – although the company isn’t very clear on what most of the benefits actually mean.
If you have a good social network and people that love coffee, you might be able to make money off GanoLife. Even then, making money from the company is always going to be an uphill battle with lots of very specific criteria to meet.
If that works for you, great!
However, many people join this type of company thinking that they can make money only to find that the challenges are far too substantial. In many cases, people end up losing money.
MLM VS Affiliate Marketing
Relying on a business model that forces you to recruit is old-fashioned and much more difficult than it needs to be. A much more powerful business model is one that lets you make money simply from sales, without needing to physically promote things to anyone.
A model that works like this is affiliate marketing.
Like MLM, affiliate marketing lets you make money from selling the products from other companies. However, it is a model that puts you firmly in control and you make your sales online, rather than in person.
This makes for a much simpler approach to earning commissions. Because you aren’t having to manually find customers, it is also possible to expand your business much further than with MLM and expanding is much easier.
Whatever type of product you decide to promote, it's important to own your own website to grow your business.
Parties only work if you have a network of friends with money in their pockets. Network marketing only works if your friends are interested in joining business opportunities.
With a website you can reach the entire world, and only promote great products to people interested in what you have to say. Plus, you open up doors to multiple streams of revenue like affiliate sales, ad click revenue, paid advertising, and even selling your own digital products.