Income disclosure statements can help recruits evaluate the Jeunesse business opportunity. This disclosure report is very confusing and leaves out a lot of information. A lot more research is needed to understand what a participant can earn selling Jeunesse.
Costs and Expenses
The Income Disclosure statement mentions a few ways to participate in Jeunesse and two ways to make money. In order to earn retail profits you must purchase a starter kit which has a price of $49.95 and a product package. The least expensive product packages in the US are $199.95. This brings the total cost to get started to at least $249.90 plus shipping. There are starter packages that are over $1,000.
In addition to costs to get started is also an annual renewal fee of $19.95 (which can sometimes be waived). In order to earn commissions, a participant will need to purchase/sell around $160 in a single month and $100 every month.
Distributors do not need to sell the products they purchase in order to meet requirements. This can lead to inventory loading and bonus buying. A better system would be have requirements be based on retail sales. Having ranks and requirements based on purchases alone is a red flag.
Jeunesse makes a clear statement that “distributors will incur expenses.” The report does not give any specifics about the kinds of expenses participants might run into. Jeunesse also does not give any average expenses or other specific amounts for us to consider. With any business, keep in mind expenses like: advertising and promotional expenses, product samples, training, travel, telephone and Internet costs, business equipment, and miscellaneous expenses.
Where are all the distributors?
The income disclosure report on how much people earn is extremely confusing and pretty misleading. First, the numbers only includes people that “chose to build a team” by sponsoring someone. This corresponds to the approximately 9150 that’s referred to throughout the disclosure. Therefore, it’s not clear how many, if any, members are making money without sponsoring anyone. It’s possible to fill in some of the distributors not earning a commission, and those earning less than $245 (see below). But this isn’t the whole story.
|# of Team Builders||Commissions Earned|
Where are the non builders and the retailers?
Where are the rest of the thousands upon thousands of distributors?
But, the above numbers are simply misleading. In 2015, Jeunesse was reporting adding tens of thousands of distributors each month. The growth of the company indicates this is still likely the case. Yet the report only mentions around nine thousand distributors total.
The disclosure doesn’t clearly include distributors who didn’t earn any money from retail sales (or even the ones who did). These numbers also exclude distributors who were inactive for 90 days (even though 2017 was much longer than 90 days). Also, many distributors may have chosen to build a team but didn’t yet sponsor someone in 2017. Those distributors are not included.
Further, this disclosure is broken down by commissions earned rather than rank. This means it is impossible to tell what a distributor needs to do in order to earn these commissions. This is a red flag and bad for evaluating the business.
Buy-back and refunds
Jeunesse mentions a refund policy. However, it’s important to carefully examine the plan’s terms and conditions. For example refund does not include return shipping costs. Products returned after 30 days are subject to a restocking fee and must be “currently marketable.”
Check out the entire buy-back/refund policy in the Jeunesse policies and procedures. They can change and be updated.
The confusing report gives more questions than answers. The information is incomplete and misleading. This makes it impossible to use the Jeunesse Income Disclosure to draw conclusions about the business opportunity. It is full of red flags.
Be sure to ask a lot more questions about the Jeunesse business opportunity before getting involved. Ask for evidence backed data about costs and expenses. Also, look into what participants generally earn from selling Jeunesse products. What do most participants earn (mean, median, minimum, maximum). Try to avoid testimonials and look for evidence of the experience of most distributors.
Jeunesse has had trouble with lawsuits and had to release new/updated Income Disclosures. Based on the income disclosure and the red flags outlined here alone, we suggest avoiding involvement with Jeunesse.
We’re unaffiliated with Jeunesse. Please contact us with any questions or feedback. We’d love to hear from you.
Source: 2018 Jeunesse Income Disclosure statement (Linked from the opportunity menu on the Jeunesse site)