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XanGo LLC is a network marketing company that offers a mangosteen juice supplement as well as a business opportunity to generate income selling the juice. They are one of the largest MLM companies today, with a huge distributor base and millions of dollars in revenue produced from sales.
However, there are some very real concerns about starting or participating in a XanGo business. In this article, we will go through and give an unbiased review of the pros and cons of doing a Xango business, and see if Xango is a great business opportunity…or a great scam.
- Xango – The Good
Xango was founded in 2002 by Joseph and Gordon Morton. After working for Enrich International, a multilevel peddler of vitamin products, they saw the potential of what a network marketing business could become. They looked into research of the mangosteen fruit, which they found had medicinal properties. That was enough for them to ask Aaron Garrity, an Enrich colleague, to be chief executive, and Xango was born.
The benefits of the fruit juice range depending on who you listen to. Testimonials range from the low-key (acid-reflux, headaches) to the outrageous (some fans say it can prevent cancer or reverse heart disease). The juice is generally recognized to aid health, but to what extent depends on who you are speaking with.
- Xango – The Bad
Xango is a network marketing company with a distributor base of over 800,000 in 23 countries. Distributors are compensated by reselling juice and signing up other distributors. Signup is $35, which allows someone to then purchase 4 bottles of juice for $100 and resell each bottle for $38 each.
The first flag is that the leadership in the business will not reveal how much actual mangosteen goes into each bottle, or how much they pay for the fruit. The cost of a mangosteen in places like Thailand or Puerto Rico goes for $0.05. The cost of a whole fruit here in the U.S. ranges from $4.00 up to $6.00. The fact that the company refuses to disclose the amount of actual mangosteen in each bottle is cause for concern.
Three years ago, the FDA issued a number of threats to Xango about the wording on some of its promotional literature. Turns out that Xango was not at fault, but those Xango distributors were evidently putting out controversial claims about what the product could actually do.
- Xango – The Ugly
The truly painful thing about starting or growing a Xango business is their marketing plan. Like many network marketing companies, Xango advocates that you chase your “warm market”, friends and family. They teach their distributors to hand out bottles of juice, make lists of people that they know and sell them the juice. When a Xango distributor gets the blues, they are encouraged to attend motivational meetings, where they can get together with other Xango distributors and encourage one another.
Growing a Xango business can be a great opportunity. They appear to have a good product, but there are plenty of companies that have great products, and many people that market great products never make a dime. There are also plenty of terrible products that generate millions of dollars in revenue (anyone remember the pet rock?) The difference is the marketer, and their ability to target their market effectively.
In closing, I would say that starting and developing a Xango business is lucrative if you know how to effectively use the telephone, the Internet, and other effective marketing tools. It is not a scam, but like any business, success will be determined by the skill-set of the marketer. Xango is definitely not a lottery ticket or a stock option – meaning, you do not just buy in and wait for a payout.
If someone does not have the first clue on how to market effectively, then I would suggest they either learn how to be an effective marketer, or else just use the mangosteen juice as a tasty beverage to quench your thirst.
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