Ariix OverviewFounded in 2011 in Salt Lake City, Utah, Ariix is a biotech and pharmaceuticals company that manufactures and distributes nutritional products in capsule form. The company’s name is the Latin word for gold, which is meant to describe the standard the company adheres to. Ariix focuses on four specific areas to maximize human potential: healthy body, personal development, generous heart, and strong finances.
- Veto power for distributors
- Patented compensation plan
- Commissions and bonuses
- Product discounts
Veto Power for Distributors
Ariix provides its distributors with an Ariix Bill of Rights, which gives them vetoing power on corporate decisions.
Patented Compensation Plan
Ariix patented its binary hybrid Activ8 compensation plan, which features a seven generation, multi-line structure that flows money to both the top and the bottom of the structure. Company management wanted to limit attrition by making it easier for new distributors to make money right away. The compensation plan blends together unilevel and binary aspects without the typical limitations.
After becoming an affiliate in the Ariix compensation plan, the distributor is placed in the plan with two branches underneath them. Each branch then adds two more new branches as affiliates join the team. These two branches are given a separate name by Ariix. One is called a “Power Line Branch,” which features the line with the strongest product volume. The other is called a “Pay Line Branch.”
Commissions are paid out at 15 percent on the product volume sold by the Pay Line. At the end of the month, the Pay Line is subtracted from the Power Line, and the process repeats the following month. When a distributor earns $2000 in commissions, the hybrid portion of the compensation plan kicks in. Each time a distributor reaches this amount, a second Pay Line is added.
Commissions and Bonuses
Distributors earn income through retail sales profits, unlimited base commissions, team lead bonuses, matching bonuses, payline bonuses, income position bonuses, and luxury car bonuses. Some bonuses even pay out a percentage of company-wide sales volume to top performers. New distributors are strongly encouraged to start off with an “IIX Membership,” which doubles all bonuses from that point forward.
Auto-delivery customers and distributors receive a 15 percent discount on product purchases. Distributors and members are also eligible to receive an additional 15 percent discount on top of the auto-delivery discount with the purchase of the IIX Membership. Enrollment packs valued at at least $400 automatically include the IIX Membership, which costs $150 on its own.
- Relatively expensive enrollment packs
- Low distributor earnings
- Little training and support
Relatively Expensive Enrollment Packs
Ranging from $229.95 to $1329.90, Ariix’s enrollment packs can be quite expensive. In order to participate in the compensation plan, a distributor must generate $30 in credit by personally purchasing products before being allowed to sign up as an independent representative. Representatives are required to maintain a 75 personal product volume standard on a monthly basis, which is the autoship function of the compensation plan, or pay the $150 fee to enroll as an IIX Member.
Low Distributor Earnings
The total average yearly income of all Ariix representatives in 2014 was $1194. Team leads, which make up over half of the company, earned an average of $56.31 per week. This is not enough income for one to reasonably live on exclusively.
Little Training and Support
Ariix offers little information in regards to the training and support distributors receive after enrollment. There is no evidence that new enrollees receive training in advanced sales and marketing techniques, which makes it difficult for individuals without backgrounds in these areas to be successful in the industry.