Is Magnabilities A Pyramid Scheme? Click Here To Find Out!
Welcome to my "Magnabilities Reviews" Post!
Selling pieces of jewelry seems to remain a trend these days. But does it work? Can you make money from it, given that you have to sign-up for multi-level marketing? This is what we’re going to find out.
Before we dig into that, let me first warn you about MLMs. The Federal Trade Commission revealed that most of the members won’t get any profit in this trade, allowing the uplines to earn more than the downlines.
Obviously, when you join this company, you belong to the latter. Unless if you step up your game and become a giant against hundreds of uplines competing for rewards.
Otherwise, you should search for other income sources and ensure 100% profit on your end. If this entices you, I suggest you take a look at Roope’s step-by-step process to make this possible.
Now, we’re all set. Let’s get started. Shall we?
Magnabilities Review - Quick Summary
Founders: Susan Fahsel, Kari & Brent Hoke
Type: Multi-Level Marketing Company
Price: $50 to $249 depending on starter kit
Best for: It’s an option for individuals who wanted to explore their marketing expertise because it requires effort on sales to make sure you earn more, getting returns from the investment.
Summary: Magnabilities is a Washington-based multi-level marketing company founded in 2009 by 3 people. It existed from the concept to provide personalized jewelry pieces promoting income opportunities while having fun.
Is Magnabilities Recommended? No. We don’t recommend multi-level marketing as your main income source because, in most cases, you lose more money than your expected returns. Learn more about this towards the end of the post.
What Is Magnabilities?
Established in 2009, the concept of providing personalized jewelry pieces started from Susan Fahsel’s creative idea.
Convinced that her idea could impress more women, she approached her neighbors, Kari and Brent Hoke, a married couple.
Impressed, the idea became Magnabilities today. Similarly, I reviewed another multi-level marketing that does the same concept, Jewels By Park Lane, a 63-year-old multi-level marketing company.
As far as my research goes for these kinds of companies, women are the best target market as jewelry and fashion are niches that attract them. Obviously, you don’t expect men in this industry. Perhaps, a few.
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When it comes to their products, you could expect personalization. A well-known gimmick to attract potential members. This is often seen from these MLM companies.
What makes Magnabilities is the use of magnetic jewelry, which is said to have health benefits. For example, it improves blood circulation.
According to research, magnetic jewelry draws blood to the arm and wrist due to the presence of iron in the blood.
Consequently, many people questioned its ability to improve people's lives that way as Livescience wrote.
Based on their findings, the so-called therapeutic magnets are used as an element in a jewelry piece regardless if it's a bracelet, ring, or shoe inserts. Whatever the form is, the content may have a positive effect on those who wear them.
However, studies suggested that these aren't effective as is. There could be a potential placebo effect, leading to improving one's health by faith.
If you examine the piece itself, it may or may not have the content that promotes blood circulation and a healthier body.
Due to the controversy, it has already created an issue whether it's worth your while to sell these pieces of jewelry.
If you, as a seller, don't have faith in your product, you won't get sales. That's simple as it sounds logical.
MLM Legal stated that this is what Magnabilities sell mostly to its stakeholders. Based on their records, it showed that they have a wide range of products from necklaces, base jewelry, inserts, and gifts for young adults.
They promote personalized jewelry that creates a placebo effect on people who use it due to the inclusion of magnetic yet interchangeable pieces.
Now, the question is, "Can you really make money from this company?"
Magnabilities wrote that as soon as the member signs-up and pays $50 investment, they could get $300 worth of pieces to sell. At the same time, the company guarantees 30% earnings on your account.
Further, you can earn an additional 10% per month from the retail sales bonus as long as you meet the required Personal Value (PV).
The compensation plan (as you see below) revealed that the minimum PV you need to achieve to earn bonuses is 400 PV within 90 days (3 months). Once you do, you have a 5% fair share for having 1 Active Leg on the first level.
You only reach Level 2 overrides when you earn 600 PV consistently within 3 months on your account. As you go higher, you gather 2 active legs and beyond.
Below you see the compensation plan for your reference.
In addition to the potential income from your sales, you also get commission and team overrides in which it's divided into the jewelry piece and its inserts, which are the ones you use to interchange, creating a new design.
Magnabilities assures its members that they receive commissions worth 25% from each jewelry piece and 40% from the inserts.
Overrides range between 5% up to 10% depending on which level you belong from Levels 1 to 3. This is because the company follows a binary payout system from 1 active leg to as much as 5.
Hence, the overall potential income you'd get from this company is around 25% to 60% as an average retail profit. Plus, you get 10% overrides for your team and an extra 4% for the overrides within the organization.
Does this remain attractive to you? It sounds like. But let's see if Magnabilities is the best MLM you could find to sell personalized jewelry pieces to your clients.
Who Is the Magnabilities For?
As I mentioned earlier, joining any multi-level marketing company for the sake of earning an income is tricky.
You wouldn’t know what lies ahead, given the reputation acquired from negative feedback from many victims around the world.
The negative impression of MLM affects your decision to join Magnabilities even more due to the claims of its health benefits. Yet, the decision lies in your hands.
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If you think you can impress people with your sales talk, you can try. Go ahead. Otherwise, it wouldn’t be the best income opportunity you’d get.
As far as my research for companies like these, questions regarding the quality of the jewelry remains a question. It’s whether they are of high-quality and are of up-to-date designs.
With the help of Susan Fahsel, the designer, this sector could be assured. The rest of the concerns such as the compensation plan and income returns are other stories to tell.
Nonetheless, if you think you’re a good candidate, go ahead and try. If not, Roope created a step-by-step process on how to make good money online by getting his free Ultimate Make Money Guide and get started today.
Pros & Cons of Magnabilities
These became my basis to determine the pros and cons of joining the company as a member...for life.
1. Fair & Diverse Compensation Plan
Regardless of how Magnabilities measure the PV, the members have an option to strive harder to get higher ranks and earn more money or remain in the status quo.
On top of that, they pay out around 25% to 60% commissions on product sales with an additional 10% from the override commissions for the sponsored team and 4% from the organizational sales.
Additionally, Magnabilities credit host parties as an add-on to the sales volume which is around 25% average credit.
2. Diverse Products
With over 250 products in its catalog, Magnabilities caters to the fashionable patented jewelry designs with customization, allowing its customers to create a unique look of its designs.
3. Online Mix-And-Match For Designs
The customers can customize the jewelry depending on their taste. The company guarantees freedom to create the look of the piece they want. They can do this online before the purchase.
4. Lead- & Nickel-Free Jewelry Pieces
Not all people can wear pieces of jewelry filled with lead and nickel content. Some have allergies to these minerals.
Thus, Magnabilities made sure the pieces (inserts) don't have these to guarantee comfort for its customers.
Each piece costs around $17. It doesn't cost that much for a piece you truly own. That's the best part. Others like Stella And Dot may have to spend so much to have this opportunity to design their own jewelry for the sake of it.
6. Diverse Options to Join
Aside from its basic $99 start pack, they also have $249 which consists of a party kit that includes the following:
- Sample products
- Business tools & training
- Access to a personalized website for 30 days without additional costs
These play the foundation for every member's success as they can go through lengths such as having in-home party demonstrations with its customers to have fun while designing their own pieces of jewelry and make money from it.
1. Inconsistent Minimum PVs
According to their website, Magnabilities don't require monthly minimum PV requirements to remain a member and continue selling the magnetic pieces of jewelry.
However, Best Company emphasized that they require at least 400 PV to as much as 1,200 PV per month to sustain the membership.
2. No Money-Back Guarantee
Dissatisfied customers do not need to return the products because Magnabilities failed to assure money-back guarantees.
Consequently, you start wondering why they didn't do. Is it because they aren't confident with what they're selling to their customers around the world? That I don't know.
"Magnabilities does not offer a money-back guarantee. This can be frustrating for customers who may need to return the products," Best Company unveiled.
3. Not BBB-Accredited
The Better Business Bureau (BBB) failed to recognize Magnabilities as an accredited company, although they garnered an A+ rating from them.
This is particularly based on the customer reviews in which the company only got 1 out of 5-star ratings from the customers.
4. More Workload For Members
This is true to most of its members, who ranted on public forums like Indeed. A former employee mentioned that Magnabilities added more workload to them, which requires more time to accomplish leaving only a few spare time to sell.
"There are so many products that even competent employees feel pressed for time," a former administrative assistant complained.
A current employee supported the claim. She said that working in Magnabilities tends to have more challenges than expected.
"[I] don't even think that the job will get easier with time. The challenges never end, and there is barely any support from others because everyone is busy tackling their own challenges," she ranted.
Is Magnabilities a Scam?
The Federal Trade Commission (FTC) defined companies with shady tactics and those who don’t. By definition, a certain company will be considered as a scam if:
- They ask for more purchases to guarantee more income.
- They focus on recruitment than product sales for profit.
What caught my eye is that the FTC covered the company's emotional maneuver to its members as a form of manipulation.
"Promoters play on your emotions or use high-pressure sales tactics, maybe saying you'll lose the opportunity if you don't act now and discouraging you from taking time to study the company," the FTC wrote.
Magnabilities may not encourage its employees to focus on recruitment to guarantee more income. Yet, they set a minimum standard of 400 PV to remain an active member for the sake of access to the products.
They may not explicitly say this but it's obvious. The site information about having no minimum requirements and the actual report from reviews don't match at all.
If you take a closer look at their compensation plan, you can't help but purchase more to gain more from the company.
Because of these reasons, Magnabilities is a potential pyramid scheme. TruthInAdvertising.org reported that TINA.org, a separate organization that studies income claims, took down one of the company's inappropriate income claims as of August 2018.
Overall, spending a lot of time working and selling Magnabilities products aren’t worth your while. It’s best to search for other income opportunities that allow you to earn more without risking too much.
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Conclusion - Is Magnabilities Worth It?
Based on my research, it’s not going to be worth your while for several obvious reasons. They may offer an enticing compensation plan; however, it’s not an assurance you’re getting your money back.
Their current and former employees revealed that the company overloaded them with extra work to accomplish soon, leaving no room for selling their products on hand.
The problem is that Magnabilities has already set the minimum PV every month. How could they guarantee they could reach 400 PV if they don’t even have the time to focus on it, right?
Now, it’s your turn to decide whether investing your money, time, and effort with the company is right for you or not. If you can’t decide right now, it’s best to see our #1 recommended income opportunity you shouldn’t miss, my friend.
It’s up to you to decide.
Now that I shared my thoughts on my “Magnabilities Reviews” post, it’s time to turn the table and ask about your experience, in general.
What kinds of experiences do you have with making money with Magnabilities? Is it worth your time, money, and effort?
Do you prefer to begin earning your first passive income through affiliate marketing or you instead invest your time, money, and effort into income-generating opportunities like this?
Let me know in the comments below! 🙂
If you need any help to get started making money online, don't hesitate to ask in the comments below and we'll be happy to help you out!