If you’ve been on social media at all in the last few months, you’ve probably seen ads for Alku. But what is Alku, and is it a pyramid scheme? Let’s take a closer look.
What is Alku?
Alku is a direct selling company that offers a wide range of health and wellness products. These include things like vitamins, supplements, essential oils, and skincare items. The company has been around for over 20 years, and it is headquartered in Florida.
Is Alku a Pyramid scheme?
So, what about the accusations that Alku is a pyramid scheme? Here’s what you need to know. First of all, yes, Alku does use a multi-level marketing structure. This means that its salespeople earn commissions not only on the products they sell, but also on the products sold by the people they recruit to join the company.
However, just because a company uses a MLM structure doesn’t automatically make it a pyramid scheme. In order for a company to be classified as a pyramid scheme, there must be two key components:
1) Recruits must be paid more for recruiting new members than they are for selling products.
2) There must be no actual product or service being sold.
Neither of these things is true of Alku. The company’s salespeople are not paid more for recruiting new members than they are for selling products. In fact, the vast majority of their earnings come from product sales. And as we mentioned before, Alku does have actual products that it sells (unlike companies like Herbalife and Amway, which have been accused of being pyramid schemes).
So while Alku does use a MLM structure, it does not meet the criteria necessary to be classified as a pyramid scheme.
Allegations Against Alku
Alku has been accused of being a pyramid scheme because it allegedly uses recruitment to drive sales. Critics say that the company relies heavily on recruitment commissions and bonuses, which incentivizes members to recruit new members into the scheme. This creates a never-ending cycle of recruitment that eventually collapses, leaving most people who joined the scheme at a loss.
Alku’s Response to Allegations
The company denies that it is a pyramid scheme and says that it complies with all laws and regulations. Alku says that it uses a direct selling model, which is different from a pyramid scheme. In direct selling, participants sell products directly to consumers, while in a pyramid scheme, participants primarily make money by recruiting new members into the scheme.
Whether or not you decide to do business with Alku is up to you. But if you’re worried that the company might be a pyramid scheme, rest assured that it is not. Alku is a legitimate direct selling company with real products that its salespeople can earn commission on by selling to customers and recruiting new members.