Omnilife: An MLM Empire Built by Jorge Vergara


Omnilife Group, a Mexican company, has made a name for itself as one of the most successful MLM companies in Mexico and Latin America. The company is dedicated to manufacturing and marketing nutritional and personal care products.

In this article, we delve into the performance, products, and marketing strategies of the company.

We also explore the legacy of the visionary entrepreneur, Jorge Vergara, who founded the company and turned his golden dream into reality.

Insights

  • Omnilife, a Mexican MLM firm, offers various health products and achieved $584m in revenue in 2022.
  • Founded by Jorge Vergara, Omnilife continues to thrive under his son’s leadership.
  • Omnilife employs a multi-level marketing strategy, providing comprehensive support to distributors.

Section 1 – The Company

In this section, we examine everything that makes this company so special, including its market performance, history, and more.


Overview of Omnilife

The official company name is Omnilife Group, S.A. of C.V., or Grupo Omnilife, S.A. de C.V. (Omnilife USA, Inc. in the US).

Basically, Grupo Omnilife is a Mexican multilevel marketing company that manufactures and markets nutritional and personal care products.

The company develops, manufactures, and finally markets nutritional drinks, foods, and dietary supplements globally.

It offers vitamin and mineral supplements, weight-loss products, and a line of beauty care products to customers in Mexico, the United States, and Central and South America.

It has several subsidiaries, including Seytu (offers personal care products), Nfuersa, Club Deportivo Guadalajara (an important football club in Mexico), OML, Omnia (offers financial tools), Educare+E (an academic institution in Latin America), and Jorge Vergara Foundation (helps vulnerable people through sports, education, and health programs).

Market Performance

Omnilife was recently ranked in the 20th position in the 2023 DSN Global 100 List of the top direct-selling companies based on revenues worth $584 million in 2022. The company had previously recorded revenues worth $563 million in 2021.

This makes it one of the most valuable companies in Mexico and Latin America.

It has a global presence across 19 countries, including Mexico, the United States, Peru, Ecuador, Brazil, Colombia, Guatemala, Argentina, Bolivia, Costa Rica, Nicaragua, El Salvador, Chile, Uruguay, Panama, Dominican Republic, European Union, Paraguay, Russia, and Nigeria.

Since it’s not a publicly traded company, the company doesn’t release profit figures or audited financial statements.

History

Jorge Vergara Madrigal was the visionary entrepreneur who founded Omnilife.

Vergara had several false starts before becoming one of the first Herbalife distributors in Mexico. He then set up Omnitrition USA in 1989, teaming up with three former Herbalife distributors. He had three employees, one product, six distributors, and a USD 10,000 investment.

On September 11th, 1991, they founded Omnitrition de México, which eventually became Group Omnilife.

Their key advantage was disbursing commissions every fortnight, unlike monthly payments from other US-based MLM companies.

Soon after, Vergara’s partners left, and in 1994 he changed the name to Omnilife. Despite his passing in 2019, Jorge Vergara’s legacy as a one-of-a-kind entrepreneur and his golden dream continue to impact many people worldwide.

Founder, CEO, and Owner of Omnilife

Jorge Carlos Vergara Madrigal founded OMNILIFE when he was only 22 years old. He lived from 3rd March 1955 to 15th November 2019.

Omnilife is now run by the founder’s son, Amaury Vergara Zatarain. He is the President of the Board of Directors and General Director.

This corporation is currently owned by the heirs of Jorge Vergara, and the company headquarters is located in Mexico, at Av. Inglaterra 3089 I, Guadalajara, Jalisco, Mexico.


Section 2 – Business Model

This second section uncovers the inner workings of Omnilife’s marketing strategy, with a detailed look into the business opportunity offered to independent distributors.


How Omnilife Markets Its Services

This company uses multilevel marketing, by recruiting people who sell their products and onboard other sellers. It has a primarily Spanish-speaking customer base throughout Central and South America, the US, Western Europe, and Russia.

The Total Number of Omnilife Distributors

Although Omnilife hasn’t provided a specific number of its sales force, the Direct Selling Association reveals that the company has more than five million independent distributors, worldwide.

Omnilife’s Compensation Model Explained

The company’s last publicly available compensation plan comes from the year 2016.

In this plan, sales distributors advance through the following 17 levels based on the relevant requirements:

Phase 1 (beginning as a consumer):

  • Bronze Distributor: 300 personal points (PP) each month
  • Bronze Premier (BP): 300 PP and 1 downline with one Active Bronze or higher
  • Bronze Elite (BE): 500 PP and 1,500 GP (Group Points), plus 1 line with one Active Bronze or higher
  • Bronze Supreme (BS): 800 PP and 2,000 GP (Group Points), plus 3 lines with one Active Bronze or higher in each.

Phase 2 (evolving to a full-time business):

  • Silver Premier
  • Silver Elite
  • Silver Supreme

Phase 3a (a team leader leading a small team):

  • Gold Premier
  • Gold Elite
  • Gold Supreme

Phase 3b (a leader developing new leaders):

  • Diamond Premier
  • Diamond Elite
  • Diamond Supreme

Phase 3c (double diamond):

  • Double Diamond Premier
  • Double Diamond Elite
  • Double Diamond Supreme

Phase 3d: (triple diamond):

  • Triple Diamond Supreme

And here are the three main commission and bonus structures for the different distributor levels:

1. Level override chart:

2. Generation override chart:

4. Diamond premier generation override chart:

How to Make Money on Omnilife

Recent earnings details for the company aren’t publicly accessible. The last available data comes from 2016.

In the 2016 compensation plan, independent distributors have the following earning options:

  1. A 50% discount on purchases for retail sales.

This is based on the following sliding discount scale.

Personal Points Needed for DiscountDiscount
0 – 99920%
1,000 – 1,99925%
2,000 – 2,99930%
3,000 – 3,49935%
3,500 – 3,99940%
4,000+50%
  1. Overrides:

Earn up to 10% from your first-level distributors, 8% from the second-level, and 4% from the third level.

  1. Silver Supreme promotion bonus and leadership bonus:

This is a $500 promotion bonus when you first qualify for the Silver Supreme level.

  1. A 10% Quick Start Bonus:

Earned from purchases made by new personally sponsored distributors in the first 90 days.

  1. A 2% Team Builder Bonus:

From your total network’s purchase volume, starting with level 4.

  1. Generation Overrides:

Comes from new leaders that you develop. Your earnings increase as your title level increases.

How to Become an Omnilife Distributor

Becoming a distributor is a straightforward process. To start, you’ll acquire a registration kit through a sponsor (an existing distributor). You can purchase this kit at a distribution center, through Omnilife’s Distributor Support Center, or directly from their website.

Once you have the kit, fill out the contract with your data, and submit it. If you don’t have a sponsor, you can contact Omnilife and they will assign you one.

The Omnilife nutritional starter kit costs $41.63.

You also need to achieve 300+ personal points every month to be considered an Active Distributor.

How Much Money Can You Make With Omnilife?

The New York Times reveals that out of the $800 million in sales the company made in 2002, about two-thirds of it was paid to its 1.2 million sales representatives.

Therefore, two-thirds of the total revenue comes to about $533,333,333.33, which gives an average income of $444.44 per sales representative in 2002.

How to Sell Omnilife’s Products (Video)

Omnilife offers some guidelines and good practices to help its distributors grow and consolidate their independent business.

Distributors are encouraged to highlight the quality and ingredients of the products, as well as their personal experiences with them. Another tip is to expand their knowledge by attending Omnilife’s meetings, training, and events.

Omnilife also emphasizes the importance of ethical practices (sharing personal experiences honestly and without exaggeration) and offers materials and training to support its distributors.


Section 3 – Products

This section discusses Omnilife’s products and features an analysis of the production sources and certification of such products.


What Does Omnilife Sell?

Overall, the company offers more than 2,000 products, with plenty of vitamins and supplements sourced from all around the world.

They develop, manufacture, and market nutritional drinks, foods, and dietary supplements. They also have weight-loss and beauty care products.

Some of the top sellers include:

  • EGO PLANT – A herbal-flavored nutritional product containing herbal extracts and vitamins.
  • EGO – A fruit-flavored nutritional product containing licorice extract, choline, and glycine.
  • POWER GAIN – An orange-flavored nutritional product containing arginine, choline, and glycine.
  • OML PLUS – A fruit-flavored nutritional product containing herbal extracts.
  • CAFEZZINO PLUS – A nutritional product containing Colombian coffee, and green coffee extract.
  • AQTÚA SUPREME – A tangerine-flavored nutritional product containing ubiquinol coenzyme, and L-carnitine.

Where Omnilife’s Products are Made

The company has two huge plants in the Metropolitan Area of Guadalajara (Jalisco, Mexico), and Cali, Colombia. A third facility may be set up in the US, to keep up with demand.

For efficient distribution, the company also has 200+ Distribution Centers (CEDIS) within 20+ countries around the world. They include:

  • CEDIS AUSTIN, located at 500 E Ben White Building E, Suite 400. Zip Code 78704 AUSTIN, TEXAS.
  • CEDIS CHINO, located at 4541 Philadelphia St., Suite C-101. Zip Code 91710 CHINO, CALIFORNIA.
  • CEDIS CICERO, located at 5338 W. Cermak Rd. Zip Code 60804 Cicero, ILLINOIS.
  • CEDIS COMMERCE, located at 3426 Garfield Ave. Zip Code 90040 COMMERCE, CALIFORNIA.

How to Buy Omnilife’s Products

Note that OMNILIFE/SEYTÚ products are sold exclusively through the company’s Independent Distributors.

However, Admirable customers can use their allocated customer code and PIN to buy through the following official sales channels:

  • DCs (Distribution Centers)
  • The shopping cart inside the company’s website
  • CREO (the Omnilife Distributor Support Center)
  • A Mobile Route (exclusive to Mexico)

Admirable customers are registered by and under Independent Distributors at Distribution Centers (DCs), by calling the Omnilife Distributor Support Center (CREO), or through the company website.

Are Omnilife’s Products Tested and Certified?

Omnilife indicates that the company has been granted various national and international certifications, including:

  • International Certification ISO 9001:2015 Quality Management Systems
  • International Certification FSSC 22000 Safety System Certification (since 2012)
  • International Certification ISO 14001:2015 Environmental Quality Management
  • International Certification ISO 45001:2018 Occupational Health and Safety Management
  • Federal Certification Clean Industry Level I
  • State Certification on Environmental Commitment (in Mexico)
  • Good manufacturing practices certification. (COFEPRIS)
  • FDA inspection in accordance with CFR 21 -117 (emphasis on allergens, for export to the US, and last inspection on Dec. 2018)

Lawsuits and Independent Reviews of Omnilife

This company has faced several legal issues over the years.

Omnilife was once accused of using dubious testimonials to sell its products, with founder Jorge Vergara claiming that a mixture called Power Maker could cure everything from mental agility to injuries and even increase sperm count.

In 2014, a Channel 13 TV program called ‘En su Propia Trampa’ revealed that Omnilife’s products, which were being marketed as being therapeutic by vendors, had no healing power and were only classified as dietary supplements.

In his publications, Durk Pearson, a leading developer of Omnilife products, was also criticized for making unsubstantiated claims about their healing properties.

Despite these controversies, Omnilife has a positive rating on employee review websites like Glassdoor (4.0/5-star rating from 179 reviews) and Indeed (4.1/5-star rating from ‎263 reviews).

The My Omnibusiness app on the Google Play Store also has a high 4.4/5-star rating from 5,740 reviews.


Section 4 – Doubts and Misconceptions about Omnilife

This section seeks to clarify issues that may be confusing about the company and provide a clearer picture.


What is the Purple Day?

It is an annual event where the Omnilife Family (referred to as the purple family, based on the company’s brand color) meets.

Does Omnilife Offer Returns and Refunds?

Omnilife offers returns and refunds for its Admirable Customers and Independent Distributors. Customers can revoke their consent within 5 days of delivery and must contact the company’s hotline, email, or Help Chat to verify the request. Omnilife will then reimburse the consumer. For any damage or irregularity, customers have 3 working days to report it to the company’s hotline.


Section 5 – FAQs and Recap

In conclusion, we summarize some key concepts by answering frequently asked questions about Omnilife


What products does Omnilife manufacture and market?

Omnilife manufactures a variety of nutritional and personal care products. Their product range includes nutritional drinks, foods, dietary supplements, weight-loss products, and a line of beauty care products.

Who founded the Omnilife Group and who currently manages it?

Omnilife was founded by the visionary entrepreneur Jorge Vergara. Today, the company is managed by Vergara’s son, Amaury Vergara Zatarain, who serves as the President of the Board of Directors and General Director.

How does the compensation model for Omnilife distributors work?

Omnilife operates a multi-level marketing strategy where distributors advance through a series of 17 levels based on relevant requirements. The company provides various commission structures and bonus systems for different distributor levels.

How can I become an Omnilife distributor?

To become an Omnilife distributor, you need to purchase a registration kit through an existing distributor (your sponsor). After filling out and submitting the contract from the kit, you need to achieve 300+ personal points every month to maintain the status of an Active Distributor.


Sources

Credits (images)

  1. PM-International
  2. Herbalife
  3. Beachbody

Author: Victor Nyorani

Victor Nyorani - Network Marketing Start

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