Agel (MLM company)

From Wikipedia, the free encyclopedia

Agel Enterprises LLC
Type Private
Founded 2005
Headquarters Provo, Utah
Key people Glen Jensen, CEO
Craig Bradley, President
Darren Jensen, COO
Industry Multi-level marketing
Employees Over 130
Website www.agel.com

Contents

[edit] Agel Enterprises LLC

Agel Enterprises LLC, a nutritional supplement supplier, is a multi-level marketing (MLM) company and was started in March 2005 in Provo, Utah. Agel's first products shipped in May 2005 and are now sold in 43 countries. [1] Agel sells nine different 'gelceuticals', which are the world's first nutritional supplements that are suspended in a gel. [2] They are sold in single-serving 21 gram bottle-like packets that are notable for being a vitamin delivery system which doesn't need to be taken with water.[3] The nine different products target specific maladies to do things such as reduce joint pain, promote heart health, increase energy and reduce appetite. The supplements are also notable in that they are both kosher and halal certified, making them safe for Jews and Muslims to ingest. Because of that, the company has become especially popular in Israel and many Muslim countries, such as Malaysia and Indonesia. [4] It was recently recognized by the United Jewish Federation of Utah for its involvement in the Israeli business sector. [5]

[edit] History

The founder, Glen Jensen, previously worked in other MLM companies such as Nu Skin Enterprises and Neways. [6] He recently joined the World Federation of Direct Selling Associations. The federation consists of more than 50 national direct selling groups and one regional European association and consists of CEOs from the largest multinational direct selling companies including Nu Skin Enterprises, Avon Products, and Mary Kay. [7] It was recently announced that in September of 2008 the company will be moving from Provo to the Thanksgiving Point development in the Lehi community of Salt Lake City. This move was done to accommodate the company's rapid growth as well as to put it closer to the Salt Lake Airport, which is important given Agel's large international presence. [8]

[edit] Business Model

To become a distributor there is an initial buy-in and an emphasis on recruiting other people below you in order to receive commissions. This follows the structure of a multi-level marketing two-leg commission model where your recruited sales force are broken down into a "stronger" and "weaker" leg. Commission is 10%, but only of the "weaker" leg of your recruited sales force, making the commission actually 5% of total sales and very likely less. [9]

[edit] Criticism

Like many MLM systems, Agel has its detractors. As with many MLM companies, the complaints focus on excess predictions of sales volumes and resulting bonuses.

Supporters and merchants involved with Agel contend that it is a genuine and profitable multi-level marketing business opportunity. Agel, like most established multi-level marketing companies, has taken steps to address and remove agents who have over sold the potential income opportunity. The success of a member of the Agel organization depends on their own skills to sell the products, on similar skills of the sales force they have recruited under them, on the coaching given and the amount of effort they individually put into their sales and recruiting.

Some detractors feel the gel technology adopted by Agel doesn't actually disperse vitamins into the body faster, but rather was developed as a replacement for liquid children's medicine that is dispensed on a spoon to inhibit spillage.[10]

There are also questions about the effectiveness of the Agel products. For instance, the FIT product uses hydroxycitric acid to promote weight loss. Trials were done on rats, but extrapolating that to human effectiveness has been controversial. [11]

Agel, puts the disclaimer on their website on each product description page "These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease." meaning Agel's products fall under the umbrella of "dietary supplements" that many dubious products hide under to escape FDA scrutiny.

[edit] References

  1. ^ Agel Company FAQ
  2. ^ Agel Product List
  3. ^ Josh Loftin "Provo firm draws 4,000 vitamin distributors", Deseret Morning News, Oct. 13, 2007
  4. ^ Josh Loftin "Provo firm draws 4,000 vitamin distributors", Deseret Morning News, Oct. 13, 2007
  5. ^ Josh Loftin "Provo firm draws 4,000 vitamin distributors", Deseret Morning News, Oct. 13, 2007
  6. ^ Glen Jensen Executive Bio History
  7. ^ "Local News and Notes", Daily Herald, Jan. 3, 2008
  8. ^ Grace Leong "New business park planned at Thanksgiving Pt.", Daily Herald, Aug. 28, 2007
  9. ^ Agel compensation plan
  10. ^ Ripoff Report
  11. ^ Pubmed website

[edit] External links