Is Savvi A Scam? Apparel Pyramid Scheme or MLM Heaven?

Today we’re taking a look at Savvi.

You probably came to this page because you wonder if Savvi is legit or a scam?

No need to worry you’re in the right place for the answers to these questions.

Over the last years, I’ve been busy creating reviews about all kinds of online products.

Some turned out to be fake others were legit ways to make money online but in the process, I learned how to spot scams.

In this post, I’ll show you absolutely everything you need to know about Savvi and after reading it you’ll know exactly if you should give it a chance.

What is Savvi?

Savvi is a multi-level marketing company created in 2019 by Rachel Domingo, Jen Ashby, and Ken Porter. The company has existed before that under a few different names such as Honey & Lace and Piphany.

The company manufactures and distributes women’s casual and sports apparel. The company does this by using the MLM model where independent sellers promote and sell their products.

Savvi headquarters is located at 5445 W Harold Gatty Dr, Salt Lake City, UT 84116, USA

Here’s a video showing what Savvi is all about according to them.

How does Savvi work?

In short, Savvi is a company that distributes fitness and casual apparel. Instead of directly selling it to consumers they have chosen to use the MLM model which gives you the choice to earn money by:

• Selling the products for a commission
• Recruiting people to earn bonuses.

What is MLM?

MLM (a.k.a network marketing or direct selling) stands for multi-level marketing.

According to Wikipedia, multi-level marketing is a marketing strategy for the sale of products or services where the revenue is derived from a non-salaried workforce.

As a part of this workforce, you sell the products from the company and/or you recruit people to do the same thing. This group of people you recruit will work under you and is referred to as your downline.

The bigger your downline is the more money you can earn passively (technically speaking) because you’re getting paid a percentage based on the performance of your downline.

This also means the person that recruited you which is called your upline is making money based on your performance.

The act of recruiting turns an MLM company into a pyramid-shaped organization where the first people to join make the most and are on the top of the pyramid and those last to join are at the bottom.

Source: Wikipedia

MLMs have been around for a long time. There are Multi-level marketing companies active today that was founded in the 1950s. MLM has a lot in common with pyramid schemes which is why scammers often use MLM to disguise their pyramid scheme.

Is it absolutely necessary to recruit people? No.

You can also stick to just selling products which you can order at wholesale price (25% discount) and re-sell to make a profit. This is easier said than done for multiple reasons which are why most members try to recruit others so they can earn more money.

How to join Savvi

You have to be introduced by a member and after that, you can sign-up through the website. After that, you have to purchase one of their starters pack called:

• Good, $249
• Better, $499
• Best, $999

Each of these enrollment packages contains:

• Shopping credits
• Share codes
• Savvi set-up and back office
• shirt, hat, and water bottle

Dependent on the package you pick the number of share codes and shopping credits will differ.

You’ll go through their training after which you’re ready to start selling products and recruit people.

Is Savvi a pyramid scheme?

To answer this question we need to know what a pyramid scheme is.

What is a pyramid scheme?

A pyramid scheme is a type of scam where people are promised money for joining the scheme and recruiting other people. No selling of a product or service is involved whatsoever.

So you might be wondering where the money comes from?

The people that join are expected to pay a one-time fee and in exchange for that, they get a percentage of the fee of everyone they recruit after that.

The problem is from a mathematical standpoint it’s impossible for everyone to make money because you simply run out of people.

Take a look at this picture below showing how it’s impossible for everyone to earn money.

Source: Wikipedia

As you can see, in this pyramid model it’s required to recruit 6 people. You’ll notice from the 12th level and further, it’s not possible anymore for everyone to earn money.

The 2.2 Billion people on the 12th level need 13.1 billion recruits in total for them all to make money which is more people than there are currently on Earth.

Looking at the description of what a pyramid scheme is, Savvi cant be classified as a pyramid scheme from a legal perspective. Savvi sells products and has given people a method to make money without recruiting people.

That being said, there definitely is something a bit shady going on. Read below to find out what I mean.

Who can benefit from Savvi?

Who would benefit from joining Savvi:

• Expert salesmen
• Expert recruiters
• People that want to use Savvi products for themselves.

Who shouldn’t join Savvi:

• People that hate sales jobs.
• People that hate recruiting
• People that expect to earn passive income

Savvi Company products

A good MLM should have quality products that you can sell so I thought it was appropriate to look at what they offer. Savvi is a clothing company geared towards women that has 4 collections named Seamless, Fit, Every day, and Luxe.

Each of these collections sells products such as leggings, layers, sports bras, and tops.

The price range on some of these products is insanely high compared to other companies. $70 for a sports bra is a bit much in my opinion.

VIP Style Club

The VIP Style Club is basically a membership for $99.00 /month that allows you to purchase all products at wholesale price which consists of a 15% discount. You will also get shopping credits worth $110 every month.

Pros and Cons

Savvi Company Compensation Plan

Savvi can be considered a traditional MLM when you look at their compensation plan. You either re-sell their products for profit or you can recruit people and receive residual income, climb up the ranks, and earn bonuses.

In total there are 13 ranks that all come with their benefits such as getting a higher commission percentage of all your sales starting at 25% to a max of 50%

• Rep
• Advanced Rep
• Senior Rep
• Leader
• Advanced Leader
• Senior Leader
• Executive
• Advanced Executive
• Senior Executive
• Director
• Advanced Director
• Senior Director
• Diamond Director

How much does it cost to start a Savvi “business”?

The compensation plan is very confusing at first sight but these are the most important things to know when it comes to the cost of staying a member.

To maintain your rank you have to purchase 50QV which is $50 worth of products every month.

Team ranks also have a minimum number of products that you have to purchase as you can see in the picture below.

Add to that your enrollment packages and it will cost at least $399 in the first month and after that, $50 every month.

How much can you earn money with Savvi?

At first, I couldn’t find any document showing actual numbers of how much people are making as brand partners for Savvi on their website but luckily after some digging, I found an income disclosure.

The truth is if you want to join Savvi to earn a full-time income passively you might want to look for other make money opportunities. The average US income is somewhere around $51,916.27.

Only 2% of all brand partners are earning that much money according to this earning disclaimer. What you also have to keep in mind is that this income disclaimer is based on income, not profit.

The higher you’re up the ranks, the more you have to invest financially to stay eligible to earn money.

You could argue that this has to do with how young the company is but even the MLM companies that have been around for 50 years share similar numbers when it comes to how much their independent workforce is earning.

source: https://www.ssa.gov/oact/cola/central.html

Why aren’t people earning decent money with MLM companies like Savvi?

I have summed up the reasons why it’s hard to make money with Isagenix and MLM companies in general into 3 points.

1. MLM’s are often associated with pyramid schemes
MLM’s have a pyramid recruiting structure that you often have to join to be able to make decent money or at the very least not lose money. The problem is a lot of pyramid schemes disguise themselves as MLM programs making it difficult to differentiate the two.

This is the biggest problem why most distributors have a difficult time recruiting people. The moment people hear about how you can make money by recruiting people red flags appear in most people’s minds.

2. You have to consistently invest your money to earn commissions
You’re only eligible for bonuses and commissions if you buy their products. The bigger the bonuses the more product you have to buy. You do get discounts but if you can’t sell the products I can see you easily fall into a financial deficit (which happens to the majority of MLMs).

3. The price of the product often isn’t aligned with the market

It’s hard as a multi-level marketer to sell products because most MLM products tend to be a lot more expensive than similar products sold by non-MLM companies. This means even if you’re really good at recruiting your downline still needs to sell those same expensive products for you to make decent money.

You can see that translate in these statistics I found about Multi-level Marketing.

• Nearly half (47%) of MLM participants reported that they lost money.
• One in four (27%) MLM participants reported that they broke even (made no money).
• MLM participants are 7% more likely to declare bankruptcy during their lifetime.
• Direct sales have risen 79% in the last decade, but MLM participants continue to lose money.
• 90 – 99% of distributors in multilevel marketing only receive a couple of hundred dollars commission per year.
• Out of 33,000 interviewed, 90 people made enough money to cover costs in building their business.
• 50% of the people who start a network marketing enterprise abandoned it in the first year.

Sources:
FTC
AARP
Jobsinmarketing.io

Savvi Reviews, Opinions, and Ratings

To keep this as objective as possible I wanted to look at what others had to say about Savvi. Here are the opinions of a few YouTube Reviewers.

I also took a look at what the bloggers had to say about Savvi.

The bloggers that have reviewed Savvy and are ranked on Googled all pretty much came to the same conclusion. This can be summarized in these 3 points:

• It’s not a pyramid scheme from a legal perspective
• The chances of succeeding are extremely low
• You earn almost nothing as a member of this MLM

Overall both the bloggers and YouTubers had the same opinion of Savvi as an MLM.

My Personal Take

When you look at the definition of a pyramid scheme I can’t call Savvi that but that doesn’t mean I recommend this to anyone trying to earn money. The only people that really make money with the MLM model are people with expert level skills in sales and recruiting or people that already have an audience.

Most people without any of these things are almost guaranteed to lose money. I’d rather spent my time on an opportunity that gives me higher chances of succeeding.

Verdict

Is Savvi A scam? No, but it isn’t legit either.

It isn’t legit because of these reasons:

• Only 2% is making an average US income
• Products are hard to sell because of the price
• You have to pay to play

Savvi Alternative

Savvi might not be a great fit for everyone but that doesn't mean there are no other methods to earn money.

If you’re looking for a way to earn money online from anywhere in the world without needing to recruit or sell products.

Then I might have a solution for you.

Take a look at the recession-proof business model that has helped me and thousands of others say goodbye to the 9-5 grind and earn money on our terms.

Click on the button below to get the business model for free and also the resources needed to put this into action today!

See you at my next post!

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