The business model

Is Shaklee an MLM?

I am a Shaklee distributor, so you have every reason to discount what I say here. I am going to answer it straight anyway, because you will find the answer in about thirty seconds elsewhere and there is no version of this where dodging helps you.

MLM and pyramid scheme are not the same claim

People use these interchangeably and they should not. The US Federal Trade Commission’s test is about where the money actually comes from. In a pyramid scheme, participants are paid mainly for recruiting more participants, and the product is a fig leaf. In a lawful direct sales business, the money comes from selling products to people who actually want them.

I am not going to hand you a verdict, because a distributor declaring her own company legitimate is worth nothing. What I can tell you is the verifiable part: Shaklee has been operating since 1956, it manufactures physical products, and Shaklee Canada Inc. is a member of the Direct Sellers Association of Canada. The FTC guidance is linked below. Apply it yourself.

What this means for you as a customer

Almost nothing, honestly. Most of the people I deal with have no interest in the business side and never encounter it. You order at the listed price, it ships from Shaklee, and I am the person you call when you want to change something. There is no membership requirement, no minimum, no autoship you have to argue your way out of, and no pitch.

If the model itself is a dealbreaker for you on principle, that is a completely reasonable position and I am not going to try to talk you out of it.

The criticism is real and you should read it

There is a lot of criticism of Shaklee and of direct sales generally, much of it on Reddit. Some of it is about high-pressure distributors, which is a fair complaint about a real thing. I would rather you read it now than feel it was hidden from you. I have set out where to find it, alongside the independent product testing, on Shaklee reviews.

For the separate question of whether the company itself is above board and still operating, see is Shaklee legitimate. For what the products are actually tested for, seeShaklee quality and testing.

Questions people actually ask

Is Shaklee an MLM?

Yes. Shaklee is a direct sales company with a multi-level compensation structure, which is what people mean by MLM. Wikipedia describes it as an American manufacturer and multi-level marketing distributor, and Shaklee Canada Inc. is a member of the Direct Sellers Association of Canada. Anyone telling you otherwise is being slippery with words.

Is Shaklee a pyramid scheme?

Those are different things and the difference is worth understanding rather than taking my word for. The US Federal Trade Commission draws the line at where the money comes from: in a pyramid scheme, participants are paid mainly for recruiting other participants, and the products are incidental. Shaklee sells physical products to people who are not distributors and have no interest in becoming one, which is most of my customers. I have linked the FTC guidance so you can apply the test yourself instead of taking a distributor’s word for it.

Do I have to join anything to buy Shaklee products?

No. You can order as a customer and never hear a word from me about joining. Membership exists and it gets you member pricing, but it is optional and it is not a recruitment step. I am not going to pitch you.

Are you going to try to recruit me?

No. If you ask me about it I will answer honestly, including the parts that are not flattering. Otherwise I sell products to people who want products, and that is the whole relationship.

Why should I buy through a distributor at all?

Because Shaklee does not sell through stores, so a distributor is the route that exists. What you get from a good one is help narrowing a large catalogue down to the one or two things relevant to you, and a person to call when something needs changing. What you should not get is pressure, and if you do, find a different distributor.

Does it cost more to buy through a distributor?

No. You pay Shaklee’s listed price either way. The distributor is credited for the sale by Shaklee; the price you see is the price you pay.

Sources