If you’ve spent any time researching LiveGood, you’ve likely seen the word “scam.” You’ve seen the price comparisons, the huge savings on high-quality supplements, and thought, “This sounds too good to be true. It must be a pyramid scheme.”
That’s a perfectly reasonable and intelligent thought. After years of reviewing the health and wellness industry, we know that if a company has an affiliate program and a matrix, the alarm bells go off.
At The Supplement Auditor, we specialize in cutting through the hype. Our audit of LiveGood proves why they legally and ethically are not a pyramid scheme, and why their model is the future of the supplement industry.
The Honest Answer: It’s a Costco with an Affiliate Program
LiveGood is fundamentally a Wholesale Membership Club, not a Multi-Level Marketing (MLM) company.
The entire structure is based on one principle: You join to save money on products, not to sell them.
| The Acid Test | Traditional MLM (e.g., Old Model) | LiveGood (The Wholesale Club) |
|---|---|---|
| What is the real product? | The expensive “Starter Kit” or Inventory | The $9.95/month Membership Fee |
| Why does the customer join? | To make money by recruiting others | To save 70% on every single supplement |
| Mandatory Purchase? | Yes, you must buy inventory to get paid | No, you can buy nothing and still get paid from the matrix |
| Cost of Entry? | Often $300 – $1,000+ | $49.95 (One-time setup fee + first month) |
Section 1: The FTC Acid Test—Products vs. Recruiting
The U.S. Federal Trade Commission (FTC) defines an illegal pyramid scheme by one key factor: Does the company make most of its money from recruiting new members, or from selling a legitimate product to genuine customers?
Why Traditional MLMs Fail:
In a classic MLM, if everyone stopped recruiting today, the company would collapse because the real money is made through distributors buying expensive inventory to stay “active.” The distributor is the real customer.
Why LiveGood Passes the Test:
LiveGood’s main revenue stream comes from two places, both legitimate:
- Product Sales: People buying physical products (Greens, Reds, Coffee, etc.) because they are the highest quality and lowest price on the market.
- Membership Fees: People paying $9.95/month to maintain their wholesale access and savings.
The person joining is saving money, which is the primary value. The affiliate side is simply a bonus for introducing people to the savings—just like a credit card company gives you rewards for referrals.
Section 2: The Proof is in the Price Gap
This is the fastest way to prove that the company’s focus is on product value, not commissions.
Every MLM on Earth charges a massive markup because they have to pay a commission to 5, 6, or 7 people in the upline. LiveGood eliminated the upline commission structure entirely, which is why they can afford to do this:
| Product Comparison | Retail Price (Competitor) | LiveGood Member Price | Savings |
|---|---|---|---|
| High-Quality Super Greens | $79.95 – $99.95 | $18.00 | $60 – $80 |
| CBD Oil (750mg) | $60.00 | $18.00 | $42.00 |
| Collagen Peptides | $45.00 | $27.00 | $18.00 |
| Plant-Based Protein | $60.00 | $22.00 | $38.00 |
If LiveGood was a pyramid scheme focused on maximizing profit from recruiting, their prices would be higher, not radically lower, to pay the massive commissions.
Section 3: The Passive Income Component (The Matrix)
The most misunderstood component is the “Forced Matrix,” which often raises the scam flag.
The Reality: The Matrix is simply a method to reward the earliest believers. Even if you never recruit a single person, LiveGood promises you can earn up to $2,047 per month.
- Is that a guaranteed income? No.
- Is it based on recruitment? Yes, but it’s based on the entire company’s recruitment, not just yours.
The crucial point is this: You do not have to recruit to justify the $9.95/month fee. Your justification is the massive savings you get immediately. The Matrix is a side benefit, not the core business.
The Final Audit: Stop Being Scared, Start Saving
LiveGood operates on a model of radical transparency and savings that directly attacks the old, outdated, and over-priced MLM structure.
They are not a scam; they are a disruptor.
If you were already spending $50 or more per month on supplements, joining LiveGood is a financial no-brainer. The question isn’t whether it’s a scam—the question is why you’re still paying the “Influencer Tax” to other companies.
The only thing you have to lose is your inflated supplement bill.